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IRA committee approves extension for INHS 2022 major-rehab contract to Dec. 31, 2025
Summary
The grants committee voted to amend a resolution extending Ithaca Neighborhood Housing Services' 2022 homeowner rehab (major repair) contract deadline to Dec. 31, 2025, citing slow contractor performance, federal procurement rules, and winter weather as causes of delay.
The Ithaca Redevelopment Agency Grants Committee voted to extend the contract deadline for Ithaca Neighborhood Housing Services (INHS) to spend 2022 major-rehab (homeowner repair) funds to Dec. 31, 2025.
Delia, an INHS representative, told the committee the 2022 contract has moved slowly for several reasons: a smaller pool of low-income homeowners eligible outside flood zones, federal requirements that projects receive three bids and select the lowest responsive bidder, contractor delays on awarded jobs, and winter weather that prevents exterior work such as roofing and painting. Delia said INHS has identified homeowners to use the remaining funding but needs additional time to secure bids, wrangle contractors and complete work.
Delia warned that federal funding rules require flood insurance for properties in flood zones and that premiums can be a barrier for homeowners. "Best case scenario, it's less than a $100 a month, but depending on your house ... the premium can be more like $5,000 a year," Delia said, describing why many homeowners cannot accept federally funded repairs that trigger mandatory flood insurance.
Committee members and staff discussed procurement and compliance. Staff explained HUD and city procurement rules require multiple bids and specific abatement practices for lead and asbestos, limiting the pool of eligible contractors. Delia described INHS efforts to expand the contractor pool, including seeking New York State funding to offer training and to pay asbestos/lead-certification fees so more contractors can bid on federally funded repair work.
On the motion to extend the contract deadline, the committee amended the resolution and voted to authorize staff to extend the contract deadline to Dec. 31, 2025. The motion was moved, seconded and passed unanimously; the resolution will go to the full IRA board for final consideration.
INHS said it will continue to voucher available draws to spend reimbursable amounts and aims to use combined funding sources (state ADU plus-one funding, Affordable Housing Corporation funds, Access to Home accessibility funds and private fundraising) to address larger scopes of work that exceed the IRA per-unit cap. Delia said the IRA per-unit cap has long been $24,900 and that pairing IRA funds with other programs will give INHS more flexibility for homeowners with larger needs. Delia also said INHS spent about $44,000 to date and has identified multiple potential 2023 projects for future funding.
