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Council opens public hearing on CDBG 2025 action plan; staff recommends allocations and 20% administration fee
Summary
Anacortes opened a public hearing March 10 on its 2025 Community Development Block Grant (CDBG) action plan; staff recommended allocations to local agencies and advised taking the 20% administrative fee allowed by HUD.
The Anacortes City Council opened a public hearing March 10 on the city's draft 2025 Community Development Block Grant (CDBG) action plan. Stephanie Snyder, the city’s housing coordinator, presented the grant background, the 2024 spending status and staff recommendations for 2025 allocations.
Snyder said the city received six applications for 2025 funding and that Anacortes’s 2024 HUD entitlement was $106,279. Snyder reviewed recommended allocations: a capital rental rehabilitation request from ABLE Housing ($27,105, recommended as 5% of the grant), a public-services/capital request from Anacortes Family Center (an application near $9,000; staff described it as 8% of the grant and noted HUD’s 15% public-services cap), and an Anacortes Housing Authority roof request originally seeking $100,000 (staff recommended $54,795, about 52% of the available funds for that line). The city’s administrative request was $21,256, which Snyder said represents the 20% administration allowance typically used by municipal grantees.
Councilmembers discussed HUD rules and local policy. John Coleman, the city’s planning director, explained that HUD guidance disqualifies some applicants from using CDBG public-service funds if they already receive local general-fund support for the same services. Snyder said Community Action applied for public-service funds but was disqualified because it currently has a general-fund contract with the city of $89,500 per year.
Councilmember Walters said taking the full 20% administrative allowance would reduce reporting burdens on staff and, in effect, reimburse general-fund support already spent on grant administration. Other councilmembers pressed staff on timeliness requirements; Snyder said HUD expects funds to be spent by June 30 of the grant year and that HUD can reclaim funds that remain unused. The city staff reported $26,713 remained in older grant buckets and that some 2024 projects were already complete.
Snyder said the CDBG public-comment period remains open through April 15 and that council will hold a second public hearing on April 21 before final action.
No vote on the 2025 allocations was taken at the March 10 meeting; the hearing remains open until the April 21 meeting.
