CDA reviewing home loan rehab program

By Dave Fidlin

Correspondent

Recent changes in state law have prompted Whitewater officials to revisit a city policy concerning a loan program aimed at improving and rehabilitating aging homes within the community.

The city has long offered federal Community Development Block Grant (CDBG) dollars toward home spruce-ups, though funds are only made available in very specific circumstances and strict criteria need to be followed.

The CDBG program is designed to improve the conditions of older homes, particularly when the occupant is low-income. Funds can go toward a variety of purposes, including electrical upgrades and structural improvements. Nowadays, the need for these upgrades has become more than a requirement to many. In order to prevent potential damages to the property and the ones residing there. Thus, program managers can ensure that they hire the best service providers (such as barnettelectrical.com/commercial-services/panel-upgrade/) when it comes to upgrading the amenities.

Beaver Dam-based MSA Professional Services has provided Whitewater with administrative services. Because federal grant dollars are involved, the reporting process has historically been lengthy.

At a Community Development Authority meeting April 28, Chairman Jeff Knight, Executive Director Patrick Cannon and other officials discussed the city’s relationship with MSA and some of the procedural requirements that are coming down the pike from the state.

One possibility is to seek out a different administrative contractor for the loan program – perhaps from a local entity.

“They do a good job, so I’m not critical of the work they’re doing,” Knight said of MSA. But he did express concern about the cost of paying the contractor for its services.

During the recent back-and-forth discussion, Knight questioned if the task of handling all of the administrative responsibilities could simply be handed over to a local real estate agent.

Cannon had a number of reservations about the suggestion, however. For one, a realtor could pose a conflict of interest, he said, because a potential exists for the person overseeing the administrative process to garner a profit.

On the other end of the spectrum, however, Cannon said qualified contractors, such as MSA, need to go through an extensive training process that includes staying abreast of state and federal laws.

The process includes inspecting homes once improvements are made and carefully documenting all of the changes that have been implemented.

If possible, several CDA members said they would like to bring in a local contractor because he or she had a higher likelihood of knowing the city, its housing stock and other finite details.

A further decision on the city’s participation in the CDBG home loan program could be made within the next few months. For the time being, Knight said he would like to see a detailed report of how much the city has spent for MSA’s services.

While plenty of questions remain, Knight, on the surface, said he would like to continue the exploration of bringing in a local contractor who might have expertise in this area.

“We have plenty of skilled and qualified people in Whitewater,” he said.

 

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