Battle Creek commission approves CDBG reallocation for recovery housing at 614 Northeast Capitol

The Battle Creek City Commission on Jan. 21 approved a substantial amendment to the city's 2024 Community Development Block Grant (CDBG) annual action plan to move $297,860.50 to the rehabilitation of 614 Northeast Capitol Avenue to create recovery housing and to reallocate $200,000 from transit bus stops to the minor home repair program.

Community Development Manager Helen Guzzo introduced the public hearing, noting the city’s federal allocations. "The city gets about 1,200,000 of community development block grant a year and about 300,000 of a home investment partnership program," Guzzo said, and explained the amendment would repurpose funds from projects that have not moved forward so federal dollars are put to effective use.

The public hearing included several speakers who supported recovery housing. Dan Jones of the Haven of Rest told commissioners the shelter network served thousands in 2024: "the haven of rest provided 37,586 bed nights of shelter" and "we served 1713 unique individuals," and he described warming-center operations when temperatures reach 20 degrees Fahrenheit or below. Joseph Chastain and Lee Yates, both identified as participants or graduates of local recovery housing, described the programs’ role in their recoveries: Chastain said program staff "greeted me with open arms" and described accountability, counseling and relapse-prevention services.

Opponents and skeptics spoke as well during the hearing and the later public-comment period. Resident John Kenneth questioned the source and amount of the funding and argued the money should be prioritized for other services. Reese Atkins urged the commission to require stronger guarantees before awarding large sums to a single project, citing a prior failed investment at the same address.

Guzzo said the city has not yet taken ownership of the building and would issue a request for proposals to choose a qualified recovery-housing operator; she identified Recovery Services Unlimited as an example of a potential operator but said others could bid. She also explained the reprogrammed CDBG funds must be used in low- and moderate-income neighborhoods and for activities that strengthen neighborhood conditions.

After commissioners asked for clarifications about CDBG restrictions and the applicant’s track record, the commission voted to approve the amendment. The resolution text reallocates $297,860.50 for rehab at 614 Northeast Capitol and moves $200,000 from bus-stop improvements to minor home repairs.

Commissioners framed the vote as using restricted federal dollars for neighborhood housing needs and reaffirmed that the city will select a qualified operator via competitive process. No timetable for ownership transfer or construction completion was specified in the record.

Votes at a glance in the meeting record show Resolution 62 was approved; the commission did not record a roll-call tally in the portion of the transcript provided.

The city said the consolidated plan and new five-year priorities will come before the commission in April; commissioners directed staff to follow the city’s procurement and federal rules as the rehab and operator selection proceed.