During the recent IURA Governance Committee meeting held on July 25, 2025, significant concerns were raised regarding the management and expenditure of Community Development Block Grant (CDBG) funds. The committee reviewed the grant report, highlighting the importance of timely spending to avoid future reductions in funding. A letter from HUD indicated that the city had not met the required spending benchmarks, which could jeopardize future grants if the trend continues.

The committee noted that the current standard allows for no more than 1.5 times the most recent grant amount—approximately $680,000—to remain unspent. Unfortunately, the city has exceeded this limit, primarily due to delays in several key projects. Among these, the Cecil Malone sidewalk project is under contract but has not yet commenced, as the contractor opted to schedule the work for later in the summer.

Another critical issue discussed was the delays in the CDBG INHS homeowner rehabilitation program. The program faced significant setbacks during the pandemic, as restrictions limited access to homes for inspections and contractors. As demand for housing services surged post-pandemic, contractors became overwhelmed with work, leading to further delays in bidding for INHS projects. The committee is currently addressing these obstacles, seeking to streamline processes to ensure funds are utilized effectively.

The INHS program has approximately $200,000 that must be spent by April or May of next year, but current projections indicate that they may not meet this deadline. The committee is actively engaging with INHS to identify barriers and explore flexible solutions to expedite spending, emphasizing the urgent need to assist homeowners with limited resources.

In summary, the meeting underscored the critical need for improved management of CDBG funds to avoid future penalties and ensure that essential community projects are completed. The committee's ongoing discussions and efforts to resolve these issues will be vital in maintaining funding and supporting the community's housing needs.