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York City Council declines proposed ARPA reallocation after lengthy debate over affordable housing and compliance risks
Summary
Councilors spent more than an hour debating a proposed reallocation of ARPA funds that would have moved money from a stalled affordable-housing project (project 490) to parks and public-safety items. Multiple amendment attempts failed and the reallocation did not pass as presented; the administration and public urged contingency planning to avoid forfeiting federal funds.
After extended public testimony and council debate on June 2, York City Council did not approve a proposed reallocation of American Rescue Plan Act (ARPA) funds that would have shifted money tied to project 490 — an affordable- and veterans-housing initiative — to other priorities including parks and public-safety projects.
The reallocation, presented as final passage of bill number five, drew sustained public comment. Manuel Gomez introduced an internal consultant memo from Accenture that he said warned of compliance risks and advised the city to "develop a contingency plan" and consider issuing a new RFP or reallocating funds to projects that can meet federal SLFRF deadlines. Residents and housing stakeholders told the council the underlying question was whether the city could plausibly deliver a new affordable-housing project within federal timelines.
Mayor Michael Walker and administration staff repeatedly told council members that while affordable housing is a city priority, some of the reallocation's proposed uses were not feasible within federal spend-down deadlines. "It is not feasible to do it," the mayor said of building new affordable units in time to meet ARPA rules. Councilmembers offered competing procedural paths: tabling the measure for more stakeholder engagement, voting on partial items, or failing the motion. Multiple on-the-fly amendment motions were made but several "died" for lack of a second.
Public speakers framed the stakes differently. Frederick Walker of Four Squares Development said the earlier administration cancelled the original RFP and that cancellation differs from a developer failing to perform. Wanda Miller and other residents with lived experience urged preservation of affordable-housing dollars, arguing housing stability reduces violence and homelessness. Manuel Gomez and others warned that an Accenture memo dated Nov. 3, 2025, flagged compliance risks and recommended a contingency plan "to mitigate potential risks and ensure compliance with federal requirements." Gomez said the memo recommended reallocating funds only to replacement projects that align with SLFRF expenditure category 2.15 (housing support, affordable housing).
Procedurally, several amendment motions stalled (no second) and the council president later stated the reallocation "did not pass" as presented. Several projects that had been proposed under the reallocation — including park improvements and some senior-rehab funding — will not move forward under the plan on the table. Members and the administration said staff will continue to explore audit-compliant options and possible partial reallocations to bring back to council.
What happens next: Mayor Walker and city staff said they will continue to work with council to identify feasible, audit-compliant ways to use the remaining ARPA funds. The council did not adopt the proposed reallocation on June 2; members may propose formal amendments or bring revised proposals at future meetings.
