SPOKANE VALLEY - On June 27, Spokane Valley City Council unanimously voted to continue participating in the Spokane County Urban Consortium that disperses funds to the city.
The funds come in the form of Community Development Block Grants, Home Investment Partnerships and Emergency Services Grants.
Councilmembers discussed possible options before electing to defer the city’s entitlement to take administrative control of the block grant funds, and continuing to remain a part of the county consortium it has been a member of since 2005.
Gloria Mantz, City Engineer for Spokane Valley, explained the options available to city council.
She also told council that there will need to be three city employees working the program, but they only have funding for one employee at this time.
They need more workers because the city will be directly responsible for the paperwork normally done by the county.
“For us to fully implement the CDGB program,” Mantz said. “We will have to hire two additional staff members that way there will be three people in the CDBG program.”
“That will cost approximately $425,000, and since only $120,000 is refundable the city will have to allocate the difference in staffing costs,” she added.
Mantz said this means the city would only see a net benefit of $80,000 after all administrative and start up costs are covered.
She said the first option does give the city full authority over the matter, but also means they will be responsible for the expenses as well.
In 2023, the city was authorized to use approximately $606,000 in block grants and $403,000 for home investment partnerships from HUD.
20 percent of that was used to offset the county’s administrative costs.
The City of Spokane Valley is entitled to about a third of all of HUD funds that come to the Spokane region.
Combined with the county’s block grant allocation from HUD, 17 grants totaling $1.8 million were awarded through the consortium.
Uncertainty about the city’s decision to defer the block grant entitlement status for the next three years comes from a proposal to establish a regional homelessness authority.
This program is one in which participants are expected to commit all available federal, state and local funds related to affordable housing, homelessness and behavioral health.
The Spokane Valley City Council recognizes the importance of pursuing regional homeless strategies.
City Council became concerned over the idea that the county could divert HUD funds without gaining input from the city or council.
“The cost to fund a regional homelessness authority that hasn’t officially formed yet is unknown,” said Mayor Pam Haley. “How the authority’s goals will align with the City of the Spokane Valley Homeless Action Plan are unclear,”
The decision to remain in the county consortium follows the city’s recent allocation of $4 million in federal American Rescue Plan Act funds to address homelessness and affordable housing services in Spokane Valley.
“The city is demonstrating its commitment to a data-driven approach to serve local needs and objectives, including our emphasis on homelessness prevention and affordable housing,” Haley said.
Councilmember Arne Woodard pointed out the importance of preserving block grant funding to support infrastructure improvements.
“We need to move cautiously to not eliminate the one source of money that the small towns particularly have access to, or those infrastructure projects that they otherwise could not afford,”
The city’s ongoing participation in the consortium also ensures other participating Spokane County cities and towns in the region will continue to receive around $400,000 in housing funds.
Councilman Rod Higgens pointed out there are certain safeguards in place, so the city is protected from some of these risks.
These funds support critical services and infrastructure to house and provide assistance to low income and homeless individuals across the region.
Councilwoman Brandi Peetz said the discussion has been on the table for years. Because there is so much risk involved, she said the topics has become frustration.
She said she trusts in her fellow council members, and that the option to remain in the consortium is the better option for the time being.
Matthew graduated from West Virginia University-Parkersburg in 2011 with a journalism degree. He's an award-winning photographer and enjoys writing stories about people.
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