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CDBG advisory board recommends allocations; HUD letter shows potential $585,812 allocation and Section 108 eligibility
Summary
The Community Development Block Grant (CDBG) Advisory Board presented draft recommendations for program year 2025–26 totaling about $585,812; the board noted public services cap and administrative caps and recommended subrecipients to be finalized at the council action meeting next month.
The Petersburg CDBG Advisory Board presented draft recommendations for program year 2025–26 and advised the council that preliminary guidance from the U.S. Department of Housing and Urban Development (HUD) indicates a potential allocation of $585,812 and eligibility for Section 108 financing if timeliness requirements continue to be met.
Kofi Adi, chair of the CDBG Advisory Board, outlined the program’s purpose, national objective constraints and caps: up to 15% of funds may be used for public services and administrative costs are capped at 20% of the annual allocation. The board reported that most applications come from nonprofits, public services remain the largest request category, and the recommended budget exceeds available funds: the board’s requests surpass the approximately $585,812 available, so proposed subrecipient awards will be prioritized and some applicants will not be fully funded.
The board also highlighted accomplishments and HUD recognition: HUD’s Richmond field office has commended the city’s improved timeliness and program administration. Because of that improved compliance, Petersburg can be eligible for Section 108 loan authority (the board cited a potential $2,929,060 Section 108 figure tied to future awards), should the council choose to pursue larger-scale projects requiring that financing.
Why it matters: CDBG allocations support city demolition activities, public services, housing assistance and economic development programs. The board’s recommendations will guide the council’s June 17 action meeting, where the council will consider final awards and the annual action plan due to HUD (planning deadline cited as August 16).
What the council was asked to do: The advisory board provided a draft allocation recommendation and sought council direction before the council takes final action on June 17. The board chair said staff and board members will meet with council members individually to answer questions ahead of the vote.
Ending: Council members thanked the board for its work; the council will consider the advisory board’s recommendations at the scheduled action meeting next month.
