Committee approves carry‑forward of HUD subrecipient contracts, extends performance to Dec. 31, 2026

The Finance Committee unanimously approved Legistar 90,963 on Dec. 1, 2025, authorizing carry forward of previously authorized FY25 subrecipient contracts (CDBG, HOME and ESG) and extending each affected contract’s period of performance through Dec. 31, 2026.

Director O’Keefe explained the resolution reflects that HUD grant agreements were not yet finalized and that the city is reviewing recently released HUD conditions that may place additional restrictions on the use of certain funds. "The gist of this resolution is just recognizing that those grant agreements are not yet in place," O’Keefe said, adding that some funding uses may be affected by the new HUD conditions and by pending litigation.

Alder questions focused on whether the city has received the federal funds and whether those dollars must be obligated by year‑end. Staff replied that federal funds, once received, are not limited to use within the calendar year and the proposed extension would preserve the city’s authority to proceed with the identified subrecipient contracts once HUD grant agreements are fully executed.

The committee recorded no objections and approved the carry‑forward unanimously. Staff said they will continue to review HUD language and work through any required contract adjustments as agreements are finalized.

Next steps: finalize HUD grant agreements, complete contract amendments as needed and implement awarded subrecipient contracts once grant terms are resolved.