Binghamton City Council unanimously voted to allocate $800,000 of unspent Community Development Block Grant — the federal funding from the Department of Housing and Urban Development to support housing projects, emergency shelters and other initiatives that impact residents.
City Council members said they were not made aware of the accrual until July. As a result, HUD notified the city that if the issue was not addressed by June 2026, the city would be at risk of losing future allocations.
In a news release, Councilmember and Majority Leader Rebecca Rathmell said the funds could have been accessed during Mayor Jared Kraham’s first term to support affordable housing development and the preservation of neighborhoods.
“And while that level of mismanagement is egregious amidst unprecedented homelessness, pervasive food insecurity, nonexistent youth programming, and other challenges impacting City residents every day, I am extremely proud of Council’s efforts to ensure this money is redirected to critical projects that will serve vulnerable populations,” Rathmell said after the vote on Wednesday, Feb. 25.
Deputy Mayor Megan Heiman said Friday, “Councilwoman Rathmell’s claims are once again without merit. We’ve decided it’s no longer worthwhile responding to them.”
As far as the distribution of CDBG funds, Heiman said she is “happy to see this funding approved and headed to projects that will help protect our firefighters and serve the community.”
During the public hearing portion of the meeting, a handful of community members shared their support of using the unspent funds for the proposed projects.
Funding breakdown for the Community Development Block Grant
What Urban League is seeing on the frontlines of housing insecurity
Jennifer Lesko, CEO and President of the Broome County Urban League, addressed City Council, sharing the plights of families she works with on a daily basis.
“In the last few years, just under the Urban League we have 22 working families living in hotels because they are making minimum wage or just above and they can’t afford an apartment,” Lesko said.
The families Lesko and her team work with are spending roughly $400 a week staying at hotels while earning minimum wage — rent prices are averaging anywhere between $900 to $1,200 for a one-bedroom.
Lesko expressed her gratitude to City Council members for helping the Urban League get families out of hotels and into homes of their own.
“To be able to offer affordable living and apartments, I think, is an absolute win for our community, our families and our children,” she said.
Kalyn Grant reports on public service issues for the Press & Sun-Bulletin, focusing on schools and community impact. Have a story to share? Follow her on Instagram @KalynCarmen and on Facebook under Kalyn Kearney. Get in touch at KCGrant@usatodayco.com
This article originally appeared on Binghamton Press & Sun-Bulletin: Binghamton will fund these 5 projects with help from CDBG grant
Reporting by Kalyn Grant, Binghamton Press & Sun Bulletin / Binghamton Press & Sun-Bulletin
USA TODAY Network via Reuters Connect
