Middletown advisory committee approves staff-recommended CDBG allocations, reprograms prior funds to cover YMCA match

The Community Advisory Committee on the City's Community Development Block Grant (CDBG) program voted to accept staff'recommended allocations, a draft council resolution and the annual action plan notice to meet HUD deadlines.

Brian, a city development staff member, told the committee that HUD's entitlement award for fiscal year 2024 will likely be $477,291, down from $502,576 the prior year. "HUD has decreased the entitlement amount the city will be receiving for fiscal year '24," he said, explaining why staff asked applicants to prioritize or withdraw parts of their requests after initial submissions totaled more than $738,000.

Hilda, another staff member involved in allocations, said the YMCA had the largest multi-year request in recent years and that staff worked through prior-year funds and reprogramming to preserve a match for the YMCA's HVAC project. "The YMCA had a huge request for $375,000 within the last 3 years...we went through a lot of years through the CDBG and as we paid off 2022, 2021, and 2020, we were able to find the money to make up for the $375,000," she said. Hilda also said HUD disallowed certain items — for example, a $48,000 trash-bag subsidy the city requested was removed because CDBG rules do not permit that purchase.

Staff described targeted reprogramming of leftover funds from prior cycles to fund higher-priority items and to secure matching resources that leverage other grants and private donations. Hilda said HUD allowed the shift of a disallowed furniture request into a brick-repair scope, and staff will obtain the required three bids for projects like HVAC work before drawing down funds.

Committee members praised staff's "value-engineering" of requests to maximize project completion. Councilman Faulkner and others asked procedural questions about multi-year commitments and how the spreadsheet tracks annual allocations versus multi-year pledges.

A motion to approve the committee minutes from April 17 passed by voice vote. The committee then considered a single motion to approve the suggested allocations, the draft city council resolution and the annual action plan notice so staff could meet HUD's filing timeline. The motion carried in a voice vote; staff said the complete package will be forwarded to the common council and must be submitted to Linda Reed by the 22nd for the council's August 5 meeting review.

Cali Grippo, a meeting participant, thanked staff for their work during the discussion: "You did an amazing job, and I know you worked tirelessly to get this done," she said.

What happens next: staff will finalize the action plan materials and submit them to city staff for the common council packet. HUD deadlines require the city to post notices and submit the annual action plan on schedule; the committee noted the CAPER will be due later in the year.

Votes at a glance - Approval of April 17 minutes: motion moved and seconded; passed by voice vote (ayes recorded on the transcript). - Approval of suggested allocations, draft council resolution and annual action plan notice (single motion): motion moved and seconded; passed by voice vote. The committee recorded multiple "aye" responses on the audio; staff will forward the package to the common council for final action.

Details and context: The FY24 award staff cited (approximately $477,291) is the anticipated HUD entitlement; staff reported initial applicant requests exceeded available funding by roughly $260,000 before applicants reduced scopes or withdrew requests. Staff said public infrastructure and facility projects can account for up to 65% of the grant and noted the public-service cap (approximately 15%) remains the most constrained funding category. For projects requiring procurement, applicants must submit three bids before the city will draw down CDBG funds.

The committee's approval is an advisory and administrative step: the common council will receive the resolution and action plan for its consideration on the stated schedule.