The Henderson City Council approved a Community Development Block Grant – R (CDBG-R) application for up to fourteen city houses in need of work.
The council approved the application during its regular meeting on Monday evening.
According to Timmy Baynes, the Executive Director for the Kerr-Tar Council of Governments (COG), North Carolina received $12 million in economic stimulus funds for small cities. The money may be used on infrastructure, housing, and special projects.
Baynes said that when he learned of the available funds, he thought of a housing grant, as housing is one of the city’s priorities.
The grant could net the city $483,000. Homeowners who are at or below 50% of local median income are eligible. The fourteen houses have already been identified, as required by the grant application.
Baynes indicated that the fourteen houses may not all be serviced because the grant may be insufficient. He estimated that only eight or nine of the houses would be served, as there is a $40,000 cap for each house.
Funds are generally diverted from such grants for administrative costs.
City Manager Ray Griffin noted that the application, which is due today at 5:00 p.m., is wanted “amazingly fast”. The COG only learned of the availability of funds during a meeting in the H. Leslie Perry Memorial Library on June 3, 2009.
The council approved the application unanimously, with member Mike Inscoe abstaining from the vote. Inscoe works as a contractor for the COG, and therefore could have a vested interest in the result of the vote.