The City of Flagstaff receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) on a Program Year basis (July 1 – June 30). For Program Year 2024, the City was allocated $588,146. The allocation for Program Year 2025 has not yet been announced.

The purpose of the CDBG program is to support the development of viable urban communities through the provision of decent, affordable housing, a suitable living environment, and expanded economic opportunities, primarily benefiting low- and moderate-income residents. Low- to moderate-income is defined as a household earning 80% or less of the Area Median Income (AMI), equivalent to $79,900 for a family of four in Flagstaff for 2024.

Every two years, the City Council is asked to establish local priorities for allocating CDBG funds. At this meeting, staff will:

• Provide an overview of eligible CDBG activities and regulations.
• Review the 2021–2025 Consolidated Plan, which outlines a five-year assessment of community needs and funding goals.
• Provide information about the Program Year 2025 Annual Action Plan process.

Staff is seeking Council direction to identify three to four new funding priorities for the next two Program Years. Following this direction, staff will initiate a Notice of Funding Availability (NOFA) process, evaluate and rank applications, and return to Council on April 22, 2025, with funding recommendations. Council will then make final funding decisions, which will inform the 2025 Annual Action Plan. This plan will detail how the City intends to allocate its Program Year 2025 CDBG funds to meet HUD requirements and address community priorities.

• Housing (rental and ownership)
• Addressing homelessness
• Neighborhood Revitalization
• Workforce/Job Training

• Goal NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.
  • Policy NH.1.1. Preserve and enhance existing neighborhoods.

• Goal NH.4. All housing is safe and sanitary.
  • Policy NH.4.1. Expand the availability of affordable housing throughout the region by preserving existing housing, including housing for very low-income persons.
  • Policy NH.4.3. Address accessibility issues and other housing barriers to persons with disabilities or special needs.
  • Policy NH.4.4. Encourage green practices in housing construction and rehabilitation that support durable, healthy, and energy efficient homes.
  • Policy NH.4.5. Renovate the existing housing stock to conserve energy and reduce utility and maintenance costs for owners and occupants.
  • Policy NH.4.7. Enforce compliance with fair housing laws.

• Goal NH.5. Eliminate homelessness.
  • Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.    
  • Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
  • Policy NH.5.3. Support and expand programs that prevent homelessness.
  • Policy NH.5.4. Make transitional housing resources available to populations experiencing homelessness.