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Gary City officials say HUD will reclaim $1.4 million for 700 Broadway, shrinking HOME housing dollars and forcing budget changes
Summary
The Community Development director told the finance committee HUD is reclaiming $1.4 million tied to the 700 Broadway HOME project, cutting available HOME funds over the next three years and reducing planned awards to local housing partners; committee members discussed reallocations, shelter funding and next steps including an action‑plan amendment and public hearing.
The Community Development director told the City of Gary finance committee that the U.S. Department of Housing and Urban Development is reclaiming $1,400,000 tied to the HOME‑funded 700 Broadway project, a reclamation that will reduce the city’s normal HOME allocation and force budget adjustments.
The move will pull roughly $500,000 out of the city’s typical HOME allocation (about $600,000 per year) over a three‑year span, the director said, leaving only about $62,000 available from the current year’s HOME pot. "When I got to community development, my first notice from HUD was that we are reclaiming $1,400,000 for the project at 700 Broadway," the director said. "HUD likes when you spend their money. They want you to spend their money."
Why it matters
HOME dollars are the primary local federal resource the city uses to build new housing units and to provide down‑payment assistance. The reclaiming of funds will delay or reduce city support for planned affordable housing work and prompted a specific cut to a planned allocation to Habitat for Humanity.
What the council heard
The director said the planned $180,000 award to Habitat for Humanity was reduced because of…
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