Council hears calls to pause Hayti Promise ARPA amendments as residents allege project misattribution
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Summary
Multiple speakers urged council to pause two consent items that would change fiscal‑agent status and funding for Hayti Promise CDC, alleging that the Durham Marshall Plan was authored by community members and asking for an investigation before moving ARPA funds; staff explained fund‑swap mechanics and said finance could assume fiscal‑agent duties for monitoring compliance.
Durham — Public commenters and several councilmembers pressed staff on Tuesday for more transparency and a pause before approving two agenda amendments tied to the Hayti Promise CDC and a $10 million pot of American Rescue Plan Act funds.
Office of Economic and Workforce Development staff opened the discussion by explaining the background: a fiscal sponsor had previously performed oversight for Hayti Promise, but that partner stepped down and the city proposed taking on fiscal‑agent duties to ensure federal compliance and continue the project.
"The city isn't party to the fiscal agency agreement," Summer Austin said, describing how recipients were expected to secure fiscal sponsors and how the contract termination prompted staff to bring the items back to council because of a change in funding source and administrative oversight.
Finance Director Tim Flor told council that the city received ARPA funds and that a $10 million "standard allowance" (a revenue‑replacement option) gives the city flexibility. Staff proposed a funding swap — replacing ARPA for the Hayti project with already‑expended eligible local health fund disbursements — to extend obligations and prevent returning funds to Treasury. Flor said the swap is legal and would be monitored as ARPA by staff.
Public commenters objected. Angel Iset Dozier and others told the council they wrote and designed the "Durham Marshall Plan" and accused Hayti Promise CDC and some staff of claiming credit and control. Amanda Wallace, speaking online, urged council to pause items 12 and 13 for investigation, calling the transfer of fiscal oversight "fishy" and saying $10 million remains in city coffers while people remain unhoused.
"How is Hayti Promise CDC responsible for this plan that I designed and wrote?" Angel Dozier asked during public comment, calling for a formal investigation before any fund changes.
Councilmembers asked for documentation and fuller reporting. Several asked staff to provide the original contracts, a list of Hayti Promise expenditures, and progress‑to‑goals updates. Staff agreed to provide records and said ARPA monitoring continues; the ARPA team meets weekly to review a stoplight report on approximately 35 nonprofits and intervene when contracts fall behind.
Staff also described timing constraints. Flor noted federal ARPA deadlines for obligation and expenditure and explained the swap would extend the project timeline while keeping staff oversight active. Councilmembers repeatedly asked where the money sits and how interest and administrative costs are handled; staff said unspent ARPA proceeds earn interest and that interest has been used to cover administrative costs, including portions of ARPA team expenses.
No formal action (adoption or final vote) on the amendments occurred during public comment; council asked for follow‑up materials and records before advancing the items.