Gadsden approves CDBG budget; some nonprofits take funding hit

The Department of Housing and Urban Development is sending less money to Gadsden for Community Development Block Grants, and some public service agencies that have received those funds will see their allocations drop.

Following discussion in their pre-council work session, and a unanimous consent vote to consider the matter immediately, the City Council on July 2 approved the 2024 CDBG budget and action plan for the program year that started June 1 and ends May 31, 2025.

It includes an estimated total grant allocation of $967,073 — $947,073 from HUD and $20,000 in projected program income.

That's a decline of $32,651 from last year's allocation, which reflects a decrease of that amount in federal money.

City officials said HUD stresses a diversified use of CDBG money, prioritizing the issues of homelessness, mental health and drug addiction, plus the city is seeking to do more street improvements in low- and moderate-income areas.

So, $251,200 was added to the 2024 CDBG budget for that purpose, marking the biggest monetary change from last year's budget.

Funds for accessible playgrounds for children with disabilities fell by $161,847 to $151,629, although city officials say that remains a priority, and the program that provided consultation and other services for low- and moderate-income microbusiness owners was sliced from the budget, saving $100,000.

There were some minor decreases in other areas — administrative costs dropped by $6,204 to $183,744 and housing assistance by $2,000 to $200,000 — and the fund for Section 108 loan repayment remained stable at $110,000. (Section 108 loans according to HUD provide low-cost, long-term financing for economic and community development projects.)

However, most of the discussion surrounded the 501(c)(3) nonprofits that have traditionally received CDBG funds. Total funding for public services in 2024 is $70,500, down by $6,300 from 2023's $76,800 but higher than 2022's $68,000.

Four agencies took funding hits: the Barrie Center down by 50% to $7,500, the Boys & Girls Club of Etowah County and Way of the Cross both down $2,500 to $7,500, and MANNA down by $2,000 to $25,000.

The Family Success Center at $10,000 and the Council on Aging of Etowah County at $4,800 maintained level funding. The Etowah County Food Bank was added at $6,000 and Breakaway Ministries at $5,000 in keeping with the focus on homelessness, according to Ruth Moffatt, the city's director of diversity, equity and inclusion.

Moffatt, the city's lead person on CDBG issues, said public hearings with those seeking grant funds ended on Monday.

“Our (CDBG) dollars have consistently gone down year after year,” she said during the council work session. “It's difficult to allocate the same amount when we're receiving a cut. If we do that, we're taking from someone somewhere else.”

Mayor Craig Ford said the city received a plethora of requests from nonprofits, adding, “Every one of them is vital and needs help … they're all worthy,” but said what Moffatt and the CDBG team have come up with is the product of much thought and is “concrete.”

He said it would take $100 million to address those needs and the needs of the low- and moderate-income areas of the city, noting that the city isn't trying to turn a penny into a dollar, it's trying to turn a half-penny into a dime with the limited funding.

And Moffatt reiterated the need for diversity in the use of CDBG money, stressing that it's not meant to be the bulk of an agency's funding. “It's to walk alongside of you and have a little buy-in into what you're doing,” she said. “It's not meant to be a substantial part of your budget.”

Ford said Moffatt and her staff are ready to help agencies seek funding options, through public hearings and seminars, “but we can't do it for them.”

He said some agencies just don't show up with funding requests, while others seek money for salaries (which isn't the point of CDBG funds) or just don't want to fool with the necessary paperwork.

The council also reallocated $145,800 in overage in the CDBG revolving loan fund for roof repairs on the Carver Community Center. (That fund provides money for home improvements to those who qualify.)