Tamarac plans to use $1.2M in recaptured NSP funds in this year's CDBG action plan to launch one-time emergency assistance

City staff told colleagues they will present an annual Community Development Block Grant (CDBG) action plan that includes about $1.2 million in recaptured Neighborhood Stabilization Program (NSP) funds redirected by HUD into CDBG.

A staff presenter explained the plan must be filed by Aug. 15 and that the recaptured NSP funding will, for the first time this year, permit an emergency assistance program to cover rental and mortgage payments, homeowner-association fees and similar short-term needs. "That program has been closed, and HUD has directed all municipalities to redirect those funds into CDBG," the presenter said.

Staff emphasized the NSP money is a one-time addition. The presenter said the city's normal CDBG entitlement is roughly $508,000 and that next year's plan will not include the NSP recapture unless HUD provides another allocation.

Next steps: staff will include the NSP-recapture-funded emergency-assistance component in the CDBG action plan for the commission to adopt.