City Council Considers Diverting Funds from Nonprofits to Help Low-Income Homeowners

The Grand Forks City Council is contemplating diverting $200,000 from federal Community Development Block Grants to help low-income homeowners with special assessments for streets and sidewalks. This proposal, championed by Council President Hal Gershman, aims to encourage nonprofits to share offices and expenses, which could potentially lead to consolidation. Currently, most of the $1.3 million remaining for nonprofits is earmarked for facilities improvements. Council members, except for Eliot Glassheim, agreed with Gershman's plan, citing the need to address affordable housing as a primary goal for the CDBG program. The council's decision is expected on September 4, giving nonprofits time to respond.

Key Takeaways:

• The City Council is considering diverting $200,000 from federal Community Development Block Grants to help low-income homeowners with special assessments for streets and sidewalks.
• The proposal aims to encourage nonprofits to share offices and expenses, which could lead to consolidation, following Council President Hal Gershman's push for such arrangements six years ago.
• Most council members agreed with Gershman's plan, with Eliot Glassheim being the only dissenting voice, citing concerns about mandating consolidation and questions about funding priorities.
• The council's influential finance and development committee has set affordable housing as a primary goal for the CDBG program.
• If the proposal stands, homeowners in three areas of the city - greater downtown, the area north of UND, and the area near the Grand Cities Mall - may benefit, as they meet the federal government's definition of low- to moderate-income.
• The $200,000 would come into play when a street project is initiated in the area, and homeowners would pay less in special assessments.
• However, the public service fund, which pays for programs helping victims of domestic abuse, the disabled, and the homeless, would lose a quarter of its funding.
• Consolidation efforts have seen limited success in the past, with United Way and The Village Family Service Center facing challenges in finding affordable office space.

Statistics:

• $200,000: The proposed amount of funds to be diverted from Community Development Block Grants.
• $1.3 million: The remaining funds for nonprofits, mostly for facilities improvements.
• 1/4: The proportion of funding the public service fund would lose, affecting programs for victims of domestic abuse, the disabled, and the homeless.

Sources:

• Grand Forks Herald
• McClatchy-Tribune Business News