ITEM TITLE:
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Consider approving an increase to maximum contract amounts administered by the Division of Housing and Community Development for the Exterior Housing Improvement Program (EHIP) and the Homeowner Emergency Repair Program (HERP). Approval would increase the maximum contract amount from $10,000 to $17,000 for EHIP and from $5,000 to $7,000 for HERP programs that are subsidized with federal funding through the Community Development Block Grant (CDBG).
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INITIATOR: Community Services Director, Janet Smith
STAFF INFORMATION SOURCE: Housing & Community Development Supervisor, Gary Brooks
BACKGROUND: Exterior Housing Improvement Program (EHIP) funds can be used to replace exterior housing items such as siding, windows, soffit/fascia, and roofs on a qualifying low-income owner-occupied residence. The current maximum contract amount for EHIP projects, is $10,000 and has been in place since March of 2019. Any amount over this limit requires a reduction in the scope of work, or assistance from the low-income homeowner. With the onset of the Covid epidemic, material and labor costs have skyrocketed causing repairs to inflate upwards of 30% or more. Homeowner Emergency Repair Program (HERP) funds can be used for unforeseen emergencies such as the replacement of central heat and air system, new plumbing systems, and hot water heater replacement. These repairs easily exceed the $5,000 limit and consequently requiring additional financial assistance from the low-income homeowner. This adds a burden that most cannot afford and limits their access to even the lowest acceptable living standards. Increasing the maximum contract amounts will almost completely pay for qualifying repairs, reducing the burden on low-income homeowners and making the program accessible to those who need it most.
EXHIBIT: N/A
KEY ISSUES: N/A
FUNDING SOURCE: Community Development Block Grant (CDBG) Funds
STAFF RECOMMENDED COUNCIL ACTION: Approval of the recommendatio...
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