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Federal Way council approves CDBG CAPER and amendments; members question delayed spending of CARES-era funds
Summary
Council approved the 2025 CAPER and multiple CDBG amendments to fund a downtown Civic Plaza temporary project and purchase festival‑street barricades with remaining CARES-era allocations, but several council members pressed staff to account for years of unspent CDBG funds and urged more timely planning.
The Federal Way City Council approved the 2025 Consolidated Annual Performance and Evaluation Report (CAPER) and three Community Development Block Grant (CDBG) amendments on April 21, authorizing use of remaining CDBG and CARES-era funds for downtown and festival‑street projects while prompting questions from council members about timeliness and prior plans.
Community development manager Angelina Allen told the council the CAPER — required by HUD and due May 1 — reported roughly $671,000 expended in program year 2025, serving 609 unduplicated Federal Way residents across economic development, homeless‑prevention and suitable living environment activities.
Allen also presented three amendments: (1) a fourth amendment to the 2019 action plan to allocate $258,559 of previously unallocated CARES‑era CDBG funds to purchase temporary removable barricades (ballards), two trailers and related equipment needed for a South 316th Street Festival Street conversion; funds must be spent by June 26 or risk recapture by the U.S. Treasury. (2) a first amendment to the 2024 action plan to allocate $196,720 of 2024 unallocated CDBG toward a temporary downtown Civic Plaza project, to be combined with an $850,000 congressional appropriation; (3) approval of the 2025 CAPER itself.
Several council members, including Council President Susan Honda and Council Member Sephawson, pressed staff to explain why CDBG funds had not been spent earlier and urged a committee discussion on planning and timeliness. Staff said turnover at HUD and project setbacks contributed, and staff committed to a Parks/Recreation/Human Services committee briefing on improving prioritization and avoiding the appearance of "cleaning out the back closet" of unspent funds.
Why it matters: The city will deploy federal funds for downtown activation and festival infrastructure that officials say serve low‑ and moderate‑income areas and small business activity. Council members flagged the administrative risk of returning funds if deadlines are missed and asked staff to pursue more deliberate, community‑driven planning in future allocations.
What’s next: The CAPER and amendments were approved unanimously and the city will proceed with procurement and implementation subject to HUD and Treasury timelines. Council asked staff to return with a timeliness and prioritization briefing to the parks/human services committee.
Provenance: topicintro SEG 2403, topfinish SEG 2796.
