CDBG Loan Buy-Out Could Bring More Grant Money to County
03/20/2019- Marinette County could see close to a million dollars in grantable funds under a close-out plan for the state’s community development block grant program. County Administrator John Lefebvre says the Marinette County Industrial Development Corporation has about $200000 in cash-on-hand and $640000 in existing loans through CDBG, which is set to be defederalized. The cash-on-hand must be paid back to the state and will be returned as grant money and Lefebvre says the same will happen for the loans if the county elects to buy them out, as well. The grants could then be used for various high-cost projects in select regions of the county.
County Finance Director Laura Mans says the decision to close out the program came from the state after a federal audit revealed some municipalities weren’t maintaining the required monitoring process for the money, which was passed down through the US Department of Housing and Urban Development.
The county will automatically assume liability for any CDBG loans that are bought out from the state. Tuesday, the Administrative Committee forwarded a recommendation to the MCIDC that the existing loans be purchased. Once that is complete, the county has about two years to apply for those funds for grant purposes.