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Palm Bay board approves substantial amendment to CDBG spending; creates grant-funded housing rehabilitation specialist
Summary
The Palm Bay Community Development Advisory Board voted unanimously to approve a substantial amendment to the city’s Community Development Block Grant allocations, reallocating leftover funds, canceling two projects and creating a grant-funded housing rehabilitation specialist position.
The Palm Bay Community Development Advisory Board voted unanimously to approve a substantial amendment to the city’s Community Development Block Grant (CDBG) allocations that reassigns leftover funds, cancels two projects and creates a new, grant-funded housing rehabilitation specialist position.
A city staff presenter said the proposed amendment was made under federal rules (citing 24 CFR 91.105(c)) and is intended to reallocate funds from completed or canceled projects to projects that are shovel-ready so the city meets the U.S. Department of Housing and Urban Development (HUD) expenditure goal for the year. The presenter told the board HUD requires communities to meet an annual expenditure goal and that, as presented, Palm Bay needed to spend $776,737 to meet that goal. The presenter also mentioned a local letter-of-credit guideline that limits the city’s unexpended balance to no more than 1.5 times its one-year allocation.
The staff presentation summarized five amendments included in the package: - Amendment 1: funding reduction — cancellation of the Aquatic Center project (staff said the project was later determined ineligible or not ready). A board member noted concern because the project had been discussed and earlier approvals had assumed eligibility. - Amendment 2: funding increase for Liberty Park improvements; staff said $50,710 would be reallocated from the canceled Aquatic Center project to Liberty Park to cover additional improvements. - Amendment 3: administrative name change for a park now identified as Ken Green Park. - Amendment 4: reallocation of sidewalk funds — move funds to a Wichita Boulevard sidewalk project (from Sanfilippo Boulevard to Babcock Street) and cancel the original Sanfilippo design from Wichita Boulevard to Eldron Boulevard so money supports a shovel-ready design on Wichita Boulevard. - Amendment 5: establishment of a housing rehabilitation specialist position. Staff said Palm Bay currently contracts for housing rehab oversight but has “over $3.6 million in SHIP funds” for housing rehabilitation with no dedicated full‑time city employee to monitor projects. Staff and board members confirmed the position would be funded entirely from grants with “no impact to the general fund.”
Board members asked for clarification about ongoing funding for the new housing-rehab specialist; staff replied the salary would be grant funded. One board member expressed support for the new position, saying a full-time employee familiar with CDBG and SHIP rules would help complete projects and meet paperwork and compliance requirements.
A motion to approve the substantial amendment was made, seconded and approved by voice vote; the chair announced the motion passed.
What’s next: staff will implement reallocations consistent with the amendment and proceed with the sidewalk and park projects identified as shovel-ready. The housing rehabilitation specialist position will be developed as a grant-funded hire and overseen by the city’s housing staff.
Note on process: staff told the board the amendment is required so funds are used promptly and the city meets HUD expenditure rules; projects left in the balance risk noncompliance with federal goals.
