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Cass County treasurer and staff propose changes to CDBG emergency repair program to avoid liens
Summary
County officials discussed re-establishing a Community Development Block Grant (CDBG) emergency home repair program with changes that would allow grants rather than no-interest loans with liens for smaller repairs. Commissioners moved the item to the business meeting for action.
Cass County officials discussed reviving a Community Development Block Grant (CDBG) major emergency home-repair program and recommended altering the program’s terms so some grants could be provided without placing a lien on a homeowner’s property.
County staff explained the program historically used no-interest deferred loans that placed liens on homes when the repair amount exceeded $4,999; smaller awards were provided as grants without a lien. Hope (Treasurer’s office) said homeowners were sometimes reluctant to use the program because liens attached to the property record and could surface later during estate or sale transactions.
A county staff member described contacting the state and learning that the county could, in some cases, provide grant funds rather than loans with liens. The treasurer’s office and other staff recommended re-opening administration of the program at the county level. The discussion noted that the county has administered other large housing grants (the treasurer referenced a prior $975,000 program), and current CDBG award timelines are short: one municipality’s award must be spent by June of this year, limiting the county’s timeframe for implementation.
Commissioners asked staff whether there are existing liens on properties from past program participation; staff confirmed there are “quite a few liens” recorded going back to the 1990s and that liens are discharged when paid off. A motion was made and seconded to move the item forward to the business meeting for formal approval and administration; commissioners voted in favor.
Staff said the program’s funding in the current year is roughly in the range of $80,000–$90,000 (amount described in discussion as “somewhere around $80.90000”), and that federal-state CDBG rules require administration and reporting through the state program. The meeting record did not include a final contract or award amount; staff said they will work to expend available funds before the June deadline.
