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Committee hears emergency repair update and concerns about HUD loan payments reducing local CDBG allocations
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Summary
An emergency repair program update prompted discussion about using outside contractors and the source of funding (HUD CDBG). A committee member criticized a prior loan payment that reduces Denison’s HUD allocation; staff said the loan will be paid off in about two years and that HUD allocations use a nationwide formula.
The Community Development Block Grant Steering Committee received an update on its emergency repair program and discussed operational and funding questions, including whether work should be bid to outside contractors. A participant suggested bidding jobs to outside contractors instead of using state employees.
Committee members asked whether the program is funded by HUD; staff confirmed the emergency repair program uses HUD CDBG funds. Staff explained that HUD allocations are made using a nationwide formula and are not solely determined by local need.
During discussion an attendee criticized a previously agreed loan payment that reduces the city’s HUD allocation. The attendee said the payment “takes out a huge chunk of what HUD allocates to the city” and described the arrangement as decided before the current committee was seated. Staff clarified the loan has approximately two more years before it is paid off and that payments are annual.
There was no formal action to change the emergency repair program’s delivery method during the meeting; committee members asked questions and sought clarification about eligibility and funding rules.
