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Oxford council approves ARPA subgrant amendment and builds flexibility to shift $1 million among affordable housing projects
Summary
Council authorized an amended subgrant agreement with Butler County for $1 million in ARPA funds to support affordable housing infrastructure, and agreed to administrative flexibility to move funds to Habitat for Humanity if the Inclusive Housing Resources project cannot proceed as planned.
Oxford — City council voted to authorize the city manager to sign a second amended subgrant agreement with Butler County that governs $1 million in American Rescue Plan Act state and local fiscal recovery funds earmarked for affordable housing infrastructure.
Assistant City Manager Green told council the funds were originally intended to be split between two projects — $500,000 to Habitat for Humanity and $500,000 to an Inclusive Housing Resources project — but the Inclusive Housing project has encountered substantial cost overruns and is considering reducing units from 16 to as few as eight. "They have verbally said they're going to try really hard to get to 10," Green said, adding that staff is proposing language that would allow the city to "administratively move all funds to Habitat for Humanity if that is what the city chooses to do." Green cautioned that the county commissioners must also approve the county's amendment before any reallocation is final.
Councilors pressed staff on the likelihood of the Inclusive Housing project proceeding and on alternatives should it pause. "If for some reason their project did not proceed, it doesn't mean their project is dead forever," Green said, noting the city could keep an existing development agreement and the developer could seek other funding later. Council members expressed concern about the project's instability but supported the amendment's flexibility to avoid losing the ARPA funds.
The resolution passed after the staff presentation and routine voice vote. Assistant City Manager Green said the amendment permits staff to make administrative reallocations to prevent funds from being left unspent or returned, but reiterated that the reallocation would become final only after the Butler County Board of Commissioners votes.
Next steps: the city will present the amendment to the Butler County commissioners for their approval; if the county signs off and Inclusive Housing cannot proceed, the city could shift funds to Habitat for Humanity to keep the affordable-housing investment active.
