Ed Miller, HomesMKE, briefed the committee on progress and financing for the ARPA-funded rehabilitation program. He said HomesMKE has completed 54 homes, 50 of which sold to qualified buyers who will occupy for five years or more, and reported 32 homes currently under construction with nine closings expected within a month and five more before year end. Miller said the program has adjusted its production goal downward from an initial 150-home target to 105 homes because the subsidy has averaged about $122,000 per home as the city encountered older, long-vacant structures that required more extensive work.

During an extended discussion committee members raised two fiscal concerns: (1) administrative charges of about $1.5 million being applied to the ARPA program, which staff said reflect temporary positions, outreach and inspection staff costs; and (2) an unexplained $500,000 reallocation from the program that committee members said appeared to reduce the program’s available rehab dollar pool. Committee members asked DCD and HomesMKE for a detailed spreadsheet listing the 54 completed properties (addresses), which ones sold to owner-occupants versus lease-to-own arrangements, developer assignments for each rehab, cost-per-property breakdowns, and a reconciliation showing where the $500,000 and $1.5 million administrative amounts were recorded and authorized.

HomesMKE and Department of City Development staff agreed to provide the requested documentation at an upcoming Zoning & Development committee meeting; committee members signaled intent to follow up on whether administrative costs should be charged to the program or absorbed in general departmental operating budgets. The committee did not change program policy during the meeting.