Extracted text (via pymupdf)
6174 characters
Justin Boyd, Housing and Community Development Administrator
March 12, 2026
Overview of FY 2026/2027
Funding Sources
1
FY 2026/2027 Tentative Funding Allocations
CDBG -
$3,675,410
HOME -
$6,618,404
ESG –
$340,016
Human
Services/ABC -
$651,663*
CDBG Administration (≤20%): $2,940,328
CDBG Public Service Allocation (15%): $551,312
CDBG Non-Public Service Allocation: $2,389,016
2
What is HUD?
U.S. Department of Housing and
Urban Development.
Federal agency responsible for
housing and community
development programs.
Provides funding to cities to
address housing needs and
homelessness.
3
What is an
Entitlement
Community?
Cities that receive HUD funding
directly from the federal
government.
Funds distributed annually using
federal formulas.
City of Mesa qualifies as a HUD
Entitlement Community.
4
HUD and Local
Funding Sources
Federal Programs: Community
Development Block Grant (CDBG)
HOME Investment Partnerships
Program (HOME)
Emergency Solutions Grant (ESG)
Local Programs: Human Services
and A Better Community (ABC)
5
Community Development Block Grant (CDBG)
CDBG is a federal HUD program that provides flexible funding to cities
to address community development needs.
Funds primarily benefit low- and moderate-income residents.
Typical uses include housing rehabilitation, public facility
improvements, neighborhood infrastructure, and limited public
services.
6
Eligible CDBG Activities
Public Service Activities (subject to 15% cap):
Homeless services and housing stability programs
Senior services, youth programs, and food assistance
Case management and supportive services
Non-Public Service Activities:
Housing rehabilitation programs
Public facility and accessibility improvements
Neighborhood infrastructure improvements (sidewalks, lighting, drainage)
Code enforcement and blight removal
7
Lower-Risk CDBG Non-Public Service
Activities
Emergency Rehabilitation Programs – Health and safety repairs for
low-income homeowners.
Public Facility Improvements – Parks, community centers, and ADA
accessibility upgrades.
Neighborhood Infrastructure Improvements – Sidewalks, lighting,
drainage, and accessibility improvements.
Code Enforcement and Blight Removal – Addressing unsafe structures
and neighborhood deterioration.
8
Higher-Risk CDBG Non-Public Service
Activities
Economic development activities - Projects that rely on job creation or
retention requirements and require detailed documentation showing jobs
primarily benefit low- and moderate-income persons.
Property acquisition for future redevelopment - Projects dependent on future
financing, environmental review, or development timelines that can delay
project completion and expenditure.
Large multi-partner development projects - Activities involving multiple
funding sources or development partners that increase administrative
complexity and implementation timelines.
9
How CDBG Project Selection Influences the
HUD 1.5 Timeliness Ratio
HUD requires entitlement communities to maintain a CDBG timeliness ratio of
1.5 or lower, which measures funds remaining in the City’s HUD line of credit
compared to the annual grant amount.
Projects that move quickly to construction and produce measurable outcomes
help maintain compliance.
Lower-risk activities such as housing rehabilitation, public facility
improvements, and neighborhood infrastructure projects typically spend
funds more quickly.
Complex or high-risk projects with long timelines can delay expenditures and
increase the risk of exceeding HUD’s timeliness threshold.
Riskier projects → slower spending → higher HUD compliance risk.
10
HOME Investment Partnerships Program
HOME is HUD’s primary program for creating and preserving affordable
housing.
Funds support development and rehabilitation of affordable rental
housing.
Additional uses include homebuyer assistance and tenant-based rental
assistance for low-income households.
11
Emergency Solutions Grant (ESG)
ESG supports a community’s homelessness response system.
Funds may be used for emergency shelter operations, rapid rehousing,
and homelessness prevention.
Programs also support street outreach and coordinated entry services.
12
Human Services and A Better Community (ABC)
Local funding supporting nonprofit service providers.
Programs address crisis services, prevention, transitional services, and
long-term support.
13
HOME-ARP
HOME-ARP (HOME Investment Partnerships – American Rescue Plan) is a one-
time federal funding source provided by HUD to address homelessness and
housing instability.
Funds must serve qualifying populations, including individuals or families who
are homeless, at risk of homelessness, or fleeing domestic violence.
Eligible uses include affordable rental housing development, tenant-based
rental assistance, supportive services, and non-congregate shelter.
The City has been allocated $5,614,116 in HOME-ARP funding, with up to 15%
$842,117.40 permitted for administrative costs, leaving a $4,771,988.60
available to allocate.
All HOME-ARP funds must be fully expended by September 30, 2030, or they
may be subject to recapture by HUD.
14
Transition from Non-Congregate Shelter to
Supportive Services (HOME-ARP)
Local homelessness response data indicates that many individuals
accessing shelter require intensive case management and housing
navigation to successfully transition into permanent housing.
Redirecting HOME-ARP resources toward supportive services allows the
City to expand case management capacity, fund staff positions, and
strengthen housing stabilization programs.
This strategy maximizes the impact of HOME-ARP funding by helping
residents move more quickly from crisis situations into stable housing
rather than focusing solely on creating additional temporary shelter
units.
15
Upcoming Timeline
Next CCD Meeting – March 19, 2026
Annual Action Plan Draft Complete for Public Comment –
March 24, 2026
FY 2025/2026 Funding Recommendations to City Council –
May 4, 2026
Annual Action Plan Due to HUD – May 15, 2026
16
Thank you for your time and participation.
Questions?
17