HomesMKE: DCD reports 104‑unit pipeline and $5.5M left to spend; subsidy averages about $123K per unit
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Summary
Department of City Development reported HomesMKE has finished 39 rehabs sold (average sale $155,000), has 8 completed homes on market, 8 lease‑to‑own units, 33 under construction and 16 pending conveyance — a pipeline of roughly 104 units — and about $5.5M of ARPA funding remaining that must be obligated/spent by 2026.
Department of City Development staff briefed the committee on HomesMKE, the ARPA‑funded rehab program.
DCD said 39 homes have closed and sold with an average sales price of approximately $155,000; an additional eight completed rehabs are listed for sale and eight units are in a lease‑to‑own track. DCD reported 33 properties currently under construction and another 16 pending conveyance to developers, producing a pipeline of roughly 104 units in various stages. The department said about $5.5 million of ARPA funds remain to be drawn down and must be expended under the program timeframe.
Staff told the committee the average subsidy per completed unit in the program is about $123,000 (subsidy amount, not the full construction or rehab cost). Members asked whether the program would continue after ARPA commitments end; DCD said it would be open to continuing but that future funding sources and staff capacity would need council decisions during 2027 budget planning. Committee members also raised anti‑displacement concerns, asked for monitoring of neighborhood impacts (assessments, long‑term affordability), and requested updates on program metrics (buyer incomes, HR/SBE compliance under neighborhood agreements).
Ending
DCD said its immediate priority is to obligate and spend the remaining ARPA funds through existing contracts and pipeline activity and to return to council with a proposal for program sustainment before ARPA deadlines.