Goldsboro council approves HUD consolidated plan and annual action plan, asks staff to draft relocation policy

The Goldsboro City Council approved the city's five-year Consolidated Plan and the current Annual Action Plan for U.S. Department of Housing and Urban Development (HUD) funding on a 7-0 vote Monday night.

Consultant Jason Wright of Chrysalis Consultants and Crystal (city housing/grants staff) presented findings that informed proposed allocations of Community Development Block Grant (CDBG) and HOME funds. The plans prioritize housing rehabilitation, down-payment assistance, public infrastructure improvements and public services targeted to low- and moderate-income residents.

Wright told the council the consolidated plan is a federal requirement that documents how CDBG and HOME funds will be used and why the chosen allocations match local needs. "The primary goal of the funding is to benefit individuals or families who are in the low- to extremely low-income category," he said. Wright summarized local data on housing availability, cost increases since 2009 and persistent concentrations of poverty in central and southern census tracts.

Crystal explained the draft allocations, including a proposed set-aside for housing rehabilitation and a down-payment assistance program. "We are not just going to put money only into those census tracts, but they are something that we need to look at heavily," she said, noting HUD's use of census-tract data to determine areas of greatest need.

Council members pressed staff on whether funds would cover temporary relocation costs for homeowners who must move out while homes are rehabilitated. One councilor said moving costs can create a substantial burden even if rehabilitation funds cover construction. Crystal said the city has not adopted a relocation policy because the cost would reduce the number of households the program could help: "We feel like using those relocation funds, we can help more families," she said, but added staff would present options if the council directs them to do so.

Council members asked whether HUD would scrutinize a relocation assistance policy. Wright said such a policy would need careful review and suggested staff consult HUD before formal adoption. Council members indicated they wanted to see a proposed relocation policy and discussed whether to fund it from HUD allocations or the city general fund.

Mayor John Gaylor called for a vote on the Consolidated Plan and Annual Action Plan as presented. A council member moved approval; the motion was seconded and carried on an electronic roll-call vote, 7-0. The council also asked staff to draft a relocation-assistance policy for future consideration and directed that any necessary amendments to the annual action plan be returned to the council.

The plans must be accepted by HUD before associated funds can be spent; Crystal and consultants said HUD typically requires the consolidated plan and annual action plan documentation be submitted on a fixed schedule. Wright noted HUD uses 2020 as the most recent census dataset for plan analyses and that some data elements in the plan therefore do not reflect post-2020 trends.

City staff and the consultants emphasized that proposed allocations are designed to target households spending more than 30 percent of income on housing and to stabilize neighborhoods while maximizing the limited federal funds.

Council members and staff said they expected a relocation policy proposal to return to the council at a subsequent meeting so the city could consider whether to reallocate funds or propose additional general-fund support.

The council approved the Consolidated Plan and Annual Action Plan by a vote of 7-0. The city's staff will finalize submission documents to HUD and return to council with a proposed relocation policy for consideration.