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City staff outlines draft plan to allocate roughly $740,000 in CDBG funds; council debates small-grant burden
Summary
City staff presented recommended allocations for about $740,000 in Community Development Block Grant funds, prioritizing affordable housing, public services and facilities. Council questioned reporting burdens for small providers and discussed using upcoming HUD overage or ARPA funds to adjust awards; final allocations will return July 7 for decision.
City staff presented a draft Community Development Block Grant (CDBG) action plan and recommended allocations for the 2026–27 program year during a public hearing on April 7. Carol Griffith, housing and community development manager, told the council the city budgeted the plan to the $740,000 amount shown on the posted agenda but that HUD subsequently announced an increased national allocation that will raise San Marcos’s total to roughly $774,000; staff asked council to provide direction based on the posted figure and said staff will publish a draft action plan and a separate staff proposal to allocate any overage for a 30‑day public comment period.
Griffith said HUD rules cap spending on public services at 15% and administration at 20%, leaving about $481,000 for projects from the $740,000 baseline. The staff review committee…
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