Ithaca IRA flags CDBG/HOME spenddown risks; homeowner-rehab and HOME-ARP rollouts lag

The Ithaca Urban Renewal Agency told its board that several grant-funded projects are behind schedule, posing a risk to CDBG timeliness requirements and to the agency's revenue projections. Agency staff emphasized they are actively pursuing reprogramming and contract remedies to meet federal deadlines.

Nelson reported that the agency executed a $900,000 HOME-ARP contract with REACH for rental assistance and case management but that spending ramped later than expected. "We thought we would be expending $50,000 this year," Nelson said; he added REACH has started vouchering and staff have exchanged follow-ups but do not expect to reach the $50,000 projection this year. Nelson noted HOME-ARP funds carry a later statutory expenditure window (staff cited 2030 as a program deadline), but the agency wants to use available funds efficiently.

The agency also described delays in INHS's homeowner-rehabilitation program supported with CDBG. Nelson said INHS has faced contractor and inspection bottlenecks and a requirement mismatch — CDBG requires two price quotes while some program rules INHS uses require three — which slowed project starts. As a result, 2022 and 2023 homeowner-rehab allocations were not fully spent; staff expect the 2022 allocation to be expended by March 2026 and are discussing reprogramming options for the remainder.

Nelson told the board the collaborative street-outreach grant encountered contracting delays but has since executed the agreement and submitted vouchers for reimbursement. The agency has reprogrammed some ED loan funds into Cherry Street sidewalk completion to speed timely expenditures.

Board members asked whether new federal grant conditions would affect participation; Nelson said one new condition requires beneficiary checks against an immigration-verification database and that some public-service providers may decline federal funds because of privacy and trust concerns.

Ending: Staff said they will bring a reprogramming list to the IRA for decisions on time-limited CDBG funds and continue to monitor vouchering for HOME-ARP and homeowner-rehab projects.