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Statesville orders RFP for HOME program administration after council questions $1.3M in unspent funds
Summary
After months of review, council directed staff to issue a targeted RFP to identify an administrator for HOME-program funds following questions about roughly $719,000 shown as unspent (later described with additional funds as about $1.3 million) and concern about project starts and financial reporting.
Statesville City Council on Aug. 18 directed staff to prepare a targeted request for proposals to identify an administrator for the city's HOME-program funds after an extended presentation and sharp questioning about unspent balances and slow project starts.
The move followed a staff presentation from "Mr. Smith," who said the HOME consortium initially showed "this $719,000 number that has been unspent" and that, after adding 2025 allocations and American Rescue Plan Act funds, the total unspent funds exceeded $1.3 million. Smith told the council that none of the proposed HOME-funded projects had broken ground, obtained permits or been drawn down by the consortium and recommended giving the housing authority time to start projects and restore regular reporting. "I would recommend giving it 6 months," Smith said, while also noting the housing authority had agreed to allow city staff participation in project selection and to provide periodic financial updates.
Council members pressed for accountability and timetables. One council member said, "If you're not measuring it, you're not managing it," urging measurable start and completion dates and quarterly reporting. Other members faulted slow responsiveness and said residents need housing support now. Council then debated whether to give the current administrator more time or to open the administration to other agencies. A motion to suspend the current arrangement and solicit proposals, allowing the housing authority to respond if it chose, passed 5-3.
What changed: the council's motion will direct staff to prepare an RFP targeting a small set of potential administrators with experience managing federal HOME funds and to return to council with responses. Councilmembers discussed a six-week target for returning proposals to the council (staff said an RFP could be drafted in about three weeks with responses in roughly three more weeks).
The vote: the council recorded the motion to prepare an RFP as passing 5-3. The motion called for all respondents to meet the program's federal requirements and for clear, enforceable benchmarks in any contract awarded.
Why it matters: HOME funds are federal housing construction and rehabilitation dollars administered on the city's behalf. Council members said slow draws and limited reporting had created trust concerns; staff recommended monitoring project starts while also restoring regular financial updates.
Next steps: staff will draft the targeted RFP and return with recommended respondents and a proposed timetable; council asked that any RFP preserve the city's option to consider the housing authority as a candidate under the same criteria.
Quote: "This number here is what you saw, $719,000," Smith said during the presentation. "So at the end of the day, it's a $2,100,000 investment using predominantly HOME funds to do these three projects," he added when describing the planned projects.
The council recorded the motion to prepare the RFP as carrying 5-3.
