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Home My WebLink AboutPR 24945: APPROVING THE 2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) HOUSING AND NEIGHBORHOOD REVITALIZATION FUNDING ALLOCATION OF $685,527.00 FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT P. R. #24945 04/16/2026 M. Essex City of o r t r•tIt tir Texas 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# 24945: Community Development Block Grant(CDBG)Allocations for Housing and Neighborhood Revitalization for Program Year 2026 Introduction: This agenda item requests City Council authorization for the City Manager to allocate Community Development Block Grant (CDBG) funds to the Housing and Neighborhood Revitalization Division for Program Year 2026, with the following funding allocations totaling $685,527.00: • $223,000.00 for Housing and Neighborhood Revitalization Administration • $250,000.00 for Emergency and Minor Home Repairs • $150,000.00 for Down payment and Closing Cost Assistance • $ 62,527.00 for Infrastructure Improvements 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. 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. P. R. #24945 04/16/2026 M. Essex 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. 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. 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. 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. # 24945 for the 2026 Community Development Block Grant (CDBG)allocation in the amount of$685,527.00, contingent upon approval of Budget Amendment P.O. 7425. P. R. #24945 04/16/2026 M. Essex RESOLUTION NUMBER A RESOLUTION APPROVING THE 2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) HOUSING AND NEIGHBORHOOD REVITALIZATION FUNDING ALLOCATION OF$685,527.00 FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE 2026 CDBG PROGRAM YEAR(FUND 105)WILL BEGIN IN THE CITY'S FY27 BUDGET,CONTINGENT UPON APPROVAL OF BUDGET AMENDMENT P.0.7425. 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, as follows; and • $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. WHEREAS, $685,527.00 will be allocated to the following Housing and Neighborhood Revitalization Division to address the housing needs of low-and moderate-income residents of the City of Port Arthur through various housing assistance programs; • $223,000.00 for Housing Assistance Administration; • $250,000.00 for Emergency and Minor Home Repairs; • $150,000.00 for Down payment and Closing Cost Assistance; • $ 62,527.00 for Infrastructure Improvements. 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 with 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 P. R. #24945 04/16/2026 M. Essex 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. That the proposed list of projects for Program Year 2026, as set forth in Attachment "A" and incorporated herein by reference, is hereby approved and adopted in accordance with the Housing and Community Development Act of 1974, as amended,contingent upon approval of Budget Amendment P.O. 742 5. Section 2. The City Manager is authorized to execute all documents necessary to allocate S685,527.00 from the 2026 Community Development Block Grant funds to the Housing and Neighborhood Revitalization Division to address the housing needs of low- and moderate-income residents of the City of Port Arthur through various housing assistance programs. 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: SHERRI BELLARD CITY SECRETARY P. R. #24945 04/16/2026 M. Essex APPROVED R FO • ROXANN PAIS COTRONEO CITY ATTORNEY APPROVED FO ' • MINISTRATION: W.410r RONALD BURTON, ►: 'M 7MANAGE' AMA 2w PAMELA LANGFORD ASSISTANT CITY MANAGER—OPERATIONS/ DIRECTOR OF DEVELOPMENT SERVICES APPR D AS FO AILA .ITY OF FUNDS LYNDA BOS EL , MA, ICMA-CM DIRECTOR OF FINANCE P. R. #24945 04/16/2026 M. Essex ATTACHMENT "A" COMMUNITY DEVELOPMENT BLOCK GRANT REQUESTS Allocations for Housing and Nei:hborhood Revitalization for Pro:ram Year 2026 City Department City Department 2025 City Department 2026 City Request 2026 Alternate Request Staff Recommendations Housing Assistance Administration Administration for the Housing Staff $ 217,000.00 $ 223,000.00 $ 223,000.00 $ 223,000.00 Housing Assistance-Emergency and Minor home repairs Funds will assist approximately 10-20 families $ 325,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 Housing Assistance-Downpayment and Closing Cost Assistance Assist 5 families with home purchase $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 Housing Assistance-Infrastructure Improvements Infrastructure related improvements-assist approx.5 families $ 50,000.00 $ 50,000.00 $ 62,527.00 City Total Totals $ 692,000.00 $ 673,000.00 $ 673,000.00 $ 685,527.00