State College council approves substantial amendment reallocating CDBG/HOME funds, creates winter 'out of the cold' sprinkler project

State College Borough Council approved a proposed substantial amendment to the 2025–2029 consolidated plan and the borough’s 2025 annual action plan for the Community Development Block Grant (CDBG) and HOME programs.

The amendment reduces CDBG funding for several programs in 2025 and reallocates those dollars to a newly created "Out of the Cold Sprinkler Project 2025," which would extend the fire‑suppression system at an emergency shelter to temporarily accommodate an increased number of otherwise unsheltered persons during extreme winter weather events. During the public hearing staff explained the reallocations were intended to expedite spending to meet HUD’s 60‑day timeliness test and to allow the borough flexibility to incur costs before the HUD grant agreement effective date and later reimburse them per 24 CFR provisions.

Specific changes presented at the public hearing included a reduction of $52,384.66 in CDBG funds allocated to the owner‑occupied rehabilitation program and a reduction of $892,752.44 in CDBG funds allocated to the rental rehabilitation program for 2025. Staff also proposed reducing $16,862.90 allocated to a local program and reallocating a total of $140,000 from the cited projects to the sprinkler project. HOME program income and recaptured HOME funds were proposed to be allocated across the THF first‑time homebuyer program, the State College Community Land Trust homebuyer program, and home administration in the dollar amounts stated in the public materials.

During the council discussion, Councilmember Herndon said he was “really excited” the council was funding a sprinkler system for the Out of the Cold shelter, noting that a sprinkler system would allow shelter users to sleep safely during extreme cold. The amendment had been the subject of a citizens' advisory committee meeting and a public notice; the formal vote followed the public hearing.

Council approved the amendment as presented. Fontaine said the action would not affect future grants and would give the borough flexibility to proceed with time‑sensitive projects before HUD grant contracts were executed.

Authorities cited during the hearing included a borough citizens participation plan and federal CDBG/HOME regulations; staff referenced the borough's use of the CDBG regulatory provision at 24 CFR 570.200(h) to incur costs prior to the effective date of the grant agreement and later reimburse those costs.