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Large Youth & Family Outreach development with childcare prompts committee concerns about scale, timing and CDBG role
Summary
Committee members raised feasibility and funding‑leverage concerns about Youth & Family Outreach’s multi‑phase project (demolition and reconstruction) that pairs a childcare center with affordable housing; staff confirmed the project received state LIHTC awards but noted the entire demolition/rebuild would trigger federal CDBG construction rules.
The committee extensively discussed a large proposal from Youth & Family Outreach to demolish and rebuild buildings that would house a childcare center and 60 units of affordable housing; members raised questions about project scale, timeline and whether CDBG is the appropriate funding source for demolition work.
Rowan explained staff had several substantive comments because the proposal’s scope triggers federal CDBG construction requirements (Davis‑Bacon, Section 3, Build America Buy America) for both demolition and reconstruction. Staff said the applicant’s timeline proposed demolition shortly after award, which requires pre‑award environmental review and procurement readiness; Rowan explained staff would perform environmental review work to let the project be bid sooner, but applicants would not be reimbursed until funds are available.
Mary told the committee that the applicant had applied to Maine State Housing Authority for Low Income Housing Tax Credits (LIHTC) and had been awarded credits in the fall; that award provides major financing for the affordable housing portion. Committee members nonetheless expressed concerns about feasibility, noting the proposal represents a small percentage of an extensive overall development budget and that demolition paid for with CDBG could pose a risk if reconstruction later encountered delays or financing problems.
Several reviewers recommended the committee see the applicant’s related social‑service application (operating funds for temporary child‑care during construction) before finalizing development scores. Rowan said staff would provide the linked social‑service application documents; the committee approved that approach.
No award decisions were made; staff will post the social‑service application and any requested clarifications in Neighborly for committee review before final scoring.
