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Council hears debate over CDBG public‑service grants; homeless services cited as priority need

2769413 · March 26, 2025
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Summary

Council and staff discussed how to allocate limited Community Development Block Grant funding among nonprofit public‑service organizations, with several council members and nonprofit representatives urging prioritization of homelessness services and improved outcome metrics; no formal reallocation vote was taken.

Council members and staff discussed the Community Development Block Grant (CDBG) public‑service organization (PSO) program and whether the city should continue its recent practice of dividing a fixed pot evenly among applicants or adopt a competitive grading system that prioritizes certain needs, such as homelessness services.

Background and options

Staff briefed the council on the history: the city has used a method in recent years that splits available PSO CDBG funds among applicants. At a January meeting council directed staff to explore alternatives; staff met with council representatives and held a pre‑application meeting with nonprofits. Some nonprofits wrote to the council requesting that the current equal‑split approach remain in place, saying it provides leverage for additional philanthropic and federal grants.

Council debate and nonprofit input

Several council members said homelessness and its visible effects are a top community priority and urged the city to prioritize homeless‑service providers when awarding limited funds. Other council members and nonprofit representatives, including Family Promise and All About Understanding, argued that splitting the CDBG allocation among several organizations helps them leverage additional grants, maintain a range of services (youth, neighborhood cleanup, veterans assistance) and sustain smaller organizations that would otherwise lose access to other funding.

Metrics and next steps

Council members proposed developing outcome metrics and stronger coordination among nonprofits—measures that could be used in future evaluations. Council asked staff to bring the matter to the Homeless Action Committee (and suggested further committee work) to craft measurable criteria and a recommended allocation framework before the next annual action plan cycle. No formal vote was taken to change the current distribution method.

Ending

Staff said the city will follow up with committee meetings to build measurable metrics and return recommended allocation options to council for consideration in the next annual CDBG action plan process.