The City of Dallas could lose out on millions in grants for community development and “affordable housing” if it does not approve a new Consolidated Plan budget by the fall of next year.
The City of Dallas will receive $31 million from the U.S. Department of Housing and Urban Development (HUD) in the current year as part of its Consolidated Plan budget for fiscal year 2023-24, which the City Council approved on June 14, 2023.
Grants are distributed to the City on an annual basis and are allocated based on census data in conjunction with community needs like “affordable housing”, homeless services, human and social services, economic development, and public improvements/infrastructure.
According to Janette Weedon, director of budget and management services for the City of Dallas, the amount allocated to each grant is formula-based and determined using data from the 10-year census and the five-year census.
“It’s a rolling five-year plan with the American Community Survey data. So, HUD has a five-year survey, and each year, the formula is recalculated.”
Due to the fluctuating nature of census data, District 14 Council Member Paul Ridley asked if Dallas was seeing an increase or decrease in the amount of HUD funds provided each year.
“In general, the CDBG [Community Development Block Grant] grant has been decreasing,” said Weedon. “In addition to the community survey data, it also depends on how many entitlements other cities — which are reaching the 50,000 population – are receiving, and depending on how many grantees are included.”
Weedson said the federal appropriation is currently around “$3.3 billion at the national level” and then after that, allocation depends on “the community survey data, and how many grantees or other communities are opting in when they meet the 50,000 population, or opting out not to receive their funds.”
In total, the City of Dallas receives four distinct formula grants from HUD as part of its Consolidated Plan program. While the City has no say regarding the specific allotment of funds that HUD provides, it does have the freedom to allocate those funds within the four categories of grants.
Under the current Consolidated Plan, $13.8 million will go toward CDBG, $6.4 million will go to the Home Investment Partnerships Program, $1.2 million will be allocated toward Emergency Solution Grants, and $9.6 million will be distributed to Housing Opportunities for Persons With Aids.
However, in order to continue receiving the aforementioned HUD funds after next year, the City of Dallas will need to approve a new 5-Year Consolidated Plan, which must be developed and submitted to HUD by August 16, 2024.
With the City’s current plan set to expire a month after the deadline, a new Consolidated Plan would cover Dallas from fiscal year 2024-25 through fiscal year 2028-2029.
The city is currently collaborating with the Community Development Commission to develop community outreach efforts and input opportunities for City of Dallas residents and stakeholders to discuss the next 5-Year Consolidated Plan. This is due to take place in January and February of 2024.
The City Council will vote on initial approval of the 5-year plan in mid-December.
