Council hears orientation on CDBG and HOME housing programs

Lisa Craig, the city’s Community Development Block Grant and HOME program manager, told the council on March 24 that the federal programs are a core tool for preserving housing and supporting neighborhood services in Norman.

“These programs are very, very complicated,” Craig said, adding that CDBG primarily benefits low- and moderate-income residents and frequently leverages private investment: “for every dollar of CDBG funds that comes into a community, it leverages $4 of private investment.” She said Norman’s current annual CDBG allocation is a little over $984,000.

Craig walked council members through HUD’s three national objectives—benefiting low- and moderate-income households, eliminating slum and blight, or meeting urgent needs—and said Norman has historically used the low/moderate-income objective. She explained eligible activities (acquisition, public facilities, park improvements, public services, housing rehab and administration) and flagged common ineligible uses, such as general government buildings, political activity and new housing construction.

On housing rehabilitation, Craig said programs typically serve households at or below 80% of area median income with health- or life-safety needs (failed heating, leaking roofs, failed water heaters). “We do 30 to 45 of those a year,” she said, describing the program’s focus on seniors on fixed incomes who cannot afford large repairs. Craig said individual rehab awards can run in the tens of thousands; the program generally reimburses the city for expenditures and requires careful income documentation.

Craig described compliance risks and oversight: HUD requires environmental reviews, wage-rate compliance and accurate income qualification, and a HUD finding can lead to repayments or reduced future funding. She noted Norman’s last HUD monitoring was in 2013.

She also described Section 108—a loan guarantee tied to CDBG that can be used for major redevelopment projects—and said the city could theoretically borrow against future allocations (Craig cited an example limit of about $4.9 million) while warning about repayment obligations and higher interest compared with GO bonds.

On HOME funds, Craig said Norman receives roughly half the amount of its CDBG allocation through HOME and must provide a 25% noncash match; the city’s CHDO (community housing development organization) receives a required 15% set-aside. She cited a local match bank of about $3 million in third-party match value and noted a HOME/ARP award of roughly $1.5 million intended to help fund a facility at Triad Village.

Craig said staff will supply additional reports on program outcomes—such as the number of landlords now accepting Section 8 payments—and urged council members to consider the programs in annual retreat discussions. The presentation concluded with council members praising the programs’ role in preventing homelessness and keeping residents housed.

The council did not take formal action on the orientation; staff said the item was informational and that specific program decisions and budgets would return for council consideration.