FAYETTEVILLE -- The Housing Authority will significantly diminish its capital money for the year in order to repair sewer pipes at Hillcrest Towers.
Executive Director Deniece Smiley notified the board in May that pipes at the 12-story downtown public housing center burst. A contractor inspected and found the entire 50-year-old system needed replacement, she said.
Next meeting
When: 6 p.m. Dec. 28
Where: Room 111, City Hall, 113 W. Mountain St.
The authority wants to apply for a $3 million emergency grant from the U.S. Department of Housing and Urban Development for the repairs. Federal authorities told Smiley the authority would have to contribute $255,000 to receive the grant.
The authority has about $860,000 in reserve, but HUD requires housing authorities to keep a certain amount at all times. It received $184,000 this year from the federal government to cover capital expenses.
About $123,000 would come from the capital budget with $132,000 from reserve. That would leave the authority very little to deal with any other structural emergencies that might happen, Smiley said.
In the past, the board has discussed converting Hillcrest Towers from public housing to a form of Section 8 called the Rental Assistance Demonstration program. One of its properties, Morgan Manor, has made the conversion.
The program enables housing authorities to receive private money for capital expenses. Smiley said converting to RAD would make Hillcrest Towers ineligible to receive the emergency grant.
The board was left with a choice to continue pursuing a conversion to RAD, a years-long process, or give back its capital money to pay for a major repair at one of its four properties.
Commissioners elected to keep Hillcrest under public housing and get the grant to pay for new sewer pipes.
Commissioner Chris White asked about any other possible options. Smiley said the authority could apply for a loan, which would give it debt.
Other projects, such as kitchen improvements and new flooring at Hillcrest, will have to be pushed back.
"We have no flexibility on our repairs or improvements," Chairman Mike Emery said.
The authority is already looking at a $218,000 shortfall for next year's operational budget. Smiley said during the September meeting reserve likely would have to be used to cover the gap.
In other business, the board tabled filling an upcoming vacancy. White's term ends at the end of the year and he, along with four other candidates, applied for position.
Commissioner Melissa Terry brought up the possibility of having more than five board members. Attorney Jim Crouch said the matter would take some research.
The board tabled the item to have time to get clarification. Regardless, a selection to fill the spot will be made at the December meeting.
NW News on 11/17/2017