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Committee advances reallocation of HUD funds to build 8 affordable units on Sixth Street
Summary
The committee voted to forward an ordinance reallocating older HUD grant balances and program income to close long-open projects, including funding the development of eight units of affordable housing at a former funeral home on Sixth Street.
The Community and Economic Development Committee voted to advance an ordinance (Bill 39) amending grant fund budgets to apply older unspent HUD funds and program income to current projects, including a housing authority-led development on Sixth Street.
City staff said the ordinance repurposes older grant-year balances to avoid HUD timeliness penalties and uses program income from a prior sale to close financing gaps. "What we're doing in our HUD program is we're trying to address the timeliness spending of HUD money... So this is our our effort to move the funds forward to close the grant year," the presenter said. Staff described applying older balances and program income to projects that can use them immediately.
Miss Kessler, staff presenting the ordinance, described specific allocations discussed at the committee. She said the committee would approve moving $654,000 in Community Development Block Grant funds and $1,000,000 in unspent HOME Investment Partnership program funds toward eligible projects. She said program income from a prior sale would be applied to develop the vacant former funeral home on Sixth Street and that the Allentown Housing Authority would manage an 8-unit affordable housing project there. "So we're finally going to use this money to develop those 8 units," she said.
Committee members characterized the ordinance as housekeeping and directed staff forward. The staff presentation itemized other uses of reallocated funds, including predevelopment work, environmental review for childcare expansion, and a small allocation to repair West Park band shell doors. The presenter described a remaining $1,600,000 gap in project financing that the housing authority required to complete the Sixth Street development; staff said other financing is in place and the HUD funds would cover the shortfall.
No public comment was offered on this ordinance at the committee meeting. The committee voted to forward Bill 39 to the full council for final action.
