Dallas to Receive $31 Million in Federal HUD Grants This Fiscal Year

About $31 million will be available for Dallas housing in Fiscal Year 2023-24, courtesy of the U.S. Department of Housing and Urban Development. 

Dallas qualifies for four HUD-funded programs: Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS. 

During a City Council presentation last week, Budget Director Janette Weedon reviewed the funding history and stringent regulations for each of the categories. For example, HOPWA funds must be distributed to low-income persons who have been diagnosed with HIV. Only 15 percent of CDBG funds can be used for human and social services. While all four programs provide funds for housing, new construction is generally not allowed through the CDBG program. 

Grant awards for the ESG homelessness program and HOPWA have increased over the years, but an overall decline of about $3 million in HUD funding for Dallas has been reported since 2005. 

The City Council is scheduled to approve a five-year consolidated plan for HUD funds in December. 

How HUD Funds Are Allocated 

Assistant Budget Director Chan Williams said HUD provides designated amounts for each grant based on the city’s population. 

“Each year we have an opportunity to direct those funds into the needs that have been identified in the five-year plan,” Williams said. “It’s [based on] Census data, which includes housing, population, and … the age of housing stock, those types of things.” 

Dallas is competing with other cities that have a population of more than 50,000, she added. 

“Each year we’re notified of how much the city will receive from each of the four grants,” she added. 

District 2 Councilman Jesse Moreno pointed out that residents and stakeholders have an opportunity to weigh in on specific projects in January and February of each year.

District 13 Councilwoman Gay Donnell Willis suggested that if some infrastructure and housing projects qualify for HUD funds, that might be useful for the 2024 Community Bond Task Force to be aware of when making recommendations. 

“If we are allocating HUD funds, that should inform our bond, or we should at least be aware of it so we can make a decision of whether we go up or down,” Willis said. “I feel like it might be covered by a different bucket of money. That could be something that the bond committee and ultimately council can work through.”