Council hears CAPER, consolidated-plan proposal that pivots housing-repair funding and seeks HUD Section 108 loan for resource center build-out

City staff presented the 2024 Consolidated Annual Performance and Evaluation Report (CAPER) and a draft 2025–2029 consolidated plan to the Auburn City Council study session on April 28, summarizing federal Community Development Block Grant (CDBG) spending and related city investments in housing stability, homelessness reduction and economic development.

Kate, Director of Human Services, told council that the city’s CAPER combines federal CDBG reporting with an overview of the city’s broader community investments in 2024. She said the city recorded about $4.7 million in total investments that year across several programs, with about $2.9 million directed to homelessness-reduction activities (including shelter funding, outreach, the Ray of Hope and Sundown shelters, utility discounts and clean-and-sober housing) and roughly $1.5 million allocated to affordable-housing efforts such as home repair programs and tax deferrals.

Staff emphasized a programmatic change: to reduce administrative fragility and contractor-registration hurdles tied to federal funding, staff propose detaching the city’s housing repair program from direct dependence on CDBG dollars and instead sustaining the program with city funds while using CDBG funding for a different capital priority — tenant improvements at the Auburn Consolidated Resource Center (ARC) on Auburn Way North.

Jody Davidson, community development program coordinator, and Jason (housing repair lead) said the housing repair program typically completes 60–65 projects per year and is considered highly effective at preserving stable housing for low-income residents. Staff explained that recent federal contractor-registration requirements (SAM.gov and related compliance) had limited the pool of willing vendors, causing project delays; shifting the program from direct CDBG dependency would, staff said, allow the city to preserve the program while reducing administrative friction.

To expand the ARC and attract more service providers, staff are pursuing a HUD Section 108 loan (the consolidated-plan documents show the city could borrow up to five times its CDBG allocation) to finance tenant improvements that would provide private interview and counseling rooms, adequate outlets, and other build-out elements staff say are needed to host more providers five days a week rather than the current limited schedule. Staff stressed the building itself is sound — this would finance interior tenant improvements and furnishings to make the center usable for longer hours and by multiple providers.

Council asked for details on expected loan size and terms. Staff said the 108 application is underway; the city’s borrowing capacity using the previous year’s allocation could be up to approximately $3 million, but final loan amounts, terms and underwriting details will be provided to council in a future study-session packet prior to any council action. Staff also said Congresswoman Schreier’s $500,000 grant helped with the building purchase and played into the financing strategy.

Council members raised accountability questions about partner organizations’ reporting to the city. Staff said the human-services contracts now include stronger outcome and reporting language (prorated payments tied to verified service counts), and that the 2025–2026 human services funding cycle reduced the number of funded agencies while increasing award sizes to improve oversight.

What’s next: staff will submit the CAPER to HUD as scheduled, and council will consider a resolution to ratify the consolidated plan and 2025 action plan in mid-May. If the 108 loan application proceeds, staff will return with a detailed loan package, estimated costs for tenant improvements and contract terms for council review.

Ending: Council members generally supported stabilizing the housing-repair program and expanding the resource center but asked for further cost and contract details before authorizing loan or ordinance action.