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Board authorizes Health West to apply for HUD permanent supportive housing funds amid legal uncertainty
Summary
Muskegon County authorized Health West to apply for HUD permanent supportive housing funding and to act as the master lease holder if the program becomes available; Health West said the grant rules changed and the award is currently tied to litigation but urged board authorization to prepare an application.
The Muskegon County Board voted to authorize Health West to apply for and, if awarded, accept U.S. Department of Housing and Urban Development permanent supportive housing funding and to allow Health West to serve as master lease holder for program units.
Brandy Carlson, chief financial officer at Health West, told commissioners the funding stream has changed and that the county (or Health West as lease holder) must meet new program rules. Carlson said the grant is "still currently under a lawsuit" but that the county wanted to be ready to apply and accept funds once the program reopens.
Commissioners asked detailed operational questions: who holds the master lease, how tenant payments flow, liabilities if a tenant vacates and the county remains the leaseholder, inspection and case-management responsibilities, and how many tenants the grant could serve. Staff answered that Health West would hold the master lease, sublease to participants, manage case managers and inspections, and the program could serve roughly up to 22 individuals under typical parameters; staff emphasized that the county would include contract protections and application processes to limit vacancy risk.
The board approved the authorization to apply and accept the award if made. Staff will return with final contract language and legal assurances to define county liability, security deposit handling and procedures for filling vacancies.
