Housing department briefs Austin CDC on FY2025–26 action plan; commissioners and public raise eligibility, displacement and outreach concerns

The Austin Housing Department presented highlights of the city’s draft fiscal year 2025–26 action plan and fielded questions from commissioners and a public commenter during the Austin Community Development Commission meeting on June 10.

Mandy DeMaio, interim director of the Housing Department, summarized the four federal formula grants included in the action plan and the city’s expected allocation. DeMaio said the combined total for Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) is “almost $15,000,000” for the next fiscal year. She described program areas funded by these grants: CDBG programs (about $7.3 million) include administration (up to 20 percent), public services (15 percent) and infrastructure and housing-related programs such as architectural barrier removal, minor home repair and a home-repair loan program (loans up to $75,000 and full reconstructions when needed). HOME funds support tenant-based rental assistance (targeted to people experiencing homelessness through coordinated entry), down-payment assistance, and rental and ownership housing development assistance, including work with certified community housing development organizations (CHDOs).

DeMaio said HOPWA funds (approximately $2.8 million) are budgeted to several local nonprofits serving people living with HIV/AIDS. She also noted the city is monitoring federal budget proposals; under the president’s proposed “skinny budget,” several programs could face cuts, so the department is working with government relations to communicate the city’s local uses of federal funds.

Commissioners asked settlement and eligibility questions. Commissioner Tisha asked whether floodplain status affects eligibility for the home-repair programs. DeMaio answered that federally funded home repairs are ineligible in the 100‑year floodplain per federal rules, while properties in the 500‑year floodplain remain eligible; homeowners must meet income limits (generally 80 percent or below median family income), have clear title and be inside the city’s full‑purpose jurisdiction (not in the extraterritorial jurisdiction). DeMaio and staff also reviewed program monitoring and reporting, noting HUD requires quantifiable outputs for the Consolidated Annual Performance and Evaluation Report (CAPER) and that department reporting to CDC occurs on those schedules.

The commission discussed the use of HOME tenant-based rental assistance. DeMaio said roughly $1.4 million supports HOME tenant‑based rental assistance targeted to people experiencing homelessness who are connected through the coordinated entry system. Nefertiti Jackman (Housing Department) explained other rental assistance streams: neighborhood center funding for residents behind on rent, the council‑allocated “I Belong in Austin” program (about $3.6 million this past fiscal year), and geographically focused relocation or displacement-support funds tied to Project Connect corridors.

Commissioners and the public raised displacement concerns tied to redevelopment. During public comment, Zenobia Joseph urged the commission to reconsider Project Connect planning and to ensure federal public‑service priorities reflect local equity concerns. Commissioners discussed a recent Council decision on a rezoning case (Acacia Cliffs) and asked staff to provide details on developer commitments. DeMaio and Jackman said developer representatives at council committed relocation assistance they described as about $5,000 per resident and several months’ rent; staff pledged to circulate the specific commitments recorded in the restrictive covenant and to follow up by email with commissioners.

Commissioners also discussed community outreach and the online engagement portal. Commissioner Tisha noted a discrepancy between marketing materials and the SpeakUpAustin URL; staff said they would correct the image and confirmed the action plan materials are accessible at the SpeakUpAustin page (speakupaustin.org/mycommunityneeds) and that comments already submitted there were visible.

At the end of the session, staff said they will circulate additional documentation (citizen participation attachments, developer commitment terms from Acacia Cliffs, and monitoring/materials links) and that the department will bring the full action‑plan packet back to CDC for formal review in July before submission to HUD.