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Committee approves reducing CDBG-compliant units at new Radian apartments from 30 to 22
Summary
After reconsideration, the committee approved an amendment to a CDBG agreement for the 42-unit Radian apartment complex, reducing the number of units required to meet CDBG affordability rules from 30 to 22 following monitoring that found eight units out of compliance with rent limits.
The Rapid City Legal and Finance Committee on Feb. 12 approved an amendment to the city’s Community Development Block Grant (CDBG) agreement for the recently completed 42-unit Radian apartment complex that reduces the number of rental units required to meet the city’s CDBG affordability standards from 30 units to 22 units.
Director Ainsley told the committee the city’s CDBG monitoring found that rents on eight of the 30 units previously identified as CDBG-compliant exceeded program limits, and the property owner — identified in the meeting as CommonBond — requested the contractual reduction from 30 to 22 units. The council reconsidered the consent placement of the item so members could discuss the change before voting.
Michelle, the city’s CDBG manager, explained program rules: projects must have a minimum of 51% CDBG-compliant units at the project level, while the overall program must meet a 70% compliance threshold. She said the contract originally listed 22 units but the applicant had requested to commit to 30 units during negotiation; the monitoring found the eight units were not being charged at the required rent level. The CDBG manager said the program standard requires that qualifying tenants pay no more than 30% of their income for rent plus utilities.
Council members expressed concern about changing terms after award. Councilman Evans said it “leaves a bad taste” to alter commitments post-approval and questioned why the owner did not meet the agreed terms. Director Ainsley and staff said they would continue monitoring and, if noncompliance persists, work with the city attorney’s office on remedies under the agreement.
Staff also noted the property was in a planned development and that approving the reduction to 22 units may require a major amendment to the plan development approvals.
A motion to reconsider the item was moved and seconded; the committee then voted to approve the amendment reducing the CDBG-compliant unit requirement from 30 to 22.
