Rio Rancho Governing Board redirects entitlement program funding amid uncertainty

RIO RANCHO — Amid reported uncertainty for the future of a longtime entitlement program, the Rio Rancho Governing Body on Thursday transferred tens of thousands of dollars in funds for programming in low demand to another project that’s ready to be implemented.

The six-member body’s approval was unanimous in reallocating approximately $26,000 from the Down Payment Assistance Program to a ramp remediation project on Safelight Boulevard within the city’s right of way, both of which were funded by Community Development Block Grants, an initiative of the U.S. Department of Housing and Urban Development. The body initiated a public hearing Thursday on the city’s proposal, fulfilling federal guidelines, but no one participated.

CDBG is designed to support “stronger and more resilient communities” by addressing needs such as homeowner assistance, infrastructure and public facilities installation, according to HUD’s website. Since 2000, Rio Rancho has received CDBG funds totaling more than $400,000 a year, the city said on its website.

The body’s decision came as HUD was expected to announce massive job cuts, multiple news reports said. But Kasey Lovett, head of public affairs for HUD told the Observer in an email March 27 that no decisions have been made, adding that reporting was based on “inaccurate information or rumors.” Lovett did say, however, that HUD is “exploring consolidation.”

Lovett also pointed to another “fork in the road” offer to HUD’s employees if they wish to separate from the federal workforce. The offer will close April 11.

Jaley Turpen, the city’s communications specialist, said it does “not speculate or comment on the future of federal programs.”

Rio Rancho Mayor Gregg Hull said following the meeting “there is always that possibility” of the city not receiving federal funds, depending on what is available.

“I’m not real worried about it at this point,” Hull said.

Deputy Mayor Jeremy Lenentine echoed the mayor in an interview following the meeting that “there’s always a level of insecurity about the future.”

Despite this, Lenentine said is not worried about the block grant program going away because the federal government has been good about providing funds to projects that are ready to be implemented.

Editor’s note: The Community Development Block Grants program is an initiative of the U.S. Department of Housing and Urban Development. An earlier version of this story listen an incorrect agency over the program.