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Hold a public hearing and inform the public of a comment period from June 9 - July 15, 2025, to receive citizen participation and comment regarding the five-year 2025-29 Consolidated Plan draft and the proposed activities under the FY 2025-26 Annual Action Plan describing use of Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and the use of HOME American Rescue Plan (ARP) program funds (1st of 2 Public Hearings).
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DATE: June 3, 2025
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: A public hearing and approval of comment period for the FY 2025-29 Consolidated Plan/Year-One FY 2025-26 Community Development Block Grant (CDBG) and Home Investments Partnerships (HOME) Program, and the use of FY 2021-22 HOME ARP Program funds.
BACKGROUND AND FINDINGS:
The City of Killeen will receive entitlement funds from the U.S. Department of Housing and Urban Development (HUD) for FY 2025-2026 Community Development Block Grant Program (CDBG) in the amount of $1,350,070.00 and $545,001.73 in Home Investment Partnerships (HOME) activities. Additionally, the city has re-programmable CDBG funds from FY 23-24 in the amount $31,308.18 from CDBG Admin and Planning, $42.89 from Community Engagement Unit, and $9,024.02 from the Reunification Program for a total of $40,375.09. The City is also administering remaining HOME American Rescue Plan (ARP) Program grant funds allocated during FY 21-22.
The FY 2025-26 grant cycle began on February 26, 2025, with the first Community Planning Meeting and concluded with the deadline for submitting Annual Funding Applications (AFF) on April 11, 2025. The process included a required in-person Pre-App Technical Workshop for first-time applicants on February 20, 2025. Pre-Applications were made available to interested organizations from February 24 to March 7, 2025. The AFF was made available to pre-application eligible entities for both the CDBG, HOME, and HOME ARP programs via the online application portal. Thirteen (13) CDBG, one (1) HOME, and three (3) HOME ARP AFFs were submitted by the deadline. Two (2) CDBG and one (1) HOME ARP applicants withdrew their requests prior to the Community Development Advisory Committee (CDAC) making its recommendations for funding. One (1) HOME ARP applicant withdrew their request after CDAC recommendation for funding.
Activities undertaken with CDBG, and HOME Program funds must meet goals and objectives established in the 5-year Consolidated (Con) Plan (PY 2025-2029) and year-one FY 25-26 Annual Action Plan (AAP) meeting affordable housing and community development needs. HOME ARP activities must meet objectives described in the HOME ARP Allocation Plan and must assist identified Qualified Populations. Applications considered and recommended for funding align with identified priority community needs, affordable housing needs, goals, and objectives for specific priority categories. To ensure that priority needs are addressed, the CDAC used established scoring criteria for each program that places major emphasis on project significance, project feasibility, ability to comply with applicable HUD requirements (statutory and regulatory) applicable to each grant program, and the leveraging of funds from other federal, state, local, and private resources to be directed to the most pressing community development and affordable housing needs.
The CDAC met on May 14 and 15, 2025, to review and make recommendations for the proposed use of FY 2025-26 CDBG and HOME Program funds and the HOME ARP Program funds. Results are detailed in the attached CDAC meeting minutes.
HUD regulation allows for 20% of CDBG and 10% of HOME funds to be expended on administration/planning of CDBG and HOME activities and for a required 15% set-aside for Community Housing Development Organizations (CHDO) from HOME funds. All eligible project expenditures under the CDBG, HOME, and HOME ARP Programs will be reimbursed to the City by the U.S. Department of Housing and Urban Development.
THE ALTERNATIVES CONSIDERED:
1. Do not accept the FY 2025-26 grant funds and return funding to HUD.
2. Accept the CDAC recommendations until such time the 30-day comment period is complete, and incorporating any public comments received, and hold the final public hearing on July 15, 2025, to adopt the FY 2025-29 Con Plan and Year 1 AAP with citizen comment as appropriate.
Which alternative is recommended? Why?
Accept the CDAC recommendations until such time the 30-day comment period is complete, incorporate any public comments received, and hold the final public hearing on July 15, 2025, to adopt the FY 2025-29 Con Plan and Year 1 AAP with citizen comment as appropriate.
CONFORMITY TO CITY POLICY:
Yes, as described in the Citizen Participation Plan, approved by city council.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$0 in the current fiscal year and $1,350,070.00 in CDBG funds, $545,001.73 in HOME and $40,375.09 in reprogramed CDBG grant funds, and $100,000.00 in HOME ARP funds during FY 2025-26
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon approval of the ordinance, funding will be included in the FY 2026 Proposed Budget.
RECOMMENDATION:
Hold a public hearing and inform the public of a comment period from June 9 - July 15, 2025, accept the CDAC recommendations until such time the 30-day comment period is complete, incorporate any public comments received, and hold the final public hearing on July 15, 2025, to adopt the FY 2025-29 Con Plan and Year 1 AAP with citizen comment as appropriate.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
CDAC Minutes May 14-15, 2025
Proposed Funding Tables
Draft Ordinance for the Con Plan and Annual Action Plan
Presentation