Department of Community Development 2025-26 Budget Approval Meeting - Nov 6, 2025
Department of Community Development 2025-26 Budget Approval Meeting - Nov 6, 2025
The Development Planning Committee convened on November 6, 2025, to review and approve the Department of Community Development's (DCD) 2025-26 budget, requesting authorization to expend nearly $28 million in federal Community Development Block Grant (CDBG) funds. The meeting addressed significant delays caused by federal government shutdowns and funding uncertainties, which pushed the allocation discussion well into the fall. Council members and Department leadership emphasized the critical nature of these funds for home repairs, homelessness services, and neighborhood revitalization, while also navigating a backlog of over 2,000 home repair applications and addressing concerns regarding property tax assessment bias and contractor availability.
Consent Calendar
- Approval of the 2025-26 HUD Entitlement Budget for the Department of Community Development, amended as proposed by Councilman Harris (Amendments #1-7 adopted unanimously).
Public Comments & Testimony
- Councilwoman House Jones (Position: Expression of Concern/Frustration): Expressed strong frustration regarding a property owner's claim that City Council legislation was delaying payments to housing partners. She firmly stated that it was inaccurate to blame Council for the delays, asserting she had not seen the legislation until the end of the month and that the root cause was federal inaction. She emphasized the need for accurate communication from partners to clarify that federal delays, not local government inertia, are hindering payments.
- Councilman Harris (Position: Expression of Frustration/Critique): Criticized the federal government for waiting until the last legally allowable day to approve CDBG funding, creating a cascade of problems for municipal governments. He expressed frustration that the November 7th city shutdown deadline persists despite technology investments, questioning why the city operates differently than the state or other cities.
- Councilwoman Santana (Position: Expression of Urgent Support): Urged for immediate legislative action to address property tax assessment bias (overvaluation of low-value homes), stating she lacks the luxury to wait for years to fix the issue and needs a set timeline for legislation next year.
Discussion Items
- Federal Uncertainties and Delays: The Director noted that prolonged federal shutdowns and the late release of CDBG numbers prevented the department from planning early, causing a delay in hiring, retaining staff, and processing funds. The department had to operate for months without knowing funding levels.
- Home Repair Program Transformation: Bureau Chief Danette Davis detailed a shift from a program-silo model to a holistic implementation vendor model to address a backlog of over 2,000 applications (dating back to 2020). The department paused the rolling application process to clean data and assess capacity, with a goal of repairing approximately 100 homes this cycle. Councilwoman Jones expressed skepticism about opening new applications while a massive backlog exists, demanding a clear decision on when the department will stop accepting new applications.
- Contractor Workforce Challenges: Discussion revealed a shortage of qualified local contractors due to an aging workforce, lack of trade school enrollment, and the complexity of working with federal regulations. The implementation vendor model aims to recruit more contractors and provide advances on payments to mitigate cash flow issues.
- Property Tax Assessment Bias: A study by Living Cities and Urban Three found that low-value properties are overassessed and high-value properties are underassessed, leaving tax dollars on the table. The team plans to release this data on December 2nd to inform future policy and appraiser training, though no specific legislative timeline was provided immediately.
- Homeless Funding and Partners: Councilman Harris and Councilwoman House Jones questioned the allocation of Emergency Solutions Grants (ESG) and concerns about payment delays to partners like Eden. The Director clarified that delays were due to the federal timeline and the program's fiscal year structure (mid-summer to mid-summer), not Council inaction.
- Community Land Trusts and National Initiatives: Aaron Miller Tate reported on partnerships with Living Cities regarding financial empowerment blueprints and community land trusts (CLT) to utilize vacant land for permanently affordable housing. The Huff Community Land Trust was mentioned as a potential partner.
- NDA Funding and Shutdown Deadline: The Director confirmed coordination with the CFO and Law to ensure funds are committed before the November 7th shutdown, despite the unusual timing of federal allocations. Councilwoman Jones questioned the necessity of the annual shutdown deadline compared to other modernized systems.
Key Outcomes
- Budget Approval: The 2025-26 budget for nearly $28 million was approved with 7 amendments (file number 1225-2025-A).
- Funding Allocation: Cleveland anticipates receiving $19.46 million in CDBG, $4.25 million in Home Funds, $1.76 million in ESG, and $2.37 million in HAPWA.
