Benton Harbor holds public hearing on annual CDBG report; city to submit CAPER to HUD

Benton Harbor city staff held a public hearing Sept. 24 on the city’s CAPER for the Community Development Block Grant program year that ended June 30, 2025, reporting that the city received $389,046 for the year and expended $703,800, and that the CAPER will be submitted to HUD on or before Sept. 27, 2025.

The CAPER presentation said the larger expenditure total resulted from multi-year carryover funds that built up while the city had limited ability to spend; staff said the city started the 2022 program year with nearly $2 million in carryover CDBG funds. The presentation noted the city used CDBG funds to demolish 10 residential units and leveraged $170,000 from the Brownfield Authority to demolish five additional units.

“The way that occurred is that each year, there is typically carryover money that goes from year to year,” the presenter said. The presenter also described program goals and outcomes and gave a demographic breakdown of beneficiaries.

Why it matters: The CAPER documents how the city used federally funded CDBG dollars for activities such as demolition, housing rehabilitation and public services. The report and the public comment period are required steps before the city submits its CAPER to HUD, which is used for federal compliance and future funding considerations.

City staff reported outcome details included: an infrastructure/public improvements goal counting 1,075 persons assisted in low- and moderate-income areas (staff noted most of the city qualifies as low/mod), a housing rehabilitation goal of five units with six completed, and clearance/demolition of 10 buildings funded by CDBG. Public services had a goal to assist 300 people; staff reported 499 people assisted. Where race and ethnicity were recorded, staff reported 505 people: 436 (86.5%) were Black or African American and 69 (13.5%) were white/non-Hispanic.

On housing rehabilitation, staff said six owner-occupied households were served: four extremely low-income, one low-income and one moderate-income household. The presenter emphasized that some CDBG activities (for example, housing rehabilitation) count only direct beneficiaries, while other projects such as demolition or sidewalk work are treated as area-wide benefits that presumptively affect all residents in the low/mod areas.

Representative Edwards asked about a reported goal of 300 persons versus an outcome of 499. Edwards said, “My question to that number again, correct me if I'm wrong. By just looking at that, you would say, okay...every resident has been” and asked staff to clarify how the numbers should be interpreted. City staff replied that program rules distinguish owner-specific beneficiaries from area-wide public benefits and explained that CDBG funding levels do not typically cover street repairs, which would be a city-wide infrastructure investment.

The CAPER was made available on the city’s website for a 15-day public comment period from Sept. 9 to Sept. 25, 2025. Staff said comments would be accepted during the public hearing or emailed to alittle@thecity.us by 5 p.m. on Sept. 25, 2025; staff stated the CAPER will be submitted to HUD on or before Sept. 27.

No formal vote was recorded at the September 24 committee meeting; staff requested public input and indicated the CAPER will move forward for submission following the close of the comment period.

Additional details: staff noted the demolition work included 10 units funded with CDBG and five units paid for with Brownfield Authority funds (total Brownfield funding cited: $170,000). Staff also noted the city’s multi-year effort to reduce an earlier accumulation of carryover CDBG funds that resulted from the program’s frozen activity in prior years.

Looking ahead: staff directed residents to the city website for the CAPER and contact information; the submission to HUD is scheduled to occur on or before Sept. 27, 2025. The committee did not take a formal vote during the hearing.