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Mesa staff to ask HUD to reclassify HOME‑ARP funds from bridge housing to support services
Summary
Staff told council they will submit an administrative amendment to HUD to change HOME‑ARP funds’ HUD category from capital 'bridge housing' to 'support services' after bridge housing did not proceed; staff said program specifics will be determined later and HUD processing takes about 60 days.
City staff told the Mesa City Council on April 30 that the city will file an administrative amendment with the U.S. Department of Housing and Urban Development to change the HUD category for previously allocated HOME‑ARP funds from brick‑and‑mortar bridge housing to a support‑services category.
"What this does is changes the category with HUD," Candace, a city staff member who briefed council on the item, said. She explained the council approved allocation to bridge housing in 2023 but the capital project has not advanced and staff now seeks authority to move the funds into a support‑services category so different program types may be eligible for reimbursement.
Staff emphasized that the amendment does not itself select a program. Because HOME‑ARP funding uses HUD categories, changing the category is an administrative step that would allow staff later to draw down funds for eligible support services. Staff said HUD reimbursement rules apply and noted that, if council approves the category change, HUD typically takes about 60 days to process the amendment.
Council expressed practical questions about the change, including why a relatively large sum was assigned to administrative costs in the draft breakdown; Candace said HUD prescribes allowable administrative percentages for multiyear grant administration and reporting, and that the figure covers multi‑year oversight rather than pay for two people.
Next steps: Staff requested the council authorize the HUD category amendment, said program details will be developed after HUD reclassification, and will return with program specifics when ready.
Sources: City staff presentation at the April 30 study session; direct remarks by staff identified in the session.

