Wednesday, May 1, 2013
Due to the continued delay in notification from HUD about the final amount of the City's Community Development funding from HUD, the originally provided schedule is suspended.
As most of you know, we normally are told in early fall what the City can expect for CDBG, HOPWA, ESG, and HOME funding for the forthcoming Program Year. This year, due to the Fiscal Cliff and Sequester, HUD could not provide this guidance. HUD did provide several estimated projections, through the fall and winter, but these varied quite considerably: -5%, -10%, cuts greater than 10%. During all of this time, HUD directed us to continue working our spending plan for the July 1, 2013-June 30, 2014, and that the regular schedule would not be modified.
Several weeks after Congress resolved the Fiscal Cliff, we received guidance from HUD that appeared to be nearly final. The good news was the City's CDBG award was predicted to rise slightly. Unfortunately, this did not last.
We recently received notice from HUD that the calculation of final award amounts will take another month or two and that the range of estimated awards is quite large will vary from community to community as the formula HUD uses has many variables. Additionally, HUD is going to issue all communities a "blanket extension."
Until there is clearer guidance from HUD, we cannot develop a final proposed budget. And given the twists and turns and ups and downs of this year, I am reluctant to even propose a tentative new schedule. But please note - there will be a public comment period, the budget transmitted to the City Council will be posted here when it is issued, and we will send out an e-mail blast at that time. HUD has also pledged to work with us to expedite review of our budget when we do submit it and to work with us to alleviate any burden the delay may have on grantees.
We know this makes budget planning a challenge, but given the circumstances this is our only course of action.
Thank you for your patience.