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Home My WebLink AboutPR 24907: APPROVING THE 2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATION OF $356,200.00 FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT i P. R.#24907 � r ;'-- / = '' , 04/16/2026 M. Essex / Page 1 urt rthur t C"k. .. INTEROFFICE MEMORANDUM Date: May 19, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM City Manager From: Pam Langford, Asst. City Manager—Operations Development Services Manager RE: P. R#24907: Community Development Block Grant(CDBG) Allocations for Program Year 2026 Introduction: This Agenda Item seeks the City Council's approval of P.R. #24907 for the 2026 Community Development Block Grant (CDBG) allocations for $356,200.00 as follows: Funding allocations of$156,200 to non-profit recipients for the benefit of low-and moderate- income residents of Port Arthur as follows: • $ 25,000 for Port Arthur Health Department • $ 10,000 for Port Arthur American Little League • $ 25,000 for Tender Loving Care Center for Children dba Legacy CDC; • $ 20,000 for Nutrition and Services for Seniors; • $ 15,000 for Willie Carter Community Outreach Center; • $ 7,500 for Julie Rogers "Gift of Life"; • $ 5,500 for Lion Hearted Boxing Academy; • $ 12,200 for Catholic Charities of Southeast Texas; • $ 15,000 for Court Appointed Special Advocates; • $ 21,000 for Port Cities Rescue Mission Ministries. Funding allocation of$200,000.00 is provided for the Grants Management Division as follows: • $200,000 for Grant Administration Division Background: The U. S. Department of Housing and Urban Development(HUD)awarded the City of Port Arthur $1,041,727 for the 2026 Community Development Block Grant (CDBG) Program. P. R. #24907 04/16/2026 M. Essex Page 2 The following allocations are based on staff recommendations: • $685,527.00 to the Housing and Neighborhood Revitalization Division; • $200,000.00 to the Grants Administration Division; and • $156,200.00 to non-profit recipients. Since housing assistance remains a high priority for the City of Port Arthur,the 2026 CDBG funds will be used, in part, to support low- and moderate-income families in need of down payment assistance and essential home repairs. These initiatives are part of the City's ongoing commitment to increasing housing access and improving neighborhood conditions. HUD regulations permit up to 15% of the total CDBG allocation to be awarded to qualified non- profit organizations for public service activities. For the 2026 program year, this amount equals $156,259. The proposed public service or activity must satisfy one of HUD's National Objectives, such as • Benefit to low-and moderate-income persons; • Aid in the prevention or elimination of slums or blight; • Meet an urgent need where conditions pose a serious and immediate threat to the health or welfare of the community. The city received 11 applications for CDBG public services funding. After evaluation, ten applications met the eligibility and program requirements established under federal guidelines. Staff reviewed the CDBG application submitted by Cookies' Cancer Foundation and requested additional information by email to determine eligibility and compliance with a required National Objective. Based on the available information,staff determined that the application does not meet the required CDBG National Objective because it focuses on a community-wide event rather than targeting low-to moderate-income individuals. Staff Recommendation: The staff has based its funding recommendation on the following criteria: 1. Funding availability 2. Past Performance 3. Number of the person served 4. Priority Needs It is important to note that while staff provides these recommendations to guide the funding process, final approval authority rests with the City Council. The City's total CDBG allocation for 2026 is $1,041,727, an increase of$34,952 from the 2025 allocation. P. R.#24907 04/16/2026 M. Essex Page 3 Budget Impact: The Community Development Block Grant Program is the only funding source (FUND 105). Recommendation: It is recommended that the City Council approve P. R. #24907 for the 2026 Community Development Block Grant (CDBG) Program, contingent upon approval of Budget Amendment P. O. 7425. P. R. #24907 04/16/2026 M. Essex RESOLUTION NUMBER A RESOLUTION APPROVING THE 2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATION OF $356,200.00 FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE 2026 CDBG GRANT WILL BEGIN IN THE CITY'S FY27 BUDGET, CONTINGENT UPON APPROVAL OF BUDGET AMENDMENT P.O. 7425. WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has allocated $1,041,727 in Community Development Block Grant(CDBG) funds to the City of Port Arthur for Program Year 2026, which must be used to benefit low- and moderate-income neighborhoods or households, with$356,200.00 allocated to the following