Billings hears public concerns over HUD CDBG/HOME allocations, asks staff for follow‑ups on stalled projects
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Summary
City staff presented the annual CDBG/HOME action plan and recommended funding including $750,000 for Sage Tower; public commenters and several council members raised concerns about delayed Homefront/LB Lofts work, potential reallocation of funds, code‑enforcement complaints and a staff administration‑cost line item that some councillors called high.
City staff outlined the proposed Community Development Block Grant (CDBG) and HOME funding priorities and timelines and answered extensive public comment during a required public hearing on the annual action plan.
Brenda Beckett, Community Development staff, said HUD timeliness requirements mean the city must show a plan to expend current funds and that the department expects to submit the consolidated annual action plan to HUD around mid‑May. Staff recommended allocations that include $750,000 for a Sage Tower rehabilitation project and changes to the first‑time homebuyer program to index assistance to a percentage of purchase price so grant amounts rise and fall with the market.
Several public commenters urged the council to reconsider awarding the Sage Tower allocation to HomeWorld, citing reported building condition problems and unpaid taxes; one public speaker said, "HomeWorld does not need a penny of our money." The transcript records that speaker as Jeff Kettleson (Ward 5). Council members pressed staff on program administration fees — citing an $87,619 staff‑cost allocation for project management — and asked for clearer justifications. Beckett said the amount reflects staff time that must be charged to programs and detailed HUD requirements including Davis‑Bacon wage inspections and section‑3 reporting.
Councilors and members of the public also raised problems with the LB Lofts project (201 Sioux Lane), where modular units are staged on private property; council received an on‑the‑record update that code enforcement had a complaint and a case number assigned that afternoon and that the developer had reported plans to move most units off site by the end of the next month. Staff emphasized the difference between a code‑enforcement investigation on private property and the city’s responsibility, under HUD rules, to demonstrate fund commitments and expenditure plans; staff said they must allocate roughly $380,000 in firm written agreements by next September to keep grant commitments on track.
Beckett said if certain allocations are not committed or project plans do not proceed, staff will need time to find alternative projects that meet HUD rules; council asked staff to return with updates and timesheets/justifications where administration fees appear large. The public hearing portion closed and the council will consider final action on the annual action plan at the April 27 meeting before the submission to HUD.
Key details: the staff recommendation includes an increased, percentage‑based approach to first‑time homebuyer assistance, a proposed $750,000 allocation for Sage Tower rehabilitation, a possible foreclosure‑rehab project to meet expenditure deadlines and continued attention to CPTED/park projects where eligible.
