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Council allocates remaining CDBG-CV3 funds to rehab HRA-owned affordable rental homes
Summary
Bloomington council approved a substantial amendment to the 2019 CDBG action plan to allocate remaining CDBG-CV3 funds (about $230,000) to rehabilitate affordable rental homes owned by the HRA, citing pandemic-related deferred maintenance and HUD spending deadlines.
The Bloomington City Council adopted a substantial amendment to the 2019 Community Development Block Grant (CDBG) annual action plan on Dec. 8, redirecting remaining CDBG-CV3 funds toward rehabilitation of affordable rental housing.
Background and use: Assistant HRA Administrator explained that COVID-era CDBG-CV funds were received in tranches; while earlier tranches were expended on pandemic relief (mortgage and rental assistance), a remaining CV3 balance of about $230,000 remained unallocated. HUD rules require these funds be tied to pandemic responses or pandemic resiliency projects; staff proposed targeting repairs and deferred maintenance in HRA-owned, rent-restricted single-family homes that experienced occupancy and maintenance issues during the pandemic.
Timing and legal constraints: Staff said the funds must be spent by about April 2026 or be returned to the federal government. Council discussed targeting the 41 HRA-owned homes but left the amendment language broad enough to allow programmatic flexibility if circumstances require.
Vote and next steps: Council adopted the amendment 7-0. Staff will finalize allocations and project scopes consistent with HUD requirements and the adopted amendment.
