The Community Development Committee met 01/08/2025. The one action item on their agenda was a request to approve preliminary allocations for city and core projects for the 2025 Community Development Block Grant (CDBG) Funding year.
I’ve prepared a transcript of the discussion for download:
The Community Development Block Grant program was implemented in the 1970s and is run by the Department of Housing And Urban Development. Per HUD’s website:
“HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.
“Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet one of these national objectives.”
Appleton is an entitlement community and is eligible to receive CDBG funds and allocate them for use in the community. The precise monetary amount they will be awarded will not be known until some time between February and May, but based on the previous 5 years of allocations, city staff estimate they will receive $588,231. The money is allocated first to city and core projects that are considered public and then what is left over is distributed in the form of grants to non-profit applicants.
HOUSING REHABILITATION LOAN PROGRAM ($200,000) – For the last couple years, the city has distributed over $300,000 per year of CDBG funds to local non-profits. In 2025, however, city staff requested that $443,231 of the estimated award be directed toward city and core projects with only $145,000 left to be distributed to non-profits. This was partially driven by the fact that the Housing Rehabilitation Loan Program allocation was much higher this year than in the last couple years. Community Development Specialist Olivia Galyon told the committee, “In the past few years, we haven’t requested much, if anything, for the housing rehab loan program, because that program receives program income once loans are repaid, when the house is sold or refinanced. Because in like 2020, 2021, 2022 there were really low interest rates, there was a lot of selling and refinancing happening, but as interest rates have gone up in the past few years, we’ve seen a lot less of that, so there’s more need for our entitlement funds to go back into paying for that program.”
COMMUNITY RESOURCE NAVIGATOR ($88,231) – Staff requested that $88,231 be allocated to the Community Resource Navigator position. This person helps homeless individuals obtain services such as securing shelter and acquiring basic necessities. Alderperson Martyn Smith (District 4) asked if that covered the salary for the position or if it was money that the Navigator had at their disposal for use in carrying out their job. Ms. Galyon said that it covered salary, fringe benefits, and some office supplies.
Alderperson Sheri Hartzheim (District 13) asked what would happen if the allocation from the federal government turned out to be significantly lower than expected. Ms. Galyon responded, “So that would reduce the total amount of salary and benefits dollars that we would have. We might try to make some reductions, first, in terms of how much is allocated for, like, office supplies, trainings, that kind of stuff. Otherwise, if it is significantly reduced, then we may need to look for, like, other grant sources or other options for funding that position fully”.
Community Development Director Kara Homan said that historically HUD funding had been relatively stable, though the change in administration was worth keeping an eye on. The funds that Appleton was allocated this year would get them through spring of 2026 so if things did change, they would have time to figure out what to do.
NEIGHBORHOOD GRANT PROGRAM ($40,000) – $40,000 was the typical amount city staff requested for the Neighborhood Grant program. Ms. Galyon noted that they had asked for that amount this year and last year, but prior to that they had not asked for any allocation since 2018 or 2019.
APPLETON HOUSING AUTHORITY ($25,000) – Ms. Galyon indicated that the city generally gives the Appleton Housing Authority funding every year. $25,000 was slightly lower than normal, but the AHA had some existing funds that they were trying to use up as well. The AHA offers housing rehabilitation loans and home ownership assistance with the CDBG dollars.
FAIR HOUSING ($25,000) – Per Ms. Galyon, this was a required component of the CDBG program. “We contract with the Metropolitan Milwaukee Fair Housing Commission, and they help investigate any sort of fair housing claims that someone in the area might have.”
CDBG ADMINISTRATION ($65,000) – This was used to help fund the salaries for staff members that drew from CDBG which included Ms. Galyon, Liz Croley the Coordinated Entry Specialist, and some Finance-related people as well.
As noted above, the amount of CDBG dollars left over to be distributed to non-profits was markedly lower than what had been available the last couple years. The city did not actually have to provide any of these funds to non-profits and they did try to make sure that when non-profits applied for grant dollars they understood it was not something they could rely on every year. Ms. Galyon told the committee, “They’re required to go through a pre application training, and during that training, it’s emphasized that these are entitlement funds that we receive, and that the amount may vary, that they shouldn’t expect to get it yearly. And also, during that time, we tried to inform them that we had fewer funds available this year for external partners than in previous years. So, kind of help temper expectations there as well.”
The committee ended up voting unanimously to approve the preliminary allocation request of $443,231 to city and core programs.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1251487&GUID=9EAB1E17-13EA-4568-BEF8-6F04907CCFA3
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