City staff to move $1.2 million in recaptured NSP funds into CDBG program

City staff told attendees at a March 9 staff agenda review that they will ask the commission on Wednesday to close an older Neighborhood Stabilization Program (NSP) housing program and transfer roughly $1,200,000 in recaptured funds into the Community Development Block Grant (CDBG) program.

“Kent” (staff) said the NSP award dates to 2009 and the city used the funding through the last decade. The program combined down-payment assistance and minor home rehabilitation and required beneficiaries to remain in their homes for about 30 years; homeowners who sold earlier were required to repay funds at closing. Kent said the city recaptured about $1,200,000 as part of the program closeout and must adopt a substantial amendment to its consolidated action plan to reallocate that money into the ongoing CDBG-funded services.

The change would preserve existing services—down-payment assistance and minor rehab—under a program that the city is actively using, Kent said. The staff memo presented this as an administrative funding reallocation; no commission vote was recorded at the staff review and the item is listed on the commission agenda as a consent item.

The staff presentation did not identify additional conditions or a timeline for the commission vote beyond scheduling the item for the March 11 meeting. The transcript did not include further details about specific CDBG program sub-allocations or whether the amendment would require a public comment period beyond the scheduled commission review.