By NICOLE CARTRETTE
Staff Writer
It is a $400,000 grant that involves no county fund match.
While it may sound pretty good and the Columbus County Board of Commissioners finally agreed to approve the documentation, at least a few county officials made it clear on Feb. 19, they have some problems with it.
Planning Director Stevie Cox requested post approval documentation for a Single Family Rehabilitation Program award from the North Carolina Housing Finance Agency.
The goal is to rehabilitate eight homes.
The grant, which was applied for in November and awarded in December 2006, differs from other types of housing rehabilitation grants the county has been awarded in the past, Cox pointed out.
“They are not going to allow us to choose the worst houses,” Cox said, adding that the N.C. Division of Community Assistance allows work on houses in “much greater disrepair” but this particular award does not.
The award is essentially a forgivable loan awarded to applicants with “financially-feasible, moderate rehabilitation” needs.
The homeowner’s property basically will be in debt to the agency and the loan forgiven at a rate of $3,000 per year.
The original application for funding listed that Cox would be responsible for program administration, application intake, and final inspections of work.
The Adams Company would be responsible for rehabilitation management, cost estimates, and interim inspections of work, according to the paperwork.
“Who’s going to inspect the work?” County Manager Jim Varner asked Cox. “Someone missed the ones we had before. You know that, Stevie (Cox).” Varner declared.
“The building inspections department inspects the work to ensure it meets code requirements, Cox said.
“It says the Adams Company,” Commissioner James Prevatte declared.
“I wrote this grant in two and a half days,” Cox explained, pointing out that details are not set in stone but the application required that someone be listed.
“I know that,” Varner said.
Soft costs of $5,000 per house seemed to trouble the board.Commissioner Ronald Gore wanted to know if soft costs were for the project.
Other members of the board questioned the expenditure.
“I don’t want to lose this grant; my question is when you put $40,000 in soft costs,” Commissioner Bill Memory said.
Cox explained soft costs could cover administrative costs, title search costs, legal fees, and staff time.
“Mr. Memory, N.C. Housing Finance dictates how much we can spend and where,” Cox replied. “We are pretty much bound by that.”
“I’ve been a little tough on (Cox),” Varner said. “My point is, I want to know what we’re going to get; if they’re not going to let us spend it on the clients I don’t want it.”
Cox explained that a house the N.C. Finance Agency would consider beyond repair could possibly get funds through other grants the county had been awarded in the past.
The requirements are more stringent with this award, Cox said.
“Once these houses are selected, there is a 13-year forgivable loan. How do you prevent them from selling?” Commissioner James Prevatte asked, adding that it could be a senior who passes away before the loan is forgiven.
Cox explained that first of all, those eligible must be at 80 percent or less of the median income, complete the grant application form, and understand that it must be paid back upon selling or be sold to a person who fits the income requirements of the original award.
The transaction will involve a promissory note and deed of trust, Cox said.
“Does this have to be approved tonight?” Commissioner Ricky Bullard asked.
Cox said that approval; is needed before the next meeting but offered to bring Bullard a copy of the book that explains how the award must be administered.
“A lot of the structure is dictated,” Cox said. “We don’t have much say-so.”
Commissioner Amon McKenzie’s motion to approve the documentation was seconded by Memory.
The motion carried by a unanimous vote of the board.