Columbus Board of Public Works and Safety members on Tuesday backed a request to reallocate almost $200,000 in unspent federal funds to go towards housing initiatives.
Paul Smith, assistant director of community development, told board members that there are unspent Community Development Block Grant (CDBG) funds that the department would like to go towards the first iteration of the Columbus Housing Improvement Program (CHIP) and rehabilitation Columbus Housing Authority (CHA) properties.
Community development was seeking approval of a substantial amendment to spending plans for 2021 and 2022 to redirect $190,423 in funding previously earmarked for public facilities to housing.
The amendment will need to get final approval from the U.S. Department of Housing and Urban Development, which oversees the CDBG program. Smith said that HUD alerted community development last year that the funds would need to be expended or they would be taken back.
The city receives an annual CDBG allocation of about $308,000 that has to be used to address one of three objectives: benefit low and moderate income individuals, eliminate slum and blight, or meet a need with a particular urgency which is a detriment to the health and safety of the public, Smith explained in a memo to the board.
The city typically allocates those funds to administration, housing and public facilities, and the balances can be carried over year to year. The request needed board approval because the amounts being reallocated went to a separate category and exceeded more than 25% of the budget in their respective area.
Carrie Riley of the Administrative Resources association said that the funds will be used to keep CHIP 1.0 going and fix HVAC issues in 23 CHA properties as well.
CHIP 1.0 provides eligible homeowners grant funding up to $20,000 to fund needed home repairs like HVAC and water heater improvements and those related to Americans with Disabilities Act (ADA) accessibility. The program is a predecessor to CHIP 2.0, launched earlier this month, that expands the program to include residents with income ranges between 80%-120% Area Median Income (AMI). Like CHIP 1.0, the maximum award for CHIP 2.0 is $20,000.
The city has allocated $500,00o of American Rescue Plan Act funds to CHIP 2.0 and applications are open until Dec. 15, 2026 for interested homeowners as long as they live in the city limits, own the home needing improvements, have home insurance and aren’t located in a floodplain. The application can be found at surveymonkey.com/r/MR6XDWS and on the city’s website.
Riley said that the turnaround time after a homeowner applies for CHIP and work is finished is about two to three months.
There hasn’t been many people applying for CHIP 2.0 so far, Riley said, but officials are hoping more will do so as word of the program gets around. Questions about either CHIP program should be directed to Smith at psmith@columbus.in.gov.
Funding for CHIP 2.0 will be distributed on a first-come, first-served basis until all allocated funds have been exhausted, according to city officials.
