Lowell nonprofit subcommittee presses City for clearer CDBG plan after grants held internally

Councillor Yang and nonprofit leaders urged the City of Lowell to clarify how Community Development Block Grant (CDBG) funds were handled after several nonprofit applicants learned their preliminary approvals did not make it to the council for final action. "We raised concerns obviously over the transparency and communication around the application," said Matthew Myers, director of marketing and communications at Riverbend and treasurer of the nonprofit alliance.

The nonprofit alliance described asking for a report and an action plan from the city manager after the May council vote. A DPD staff member told the subcommittee that the department began with a competitive RFP but then received what they described as confusing and sometimes contradictory federal guidance from HUD and OMB. Because the city would be financially responsible if awards were later deemed ineligible, the city took a conservative approach: distribute HOME and ESG funds as usual but retain CDBG funds for city-led programs.

The explanation prompted frustration from some council members. Councilmember O'Donnell said she could follow staff's rationale but remained troubled that DPD had preliminarily approved some nonprofit applications — including one for the Lowell Association for the Blind — that did not reach the council packet. "I still am both confused and a little bit frustrated," she said, asking for clarity about where decisions changed between DPD review and the council vote.

Nonprofit leaders urged collaborative remedies. Nancy, director of the Lowell Alliance, described the competitive landscape nonprofits face and suggested nonfinancial city supports such as letters of support, joint applications or in‑kind contributions. "Collaboration like support, like letters of support… might change things at the state level," she said.

Staff offered concrete next steps: share a live-updating spreadsheet of compliant grant-writing language, provide technical-assistance sessions if the city resumes competitive RFPs, and accept draft letters from nonprofits that the city could place on official letterhead. The DPD staff member said they would be willing to help draft and tweak letters and to work with nonprofits on collaborative applications.

The subcommittee agreed to continue the conversation, pursue a draft letter of support, and schedule follow-up meetings with DPD to discuss technical assistance and possible future RFP processes. The committee also asked staff to explain how preliminary DPD approvals were removed from the packet before the council vote so the elected body could evaluate whether process or communication breakdowns occurred.

The session closed after a procedural motion to return was approved by voice vote. The subcommittee planned a July follow-up meeting and to invite the health department and nonprofits to present technical needs and proposed programs.