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Council hears public comment on proposed CDBG reallocation; condominiums oppose Northern Tier Trail route
Summary
Staff proposed reallocating $197,530 of CDBG homeowner‑rehab funds to two public‑infrastructure projects — Northern Tier Trail Extension and CDBG sidewalks — due to low use of the homeowner program. Park Place Condominiums’ president urged council not to fund the trail routing through private woods; council held a public hearing and took no vote.
City staff presented a proposal July 15 to substantially amend the Community Development Block Grant (CDBG) program by reallocating $197,530 from the City’s Homeowner Rehabilitation Program to two infrastructure projects: $118,765 toward the Northern Tier Trail Extension and $78,765 for a CDBG sidewalk project.
Staff told council the homeowner-rehab program has $288,967.70 available but has served only four low- and moderate‑income households since July 1; the program provides up to $24,999 in no-interest deferred loans partially forgivable for qualifying homeowners. Staff said HUD rules require timely expenditure of entitlement funds and that under current program utilization it was preferable to shift funds to projects that will spend on schedule; the city would retain more than $90,000 in homeowner rehab funding after the proposed reallocation.
A public commenter, Nick Pras, president of Park Place Condominiums, told council his association (about 57 residents) strongly opposes routing the Northern Tier Trail through woods they share with The Willows and said the Willows’ residents (owners) were not consulted. Pras urged council to have project planners meet him on-site; he asked the council to withhold reallocation toward the trail while staff address neighborhood concerns.
Council opened and closed the public hearing on the CDBG amendment but took no vote July 15. Staff explained HUD’s “1.5 times the current entitlement” timely-expenditure threshold and cautioned that failure to spend can trigger corrective steps or, in worst cases, fund recapture. Council members asked for clarification about program income limits, and staff confirmed Capital Area Housing Partnership administers the homeowner rehab program and that staff have met regularly with that contractor to increase program use.
No final action on the reallocation was recorded July 15; the matter remains under consideration and subject to further council deliberation.
