Lorain City Council on the final July meeting voted unanimously to authorize the safety service director to enter into a loan agreement with Neighborhood Alliance to rehabilitate its shelter, converting congregate units into non‑congregate units.
The measure was presented as a loan but city staff said the agreement will operate as a forgivable loan as long as the recipient continues to use the facility for its intended use for 10 years.
Councilman Nutt introduced the ordinance and moved to suspend the three‑reading rule; the council then passed the ordinance by unanimous vote.
City administration told council the funding source for the agreement is Home ARP (a HUD program created under the American Rescue Plan Act) and is distinct from the ARPA funds the city has used elsewhere. "It was formatted as a loan agreement, but the loan is more of a forgivable loan," a city official said during the discussion.
Staff explained that eligibility rules for Home ARP require projects funded with those dollars to assist four qualifying populations defined by HUD: people currently experiencing homelessness; people at risk of homelessness; people fleeing domestic violence; and people who utilize services designed for people experiencing homelessness. The administration said the Haven Center (referred to in discussion) is the local organization that serves all four qualifying populations, which is why the project was advanced using these funds.
Councilmembers asked whether the city will inspect the construction work; staff confirmed the city will oversee and perform inspections. Officials also said the work will convert shared congregate spaces into private rooms with bathrooms to reduce exposure and improve privacy for residents. Alicia Foster from the Haven Center attended the meeting and was available to answer council questions.
The ordinance authorizes the safety service director to enter into the agreement and directs the city auditor to allocate the funds to the Home ARP‑designated account. Council members repeatedly noted that Home ARP funds are narrowly permitted for homelessness responses and related eligible activities.
Council action: motion to suspend three readings and passage of the ordinance — carried unanimously.
Looking ahead, city staff said they will monitor compliance with the 10‑year occupancy condition that makes the loan forgivable and will return to council if further administrative steps are needed.