Springfield anticipates smaller than expected federal funding loss for housing, community development

City still expects to lose funds for affordable housing
Asst. Springfield Mayor Dave Estrop talks about federal funding at a city commission meeting Tuesday, July 15, 2025 at city hall. JESSICA OROZCO/STAFF

Credit: Jessica Orozco

Credit: Jessica Orozco

Asst. Springfield Mayor Dave Estrop talks about federal funding at a city commission meeting Tuesday, July 15, 2025 at city hall. JESSICA OROZCO/STAFF

Some federal funds previously believed to be lost for housing and community development in Springfield may still come to the community.

The recently authorized federal spending bill does not allocate funds for two programs from which Springfield hopes to receive money. But the House Appropriation Committee voted Thursday to approve a draft spending bill to fund Housing and Urban Development programs in 2026.

This does not include one of the largest funding sources, the Home Investment Partnerships (HOME) program.

“This is extremely good news, but I want to encourage you to write these elected officials in Washington (D.C.) and thank them for restoring the funds, but encouraging them to restore more,” Assistant Mayor Dave Estrop told residents at Tuesday’s city commission meeting. “So we’ll see how it works out.”

The city provides a sample letter to ask the House and Senate to support full funding for housing and community development on its website at springfieldohio.gov.

Springfield is working toward submitting a five-year spending plan to HUD for funds from the Community Development Block Grant (CDBG) program, HOME program and Emergency Solutions Grant (ESG) program.

The latest spending bill from the House Appropriation Committee will go to the Senate for vote.

Priorities for HUD funding

Through community input, the city identified three major priorities: provide decent housing, create suitable living environments and expand opportunities for low-to-moderate income people.

The city is required to prepare a five-year consolidated plan for HUD funds to identify needs in affordable housing and community and economic development. The final draft must be submitted by Aug. 16.

In its current form, the draft would use $1.7 million in CDBG funds per year for housing for people experiencing homelessness and with disabilities, public services, housing affordability and rehabilitation, code enforcement, demolition, promotion of fair housing and administration, the Engaged Neighborhood project and public improvements and economic development and job creation.

The HOME Investment Partnerships program would use more than $439,000 per year for HOME entitlement activities, the Community Housing Development Organization reserve and operating expenses and HOME administration. HOME entitlement activities include homeownership assistance and “activities that promote the development of affordable housing units including rental housing and/or single-family housing,” according to the city.

Losing this would impact efforts to provide and support affordable housing in Springfield.

Help sought for emergency housing

The draft also plans to use just over $155,000 in ESG funds for homeless prevention and rapid rehousing, homeless management information systems, emergency shelter operations and administrative funds. ESG’s goal is to help people regain permanent housing after being in a crisis or experiencing homelessness.

CDBG funds since 2005 have “provided safe and affordable housing to over 2.1 million households, supported public infrastructure serving nearly 59 million people nationwide, and created/retained 581,495 jobs through economic development activities. Since 1992, the HOME program has completed nearly 1.4 million units of affordable housing and provided tenant-based rental assistance to 403,788 low-income families,” the city’s sample letter reads.

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