Reprogramming and Extensions for the Timely Expenditure of Funds Relating to Community Development Block Grants as September 30, 2025 [Janette Weedon, Director, Budget and Management Services; Chan Williams, Assistant Director, Budget and Management Services]

This item addresses the timely expenditure of Community Development Block Grant (CDBG) funds to comply with U.S. Department of Housing and Urban Development (HUD) regulations and city policy. The city failed to meet HUD's requirement on August 2, 2025, which limits unspent CDBG funds to 1.5 times the annual grant allocation. To address this, the city is requesting:

• Extensions: For 8 CDBG projects totaling $6,706,866 to allow additional time for completion.
• Reprogramming of Prior Year CDBG-Annual Funds: $2,566,661 from 6 projects will be reprogrammed for one-time repairs and renovations at public facilities and infrastructure projects, which must be completed within 6 months.
• Reprogramming of CDBG-COVID Funds: $450,000 from 2 projects will be reprogrammed for the Emergency Rental Assistance Program.

These actions require City Council approval on January 28, 2026, with final adoption of the reprogramming budget on March 25, 2026, following a public hearing.

This action ensures the city continues to receive its full annual CDBG allocation by demonstrating timely use of funds. Residents may benefit from the reprogrammed funds being used for public facility repairs and emergency rental assistance, though specific projects are not detailed in this summary.

high