Appropriations panel amends SB 2225 to include slum-and-blight grants, removes 'equally' matching requirement

The Appropriations - Government Operations Division amended Senate Bill 2225 on a voice and roll-call vote to add slum-and-blight removal as an allowable use of a $50,000,000 Department of Commerce appropriation and to strike the word "equally" from a matching-funds requirement.

The bill, described in committee as a $50,000,000 appropriation from the SIF Fund for a Housing Opportunities Mobility and Empowerment grant program, would provide grants to political subdivisions to lower the cost of infrastructure development for housing. Committee members debated whether matching funds must be "equally" provided by the three listed sources or whether the language should be more flexible.

Committee chair (unnamed) opened discussion noting the bill "is the $50,000,000, Department of Commerce. 50,000,000 coming from the SIF Fund for Housing for Opportunity Mobility and Empowerment Grant Program." Multiple senators urged flexibility. "If we remove 'equally,' we still seem to be inferring that we think there should be some skin in this game from all three of those to some level," one member said, while another argued removing "equally" would give local partners necessary flexibility when the same entity both owns and develops a site.

After debate, a motion was offered to amend the bill by adding the words "and for slum and blight removal" after the clause about lowering the cost of infrastructure development, and by striking the word "equally" in the matching-funds clause. A second to the amendment was made. The committee recorded a roll call during the amendment vote; several senators recorded aloud as voting "yes" including Senator Erboli, Senator Dwyer, Senator Burkhart and Senator Wandsler. The chair announced, "That motion passes." The committee then moved to a motion to give the bill a do-pass recommendation as amended; that motion also passed on a recorded vote and was left open for a returning member to cast a late vote.

Committee members discussed whether to cap slum-and-blight spending at $5,000,000; one senator proposed language to make clear no more than $5,000,000 of the appropriation "may be used for slum and blight removal," while others preferred leaving allocation decisions to the Department of Commerce and local applicants. The amendment adopted did add slum-and-blight removal to the list of eligible uses and removed "equally" from the matching funds sentence; the committee did not adopt a specific percentage allocation requirement.

The committee recorded that the 50,000,000 total appropriation remains unchanged; committee members clarified the amendment only broadened permitted uses and altered the matching language, and that funding decisions would be made by the Department of Commerce through its grant process.

Votes at a glance: the amendment to add slum-and-blight removal and remove the word "equally" passed (committee announcement: motion passes). The committee later approved a do-pass-as-amended recommendation; the chair said the matter would be carried forward to full appropriations and left the do-pass motion open for one absent senator to register a vote.

The bill will proceed to further appropriations consideration, where members said the Department of Commerce will administer grants and communities will apply for funding under the revised language.