The City Council of Saint Marys on Oct. 28 approved two separate amendments to HOME program developer agreements for two housing projects, citing the need to broaden tenant eligibility so the units can be leased by a federal deadline.

The two agenda items, Resolution 25-15 and Resolution 25-16, cover two technically separate projects on George and Charles streets — one new construction and one rehabilitation — that mirror each other in program requirements. The developer must have the properties rented by Dec. 6, the meeting record states.

Staff explained the original agreements contained eligibility provisions that were “too restrictive” and left an insufficient pool of qualified tenants. The changes revise the agreements to expand the pool of eligible tenants while keeping the projects aligned with HOME program requirements, according to staff.

Council members asked whether the changes would affect the projects’ eligibility for HOME grant funding and whether the city could be required to return federal funds if units are not leased. Staff replied the amendments remain in alignment with the HOME program and said that, if the units are not leased by the Dec. 6 deadline, there could be an enforcement process that could require repayment of federal funds; the city could be responsible for some portion of any required repayment.

One staff member said that when the projects were underwritten in 2023, the minimum rent needed for financial feasibility was $978 per month. Council members discussed the financial risk to the developer if rents are capped at lower affordability levels; staff warned that a lower rent cap could make the projects “unsustainable for the development.”

Council approved Resolution 25-15 and Resolution 25-16 on separate motions and voice votes. Shane moved to approve 25-15; Tony seconded and the mayor announced the motion carried. The council took a separate motion and voice vote to approve 25-16.