Nonprofits carrying out critical housing and community programs that had been waiting on $5.3 million in overdue federal funds are now being paid, according to city of Syracuse officials.
The nonprofits were waiting on money available through two 50-year-old United States Department of Housing and Urban Development programs. Typically, nonprofits have been paid for these programs in September. The payments are about four months late.
The city’s commissioner of Neighborhood and Business Development Michael Collins said the payment to nonprofits was historically late.
The delay has forced some nonprofits to take out loans while interest rates are at their highest in about 20 years. That means programs cost more to run than HUD reimburses them.
Revisions to a funding application by the city and technological delays prolonged the nonpayment, according to HUD. Central Current covered the delay two weeks ago.
Money from the HUD programs pay for housing initiatives run through Home HeadQuarters, eviction defense through the Volunteer Lawyers Project, the Greater Syracuse Tenants Network, three different city community centers and workforce training programs, among others.
It also paid for Catholic Charities’ soon to be shuttered housing relocation program.
The $5.3 million comes from two 50-year-old HUD grant programs:
- The Community Development Block Grant, or CDBG program
- The Emergency Shelter Grant program, or ESG program
HUD disburses the money to the city who then reimburses nonprofits for the programs they run.
City officials had been waiting for HUD to send a grant agreement to begin the payment process, according to Collins. HUD sent the grant agreement to the city one day after Central Current sent questions to a HUD spokeswoman about the nonpayment.
Collins said the city then received a release of funds Feb. 6. The city set up a notary station for organizations to sign their contracts. Organizations who receive wire transfers from the city began being paid Feb. 14.
The city has contemplated changing its funding year for the two federal programs, but the city cannot make the change until the 2025-26 cycle. It has already begun the process of creating and submitting its 2024-25 plan to HUD.
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