Council hires Northwest Habitat to administer CHIL-grant projects, staff says costs are within grant limits
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Summary
Council approved a contract with Northwest Habitat for Humanity to serve as third‑party administrator for a local CHIL grant; staff said Habitat will be paid about $1,200 per completed project and the grant's 18% admin cap would cover anticipated fees for current applications.
The City Council voted Jan. 6 to authorize a contract with Northwest Michigan Habitat for Humanity to provide third‑party grant administration services for a local CHIL program.
City Manager Shane Horn said the city issued requests for proposals last spring but initially received no responses; after further outreach the city received proposals from Habitat and from Housing North. Horn recommended Habitat’s proposal, saying it charges roughly $1,200 per completed project and that the city currently has 15 pending applications. Horn said the CHIL grant allows an 18% administration reimbursement and that the projected administration costs — Horn said “that calculates out to about $90,000” — fall within that reimbursement cap.
Why it matters: Horn told the council that administering the CHIL program in-house had been a heavy lift for staff and that Habitat has experience verifying income and working with contractors. He said staff will prepare bid specifications so contractors can be procured through the city's usual sealed-bid process for items such as roof replacements.
Council action: The council approved the contract after brief discussion. Horn said Habitat staff understand the contract cap in the resolution and that the city will continue to partner with Housing North on related work.
Ending: Council members praised the selection and said they were pleased to have a third party manage the grant administration so city staff can focus on other duties.