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Knoxville City Council Discusses Amendments to Agreement with Habitat for Humanity

Posted: Friday, August 6th, 2010 at 6:28 am
Author: KNIA/KRLS News-Samantha Smith

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The Knoxville City Council discussed amendments to the agreement with Habitat For Humanity of Marion County in regards to the Neighborhood Stabilization Program at their meeting this week. Originally, when the city entered the program the contract with the Iowa Department of Economic Development stated that Knoxville would receive nearly $974,000. Due to the city’s failure to secure 26% of the contract amount with foreclosed properties by the March 31st deadline, that amount decreased to $779,542 on July 15th. Therefore, where Habitat was originally promised a total of $160,000 to build 8 homes in the city, their subsidy monies have been decreased to $47,978. Habitat Director Lisa Houser says the organization need around $20,000 per property in order to build a single family home and with the $112,202 decrease in funding from the city they would not be able to meet the 2013 deadline listed in the NSP grant. The city has asked Habitat to be patient and has committed to giving the organization the proceeds from the home they plan to fix and resell in order to fulfill their financial obligation. The council also expressed interest in speaking with the Iowa Department of Economic Development to see if they would be willing to work with the city since some of the standards and requirements of the grant were difficult to meet.