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Council delays using ARPA dollars for building cleanup as staff warn of grant restrictions
Summary
North College Hill committee debated using remaining ARPA/CDBG funds to abate mold and asbestos in a city-owned building but staff cautioned that federal rules require rehabilitation that restores value; council asked staff to research options and scheduled a dedicated budget meeting for Nov. 14 to resolve funding and audit issues.
A North College Hill City Council committee on Nov. 5 discussed whether remaining federal ARPA and CDBG grant funds could be applied to abate asbestos and mold at a city-owned building, but staff warned legal restrictions and program rules make the choice complicated.
Finance and administrative staff told the committee that both ARPA and the county-administered Community Development Block Grant (CDBG) programs allow remedial work only when it contributes to rehabilitation or restores the property’s value. "If you abate the mold and don't fix the roof that caused it, the problem will return," a staff member told the committee, urging a project plan that addresses cause as well as remediation.
Committee members pressed for practical options. One councilor said the city must avoid losing grant dollars through inaction; staff said they have encumbered ARPA funds against a set of categories (infrastructure, emergency relief, rehabilitation) and that earlier projects such as a splash-pad upgrade overshot initial cost estimates, reducing the pool of immediately available ARPA funding.
Finance staff also noted timing complications: several charges from 2024 landed in the 2025 books and await audit adjustments, and auditors have flagged cybersecurity and compliance questions tied to HB96 that the city is addressing with vendor support.
Given the legal and accounting uncertainty, the committee did not authorize immediate remediation from ARPA/CDBG funds. Instead staff were asked to research permissible uses, return with written options (including whether an extension of grant deadlines is available), and present a recommended path forward. The topic remains on the committee agenda for follow-up.
The session also produced a separate scheduling decision: council set a special Budget & Finance meeting for Friday, Nov. 14, at 5:15 p.m. to focus on the 2026 budget and clarify revenue, encumbrances and contract impacts.
What’s next: staff will circulate any additional guidance about ARPA/CDBG uses, update the budget documents before the Nov. 14 meeting and report any available extension options or alternative funding paths for remediation work.
