Committee discusses CDBG entitlement: shift from down-payment assistance to blight removal

Planning and Grants Director Helmick (speaker 10) reviewed charitable and entitlement grants, noting several are closing out and one key active program is the Community Development Block Grant (CDBG) entitlement. He said the city's total entitlement for the year is roughly $274,000 and that the draft action plan shifts more funds toward neighborhood redevelopment and blight removal.

Helmick explained that down-payment assistance was reduced from $50,000 last year to $25,000 this year because staff expects greater utility from blight removal and housing rehabilitation given federal regulations and local demand. "This year, the numbers that are reflected in there under the contractual, and materials, line items reflect our annual action plan that was approved by council earlier this summer," Helmick said. He added neighborhood redevelopment funding rose from $60,000 to about $82,000 and that demolition expenditures are capped by federal regulations — staff cited a 30% cap on certain demolition costs under program rules.

Councilors asked about sidewalk-repair uses of CDBG or other capital funds; Helmick said $40,000 appears under public-improvements in the budget and that the broader capital-improvement program also funds sidewalks via public-works allocations. Staff said they will provide a focused response for sidewalk priorities and report back later in the fall.

The committee did not vote on CDBG allocations at this session; the review will continue as staff refines spending options and matches grant rules to local priorities.