MojaveDailyNews.com-BULLHEAD CITY — At Tuesday’s City Council meeting, there was a discussion between residents and council members regarding how to spend Community Development Block Grant funds most effectively.
The CDBG funds are used for the city’s home rehabilitation program. The city was awarded a grant for $463,312 in January for replacing three homes, rehabilitating four homes and providing assistance with emergency repairs for low- and moderate-income homeowners.
The discussion was triggered by an agenda item to award a contract to Clayton Homes for $89,552 to replace an owner-occupied mobile home with a new mobile. The last time the city replaced a home was in 2010, according to Susan Betts, human services and transit director. The $89,552 includes plans, permits, demolition and removal of the existing home, excavation, construction, hooking up utilities and landscaping with gravel.
Home replacements with CDBG funds have been done by the city for a number of years. The funds come from the federal government and are filtered to the city through the state of Arizona.
The nearly $90,000 is actually an interest-free loan to the homeowner, provided the homeowner remains in the house for 15 years. If, during that period, the homeowner dies and leaves the house to a relative, the relative must meet the financial criteria in order for the loan to be forgiven at the end of the 15-year period. If the property is sold within 15 years, the unforgiven balance of the loan becomes due and payable and the money is reinvested in the housing rehab program, Betts said.
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