Flagstaff staff present draft five-year consolidated plan and recommend CDBG allocations for shelters, parks and accessibility

At a Flagstaff City Council work session on April 14, housing staff and consultant Civitas presented the draft five-year consolidated plan and the 2026 annual action plan funding recommendations tied to the city's Community Development Block Grant (CDBG) entitlement of about $681,001.96.

Christine Pavlik, housing and grants administrator for the City of Flagstaff, told the council the annual allocation includes $154,000 in deobligated funds and roughly $46,000 in program income, and that the city must comply with HUD's program caps and timely-expenditure rules. "We recently received our entitlement allocation amount from HUD on April 3. This year, our allocation is a little over $681,000," Pavlik said. She described the program's regulatory limits: a 20% cap on administration, a 15% cap on public services, and the timely-expenditure "1.5 test."

Eric Chatham of Civitas LLC, the consultant leading the consolidated-plan assessment, summarized the data driving the plan: Flagstaff's population grew about 15% in the last decade, households increased nearly 21%, median income rose roughly 37% (to about $68,000), while median home values climbed about 90%. Chatham said those trends contribute to high housing cost burdens, especially for renters—"almost 57% of all of your current renters are considered cost burden," he said. He framed four priority needs that will guide CDBG spending: preserve and develop affordable housing, improve public facilities and infrastructure, fund public services targeted to low- and moderate-income households and special-needs populations, and ensure effective program administration.

Pavlik outlined recommended allocations and specific proposals under consideration. She said staff recommend maximizing the administration and indirect category while staying under the 20% limit, reserving $109,000 for public services and roughly $625,000 for housing and public improvements after accounting for admin and public-services caps. Major proposals described included a $500,000 request for Ponderosa Park reconstruction (PROS), resilience improvements at the Murdoch Center (HVAC, kitchen equipment, battery backup), and ADA ramp work at the Thorpe Mogollon office. For public services, the top scoring applicants identified were Flagstaff Shelter Services and Northland Family Help Center; requested programs included child-care scholarships, senior nutrition/Meals on Wheels, Lantern transitional housing operations, a domestic-violence shelter case manager, and TAROS Health crisis-to-recovery navigation.

Pavlik presented estimated program impacts: approximately 300 individuals experiencing homelessness could receive overnight shelter services and roughly 90 domestic-violence clients could access case management through the recommended public-service awards; Ponderosa Park reconstruction was estimated to benefit more than 4,000 households and Murdoch resilience work about 2,600 households. She emphasized the public comment period is open through May, with a final public meeting on April 30 and a return to council on May 19 to request a resolution approving submission to HUD; staff aim to submit the plan to HUD by June 2 with the program year beginning July 1.

Council members asked detailed process questions. Council member David Spence pressed on compliance with the 20% administration cap; Pavlik explained staff calculate administration using anticipated program income and work with finance to ensure the city stays below the cap. Council member Aslan requested engagement with the local literacy center for potential future funding; Pavlik said she would reach out and offer technical assistance. Council member House asked about flexibility between categories (public services versus capital improvements); Pavlik said salaries and operations are tightly regulated under public services, while capital work to facilities can sometimes free other funds for operations.

Service providers also described program impacts in the room and online. Ross Schafer, executive director of Flagstaff Shelter Services (participating virtually), said the Lantern hotel-to-housing project has moved 103 people experiencing homelessness into stable placements and that CDBG support for the Lantern would continue that transition work. Charlene Seward, executive director of Northland Family Help Center, described the need for a domestic-violence case manager to help survivors transition out of emergency shelter; she said about 95% of their clients report incomes at or below federal poverty levels.

Vice Mayor Miranda Sweet said the council was not voting at the work session and asked staff for follow-up; Pavlik reiterated next steps for comments and the May 19 resolution request. "We'll be back May 19 to request a resolution approving submission of the consolidated plan and the annual action plan," she said.

The council did not take formal action at the work session; staff will incorporate public comment, finalize allocations, and return for a formal resolution in May.