Fiscal Note
Fiscal note pending.
Title
Approving the carry-forward of previously authorized 2026 subrecipient contracts funded by two of the City's annual federal "formula" (CDBG and HOME) grant allocations from HUD; approving an extension of the period of performance through December 31, 2027, for each of the affected contracts; and authorizing the Mayor and City Clerk to execute 2027 contracts and/or contract amendments with each of the identified subrecipients. (Citywide)
Body
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD), as a condition of awarding federal "formula" grant funding to the City of Madison through HUD's Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grants (ESG) Programs, requires the City to submit a Consolidated Plan (ConPlan) every five years, as well as an Annual Action Plan (AAP) for each year covered by the ConPlan, describing how the City will use those funds. On June 23, 2026 (RES-26-00361, Legistar File #93182), the Common Council adopted the City's 2026 Action Plan, and approved the execution of CDBG, HOME and ESG grant agreements upon receipt from HUD, and the subsequent execution of subrecipient contracts funded by these grants with various local organizations.
The City’s Community Development Division (CDD) is requesting that certain 2026 contract authority be carried forward into 2027 to allow sufficient time for projects and programs to be completed. Delays in receiving 2025 funding from HUD delayed the contracting and project implementation timeline into 2026. In addition, changes to Environmental Review oversight have resulted in longer processing times for program applications as new review procedures are implemented. CDD is also developing new program guidelines for HOME-funded Tenant Based Rental Assistance (TBRA), which require new application and program forms and associated administrative processes before funds can be awarded. Carrying these contracts forward will ensure funds are used as intended.
CDD is seeking authority to carry forward federal awards for the following programs:
• Habitat for Humanity of Dane County: Up to $86,200 (HOME) for Owl Creek Down Payment Assistance.
• MACH OneHealth, dba Madison Street Medicine: Up to $105,000 (CDBG) for Singles Rapid Rehousing and up to $125,000 (HOME) for Tenant Based Rental Assistance.
• Porchlight, Inc: Up to $100,000 (HOME) for Tenant Based Rental Assistance.
• Project Home, Inc: Up to $800,000 (CDBG) for its Major Home Rehab Loan Program and up to $350,000 (CDBG) for its Minor Home Repair Program.
• The Salvation Army of Dane County: Up to $75,000 (HOME) for Tenant Based Rental Assistance.
The above grant-funded program/contract amounts were originally allocated for a performance period beginning January 1, 2026, and ending December 31, 2026. Adoption of this resolution will extend the performance periods for the affected programs through December 31, 2027 via executed 2026-2027 subrecipient contracts and/or contract amendments.
ACTION
WHEREAS, funding provided through the U.S. Department of Housing and Urban Development (HUD)’s Community Development Block Grant (CDBG) Program permits the City of Madison to assist community agencies that benefit low- and moderate-income persons; and,
WHEREAS, funding from HUD’s HOME Investment Partnerships (HOME) Program permits the City to assist housing programs and projects that benefit low- and moderate-income persons; and,
WHEREAS, the "formula" grant funds that are annually allocated to the City via these programs are administered locally by the City's Community Development Division (CDD); and,
WHEREAS, the CDBG and HOME grant allocations for the programs/contracts described herein were originally authorized and approved by the Common Council as part of CDD's Adopted 2026 Operating Budget, and further the Community Development Program goals expressed in the City's adopted 2025-2029 Consolidated Plan and 2026 Action Plan, but were not fully expended during the 2026 performance period; and,
WHEREAS, the City still wishes to support the programs/contracts described herein and seeks to carry forward funding awards into 2027;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves the carry-forward into 2027 of the previously authorized CDBG- and HOME-funded 2026 subrecipient programs/contracts described herein; and,
BE IT FURTHER RESOLVED, that the Council approves the extension, through December 31, 2027, of the performance period associated with the above allocations of HUD "formula" grant funding for the identified programs and subrecipients; and,
BE IT FINALLY RESOLVED, that the Council authorizes the Mayor and City Clerk to execute 2026-2027 contracts and/or contract amendments with the subrecipient agencies for the programs and up to the amounts identified herein.