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Administrator flags stalled ARPA projects; recommends reallocating $50,000 of consultant funds to foreclosure prevention

2980016 · April 1, 2025
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Summary

County administrator reported ARPA reconciliation items and suggested reducing a consultant contract by about $50,000 to fund foreclosure-prevention assistance; the county treasurer described eligibility criteria and said 44 parcels remained in foreclosure with three occupied properties as of the meeting.

Kalamazoo County administrators reported April 1 on the status of ARPA awards and flagged several external projects for follow-up while recommending a short-term reallocation to fund foreclosure-prevention assistance.

Administrator/Controller Catlin presented a reconciliation report through March 31 and highlighted external projects that show slow drawdown or large remaining balances. Catlin said the county has obligated ARPA funding and cannot be “clawed back” by the Treasury; instead, unspent balances must be spent by Dec. 31, 2026, or be reallocated.

Catlin noted multiple projects in progress (a Sunset Lake Dam reconstruction, township road reconstruction, broadband and housing projects) and identified the Guidehouse consultant contract as having roughly $51,000 remaining. She told commissioners the treasurer’s office requested a $50,000 ARPA allocation for foreclosure-prevention assistance this year and recommended reducing the Guidehouse allocation by $50,000 to free funds for that purpose.

County Treasurer (name not specified in the transcript) addressed how foreclosure-prevention funds are applied: he said the office conducts intensive outreach (mail, certified notices, door knocks and posted notices) and generally requires direct contact with the homeowner to determine eligibility. He said the program targets owner-occupied properties with specified hardships and that the county typically works to eliminate outstanding years of delinquency to stabilize homeowners. The treasurer reported the list of properties in foreclosure had been reduced to about 44 parcels and that three of those were occupied as of the meeting.

Catlin described the legal guidance used in ARPA administration and said Guidehouse had advised that obligating funding is the key requirement and that shifting allocations among eligible ARPA uses is permissible under the Treasury final rule. Catlin proposed bringing a formal allocation to the board at the April 15 meeting to provide $50,000 for foreclosure prevention by reducing the Guidehouse contract amount.

Next steps: Catlin said staff would finalize follow-up with flagged grantees, reconcile the Upjohn broadband study balance that may be returned, and, if the board authorizes, reallocate $50,000 to foreclosure prevention at a subsequent meeting. The treasurer said that if the board desires, staff can limit assistance to one year per household or pay outstanding years to reduce re‑delinquency risk; counsel would be consulted on any late-stage foreclosure exceptions.

Ending: Commissioners asked for additional reporting on grantee progress and expressed support for targeted uses of ARPA funds. No formal reallocation vote was recorded April 1; Catlin said she would prepare the formal recommendation if the board wanted to proceed.