Rowlett council adopts HUD CAPER, plans to reprogram $195,405 for alley reconstruction

The Rowlett City Council unanimously adopted a resolution Dec. 2 approving the U.S. Department of Housing and Urban Development (HUD) Consolidated Annual Performance and Evaluation Report (CAPER) for program year 2024 following a staff presentation and brief council questions.

Derek Hull, Director of Community Development, told the council the CAPER is a HUD-required public report that documents how Community Development Block Grant (CDBG) funding was allocated and spent. Hull summarized the city’s 2024 allocations and spending and answered council questions about subrecipient performance and project timing.

Hull said the city’s 2024 allocation totaled roughly $300,620 and described the annual budgeted breakdown included in the CAPER: $60,125 (20%) for grant administration, $12,000 for police‑led public‑service activities and $33,093 allocated to the Salvation Army for mortgage and rental assistance. He said the council had prioritized $195,405 for public‑facilities work, specifically alley reconstruction.

Reporting actual expenditures for program year 2024, Hull said the city spent approximately $72,018. He explained that some alley reconstruction (Dana Alley) completed in October 2025 was paid with leftover funds from prior program years (program years 2023 and earlier) totaling about $198,545. For the 2024 program year, the CAPER shows $0 spent on the alley line because previous‑year funds were used instead.

Hull told council the Salvation Army expended only about $340 of its $33,093 allocation because of subrecipient capacity and contract execution issues after federal shutdowns delayed contracting; he said staff now holds kickoff meetings with subrecipients, established quarterly check‑ins and continues closer monitoring to prevent similar underspending.

Councilmembers asked whether reprogrammed dollars accumulate and whether HUD imposes a time limit. Hull replied there is no absolute multi‑year expiration but HUD enforces a timeliness standard that requires communities to spend down allocations within a prescribed timeframe; persistent delays can raise concerns with HUD. He said the $195,405 reprogrammed from 2024 will be assigned to a new alley reconstruction project identified by public works and expected to begin in March pending HUD environmental clearance (an approximate three‑month review) and require roughly two months of construction once clearances and contracts are in place.

Mayor Winget opened the required public hearing on the CAPER at 7:57 p.m.; no members of the public spoke on the CAPER, and the mayor closed the hearing. Councilmember Shoop moved to adopt the CAPER resolution, Councilmember Reeves seconded, and the motion carried unanimously.

The resolution approving the CAPER will be submitted to HUD as required; staff said they will continue monitoring subrecipient performance and provide updates during the next annual action plan process.