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City administrator reports $6.2M preliminary enhancement grant reconciliation; Crimson Holdings town hall scheduled, code enforcement and MSHDA grant updates
Summary
Administrator Chad Baugh said auditors have preliminarily reconciled about $6.2 million of the enhancement grant and emphasized improving internal controls; commissioners scheduled a Dec. 8 town hall for Crimson Holdings settlement funds, discussed restructuring committees and heard an MSHDA $400,000 homeowner repair grant update.
City Administrator Chad Baugh told the Adrian City Commission on Nov. 17 that auditors have preliminarily reconciled just over $6.2 million in enhancement-grant expenditures and that a final report is pending. He said the administration will focus on documentation procedures and internal controls for larger grants, adding that a $15 million grant requires tighter oversight.
Baugh said the administration is planning a public town hall to gather resident input on allocating approximately $50,000 in settlement funds from the Crimson Holdings matter, pending availability of funds held in bankruptcy. The meeting will be held Dec. 8 at the Align Center, moderated by Community Development Director Lisa Hewitt Cruz, with commissioners seated at tables to solicit citizen direction.
On code enforcement, Cruz clarified the city separates rental housing inspections (a three-year cycle covering roughly 6,000 units) from general code enforcement, which addresses trash, snow removal, weeds, zoning and property-maintenance ordinance violations. Since voters repealed the point-of-sale inspection ordinance, Cruz said staff will redirect those hours to enforce existing codes and that rental-inspection ordinances will be updated soon.
Cruz also updated the commission that the Michigan State Housing Development Authority (MSHDA) grant program is advancing and should bring $400,000 to assist homeowners with repairs. She explained program limits: up to $25,000 may be provided per household (amounts $10,000 or less may be grants; $10,000–$25,000 are liens forgiven after a period), and the city will avoid repairs that trigger lead-abatement requirements.
Commissioners discussed possible ordinance changes to create standing committees (rather than ad hoc committees) for long-term issues such as revitalization or grant oversight and asked the city attorney and administrator to prepare draft language for consideration at a future meeting.
What’s next: Staff said it will return with the final audit report, ordinance or committee proposals and plans for MSHDA program implementation and with details for the Crimson Holdings town hall.
