Cleveland committee hears plan to spend nearly $28 million in HUD grants for 2025–26

The Department of Community Development asked the Development, Planning and Sustainability Committee to approve spending nearly $28 million in HUD formula grants for program year 2025–26, with the largest line item in Community Development Block Grant (CDBG) funds.

“The Department anticipates receiving 19,460,000.00 in CDBG funds, 4,250,000.00 in HOME funds, 1,760,000.00 in ESG, and 2,370,000.00 in HOPWA, totaling just under $28,000,000 in HUD formula grants,” the director said during the committee presentation.

Why it matters: city staff said prolonged federal uncertainties and a recent government shutdown delayed the budget timeline and complicated contracting and service delivery. Committee members pressed department staff on how the city will convert federal funding into housing repairs, affordable‑housing production and social services for residents experiencing poverty.

Key allocations and initiatives

- CDBG (Community Development Block Grant): approximately $19.39 million, the department's largest flexible funding source. - HOME: just over $4 million to support affordable housing production and CHDO (Community Housing Development Organization) requirements. - ESG (Emergency Solutions Grant): funds targeted to emergency shelter and homelessness services; staff confirmed continuation of partnerships with local providers. - HOPWA (Housing Opportunities for Persons With AIDS): roughly $2.37 million to support housing for people living with HIV/AIDS; staff said allocations are managed via a memorandum of understanding with the health department.

The director highlighted the Cleveland Housing Investment Fund (CHIF), a public‑private partnership she described as a $38 million collaboration among the city, LISC Fund Management and KeyBank that has 10 projects in the pipeline. She noted groundbreakings on Walton Apartments (senior housing, Ward 14) and Parkside Homes (55 lease‑purchase homes) as evidence of the city's development activity.

Federal timing and administrative choices

Department leaders told the committee they delayed bringing the full budget in previous months because of late federal notices, continuing resolutions and shutdown threats. The director said those uncertainties make hiring and retention difficult and affect contractors and nonprofit partners. To stabilize CDC (community development corporation) activity this year, the administration used $2 million in general‑fund dollars to provide CDC activity grants that are normally paid from CDBG; those dollars have already been allocated, staff said.

Special populations and competitive grants

Staff described ESG and HOPWA awardees that receive funding to run shelters and supportive housing programs. The director also announced HUD had granted one‑year extensions for three competitive grants that had been at risk of recapture: two lead‑remediation grants and a Healthy Homes production grant.

What council members asked

Council members emphasized residents' frustration with delays and pressed the department for goals and timelines for home repair delivery, contractor recruitment and use of assessment data. The director and bureau chiefs committed to presenting a consultant study (Urban3) on assessment disparities at a planned December briefing and said they would work with council on any needed legislation.

Provenance

First related remarks: transcript excerpt beginning at 00:02:07: "Chairman Harrison, vice chair Santana, and members of the development planning and sustain... present the Department of Community Development's 20 25 26 HUD entitlement budget." (Director)

Last related remarks: transcript excerpt beginning at 01:12:00 (after vote on amendments) describing next steps to move funds to finance committee and to get contracts executed.

Ending

The committee approved technical amendments to the ordinance that carries the budget language and scheduled the package for the finance committee. Department staff said they would work with council to accelerate contracting before the city's year‑end encumbrance period.