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NeighborWorks Green Bay to receive CHDO funds to cover construction overruns on affordable townhomes
Summary
The Redevelopment Authority approved a request allowing NeighborWorks Green Bay to access CHDO-set-aside funds to help fill a roughly $286,267 construction-cost gap on a seven-unit townhome project that includes four affordable units; staff said the set-aside pot will be nearly exhausted if approved.
The Redevelopment Authority voted to allow NeighborWorks Green Bay to access community housing development organization (CHDO) set-aside funds to fill a construction-cost gap on a multi-unit townhome project that includes four affordable units.
NeighborWorks and staff told the authority that construction hard costs per unit have risen to about $295,000 and the project is facing roughly $71,566.72 in overruns per unit. The total gap across the affected units was described in the meeting as about $286,266.88. NeighborWorks asked to tap a CHDO fund pot the authority holds—about $127,785—to help cover the shortfall for the four affordable units. Staff warned that using those funds would “virtually wipe out” the current set-aside until the next federal allocation, which staff said is expected to come in August–September.
Will and David (NeighborWorks Green Bay representatives) appeared before the authority and said the project is under construction and that the awarded general contractor, a local builder, has committed donated labor and is working with the organization to keep the project viable. The authority asked about procurement and bids; NeighborWorks said the project was bid to three contractors and had been redesigned twice to respond to market changes.
Boardmembers discussed the legitimacy of the cost increases, the source of CHDO funds, and the timing of replenishment. Staff confirmed that the CHDO pot is federal money and that future allocations would depend on the federal schedule. The authority voted to approve use of the CHDO funds to help the project proceed. Staff said the city has already invested $232,000 of HOME funds into the project.
Staff and NeighborWorks emphasized their commitment to the project and said the award is intended to get the four affordable units to completion amid a sharply rising construction-cost environment.
