Council committee approves moving $300,000 from stalled deconstruction account to Housing Infrastructure Preservation Fund

The Finance & Personnel Committee approved two related resolutions Jan. 15 that shift $300,000 from a restricted deconstruction capital account into the Housing Infrastructure Preservation Fund run by the Department of City Development.

Sponsor Alderman Robert Baumann said the move would convert money that has been held for deconstruction work — which under a 2019 council agreement was segregated and limited to deconstruction projects — into funds that can be used for housing infrastructure preservation. The deconstruction account has been little used, Baumann said, in part because of a longstanding procurement issue and a 2019 stay of the deconstruction ordinance. "This deconstruction money has been basically sitting there unused for any purpose for 5 years now," he said.

Director Kobach of Budget and Management and DNS Deputy Commissioner Mike Mazmany addressed committee questions about how the 2019 earmark had been administered and confirmed the remaining balance and that administrative costs had reduced the original $1.2 million to the current balance. The transfer suspends expenditure authority in the deconstruction capital account and authorizes contingent borrowing up to $300,000 to fund the Housing Infrastructure Preservation Fund account in DCD. Committee members debated whether the deconstruction ordinance must be amended or whether the funds would eventually lapse if unused; staff said the footnote and ordinance remain in force and funds would remain earmarked unless council acts.

The committee adopted the suspension of expenditure authority (file 241379) and adopted the contingent borrowing authorization (file 241383) without recorded roll calls.