Council approves $443,594 CDBG annual action plan to repay Section 108 loan for 199 Groveway redevelopment

The Roswell City Council unanimously approved the 2026 Community Development Block Grant (CDBG) annual action plan on June 22, 2026, authorizing setup of $443,594 in grant revenue to repay a HUD Section 108 loan that supports redevelopment of the Roswell Housing Authority property at 199 Groveway.

Adam Novotny, Director of Finance, said the annual action plan is Roswell’s application to HUD and that the entire CDBG allocation for 2026 is proposed to be dedicated to Section 108 loan repayment consistent with the city’s 2023–2027 consolidated action plan. Novotny noted the required public-comment period ran from May 13 to June 15 with a June 3 public hearing and that no written or oral comments were received on this item during that period.

Deputy City Administrator Jeff Leatherman described the project’s community impact: city staff and partners estimate the redevelopment will yield 102 housing units, including single-bedroom and a smaller number of three-bedroom units, and provide wrap-around services and a portion of units dedicated to veterans. Leatherman said the Section 108 loan of roughly $2 million helped close the capital stack to allow vertical construction to begin.

Councilmembers asked questions about the prior condition of the building and the relationship between the city and the Roswell Housing Authority (RHA). Staff clarified that RHA is a separate federal agency, the mayor appoints RHA board members, and displaced residents were offered first right to return once the new units are available.

Councilmember Hall moved approval, Councilmember Sales seconded, and the measure passed unanimously.

The council authorized a budget amendment to set up the $443,594 CDBG grant revenue; staff said no local match is required under the grant terms.