Committee approves carry-forward authority for HUD grants, extends performance dates to Dec. 31, 2026

The Finance Committee unanimously approved Legistar 90,963 on Dec. 1 to approve carry-forward authority and extend the period of performance to Dec. 31, 2026 for affected FY2025 subrecipient contracts funded by the city’s annual federal formula CDBG and ESG allocations, pending final grant agreements from the U.S. Department of Housing and Urban Development (HUD).

Director O'Keefe (Jim) explained the measure recognizes that HUD grant agreements are not yet in hand. He said finance staff are reviewing language and additional conditions in recently revised HUD regulations that may affect some contracts, and that pending litigation is delaying execution. O'Keefe confirmed the federal funds are not limited to the current calendar year and can be used beyond the end of the year if agreements are received and the city elects to proceed.

Alder Revere asked whether the city has the funds in hand and whether HUD rules limit carry-forward; O'Keefe said the grant agreements are in review, some conditions are under consideration and staff are working through details to determine which contracts may be affected.

The committee recorded a unanimous vote to approve the resolution. The action authorizes the mayor and city clerk to execute the FY2025–26 contracts and amendments as appropriate after grant agreements are final.