Richardson eyes first-time federal CDBG funding for private water service line replacements

Richardson eyes first-time federal CDBG funding for private water service line replacementsAs the Texas city prepares to accept federal Community Development Block Grant funding for the first time, officials are looking to allocate a portion of the anticipated $798,000 toward subsidizing expensive water connection repairs for low-income seniors.

Richardson is preparing to accept an estimated $798,000 in HUD CDBG funding for fiscal year 2027, marking the city's first time participating in the federal program.

Council members proposed utilizing the funds to repair public water lines and private service connections in older, low-to-moderate-income neighborhoods.

Replacing private water service connections currently costs residents an estimated $30 to $40 per linear foot, a prohibitive expense for seniors on fixed incomes.

City staff and consultants will initiate a citizen participation process in early 2027 before submitting a 5-year consolidated plan to HUD in August 2027.

The City of Richardson, Texas, is laying the groundwork to accept federal Community Development Block Grant (CDBG) funding for the first time, with city leaders specifically eyeing the funds to subsidize costly water service connection replacements for low-income residents. During a May 18 city council work session, officials reviewed a proposed timeline to begin receiving an estimated $798,000 annual CDBG allocation from the U.S. Department of Housing and Urban Development (HUD) starting in fiscal year 2027. While the funds can be deployed across various housing and public service programs, the council highlighted water and wastewater infrastructure as a primary target for the federal dollars. Council Member Murphy advocated for directing a portion of the grant toward older neighborhoods to ensure access to clean water, specifically pointing to the financial burden of repairing private-side water service connections. "Repairing those service connections for individual homeowners is very expensive, especially if you have income that's capped," Murphy said, noting that replacement costs can run $30 to $40 per linear foot. "This fund could be used for restoring or repairing the service connection for those individuals in the private side, not the public side." Maureen Milligan, director at consulting firm Grow America, confirmed to the council that CDBG funds can be used for both public water line replacements in low-to-moderate-income areas and private service connection repairs for qualifying low-income homeowners. The push to utilize federal funds for water infrastructure comes as the city evaluates how to help its aging population safely age in place. According to Milligan, infrastructure projects like water and sewer repairs are advantageous for CDBG compliance because they typically involve larger capital expenditures, helping cities meet HUD's strict timeliness tests for drawing down grant balances without risking federal clawbacks. Following the council's informal consensus to move forward, city staff will conduct a review of federal executive orders tied to the funding. The city plans to initiate a citizen participation process and draft a 5-year consolidated plan in early 2027, with the goal of rolling out the first funded infrastructure and housing programs by October 2027.