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Caro City authorizes $1.5M CDBG application to fund rental and homeowner rehab
Summary
The council approved Resolution 2026-01 authorizing the city manager to apply to MSHDA for $1.5 million in CDBG funding—$700,000 for rental rehab and $530,000 for homeowner rehab—with administrative funds reserved; Charlotte Horton of Revitalize explained program administration options.
Caro City Council voted on March 16 to adopt Resolution 2026-01 authorizing the city manager to submit an application to the Michigan State Housing and Development Authority (MSHDA) for a $1.5 million Community Development Block Grant (CDBG) application. The proposal allocates $700,000 for rental rehabilitation, $530,000 for homeowner rehabilitation (grants or low‑interest loans for eligible low‑ and moderate‑income homeowners), and the remaining amount for administrative costs.
No members of the public spoke at the CDBG public hearing. Council members asked how applications would be reviewed and who would make eligibility determinations; City Manager Scott Susag said MSHDA requires a designated signatory and that the municipality must set program guidelines. Charlotte Horton of Revitalize, a local affordable‑housing partner, said a municipality can hire a third‑party administrator to help draft program guidelines and administer disbursements, or the city may run the program in‑house. “If you hire a third‑party administrator, they would also come and assist you and the company…with that process,” Horton said.
Council adopted Resolution 2026-01 by roll call; the motion carried with Councilmembers Campbell, Kish, Ody, Riley, White and Mayor Schneider voting yes; Councilmember Parker was absent. City staff said detailed program rules and the application of income limits (area median income tiers) would be set after potential grant award and in accordance with MSHDA/HUD guidelines.
The resolution authorizes the city manager to submit the grant application and begins the grant timeline; if awarded, staff will return to council to set program rules for application review and disbursement.
