A revolving loan fund the city set up with ARPA money to support flood‑impacted homeowners has seen almost no use, Downstreet representatives told the Berry City Council on Aug. 26. Downstreet staff asked the council whether to step up outreach to find eligible borrowers or to reallocate the funds.

City and nonprofit officials said the fund was intended to fill a financing gap for households with incomes roughly between Downstreet's existing programs and lower income thresholds. The nut graf: Councilors and Downstreet staff agreed further discussion is needed about whether to market the product more aggressively to realtors and residents, to change loan terms to make repayments more likely, or to shift the dollars to other housing purposes that will move faster.

Angie, a Downstreet housing official, told councilors that most Berry City applicants for home‑repair loans have qualified for Downstreet's existing programs, which offer up to $20,000 as loans or grants and are more attractive than the city’s revolving loan because they can include grant components. Only one prospective applicant who would have needed the city RLF instead used a home equity line of credit. Angie said Downstreet had not done targeted marketing for the city RLF and suggested city channels — a water/sewer bill insert, a mailer, or realtor outreach — as immediate ways to increase awareness.

Council members and Downstreet discussed program design. Downstreet staff recommended silent (deferred) loans or loans structured to be repaid at sale as ways to help low‑income homeowners who cannot afford amortized payments. Several councilors, including Councillor Guston, expressed concern that deferred or silent loans reduce predictability and that the city could lose principal in foreclosure or through superior mortgages. Guston said he favored tools that generated predictable returns for further housing investments, citing the Prospect Heights model where land sales are recycled for more housing.

Downstreet and staff outlined next steps: Downstreet offered to prepare a color insert sized for the city's billing machine and to reach out to local realtors and community locations such as City Hall and the library. The council asked staff to work with Downstreet to produce an insert in time for the next utility bill mailing and to place informational materials in public buildings and at election events. No formal reallocation decision was made at the meeting.

The council also discussed program priorities, including whether the RLF could support small flood‑mitigation items (moving utilities, small elevations) within the $20,000 cap, and whether the city should target funds at specific neighborhoods such as the North End. Downstreet said that focusing on silent loans would likely accelerate deployment but would reduce the speed at which funds revolve back into the program. Councilors said they wanted one more outreach push and a six‑month review before proposing any formal reallocation.

Downstreet volunteered to draft the mailer and do realtor outreach; city staff agreed to include the insert in the next water/sewer billing cycle if timing allowed. Councilors also suggested placing material at the municipal building and the library and allowing a table at City Hall for public awareness events. The council did not adopt new loan terms or reallocate funds during the session.

Ending: Downstreet will produce outreach materials and the manager and city clerk will coordinate the bill insert; the council asked for a follow‑up report in roughly six months to evaluate uptake.