Scottsdale delays sending HOME dollars back to federal government

Scottsdale City Council (Submitted photo)

Scottsdale City Council (Submitted photo)

Scottsdale City Council postponed a decision on whether to return $855,000 of unusued grant money originally meant for building affordable housing in Scottsdale.

The city of Scottsdale was given approximately $1.2 million of federal grant money in 2011, Independent archives state. The HOME Investment Partnership funds were meant to increase affordable housing options for first-time homebuyers by purchasing, rehabilitating and reselling one-family homes.

Unused funds must be returned to remain in compliance with the grant agreement.

According to archives, federal regulations also require homes purchased with grant funds not be resold for more than 95 percent of the median home price in the surrounding area.

The majority of Scottsdale’s grant funds went unused when the cost to buy and resell homes exceeded the federal requirement, archives continue.

Councilmember Virginia Korte made a motion at the April 14 meeting to remove five items from the consent agenda, HOME Investment Partnership funds among them. Councilmember Kathy Littlefield seconded the motion.

The grant money will reappear on the May 5 city council consent agenda.

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