Portsmouth council approves CDBG application to replace heating systems at Quaker Manor; residents press oversight questions

The Portsmouth Town Council voted unanimously to authorize the town administrator to file a $500,000 Community Development Block Grant (CDBG) application to replace or upgrade heating systems at Quaker Manor and Quaker Estates, housing developments identified in council packets.

Town planner (identified in the record as Ms. Hitchens) told the council the draft application and required public notices were in members’ packets and explained the grant is awarded by the state and is a reimbursement program: the subrecipient (Sabatus/Sabitas/Savatus in the record) would pay contractors and then seek reimbursement through the state and the town signs required subrecipient agreements. Bob Lane, the town’s CDBG consultant from Church Community Housing, reiterated that “the municipality doesn’t pay off the grant” and described standard subrecipient contracting arrangements that shift many administrative responsibilities to the subrecipient.

The hearing drew sustained public comment and council scrutiny. Several speakers, including Tom Green, asked that the public hearing be rescheduled after disputed public‑notice language; Green said the notice described the properties as owned by the Portsmouth Housing Authority, which he and others said was incorrect. “That is not true,” Green said. Councilor McGaffin and others reviewed public records and minutes that show a conveyance of the properties on Sept. 13, 2024, and several speakers pressed the planner and the housing authority chair for clarity about who currently owns the properties and what the town’s oversight responsibilities would be.

Jim, identified in the record as the housing authority chair, described the 2017 HUD loan, subsequent oversight challenges and the transfer of ownership to a nonprofit owner and emphasized that statutory housing‑authority powers and oversight duties remain, even after transfer. He told the council the housing authority retained inspection and oversight powers under state law despite the conveyance and defended actions taken to stabilize the properties and preserve resident safety.

Councilor McGaffin summarized the tension: while the grant would fund urgently needed heating system replacements, she said past oversight lapses left residents and some councilors cautious about town assurances or hidden liabilities. In response, the planner and the town consultant emphasized that the town’s role for a CDBG award is to submit the application and administer the contract consistent with state rules and that many program liabilities rest with the named subrecipient under the state subaward contract.

After the public hearing, the council amended the draft resolution to require that any assurances or award documents be returned to council for review and approval. Council approved the amended resolution to submit the CDBG application 7–0. Council President said the town will be kept apprised of application status and any contract obligations if an award is made.

What happens next: the application will be filed before the state deadline; if awarded, the town will sign required documents and the council expects periodic updates and a return to council for approvals tied to contract execution.