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Lawton council denies $33,000 CHDO predevelopment request from Family Promise
Summary
After hours of questions about timing, procurement and federal rules, the Lawton City Council on Sept. 16 voted to deny a $33,000 HOME/CHDO predevelopment request from Family Promise for a proposed housing rehabilitation project; one councilmember abstained citing a family conflict.
LAWTON, Okla. — The Lawton City Council voted to deny a $33,000 Community Housing Development Organization (CHDO) request from Family Promise intended to pay predevelopment costs for acquisition and rehabilitation of property at 1308 SW D Avenue.
Family Promise representatives described the request as funding for predevelopment tasks — a structural engineering report, survey, conceptual design and HUD compliance work — and said the full project budget would be finalized after those steps. Staff and the organization said earlier conceptual estimates ranged from about $540,000 to higher figures pending detailed budgeting.
Council members raised procedural and prudential questions: whether small, up‑front HOME funds would effectively obligate the city to a larger construction commitment; whether the grant money could be reimbursed under HUD rules; and whether the city could meet the tight timeframe for obligating federal HOME funds before an imminent expiration. One council member warned the $33,000 could “evaporate” if a larger matching package could not be secured, and another said they felt “icky” about committing funds without fuller project cost certainty.
A written statement by staff clarified that CHDO rules allow certain predevelopment expenditures and that the HOME allocation at issue would revert to HUD if not spent as required; staff also said part of the requested funding had already been spent by Family Promise for preliminary work and that some of the funding could be reimbursement. City staff noted limits on how much of HOME allocations may be used for operating expenses (a 5% operating cap was discussed).
Public commenters and council members described a range of concerns about timing, fiscal oversight and the city’s ability to obligate or reclaim funds. One council motion to deny prevailed after roll call; another council member abstained from the vote, citing a family member employed by Family Promise.
The council did not adopt the CHDO award tonight and directed staff to continue work on HOME/CDBG project planning as part of related budget and policy items.
What happens next: City staff said they will follow up on HUD compliance questions and procurement constraints and will return with recommendations. Family Promise representatives can revise and resubmit a proposal or seek alternative funding sources.
