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Staff warn CDBG spend‑down shortfall; homeowner rehab and ED loans drive the gap
Summary
Staff told the committee the city is about $330,000 short of the annual CDBG spend‑down test, citing slow drawdowns in homeowner rehab and economic development loan categories, and noted prior HUD practice of granting a one‑year extension before requiring a corrective plan.
City staff reported to the Economic Development Committee that the city is approximately $330,000 short of the Community Development Block Grant (CDBG) annual spend‑down test that is reviewed in May.
Staff said the largest unexpended balances appear in the homeowner rehabilitation and economic development (ED) loan categories. An ED loan was recently issued that staff expects will reduce the unexpended balance once drawdowns occur, but staff cautioned that construction and contracting timelines often delay federal draws and that many 2024 contracts were executed late in the year.
Staff outlined how federal budget timing and seasonal program…
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