Advisory board asks council to direct $132,090 in remaining CDBG COVID funds to homelessness prevention; formal action set for April 15

Jennifer Murphy James, the citys Community Development Block Grant (CDBG) administrator, told the council the advisory board is requesting that the remaining $132,090 from leftover 2019 CARES Act CDBG funding be awarded to the Department of Social Services to coordinate homelessness prevention and remediation.

"The advisory board requests support for the city of Petersburg, Virginia's Department Of Social Services to address homelessness prevention and remediation, utilizing the remaining COVID Cares Act funds in the amount of a hundred and $32,000.09 0," Murphy James said, summarizing the advisory boards recommendation.

Murphy James said the advisory board began with a $264,000 balance from those CARES Act CDBG dollars; $132,000 had already been awarded for critical home repair. The advisory board and staff met with local stakeholders including the Hub shelter, the Petersburg Department of Social Services and local nonprofits and concluded DSS could leverage existing infrastructure and quickly administer time-limited funds.

Diatto, director of the Department of Social Services, told council the social services department would not take administrative fees from the appropriation and would instead use the entire amount for direct services such as rent and utility assistance and case management tied to voluntary two-month agreements where appropriate. Diatto said the funds are time-restricted and likely must be spent by next July, so working with an existing provider would enable rapid deployment.

Council members raised several concerns. Councilman Coppler said he would prefer folding the remaining balance into the critical-home-repair allocation to allow more work for seniors and to address blight rather than risk creating a housing "vacuum." Councilman Jones urged the city to prioritize families with children in motels and to ensure welfare checks and safeguards for minors; he also urged the city to include the housing authority, school system and hotel owners in planning.

Murphy James acknowledged the presentation had not fully communicated the advisory boards intended emphasis on prevention. The city manager and staff said they would meet with the advisory board, Department of Social Services, school officials, the Petersburg Redevelopment and Housing Authority and hotel owners to refine targeting and bring a formal appropriation before council on April 15. The council agreed to regroup and requested fuller stakeholder engagement before the appropriation vote.

Why it matters: The advisory board tied the request to HUD requirements and the citys consolidated plan, which lists homelessness as a priority; council members stressed targeting resources to families with children and coordinating with housing and school systems to avoid unintended displacement or ineffective use of time-limited funds.