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Bend advisory committee backs ‘waterfall’ approach to spend CDBG funds, 6–2
Summary
At its February meeting the Portable Housing Advisory Committee voted 6–2 to recommend a ‘waterfall’ prioritization for limited CDBG dollars: area‑benefit programs (food banks) first, then public‑service providers able to verify beneficiaries, and finally homeownership assistance.
At its February meeting the City of Bend Portable Housing Advisory Committee voted 6–2 to recommend a “waterfall” approach for spending remaining Community Development Block Grant (CDBG) dollars, directing staff to prioritize area‑benefit programs, then public‑service providers that can perform federal eligibility verification, and then limited homeownership assistance.
Housing division manager Rachel Baker told the committee that the city had opened CDBG applications exclusively for infrastructure and received only one submission, leaving roughly $250,000 available for other housing‑related programs. Baker said staff would first reach out to food banks and other area‑benefit nonprofits to avoid individual‑level verification requirements, then to public‑service providers willing and able to meet federal screening requirements, and finally to local homeownership programs for a small loan program, if needed.
The legal backdrop has complicated the options. Elizabeth Oeschel of the city attorney’s office briefed members on proposed changes to federal interpretations of PRWORA that could require verification of eligible aliens for certain federally funded public benefits. “There’s litigation going on saying, essentially, you’re changing them in unlawful ways,” Oeschel said, and staff warned that outcomes could change what the city can require of nonprofit subrecipients.
During public comment Amy Warren, introduced herself as the board president of FISLA and Ness, urged the committee to oppose any prevailing‑wage accommodation that she said would harm small local firms and reduce funds available for housing. “The unintended byproduct of prevailing wage can create a disparate impact,” Warren said, arguing that compliance costs and administrative burdens can push work to larger firms outside Bend.
Committee members debated tradeoffs between compliance burdens and the need to spend funds within HUD deadlines. Several members said a narrow, staged approach would increase the likelihood of spending money quickly while limiting requirements on small organizations. Members volunteered for a fast‑turnaround subcommittee to vet applicants.
The committee’s recommendation is advisory; any final acceptance of CDBG terms and awards must be approved by Bend City Council and is subject to HUD rules and the outcome of ongoing litigation.
The committee also asked staff to return with details on outreach and a proposed timeline for the subcommittee’s review.
