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Council holds public hearing on 2025 CDBG action plan; staff recommends allocations to five applicants

2565357 · March 11, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff presented the proposed 2025 Community Development Block Grant action plan, recommending funding splits among five applicants and taking the 20% administrative allowance. Council opened and closed a public hearing and will hold a second hearing on April 21.

The Anacortes City Council on March 10 opened a public hearing on the City’s draft 2025 Community Development Block Grant (CDBG) action plan and heard a presentation from Stephanie Snyder, the city’s housing coordinator, before closing the hearing and scheduling a second hearing for April 21.

Snyder told the council that the CDBG is a U.S. Department of Housing and Urban Development program that funds local affordable housing, antipoverty programs and infrastructure. She said the city’s 2024 entitlement was $106,279 and that the 2025 application round produced six applicants — double the prior year — but that the city’s available funds are limited.

The draft plan being presented recommends funding five applicants with varying allocations: ABLE Housing (rental rehabilitation), Anacortes Family Center (public services/capital for shelter equipment), Anacortes Housing Authority (roof replacement at Site 3), administration (20% of the grant) and other smaller awards. Snyder said the recommended administration allocation is $21,256, equal to the full 20% allowed by HUD.

Why it matters: CDBG funding must meet HUD rules (including a 15% cap on public services and a 70% low- and moderate-income benefit test). Snyder and council members discussed how taking the full 20% administrative allowance would reimburse general fund costs the city already spends administering the program and reduce reporting burdens on smaller recipients. Councilmember Walters said the move would increase administrative efficiency; Snyder said the city historically avoided taking the 20% to push more dollars to projects, but that the current workload and general-fund backfill made taking the fee appropriate.

Council members asked procedural and program questions: Mr. Young asked why Community Action was not eligible for public service funds; Snyder and PCED Director John Coleman said Community Action already receives a city general-fund contract ($89,500 per year), which HUD guidance disqualifies from receiving CDBG public service funding. Mr. Fantini asked about timing and HUD’s ability to “claw back” undisbursed funds; Snyder said HUD expects funds to be spent by the entitlement year end (June 30) and that the city must reassign funds if recipients do not expend them in a timely manner. Snyder said some funds carry over and that the city had small residual amounts from earlier years but had largely drawn down multi‑year balances.

Snyder displayed photos and status updates for 2024 projects, including roof replacements and curb-cut accessibility work, and said the Salvation Army flooring project remains underway. She said program outreach would remain open through April 15 and the council would receive the plan again on April 21 for possible adoption.

Snyder and Coleman repeatedly noted that HUD rules (including the public‑services cap and timeliness expectations) constrain the city’s options and that any reallocation or amendment would require public notice and HUD approval.

Council members urged prompt follow-up and contingency planning in case HUD requires reallocation, and thanked Snyder for clearing a backlog of older grant funds.

The council opened public comment for this hearing; no members of the public spoke specifically on the CDBG item before the hearing was closed. The council will hold a second public hearing on April 21 for final consideration.