
Home Repair Grants Could Go Unused, Thanks To Contractor Shortage
By Ross Boissoneau | Sept. 23, 2017
Some $150,000 in state grants earmarked to repair homes for those in need could be lost unless more licensed and willing contractors are found to do the work.
The Community Development Block Grant Program, run through the Northwest Michigan Community Action Agency (NWMCAA), has money to hire the contractors to help residents who cannot afford to have the work done. But a lack of workers means that those hoping for assistance with leaky roofs or rotting walls might not get it – and the funds could be headed back to the State of Michigan unused.
“Right now we’re dealing with a deadline to get quite a bit of money spent,” says Leslie Casselman, the housing program coordinator.
Approximately $150,000 has to be spent by the end of the year or be returned and likely used in larger-scale developments in more urban areas.
That’s not good news for people like Traverse City’s Jackie Kidd. Kidd, 72, applied for assistance a year ago, but because her daughter was living with her at the time, their combined household income was over the maximum. When her daughter moved, she applied again and qualified for the program.
Among the projects at Kidd’s home that were approved by the NWMCAA were a leaky roof, broken windows, the crumbling foundation of her garage, and bathroom drywall and shower repair. Kidd is suffering from chronic obstructive pulmonary disease (COPD) and cannot do the work herself or afford to hire someone to do it.
But when the bids went out, only one contractor responded. And after looking at the project, he declined to bid on it, as he doesn’t have the subcontractors necessary to add it to his current slate of jobs. It's a reality amidst a healthy local economy, a strong real estate and construction market, and a continued shortage of skilled construction labor.
“We’d love to be able to help,” says Casselman, noting that it is not a big project but it’s very important to Kidd. “I’m holding out hope. We’ll send out bid packets again, for the third time. We’ll just keep trying. Previously we’d send out bid packets two times. We really don’t want to give the money back to the state."
She adds that it’s unlikely that the funds will come back; the program has changed focus from home rehabilitation projects to larger-scale rental and commercial developments in urban areas.
“It started when Governor Snyder was elected,” says Casselman. “He wanted to keep college graduates in Michigan, so they wanted to put all the money in cities” where recent graduates were more likely to want to live.
Though the funds are technically loans, Casselman says the monies serve more like grants because they are zero interest and do not have to be paid back until and unless the home is sold, at which point the homeowner must repay them. That provides for a rolling fund, with new grant monies being replenished from projects completed years before.
“But now it (the state funding) is just for development projects,” Casselman says. “There are no more (home rehab) grants. The state says the money will go back into its coffers and will be offered for future grants, but we don’t know what (kind).”
If Kidd does not get the repairs done, she fears she will have to leave the home she’s lived in for 45 years. “The bottom line, if I don’t (get bids and repair work), I’ll end up having to sell. I can’t afford to fix it,” she says.
Casselman says Kidd is not alone. There are three or four other local residents approved, with many more on a waiting list. She’s holding out hope that at least some of them may yet see their homes repaired if qualified builders step forward. “We need more licensed and insured contractors,” she says. Any builders interested in learning more should call (231) 346-2121.
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