Title
Hold a public hearing and inform the public of a comment period from December 8, 2025 through January 6, 2026, to receive citizen participation and comments regarding Substantial Amendment to the 2025-2026 Annual Action Plan for the reprogramming of CDBG funds, in the amount of $1,349,445.69.
Summary
DATE: December 2, 2025
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Substantial Amendment to the 2025-2026 Annual Action Plan for the reprogramming of CDBG funds
BACKGROUND AND FINDINGS:
On July 15, 2025, staff presented an update to Council on the Reunification Center Project, a city-owned emergency shelter facility. Council provided a Motion of Direction to suspend the project until further notice. Additional direction was given on how to proceed with preservation or reallocation of project funding: Capital Improvement Projects (CIP) funds are to be preserved until a final decision is made to reactivate or terminate the project; and Community Development Block Grant (CDBG) funds are to be reallocated to a CDBG eligible project.
As noted in the July 15th presentation, reallocation of CDBG funds requires a Substantial Amendment to the Annual Action Plan (AAP). A substantial amendment occurs when there is a change in the purpose, scope, location, or beneficiaries of an activity/project. The 1st Substantial Amendment to AAP 2024-2025 was authorized via Ord. 25-037, which allowed for the reprogramming of previous years HOME funds to Tenant Based Rental Assistance (TBRA) activities and removed a counseling requirement for beneficiaries of TBRA.
CDBG grant funds allocated to the Reunification Center Project totaled $1,399,103.09. A balance of $1,349,445.69 remains.
On September 16th, a public hearing was held to publicize a comment period for the proposed 2nd Substantial Amendment. After the public hearing, staff became aware of a potential compliance issue if the CDBG funds were to be...
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