Harlingen officials to launch emergency housing repairs using CDBG funds, Healthy Homes and ARP dollars

Harlingen officials said they will begin accepting applications within weeks for emergency housing repairs funded through the city’s Community Development Block Grant (CDBG) housing rehabilitation and reconstruction program and related federal awards.

City Development Director Sandy Alvarez told the commission on Tuesday that Harlingen receives annual CDBG and HOME allocations from the U.S. Department of Housing and Urban Development and has additional grants from the American Rescue Plan (HOME-ARP) and a separate Healthy Homes award. “We could start in maybe two weeks at most,” Alvarez said when asked how soon applications could be taken, noting environmental reviews and income verifications are required.

The announcement follows Mayor Norma Sepulveda’s earlier statement that the city secured $900,000 in veterans grants after local advocacy in Austin. “We’re able to secure $900,000 for our veterans here in the city of Harlingen, and we hope to roll out that program in July,” Sepulveda said during opening announcements.

Why this matters: Alvarez said the city has about $400,000 available within its housing rehabilitation/reconstruction allocation that can be used for emergency repairs—enough, at the program’s $10,000-per-home cap, to assist roughly 40 households if awards take the full cap. Staff framed the move as a way to provide local relief while federal relief (FEMA, state) is pending. The program is a grant (deferred, forgivable over five years) for owner-occupied homes in low-to-moderate income areas and requires household income verification.

Key details given to the commission

- Annual HUD grants: Alvarez reported the city’s entitlement awards for fiscal year 2024–25 included roughly $913,635 in CDBG funds and $325,911.52 in HOME funds; allocations fluctuate year to year. Alvarez said next-year HUD letters were received and amounts rose slightly for CDBG and HOME, but remain below historic highs.

- Housing rehabilitation and reconstruction: The city previously reconstructed a home at a cost of $106,512 and has funding to support a small number of full reconstructions. To address current urgent needs, staff proposed using the housing rehab/reconstruction program to provide emergency grants—capped at $10,000 per home—for more households instead of fewer full reconstructions.

- Healthy Homes and HOME-ARP: The city received a Healthy Homes grant (applied in 2022; release of funds in Sept. 2024) and has been processing applications and inspections; repairs under Healthy Homes are limited to health-and-safety items up to $10,000 per home. The HOME-ARP allocation totals $1.2 million; part of that money is already allocated to supportive services and to programs assisting households at risk of homelessness.

- Veterans funding and related programs: In addition to the mayor’s $900,000 announcement for veterans programs (from the Texas Veterans Commission), Alvarez described HOME-ARP and other ARP-funded programs including a $400,000 general-assistance allocation and a $500,000 “housing for heroes” allocation. The general-assistance funds can be used for rental/mortgage/utilities assistance (rental assistance upper limits described by staff as up to $6,000 for some rental cases); the housing-for-heroes awards have per-household caps (staff cited $35,000 as an example used for accessibility and weatherization work).

- Program mechanics and limitations: Alvarez emphasized HUD rules require environmental reviews, income documentation, and procurement for a rotating pool of contractors; those requirements slow implementation. She said the city has internal policy authority to use the housing rehab/reconstruction program for emergency disaster-related repairs and that staff has already received a directive to start the process. Staff said they will need a pool of prequalified contractors to expedite work and that repairs are limited to owner-occupied homes that are not tax-delinquent.

What commissioners asked and staff response

- Timing: Commissioners pressed staff on when application intake could begin. Alvarez said applications and income documentation could start being accepted in roughly two weeks, with full implementation reliant on environmental clearances and contractor procurement.

- Targeting and eligibility: Staff confirmed projects must serve low-to-moderate income households and that some programs are limited geographically (projects must be located in eligible low-to-moderate income areas for certain CDBG-funded street or lighting projects) while others are assessed by household income.

- Outreach: Commissioners requested flyers and materials for upcoming town halls and suggested outreach through veterans and community service boards. Alvarez said staff already has flyers and can provide materials for a town-hall presentation the day after the meeting.

Ending: Alvarez said the city has existing program rules that allow using CDBG housing rehabilitation funds for emergency needs arising from floods, fires or other disasters and that staff is prepared to begin intake quickly once required clearances are completed. Mayor Sepulveda and multiple commissioners urged rapid outreach so residents know how to apply.