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URA approves mayoral sign-off on 2016 HOME closeout; $278,000 set for HUD recapture
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Summary
The URA authorized the mayor to sign a closeout certification for 2016 HOME funds; staff said the agency received $371,551 for that year, spent $92,887, and is allowing HUD to recapture about $278,000 due to timing and program restrictions.
The Mount Vernon Urban Renewal Agency voted 5-0 to authorize the mayor to sign the closeout certification for 2016 HOME funds under resolution 2025-011.
URA staff explained that $371,551 was originally allocated for the 2016 HOME program, $92,887 was disbursed for administrative and related costs, and the remaining funds are not eligible for use now; staff recommended certifying the closeout and allowing HUD to recapture approximately $278,000. Officials said HOME funds have strict eligibility and timing rules that contributed to the recapture risk.
Staff described HOME program constraints to the board: HOME money must be used for affordable housing activities that meet HUD’s national objectives, projects must be awarded before construction begins, and long-term compliance includes annual inspections and income recertification for affordability periods (often 10–30 years). Board members and staff said those post‑award compliance responsibilities create administrative burdens that make HOME projects difficult for a small municipal staff to manage without subrecipients or dedicated administrative capacity.
Board members discussed past instances in which HOME-funded projects did not include required language or monitoring, and staff noted recent efforts to use subrecipients and consultants to provide case management and policy development for housing programs. The motion authorizing the mayor to sign the closeout certification passed unanimously (5-0).
