Adams County staff recommend directing remaining CDBG‑CV funds to Clinica Family Health amid HUD compliance risks for housing project

Adams County officials asked commissioners for direction on distributing about $457,000 left from two CARES Act Community Development Block Grant Coronavirus (CDBG‑CV) allocations administered by HUD during the pandemic. County staff presented two eligible applications and said they prefer allocating the funds to Clinica Family Health, a federally qualified health center, because it would require fewer compliance delays than a multi‑family housing utility upgrade project.

County staff told the board the CARES Act allocations were made in 2020 and 2021 and total about $1.6 million; all funds must meet CDBG rules and be used to prepare for, respond to or prevent COVID‑19 and must be obligated by Oct. 30, 2026. Staff reported that 100% of the awards were made to subrecipients and that about $440,000 of the remaining $457,000 had already been designated previously to Maker Housing Partners for Crossing Point South water tap fees; the balance is from miscellaneous grants that were not fully expended.

Melissa Sherry and Rick Reed (staff) described two pending applications. One is from Clinica Family Health, which is renovating and modernizing its facility at 70 Second and Pecos and requested CDBG‑CV funds to support clinical service delivery—primarily care for uninsured Adams County residents—so the grantee can use less‑restricted construction dollars for building work and the CDBG funds for services. The other application is from the Village Green/Greenbrier property (Ingram/Maker Housing Partners), a roughly 232‑unit affordable apartment complex built in the 1970s that is undergoing a roughly $10 million rehabilitation and has requested funds for site utility upgrades, including water lines and drainage.

County staff warned the commissioners that the Greenbrier project carries compliance risks that could delay or jeopardize use of the funds. Because that property is not currently covered by an affordability covenant, staff said a resident income survey is required to demonstrate that at least 51% of units serve low‑to‑moderate‑income households. Staff also said a HUD environmental review would be required for the housing project and estimated that environmental review alone could take three to four months, which raises the prospect the project might not meet the Oct. 30, 2026 deadline. Staff noted Davis‑Bacon prevailing‑wage rules would be triggered on construction work funded with CDBG for both projects.

By contrast, staff said Clinica’s public‑service application “checks the boxes” more quickly from a regulatory standpoint and would avoid the income‑survey and some environmental timing risks. Commissioners raised operational questions about outreach to other clinics and whether smaller clinics who had not applied might object, but several commissioners said they were leaning toward giving most or all of the remaining CDBG‑CV funds to Clinica to reduce the compliance risk and provide timely support for medical services.

Next steps outlined by staff include amending the county’s 2019 Annual Action Plan, a 30‑day public comment period and a public hearing before commissioners to approve the proposed allocation. Staff also cautioned that other CDBG‑CV subrecipients have not yet spent all of their contract amounts and the county may return to commissioners about additional unspent balances in coming months.

Ending: Commissioners did not take a final vote at the study session; staff sought direction and said they will proceed with the plan to amend the Annual Action Plan and begin the public comment and hearing process if commissioners concur.