- Grant Extensions: HUD granted a one-year extension to three competitive grants (Two LEAD grants and one Healthy Homes grant) due to progress made under the new vendor model.
- Data Review: The department plans to present tax assessment bias data on December 2nd via a summit.
- Vendor Model Success: The implementation vendor model has increased the contractor pool from below 7 to approximately 87 assigned projects with 15 lead contractors currently active.
- Legislative Direction: Councilwoman Jones and Councilman Harris expressed a need for Council to work with the department on legislation addressing tax assessment bias, with a directive to set a timeline for introduction next year.
Meeting Transcript
Street, you have to lock them up and you have to keep them locked up. Mayor Want the Mayor answer that one. Um we'll go to the government. Existing section three to new section eleven. I believe there's some amendments in here. Hope it's not a whole it's not too bad today. Uh a few amendments, seven amendments in here today that we'll read as we get through the uh presentation today. Uh for those who are watching, those here, yes, it is one day for the time we are here. We just need to get these dollars out the door. Um, as you all know, we've had this delay is not a city council delay, nor administration delay. This is a delay uh because of uh uh everything that's going on in the federal government. Uh we were late to get these numbers. Um the department worked, you know, over time, in my opinion, to pull things together to get it to us. Um, unfortunately, people uh who are watching, you it just doesn't come, and we just throw it on as a process that has to happen. And as soon as we were able to throw this on, that's why we're here on the Thursday. And so as soon as I had the green light, once this body received everything it needed to have a proper hearing, uh we brought this uh team together to uh hear the ordinance uh today. It's which we will do. It is abbreviated uh agenda so we can focus on the um high level um aspects of uh uh the the ordin that is before us again so we can get these dollars out the door. I know folks are waiting on these dollars, and we want to make sure that we don't um you know further uh delay waiting to next week. Would have not wanted to wait to next week if we waited to Tuesday committee day, that would put us back another week. And so, you know, once we we got through this week, we add it on for today so that way it can be heard and potentially passed on Monday at the finance committee. All right. And so I will be quiet there. I'll let the director, the chief, uh open up with whatever remarks they'd like to uh to share with council. Thank you. All right, good morning. Morning. Um Chairman Harrison, uh Vice Chair Santana, and members of the development planning at Sistana Nope, we're gonna start over. We're gonna start over because we're not doing that today. Uh of the development planning and sustainability committee um and to members of the public. Um thank you for the opportunity to present the Department of Community Development's 2025-26 HUD entitlement budget. Our goal today is to receive your approval to expend the nearly 28 million dollars in community development block grant or CDBG funds by the Federal Department of Housing and Urban Development, and get these much needed dollars out to the community to benefit City of Cleveland residents and neighborhoods. Before we get into the details, I want to begin with a moment of reflection. This has been a difficult year and a sobering year for our department for our partners and for Cleveland's broader community development ecosystem. The vast majority of our funding comes from a single federal source, the community development block grant program through HUD. For more than 50 years, CDBG has provided the foundation for local investments and housing, neighborhood revitalization, and essential community services. But over this past year, we have faced prolonged uh federal uncertainties, shutdown threats, and actual shutdown, the longest to date, uh, and continuing uh resolutions and potential cuts that directly affect our operations and more importantly, the residents that we serve. We spent much of the first half of the year not knowing if or how much funding we would receive. That uncertainty makes it difficult to hire and retain staff, and it takes a toll on morale. I want to take a moment to recognize the incredible women and men of the Department of Community Development who continue to show up every single day with professionalism, compassion, and resolve. This year also brought us deep personal loss. Late last year we lost Tim Barrett, a stall worth of the storefront renovation program, and a champion for small business corridors across Cleveland. And this past August, we lost Ellen Baker, a young professional whose light and leadership inspired so many of us. Their absence is felt deeply. For program year 2025-26, Cleveland anticipates receiving 19.46 million in CDBG funds, 4.25 million in home funds, 1.76 million in ESG, that's emergency solutions grant, and 2.37 million in HAPWA. Every dollar is targeted to sustain the programs that matter most. Home repair and lead hazard mitigation that allow residents to remain safely in their homes. Investments to the Housing Trust Fund to make affordable housing development viable. Neighborhood development activities and citywide assistance grants that keep our CDC partner strong, as well as other nonprofits, and public service programs that provide food shelter and essential support for Clevelanders in need. While our federal resources have remained flat or declined slightly, we have refused to stand still.
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