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Bend AHEC subgroup weighs multi‑year grants as federal HUD guidance raises eligibility concerns

AHEC Subgroup (City of Bend) · December 2, 2025
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Summary

On Dec. 1 the AHEC subgroup discussed multi‑year grant options to provide nonprofit stability and debated contingencies after staff warned recent federal guidance may require beneficiary citizenship verification for federally funded programs; staff outlined alternatives including CICT and the City's affordable housing fund and proposed pilot two‑year awards.

Rachel Baker, housing division manager for the City of Bend, briefed the AHEC subgroup on potential federal changes and led a discussion about multi‑year awards and contingency plans for limited federal funding.

Rachel told members the current federal administration has signaled a requirement that beneficiaries of federally funded programs be verified as U.S. citizens or have lawful status, and staff expect litigation and uncertain outcomes. “The administration on the 20 sixth requires that all, federally funded programs, verify that anyone that benefits from the program be verified a US citizen or legal have legal status,” Rachel said. Staff cautioned that, if implemented, that change could materially alter who is eligible for CDBG‑funded programs and could shrink the applic ant pool for certain kinds of community services.

Members explored options to respond if federal restrictions limit traditional CDBG applications. Ideas included targeting CDBG to a narrow set of eligible activities (for example, ADA improvements or specific infrastructure), relying more on city funds such as CICT or the local Affordable Housing Fund, and creating pilot multi‑year grants to reduce administrative burden on nonprofits. Proponents argued multi‑year awards (for example, guaranteed two‑year grants renewable while the consolidated plan is in effect) can give service providers stability; opponents warned that locking funds into multi‑year awards could reduce opportunities for new providers and hinder innovation.

Practical suggestions surfaced in the discussion: pilot two‑year awards with annual or periodic check‑ins to confirm performance; set clear eligibility (for example, longer community presence) for multiyear consideration; and build simple monitoring (akin to a loan review) so staff can re‑assess funding if conditions change. Todd (AHEC member) recommended an annual review checklist for multiyear awards to balance oversight with administrative ease.

Staff noted alternative funding timelines: CICT funds and the Affordable Housing Fund exist and were discussed as potential backstops (one speaker described the alternate funds as in the “millions of dollar range” and indicated CICT might be roughly “half 1,000,000” but did not give a precise figure). Staff also reminded the subgroup that any multi‑year award must remain compatible with the City’s consolidated plan and that a pilot approach (for example a two‑year award that is reexamined) would limit long‑term lock‑in.

Members also debated operational options to speed and streamline application processing in a constrained funding environment. The subgroup discussed adopting a pre‑application vetting step (basic organizational information saved once, as used by state programs) to shorten response time on urgent opportunities and considered whether an open application cycle is feasible when funds are scarce.

What happens next: staff will prepare options and slides for the Jan. 12 subgroup meeting and present possible pilot designs, monitoring approaches and contingency plans for reduced CDBG availability. No formal decisions on multi‑year awards were made at this meeting.