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Cuts to Longmont’s Community Development Block Grant Program, or CDBG, are prompting the city to set aside funding from the program to manage future needs.
The city council will consider the changes during its meeting Tuesday night.
The city will get $558,679 from the CDBG program for 2021, a “fairly significant” reduction of $52,247 from 2020, a 9.4% drop, a city staff report states.
City staff is also reallocating $99,501 in prior years funding and are estimating that the city will get about $50,000 in program income in 2021. This brings the city’s allocation to be $708,180, the staff report states.
City staff members decided it is “prudent” to set aside $115,000 from 2021 funding for rehab programs “and our desire to rebuild this program that was suspended for a little over year due to COVID,” the report states.
“We are also concerned about the construction and labor costs in light of supply chain issues and labor shortages and so may need extra funding to complete each project,” the staff report states.
The set aside funding is also recommended for the Housing and Financial Counseling programs for Longmont residents who face possible eviction and foreclosure, the report states.
