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Board amends HUD CDBG/HOME allocation wording to make awards contingent on receipt of 2025 federal funds

2567749 · March 12, 2025

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Summary

The board approved an amendment to the Community Development Block Grant (CDBG) and HOME annual action plan so program-income awards recommended by the county's Priority Setting Committee can be paused if Marin does not receive federal CDBG/HOME allocations for 2025.

The Marin County Board of Supervisors on March 11 approved an amendment to its annual action plan for federal Community Development Block Grant (CDBG) and HOME funds to make certain program-income awards contingent on the county receiving CDBG/HOME allocations for federal fiscal year 2025.

Jillian Ziger, principal planner in the County's Housing and Grants Division, told the board that the county had received approximately $1.2 million in program income after repayment of two older CDBG loans. HUD timely-spending rules require jurisdictions with large unspent balances to act promptly or risk being designated a high-risk grantee. In December the Priority Setting Committee recommended allocating the program income to projects from the 2024 funding cycle to spend the funds quickly.

However, staff reported uncertainty about the federal budget after recent federal elections and said the county may or may not receive allocated CDBG/HOME funds for 2025. To avoid committing program income in a way that would conflict with larger federal allocations, staff proposed language for the board to approve that would make the 2024-recommended awards contingent: if the county does not receive the FY2025 allocation from HUD or if allocations are substantially reduced, staff will return to the board and pause or reconsider the awards.

The board approved the amendment after staff and county counsel confirmed the suggested contingency language was sufficient. No public speakers spoke on the item.