projects; and • $200,000.00 to the Grants Administration Division; and • $156,200.00 to non-profit recipients. WHEREAS, pursuant to the Housing and Community Development Act of 1974, as amended (Public Law 93-383), the City of Port Arthur is required to submit to HUD the Fiscal Year 2026 CDBG funding allocation in the amount of$1,041,727; and WHEREAS, the Fiscal Year 2026 allocation reflects an increase of $34,951 from the City's FY 2025 CDBG allocation of$1,006,776; and WHEREAS,while Public Service projects are eligible under the CDBG program,funding for such activities is statutorily limited to 15% of the City's annual allocation, or $156,259 for Program Year 2026; and WHEREAS, the 2026 CDBG program year will commence within the City's FY 2027 budget year; and WHEREAS,the City's 2026 Consolidated Plan includes a proposed list of eligible projects to be funded through the 2026 CDBG allocation, as set forth in Attachment"A"; and WHEREAS, it is necessary for the City Council to authorize the City Manager to execute all documents required in connection with the submission and administration of the proposed projects. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. The City Council hereby authorizes the total allocations of$356,200.00 to the recipients below to benefit low and moderate-income residents of Port Arthur, contingent upon approval of Budget Amendment P.O. 7425. Funding allocations of$156,200 to non-profit recipients for the benefit of low-and moderate- income residents of Port Arthur as follows: P. R. #24907 04/16/2026 M. Essex • $ 25,000 for Port Arthur Health Department • $ 10,000 for Port Arthur American Little League • $ 25,000 for Tender Loving Care Center for Children dba Legacy CDC; • $ 20,000 for Nutrition and Services for Seniors; • $ 15,000 for Willie Carter Community Outreach Center; • $ 7,500 for Julie Rogers "Gift of Life"; • $ 5,500 for Lion Hearted Boxing Academy; • $ 12,200 for Catholic Charities of Southeast Texas; • $ 15,000 for Court Appointed Special Advocates; • $ 21,000 for Port Cities Rescue Mission Ministries. Funding allocation of$200,000.00 is provided for the Grants Management Division as follows: • $200,000 for Grant Administration Division Section 2. The City Manager is hereby authorized to execute all documents necessary to implement and administer the City's 2026 Community Development Block Grant program in accordance with applicable federal regulations. Section 3. That a copy of the caption of this Resolution shall be spread upon the minutes of the City Council. READ, ADOPTED, AND APPROVED this _ day of A. D., 2026, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: Charlotte M. Moses, Mayor ATTEST: P. R. #24907 04/16/2026 M. Essex SHERRI BELLARD CITY SECRETARY APPROVED FO ROXANN PAIS COTRONEO CITY ATTORNEY APPROVED DMINISTRATION: RONALD B 0 , PM le;x) PAMELA LANGFORD ASSISTANT CITY MANAGER—OPERATIONS/ DIRECTOR OF DEVELOPMENT SERVICES APPROV AS FOR ILITY OFF DS L DA BOS LL, MA, ICMA-CM DIRECTOR FINANCE P. R. #24907 04/16/2026 M. Essex ATTACHMENT "A" COMMUNITY DEVELOPMENT BLOCK GRANT REQUESTS Allocations for Public Services and Grants Mana:ement Administration Organization Description of Services 2025 Allocation 2026 Request Amount 2026 Alternate Request Staff Recommendations Health Department Healthy Mothers and Babies Coalition $ - $ 25,000.00 $ 25,000.00 $ 25,000.00 Port Arthur American Little League Provides a youth baseball program $ - $ 20,000.00 $ 10,000.00 $ 10,000.00 Nutrition and Services for Seniors Meals-on-Wheel Program $ 20,250.00 $ 25,000.00 $ 20,000.00 $ 20,000.00 Port Cities Rescue Mission Operating costs for Port Cities Rescue Mission Homeless Shelter $ 12,526.00 $ 40,760.00 $ 21,000.00 $ 21,000.00 Court Appointed Special Advocates Operating Costs for the CASA Program $ 14,000.00 $ 20,000.00 $ 15,000.00 $ 15,000.00 Legacy CDC Operating costs for Homebuyer's Classes $ 11,500.00 $ 100,000.00 $ 55,000.00 $ 25,000.00 "Cookie's Cancer Foundation Community Event $ - $ 15,000.00 $ 10,000.00 $ - Lion Hearted Boxing training Program $ 3,500.00 $ 7,700.00 $ 5,500.00 $ 5,500.00 Julie Rogers"Gift of Life"Program Operating Costs for Breast Health and Men's Prostate Cancer Prevention $ 6,500.00 $ 10,500.00 $ 7,500.00 $ 7,500.00 Willie Carter Community Outreach Center Operating costs for Willie Carter Center $ 11,500.00 $ 20,000.00 $ 15,000.00 $ 15,000.00 Catholic Charities Operating costs the Hospitality Center $ 30,000.00 $ 34,569.00 $ 30,074.00 $ 12,200.00 Public Service Total Totals S 109,776.00 $ 318,529.00 $ 214,074.00 $ 156,200.00 Grants Mana_ement Administration Ex.enses $ 200000.00 $ 200 000.00 $ 200000.00 $ 200 000.00 Grand Total $ 356,200.00 •Does not meet a HUD National Objective NOTE:CDBG IS A REIMBURSEABLE GRANT. Public Service organisations are required to document program particant's name(if possible),proof of residency,income,race,and ethnicity.