
Subject
title
Approval of Year 50, FY25 Community Development Block Grant (CDBG) Sub-grantee Contract Agreements and Authorization for City Manager to Sign Agreements
end

Department
Housing and Community Development

Recommendation
Staff recommends that the Mayor and Council approve and authorize the City Manager to sign the attached Community Development Block Grant (CDBG) sub-grantee contract agreements for program Year 50/FY 2025.

Discussion
Each year, the City of Rockville receives federal Community Development Block Grant (CDBG) funds through a cooperative agreement with Montgomery County. CDBG funds must be expended for housing and community development projects that primarily benefit low- and moderate-income persons or neighborhoods. Each year, the Department of Housing and Community Development (DHCD) coordinates, reviews, and evaluates CDBG funding requests, and recommends funding allocations to the Mayor and Council for its consideration. Rockville has been awarded $263,000 in CDBG funding for federal Program Year 50/FY 2025. Below is the list of awardees and the award amounts.
Applicant |
Allocation |
Community Reach of Montgomery County, Inc. |
$22,185 |
Housing Unlimited, Inc. |
$70,870 |
Interfaith Works, Inc. |
$19,945 |
Rockville Housing Enterprises (RHE) |
$75,000 |
City of Rockville Single Family Rehab Program |
$75,000 |
TOTAL |
$263,000 |
Note that on December 9, 2024, the Mayor and Council approved $19,945 in CDBG funds for Interfaith Works, Inc. (IW). On May 13, 2025, IW notified DHCD that they are declining the grant award. These funds will be reallocated to approved CDBG recipient(s) pursuant to the program’s procedures.

Mayor and Council History
On December ---9, 2024 the Mayor and Council approved the Year 50/FY 2025 funding allocations and authorized the City Manager to transmit the grant application and enter into an agreement with Montgomery County for Program Year 50/FY 2025 of the CDBG program, in a form approved by the City Attorney.

Next Steps
Upon the Mayor and Council authorization, staff will coordinate with the four (4) subgrantee organizations to duly execute each contract, effectuating the issuance of purchase orders and notice to proceed.
