City staff outline CDBG, HOME, ARPA and opioid settlement spending and timelines

Alicia Zoller, administrator for the Office for Community Development, gave a program-by-program briefing for board members on funding sources they may work with.

CDBG: Zoller said staff are preparing the FY2026 annual plan to submit to HUD and are currently planning at FY2025 funding levels because FY2026 federal allocations were not finalized. She said the office received 20 proposals this solicitation round totaling about $8.6 million in requests and that an entitlement near $1.5 million this year would be fortunate if realized. "This year we have $8,600,000 in requests," Zoller said, noting the city will make recommendations via the Citizens Advisory Committee, DGR (City Council) review and staff before mayoral allocations.

HOME and HOME‑ARP: Zoller said Holyoke participates in HOME programs jointly with Chicopee and Westfield. HOME‑ARP (one-time COVID-era funding) brought Holyoke roughly $1.7 million that requires qualifying beneficiary populations and careful program design; the annual HOME entitlement across the three communities was about $840,000 last year for affordable housing and down-payment assistance.

ARPA: Zoller described ARPA accounting and status: Holyoke's ARPA allocation was over $37 million; as of the city’s last reporting (Dec. 31) about $33 million had been expended. She said 24 of 50 activities are complete, six were canceled for inactivity and that the administration reinvested about $1.5 million of ARPA interest back into community activities. Staff are working to complete active projects by June 30, 2026 to meet Treasury portal closeout requirements.

Opioid settlement funds: Zoller explained the city receives annual disbursements through 2038 as part of opioid litigation settlements. The office completed a community needs assessment and solicited proposals; in the current round the city offered $1 million and received 14 proposals requesting about $4.7 million. Proposals are being reviewed by an opioid citizens advisory committee, the Board of Health and other bodies, and recommendations will go to the mayor for final allocation consistent with Commonwealth guidance on eligible uses (treatment, recovery supports, harm reduction, prevention, and services for justice‑involved or pregnant/parenting individuals).

Zoller emphasized the administrative parallels among the programs: public processes, vetting, contracting and compliance reporting to HUD or Treasury where applicable. She encouraged boards to identify projects that might fit available funding and to coordinate with department heads and the Office for Community Development.