Task Force hears that smaller developers face capital and compliance barriers; staff suggests workshops and developer briefings

Acting Chairperson Stephen R. Hunter and several committee members raised concerns about how smaller local contractors and developers can participate in HOME- and CDBG-funded projects. Assistant Director Erin Cousins and Director Nicole Andersen told the committee that affordable housing development requires specialized knowledge—construction, financing, environmental reviews, fair housing requirements, labor rules and long-term compliance—creating barriers to entry for smaller firms.

Legislator Stegenga observed that it often appears the same larger developers receive contracts. Cousins and Andersen said applications are accepted from contractors of varying sizes but explained that once a developer secures project funding they typically select their procurement team, and smaller contractors may not have the staffing or administrative capacity to manage complex compliance tasks. Staff suggested options to improve participation, including developer presentations to the Task Force, workshops, regional roundtables, and technical assistance to help smaller contractors understand financing and procurement timelines. Hunter asked staff to return to the committee to continue this discussion.