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City manager flags upcoming decision on CDBG interlocal vs. entitlement status as HUD recognizes Bothell’s growth
Summary
Staff told council HUD has acknowledged Bothell as over 50,000 population and the city may become a direct CDBG entitlement; staff estimated entitlement funds at roughly $200,000/year and noted an interlocal renewal deadline in early July that requires timely council direction.
City manager Kyle told council that HUD has recently acknowledged Bothell’s population has exceeded the 50,000 threshold that can change Community Development Block Grant (CDBG) administration options. He said that across King and Snohomish counties participating cities received about $8,000,000 in CDBG funding in 2025, and that becoming an entitlement city could mean receiving an estimated $200,000 per year directly rather than funding through county interlocals.
Kyle said the interlocal agreements with the counties have a three-year renewal cycle and the renewal deadline is early July, so staff will return a recommendation quickly. He cautioned that entitlement status involves additional administrative responsibilities and that staff were investigating how much of the current county-administered CDBG funding has reached Bothell projects to inform the council’s decision.
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