Rochester Council Approves 2027 CDBG Allocations Amid Calls for Tighter Fraud Safeguards
City staff told the council that federal block grant dollars are reimbursed only after subrecipients spend their own funds, as a resident urged four new anti-fraud measures.
The Rochester City Council unanimously approved the city's 2027 Community Development Block Grant allocations at its most recent meeting, after hearing a resident's call for stricter oversight of how the federal housing dollars are tracked and spent.
City staff member Brent Svenby outlined the purpose of the federal program, administered through the U.S. Department of Housing and Urban Development, before the council took its vote on item G2.
The CDBG program aims to provide decent, safe and sanitary housing, a suitable living environment and expanded economic opportunity. Most CDBG funds are allocated to three national objectives. The objective the city primarily uses is providing a benefit to low- and moderate-income individuals.
Resident urges four safeguards
During public comment, resident Linda Parker asked the council to adopt specific controls she said would protect the grant money from misuse.
To ensure the financial integrity of the City of Rochester, I ask the committee to impose four specific measures to protect Community Development Block Grant funds from fraud. First, impose strict monitoring on subrecipients. Second, apply a rigorous system for tracking payment milestones. Third, require automated data matching with property tax records. And finally, we must protect the integrity of the HUD national objectives.
Svenby responded that the city's existing payment structure already limits exposure, because CDBG money is not advanced to organizations before work is performed.
We do not pay out CDBG funds until after they have spent the money themselves, and then they request reimbursement. So we do not distribute our funds up front. We wait until they have spent those funds. We have the right to monitor those files at any time throughout the period the CDBG funds are in use while active.
Other Topics from This Document
Automated License Plate Readers (ALPR) / Axon Cameras
Homelessness Prevention Initiatives
Downtown Special Service District (SSD) Fees
Utility Easement Vacation Request (Bogey Bugaloos)
Final Plat Approval (Cassidy Heights)
Private Sewer Lateral Cost Assistance Program
Ordinance Readings (Rezoning, Stormwater, Fees)
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