Austin staff report CSBG allocation delay and capacity limits at Neighborhood Services Unit

Austin Public Health’s Neighborhood Services Unit updated the Community Development Commission on its Community Services Block Grant (CSBG) activities and program performance, saying the unit received an initial allocation and is awaiting release of additional federal funds.

Manager Angel Zambrano told commissioners the NSU received $382,620 as a first allocation and that Office of Community Services requests for FY2026 funds were awaiting release through the Office of Management and Budget and Health and Human Services. Zambrano said the program is ahead of its transition‑out‑of‑poverty goal through February but emphasized capacity constraints for rent assistance and food distribution at seven neighborhood centers.

During questions commissioners pressed staff for recidivism data and for numbers showing how many callers are turned away; Zambrano acknowledged the program’s current lottery/slot system and said staff get thousands of calls on Monday mornings. "We get 15,000 calls on Monday mornings," Zambrano said, describing demand far outstripping capacity. She described a multi‑step process that negotiates with landlords, collects documentation, and delivers checks through the fiscal agent, the Austin Area Urban League.

Commissioners asked staff to provide more granular 3‑1‑1 and program data to identify geographic and demographic gaps so the commission can better advise on funding priorities. Staff said they will add clearer data to future reports and that the South Austin Neighborhood Center remains closed pending repairs, with possible reopening this summer.

The briefing underlined the gap between demand and available funding, and commissioners flagged the need for better tracking of people who seek but do not receive assistance.