ECDC approves overrun for Caledonia Street rehab, allows staff to cover extra cost

A majority of the Economic & Community Development Commission approved an increase to a homeowner rehab loan after staff reported a post-inspection change order pushed the project above the programs $45,000 cap.

Staff described the job at the 800 block of Caledonia Street as largely complete but said a replacement back door was necessary after inspectors found the old door too deteriorated to reinstall. Staff said the change order added an additional cost they identified in the meeting as $2,187 and recommended increasing the approved project total to about $46,278 so the homeowner would not have to pay the full overrun up front; staff also said the homeowner had already paid roughly half the extra cost out of pocket. The staff presentation noted that the rehab loans are typically not required to be repaid unless the owner sells the house.

Commissioners asked whether approving the overage would set a precedent and about previous program caps; a staff member referenced historical caps and noted the city monitors these overage requests on a case-by-case basis. One commissioner asked whether larger projects can pay surplus costs themselves; staff said that has occurred in the past and is allowed.

After discussion, a motion to approve the requested increase was made and seconded; the commission approved the request by unanimous consent.

The commission did not record a roll-call tally in the public discussion; the motion was approved by voice vote. The staff member who presented the item said the increase would reduce the homeowners immediate out-of-pocket costs and that future similar overages would be brought back to the commission for approval when necessary.