Springdale Aldermen Approve Renovation Spending Increase Under Grant Program For Low-Income Families

SPRINGDALE -- An increase in the city's spending allowance per housing renovation project could further help low-income families but fewer of them each year.

Aldermen approved at Tuesday's City Council meeting adopting the 2015 annual action plan for the Community Development Block Grant Program.

At A Glance

Council Action

Springdale’s City Council met Thursday and approved:

• An engineering services contract for street and drainage improvements to Cambridge Street.

• Reimbursing the Fire Department Bond Construction Fund with $472,059 from the city’s Capital Improvement Program. The money is being reimbursed to buy land for a new fire station.

• Paying $3,683 for a temporary construction easement at 3297 W. Don Tyson Parkway while the city works on the parkway street-widening project.

• Allowing residents to receive an electronic alert via the Springdale Alert Notification System if they live within one mile of property considered for rezoning.

• A contract to buy playground equipment for C.L. “Charlie” and Willie George Park, which is under construction.

Source: Staff Report

The city receives the grant every year from the U.S. Department of Housing and Urban Development, said Patsy Christie, director of planning and community development. The money is used to help low-income families who can't afford to purchase homes or renovate their homes.

The only change between the 2014 and 2015 plan is to increase how much the city will spend on each project from $25,000 to $30,000, said Don Hancock, city community development block grant manager. The increase is needed because of heightened costs of labor and material. Two-thirds of the projects this year came in over budget.

City officials have skipped some parts of renovation projects, like rain gutters and painting, to make up for the increased costs, Hancock said. Some families also have had to pay for parts of the renovations that came in over budget.

Jeff Watson, alderman, asked during the meeting if the lower amount per project could mean the ability to renovate more homes each year. Christie said Watson is correct, and increasing the amount spent on each project could mean fewer homes being renovated each year.

Watson said after the meeting he hopes the city gets enough grant money in 2015 so they don't have to renovate fewer homes.

Springdale first started receiving the grant money in 1975, Hancock said. The amount received varies by year and is based on variables, like number of low-income people, population and the housing market.

"There's all kinds of different variables," he said. "It's a long formula."

Officials don't know yet how much money they will get for 2015. They usually find out in March, Hancock said. The city received $800,474 in 2014, $796,728 in 2013 and $690,321 in 2012. The city has received $17,220,749 since 1975.

The renovations also can help entire neighborhoods by increasing property value, Christie said.

Low-income families can apply for renovations through the program, Hancock said. He didn't know how many have applied this year, but the city remodeled 29 homes and remodeled a donated house. The city received 75 applications in 2013 and completed 40 renovations.

Aldermen also approved selling three-fourths of an acre at 6373 Watkins Ave., to Taldo Properties. The land is left over from the city's project to extend Watkins Avenue, Christie said.

City officials plan to sell the land for $5,000, according to meeting documents. Mike Overton, alderman, said the property is under-priced because some property was recently sold for more.

NW News on 12/10/2014

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