ASHLAND Top Ashland officials have said the 15-year HUD contract the commission voted on last week is part of an effort to help renovate apartments for low-income folks in the city.
City manager Mike Graese said the allocation of housing vouchers to Gla-Low Apartments for 15 years is part of a move on the part of the city to help the apartments secure a loan in order to renovate the apartments.
The renovations would upgrade 77 units in the apartment, Graese said.
The city of Ashland administers the housing vouchers issued by HUD in order to verify the money is going towards housing for folks, Graese said. The monies quoted in the fiscal note on the agenda were already allocated by HUD, according to Graese.
City Attorney Jim Moore said voucher allocation is essentially collateral for the project.
“By pledging a certain number of vouchers, it guarantees that those units are being filled,” Moore said. “That means the bank has a lot less to lose if something were to happen over the course of that loan.”
Moore called the move a “win for the city.”
“While we administer the program, we are not in charge of the upkeep of the apartments,” Moore said. “This ensures quality housing for people.”
The estimated amount of HUD vouchers is about $698,496 per year, according to the fisical note.
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