Since 2001, the City of Sugar Land has annually received a funding allocation from the U.S. Department of Housing and Urban Development (HUD) for the implementation of the City’s Community Development Block Grant (CDBG) program. These funds can be utilized for multiple activities that benefit low- to moderate-income Sugar Land residents, including infrastructure/public facility improvements, housing rehabilitation projects, public services and program administration.

Conditions on the use of CDBG funds include a 15 percent cap on public services and a 20 percent cap on program administration. Within the program, there are no limitations on the amount of funds that can be allocated for projects such as housing rehabilitation and infrastructure improvements. Historically, the City has allocated funds to the following programs:

The City’s CDBG funding allocation fluctuates each program year (October 1st - September 30th). This funding fluctuation often means that the City must implement the CDBG program with fewer financial resources, requiring reductions to programs, such as housing and infrastructure projects. We have historically adjusted these programs in order to keep the public services allocation maximized and ensure the required program administration and compliance requirements are met.  

Each year, the Environmental and Neighborhood Services Department assesses the future of the City’s CDBG program and reviews this information with the Finance Audit Committee. In January 2018, staff also reviewed the status of the CDBG program with the City Council. Due to recent regulatory modifications, the City Council asked that we continue to monitor the changing situation and provide an update before determining how the program should proceed in the future. 

Since that time, staff has monitored subsequent regulatory changes and reviewed them with the Finance/Audit Committee. After meetings with the Finance/Audit Committee in June, July and August 2018, there was a unanimous recommendation to discontinue the CDBG program and execute a cooperative agreement with Fort Bend County. By executing this agreement, Sugar Land residents would continue to receive CDBG services through the Fort Bend County program, as they did before the City began our own program in 2001. During the workshop, the Environmental and Neighborhood Services Department will review this information with the City Council in order to obtain direction for the future implementation of the City’s CDBG program.