Quorum Court reclaims $1 million ARPA tranche; orders drafting to send it to Emergency Operations Center

Washington County justices voted to direct county counsel to draft an ordinance moving a previously committed $1,000,000 in federal recovery funds to the county’s Emergency Operations Center (EOC), rather than leave those funds with the Accelerate Foundation for an affordable‑housing effort.

The move follows an extended presentation by Accelerate Foundation CEO Jermaine Webster and staff about an RFP process and a proposed 150‑unit affordable housing development in Springdale to be led by Mercy Housing. Accelerate asked whether a $1,000,000 tranche of ARPA/FRF funds—originally appropriated to local workforce and training projects that will not proceed on the expected timeline—could be combined with $1.4 million in ERA‑2 funds already obligated to Accelerate to help leverage a larger, roughly $45 million, low‑income housing tax‑credit project.

"We had about $1.7 million that if you ask for it, the federal government is going to give it to you because it's money that was available for Washington County that hadn't been used," Jermaine Webster said in the presentation, describing how the county obtained ERA‑2 funds and how Accelerate ran an RFP that led to Mercy Housing's selection.

Webster described Mercy Housing’s proposed development—Ford Avenue Flats in Springdale—as a roughly 150‑unit, 4 percent low‑income housing tax‑credit deal modeled to preserve long‑term affordability at 50–60 percent of area median income for many units. He said the full project depends on multiple funding commitments from state and philanthropic sources and that Accelerate would not release ERA‑2 funds to Mercy unless the developer had secured the other sources.

"They don't get those dollars unless they can come up with the other sources to hit that $45,000,000 number," Webster said.

Multiple justices raised timing and risk concerns. The $1,000,000 at issue consists of two $500,000 tranches that the county previously allocated—one to Northwest Arkansas Technical Institute (NWTI) and one to Northwest Arkansas Community College (NWACC)—for training‑facility expansions. Accelerate said both projects will not proceed on the timetable required by the federal fiscal‑recovery rules tied to those funds, and Accelerate proposed redeploying the money into housing. County leadership and several justices said they preferred to repurpose the funds to an EOC project the county expects to be able to commit and liquidate within federal deadlines.

"If we get to that point and the project doesn't come to fruition, then we would ploy against the smaller project," Webster said, describing a contingency (an "off‑ramp") that would redirect funds to a smaller, 24‑unit project owned by the community development partner if Mercy's larger deal could not be fully funded.

Justice Lyons moved to have county counsel draft an ordinance to allocate the $1,000,000 to the Emergency Operations Center; the court voted in favor. The motion passed after discussion and a roll‑call; the judge directed staff to restore original agenda numbering and to bring the drafted ordinance to the full quorum‑court meeting.

Advocates and several justices noted the urgent need for affordable housing and the potential for Mercy Housing—a national nonprofit developer—to deliver long‑term affordability and services. "They're very strong at the social services they bring to help people," Webster said, describing Mercy Housing as a long‑term owner and operator with compliance provisions to keep rents affordable for decades. Supporters also emphasized the ability of ERA‑2 and tax‑credit financing to leverage large sums of state and philanthropic money to reduce rents.

Opponents of leaving the funding with Accelerate voiced concerns about timing and enforceability. Several justices said they were reluctant to let the county’s ARPA/FRF dollars remain committed to projects that may not meet federal expenditure deadlines and preferred placing the funds on county‑controlled infrastructure that will be implemented within the federal timeframe.

The court’s action now directs county counsel to draft the reallocation ordinance for consideration at the next full quorum‑court meeting. Accelerate representatives said they would continue work to secure commitments from Mercy Housing and other funders and that an "off‑ramp" to a smaller CDC‑led project exists if the larger deal cannot be completed.

Public comment included residents who said the discussion helped them better understand the issue and supporters who argued the housing proposal would help at‑risk populations in Springdale.

The county’s decision balances two objectives: deploying federal recovery funds on a project the county can enact within federal deadlines and the community’s stated need for more affordable housing. County counselors will prepare the ordinance language and report back at the next meeting.

Votes at the meeting: a motion to request counsel draft an ordinance reallocating the $1,000,000 to the Emergency Operations Center passed on a roll call.