Legislation Details

File #: 26-0249    Version: 1 Name:
Type: Other Items of Business Status: Agenda Ready
File created: 4/8/2026 In control: City Council Work Session
On agenda: 6/1/2026 Final action:
Title: HOME Program HUD Findings and Voluntary Grant Reduction Option
Attachments: 1. Draft HOME Voluntary Grant Reduction Request Letter, 2. HUD Finding of Non-Compliance, HOME Activities #1356, #1371, and #1425, January 8, 2026, 3. HUD Resolution of Findings, HOME Activities #1407 and #1563, July 1, 2025, 4. HUD FY2026 Onsite Technical Assistance Summary, March 4, 2026, 5. Civitas Technical Assistance Memorandum, February 12, 2026, 6. Extension Request for Repayment of HOME Findings, 7. Voluntary Grant Reduction to Resolve HOME Program HUD Findings Presentation
TO: Mayor and Members of City Council

THRU: Jodi Phelps, Assistant City Manager

FROM: Christopher L. Cauley, Director of Economic & Community Development

DATE: June 1, 2026

RE:Title
HOME Program HUD Findings and Voluntary Grant Reduction OptionTitle
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COUNCIL DISTRICT(S):
Council District(s)
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Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
Objective 2.2: To invest in community places to ensure revitalization and increase quality of life.
GOAL IV: The City of Fayetteville will be a desirable place to live, work and recreate.
Objective 4.5: To ensure a place for people to live in great neighborhoods.
Objective 4.6: To reduce poverty and homelessness.
GOAL V: The City of Fayetteville will be a financially sound city providing exemplary city services.
Objective 5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Objective 5.2: To identify and achieve efficiencies through innovation and technology utilization, by increasing data driven decisions and using business intelligence strategies.

Executive Summary:
City Council is receiving a briefing on two legacy HUD HOME findings requiring corrective financial action totaling $321,446.21. Staff will present the findings, corrective actions completed to strengthen HOME compliance, and financial resolution options.

Staff anticipates returning at a subsequent Council meeting requesting approval of a voluntary reduction of future HOME Investment Partnerships Program funds, subject to HUD approval, in lieu of repayment from non-federal local funds. This approach would resolve the remaining financial requirement without an immediate General Fund impact.

Background:
HUD issued two HOME Investment Partnerships Program findings requiring corrective financial action by the City. Altho...

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