Financial Affairs Committee approves 2025 CDBG allocations after 1% award reduction

The Wauwatosa Financial Affairs Committee on Tuesday approved the city’s recommended spending plan for 2025 Community Development Block Grant funds after staff reduced committee recommendations about 1% to match the actual HUD award.

The allocations approved by the committee reflect a final HUD award of $988,733, about $11,267 (roughly 1%) below the $1,000,000 funding estimate used by the Wauwatosa CDBG committee. Staff told the committee they adjusted the committee-recommended awards “approximately 1% across the board” so the package would balance with the lower federal award.

That adjustment was incorporated into a spreadsheet that groups allocations into three categories: administration, public services, and public facilities/economic development. Staff emphasized that CDBG money is federal HUD funding and must be used only for eligible activities serving Wauwatosa residents; some subrecipients provide regional services but must use CDBG funds for activity in Wauwatosa.

Committee members pressed staff on how reductions were made and whether specific recipients were denied. Staff said one application was denied because it did not meet the federal requirement that at least 51% of beneficiaries be low- to moderate-income persons; otherwise “every eligible application this year received something.”

Alder questions focused on allocation choices. Several alderpersons said they supported funding for affordable housing and services to seniors but expressed concern that the Community Development Authority (CDA) award rose notably from 2024 to 2025 while some other recipients received smaller awards after the adjustment. Staff said the CDA award supports the city’s housing rehabilitation program and that the increase partly reflects transitioning the rehab program from ARPA capital funding to CDBG support, and that staff expects the CDA award to continue to fluctuate year to year.

Staff also clarified that a $79,000 award to the recreation department is specifically for staff who operate the senior center, and not intended as general school-district support. Alders who spoke in favor noted public outreach (public meetings, survey, focus group) and said affordable housing and senior services repeatedly emerged as community priorities.

Alder Arnie moved approval of the CDBG funding levels and a Level 3 fund transfer; Alder Lewis seconded. The committee voted to approve the staff-recommended 2025 CDBG allocations and the Level 3 fund transfer. The motion passed 8–0.

Committee members and staff said the allocations are supplements in many cases—amounts often cover part of a project—and reiterated that projects like facility repairs or window replacements will typically require additional funding sources.

The committee’s approval sends the 2025 CDBG funding levels forward for final approval by the Common Council.

Ending: The committee’s action formalizes the staff-modified award list that matches HUD’s actual 2025 CDBG award to Wauwatosa. Final allocations and any subsequent subrecipient agreements will be part of the city’s administrative process and subject to the Common Council’s final approval.