Richardson may receive nearly $800,000 in federal funding for community development programs, including senior home repair or infrastructure work.
City Council considered pursuing funds from the Community Development Block Grant program for fiscal year 2027-28 at the May 18 meeting.
Grow America field director Maureen Milligan presented recommendations for the federal program, which can fund housing rehabilitation, infrastructure, public services and economic development for primarily low- to moderate-income residents.
The overview
Richardson has never accepted CDBG funds, but the city’s estimated 2027-28 allocation would be $798,000, Milligan said, a number that is not likely to change significantly over time.
The program was first proposed in a January presentation of affordable housing initiatives, which identified home repair and missing middle housing as city priorities.
A number of nearby cities, including Garland, Plano and Allen, already received CDBG funding to support local housing and infrastructure programs.
The program requires that at least 70% of a city’s funding allotment contribute to projects that benefit low- and moderate-income residents, which are determined by regional income limits set by the U.S. Department of Housing and Urban Development.
CDBG largely does not fund new construction, so Milligan said a home repair program is the city housing priority that best fits the CDBG program. First proposed in her January affordable housing presentation, the home repair program would provide assistance to low-income seniors to help them safely age in place.
A closer look
Milligan recommended that the city use local nonprofit organizations as subrecipients of funding to operate the programs.
“You’ve got trusted local organizations who already have relationships with seniors and other low- and moderate-income persons that may need home repairs,” Milligan said. “Let them be the face of the program and [the city] can monitor the program.”
Milligan said residents would go through an application process to receive program services, with qualification based on income, home condition and home ownership.
Other eligible projects in Richardson could include street repair and other infrastructure work or repairs or enhancements on parks and recreational facilities, as long as they are located in a low- to moderate-income area or primarily benefit low- to moderate-income residents.
“You don’t want to go all in on only one investment,” Milligan said.
CDBG requires that a certain percentage of a city’s allotment must be spent by the end of each fiscal year in order to maintain funding for the next year.
What they’re saying
“I know federal funding right now can be a concern,” Milligan said. “[CDBG] is a program that has survived multiple administrations, multiple downturns in the economy.”
While there has been a decline in overall funding in the 50-year program, Milligan said the program has not experienced drastic cuts.
Council member Jennifer Justice voiced concern that cities are required to comply with any applicable executive orders, both existing and in the future, to receive the grant award.
“I can think of a million places we can use this money, but I don’t want to put ourselves in a position where we take money and then unknowingly put ourselves in a worse position having agreed to something we didn’t know we were getting into,” Justice said.
City Manager Don Magner said the city will provide a future briefing on existing executive orders so that council is aware of what requirements are currently in place to receive funds.
“I would like to see [the funds] going into helping repair homes and keep the neighborhoods intact,” council member Curtis Dorian said. “We are so landlocked, and we do have a lot of neighborhoods that require [rehabilitation], and we have an aging population.”
What’s next
To request CDBG funding, the city will need to invest roughly $300,000 in developing a citizen participation plan and a five-year consolidated plan.
Milligan said city staff plan to begin developing project plans in early 2027 in order to submit documents for funding to HUD by August 2027. Programs would likely begin operation in October 2027.
