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City to reallocate HOME and CDBG funds to local projects including Habitat for Humanity build
Summary
City staff explained reallocations of HOME and CDBG funds—including a proposed HOME reallocation to match a Michigan State Housing Development Authority grant for Habitat for Humanity—during a public hearing; council later approved the related substantial amendments and submissions to HUD.
City staff told the council during public hearings that the administration proposes reallocating HOME and CDBG dollars to support targeted local projects, including matching funds to enable a Habitat for Humanity construction project.
Corey, a city development staffer, explained that a proposed Substantial Amendment would reallocate HOME funds to the local Habitat for Humanity chapter to construct one new home and to offset funding from a MSHDA (Michigan State Housing Development Authority) grant. Corey said procedural steps required by HUD include a 30-day public comment period, publication notices, and a formal council vote before submission to the Department of Housing and Urban Development.
During public comment, Nicholas Thurston opposed continued funding to Habitat for Humanity, saying foreclosure and bankruptcy rates among assisted families raised concerns; Sheila Evertz (Habitat executive director) and other supporters responded with performance data, noting prior projects (four energy-efficient homes behind the YMCA) and wraparound services for homeowners. Evertz said Habitat has built many homes locally with a low foreclosure rate over 35 years and that the planned home would match an MSHDA grant and be on Trail Street.
Council later moved and approved the items on the consent/legislative calendar: the substantial amendments for HOME and CDBG reallocations, submission of the CAPER (Consolidated Annual Performance and Evaluation Report) to HUD, and related budget amendments. Several items passed unanimously. Staff clarified CDBG-CV surplus funds (~$116,000) would support parks/trail improvements under the parks master plan and described matching and procedural requirements for federal funds.
The reallocation to Habitat and related CAPER submissions will proceed to HUD for final review following the public-notice period and council action.
