Greene County to De‑obligate Remaining Owner‑Occupied Rehab Grant Funds After Project Shortfall

Greene County commissioners voted Feb. 18 to de‑obligate remaining funds from an owner‑occupied rehabilitation grant after county staff told the board the program assisted six housing units and missed a federal deadline.

At a public hearing held before the regular meeting, a county staff member said, "This project has provided assistance to 6 housing units" and that the Indiana Housing and Community Development Authority (IHCD A) portion of the grant totaled $128,317.43. The staff member said USDA Rural Development HPG funds of $59,784.86 served as matching funds for the project and that a third‑party inspection by an IHCD A‑controlled inspector would occur within a couple of weeks.

The staff member described the project timeline and shortfall: the application originally planned to assist 10 homes, eight applications were on file when the application was submitted, and the program ultimately assisted five homes with IHCD A funds and one home with Rural Development funds. The presenter said a contractor told the county he would be unable to complete one house before the program deadline of Dec. 20, 2024, and that draw requests needed to be made the week of Dec. 7, 2024. "As a result, money has been left in the pot," the presenter said, and recommended the county de‑obligate remaining funds.

Following the hearing, Commissioner Abrams asked for a motion to de‑obligate the balance. The board approved a motion to de‑obligate $121,682.57; a county staff member said the amount had been confirmed by a letter prepared by SIDC. Commissioners did not receive public comment during the hearing.

Why it matters: the funds were intended for repairs such as windows, roofing, heating, plumbing, air conditioning and electrical work on owner‑occupied homes in unincorporated Greene County. De‑obligation returns grant funds to the grantor or requires reprogramming under the grantor's rules, which can affect whether the money is available for other local projects.

Details and context: the staff presentation said two Greene County contractors performed the work on the homes and that all houses have been completed; any deficiencies identified by the third‑party inspector will be addressed by the contractor and reinspected by SIDC. The staff member said a letter prepared by SIDC indicated the county spent $128,317.43 in IHCD A funds and that the total intended grant would have been $250,000 when combined with Rural Development matching funds; the county is moving to de‑obligate the remaining balance of $121,682.57. The staff member noted that the shortfall stemmed from incomplete applicant paperwork and the program deadline.

Next steps: the presenter said the county will formally de‑obligate the remaining funds during the regular session following the public hearing and complete the third‑party inspections. Any future use of the returned funds would be subject to IHCD A and Rural Development rules and approvals.

Sources: remarks at the Feb. 18, 2025 Greene County Board of Commissioners public hearing and a letter prepared by SIDC cited in the hearing record.