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City housing staff warn HUD staff cuts could threaten grant oversight and local programs
Summary
City of Austin housing officials told the Community Development Commission that proposed staffing reductions at the U.S. Department of Housing and Urban Development's Community Planning and Development division could hamper local grant administration but that operations are continuing while staff monitor federal developments.
Mandy DeMayo, interim director of the City of Austin Housing Department, briefed the Community Development Commission on March 11 about possible federal staffing reductions at the U.S. Department of Housing and Urban Development (HUD) and the potential implications for locally administered programs.
DeMayo told commissioners she had conveyed a memo to the Mayor and Council outlining concerns after media reports that HUD might significantly reduce staff. She said the Community Planning and Development (CPD) division — which oversees block grants such as Community Development Block Grant (CDBG), HOME, HOPWA, and ESG and the Continuum of Care process — had been cited in media reports as facing disproportionate cuts. DeMayo said the reported scenarios included CPD staff reductions from around 1,000 people nationwide to 50 in one office, and an 84% cut in one HUD division discussed in public reports; she emphasized the city had seen no formal funding cut notices at the time of the briefing.
DeMayo explained why CPD staffing matters locally: CDBG, HOME, HOPWA and ESG together account for about $14 million in federal flows to the City of Austin this fiscal year and fund programs such as minor home repair, public services through APH, down-payment assistance, tenant-based rental assistance for people experiencing homelessness and shelter operations. She said current-year grant agreements have been executed for the four block grants, but Continuum of Care grant agreements had been announced and not yet signed.
DeMayo said the city is monitoring national reporting, coordinating with the HUD San Antonio field office and preparing to adapt if formal notices arrive. She said local operations are “business as usual” but cautioned commissioners that staffing reductions at HUD could slow grant administration, processing of agreements and technical support that local agencies rely on.
Commissioners asked clarifying questions about the duration of grant agreements; DeMayo said the current grant agreements are annual and that the city typically plans year-to-year. She said staff will continue to brief the commission and the Council as new federal information becomes available.
