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Home My WebLink AboutCDBG Commission Presentation 25.07.15Community Development Block Grant (CDBG) Year 2 Action Plan JULY 15, 2025 BRIT FONTENOT, ECONOMIC DEVELOPMENT DIRECTOR MELISSA HODNETT, FINANCE DIRECTOR Introduction & Framing •Consistent with the 5-year con plan •Includes tenants right to counsel under public services (15% cap) •Keeps us in compliance with HUD What this plan does •No reallocation of funding between categories What this plan does not do •No citizen participation plan in place yet •Community Housing Manager vacant •Required to define “substantial amendments” before reallocating funds Why are we limited (for now)? Next steps •Public Hearing + Commission Action – July 15th •Submit to HUD by August 16th •Hire Community Housing Manager & Adopt Citizen Participation Plan •Substantial amendment may be needed later this year or early 2026 Action Plan Allocations –Year 2 Goal/Project Year 1 Allocation Year 2 Allocation To Date Allocation Target Outcome Emergency & Transitional Housing $212,688 $55,555 $268,243 75 individuals assisted, 30 new beds Critical Community Services 48,000 52,168 100,168 100 low/moderate income residents Increasing & Preserving Housing Options -170,509 170,509 Affordable rental housing, affordable homeownership opportunities, accessibly housing Program Planning & Administration 65,171 69,558 134,729 Compliance and strategy integration Total $325,859 $347,790 $673,649 Citizen Participation •HUD requires two public hearings and a 30-day public comment period on the CDBG Action Plan •On June 4th, the Economic Vitality Board held a public hearing and considered the Action Plan and recommended the following: •EV Board recommend approval of the CDBG FY25 Annual Action Plan to the City Commission with increased prioritization of funding and resources to emergency and transitional housing relative to increasing and preserving housing options and consider the eligibility of administration dollars to support all three categories (emergency/transitional housing, critical community services, and increasing/preserving housing options). •The CGBG Action Plan was open for public comment from June 14 –July 14 •Notice was published in the local journal of record on the following dates: June 14, June 21, June 28, July 5, and July 12, 2025 •As of noon on Tuesday, July 14, no comments were received by the City Clerk’s office •With the previous Action Plan work mentioned and this hearing, the City has the requirements of HUD; however, we still need to adopt a more formalized Citizen Participation Plan. •Prioritizing the hiring of a Community Housing Manager who can lead our CDBG projects. Family Promise Sanitary Sewer Project •Family Promise (FP) is located in the unannexed Genesis Business Park south of Stucky Road. FP currently houses 92 individuals in 23 family transitional housing units with an average family size of 4 people. •FP has maximized its ability to house families in its facility due to limited sewer capacity. They recently completed 8 new units (~32 people) that are not being used to house anyone. •Additionally, Family Promise owns a vacant lot adjacent to their current facility that could be built out with additional family transitional housing if there were additional sewer capacity. •Staff expects to use up to $275,000 of the Year 1 CDBG allocation, and possibly some portion of the Year 2 allocation, to connect FP to City water and sewer, thus making 8 new units of family transitional housing available immediately and enabling expansion of family transitional housing on the adjacent lot. •Part of HUD CDBG spending guidelines require that at least ½ of the yearly allocation be spent by September 30, 2026. Next Steps Hire the Community Housing Manager Finalize Citizen Participation Plan Determine form and funding source for Eviction Prevention Program Determine feasibility of Family Promise Project Update (if needed) the Comprehensive Plan and Annual Action Plan Public Hearing & Commission Action Public Hearing Consider the Motion: I move to approve the Community Development Block Grant (CDBG) FY 2025 Annual Action Plan. Backup Slides Bozeman Income Limits Median Family Income FY25 Income Limit Category 1 2 3 4 5 6 $120,700 Very Low (50%)$41,650 $47,600 $53,550 $59,500 $64,300 $69,050 Extremely Low ($)*25,000 28,600 32,150 35,700 38,600 43,150 Low (80%)66,650 76,200 85,700 95,200 102,850 110,450 Moderate (140%) * The FY 2014 Consolidated Appropriations Act changed the definition of extremely low-income to be the greater of 30/50ths (60 percent) of the Section 8 very low-income limit or the poverty guideline as established by the Department of Health and Human Services (HHS), provided that this amount is not greater than the Section 8 50% very low-income limit. Consequently, the extremely low income limits may equal the very low (50%) income limits. Overview of the Calculation Process for the Moderate Income Level - HUD Exchange Eviction Prevention (Tenant Right to Counsel) Legal services for tenant / landlord disputes can be funded through CDBG, but only using public service dollars (up to 15% of the total allocation). Including the year 1 carry forward there is $100,168 available for FY26. Income restrictions will need to be met and tracked. If needed, updates to Action Plan will be presented soon after the Eviction Prevention / Tenant Right to Counsel Commission Work Session in Fall.