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Council amends contracts with MSA to finish closeout of HUD and IDA housing grants after questions on administration costs
Summary
Council approved two contract amendments with MSA Professional Services to administer and close out a 2021 CDBG housing rehabilitation grant (amended fee estimate $40,000; request for $64,000 of grant admin funds) and the IDA Strong Communities program grant (proposed fee $35,000); aldermen queried selection, notifications and why administrative costs exceeded original allocations.
Director Heimerdinger told council the city is in the closeout period for the 2021 CDBG housing rehabilitation grant and recommended retaining MSA Professional Services to complete closeout and reporting. He said the amended agreement lists an estimated fee of $40,000 and that staff is requesting $64,000 of grant funds for administration (which is the maximum the grant allows). The city has completed nine homes under the program with two still in progress.
Alderman Johnson asked about the prior staff position that had been assigned to assist with the grant; Heimerdinger said the planning position (previously held by an employee named Lorena) became vacant in early 2025 and that salary information could be provided on request. Alderman Stacy and Alderman Sanders pressed staff on who selected applicants and why prior admin costs had no cap; Heimerdinger said a third party (Regional 11) assisted with homeowner selection in 2021 and that the amendment clarifies cap and transparency for remaining closeout tasks.
On a related amendment for the IDA Strong Communities program (2023 award of $300,000), Heimerdinger recommended a proposed contract fee of $35,000 to administer and close out that program through Nov. 30, 2026. Council approved both amendments by recorded vote (6–2). Alderman Stacy voted “No” on both amendments and questioned paying additional administrative fees when prior payments had already been made.
What’s next: MSA will continue the closeout work and report back to staff and council as required; staff will provide additional documentation on prior staff positions and a breakdown of administrative invoices if aldermen request it.
