Archived Story

City facing a clawback

Published 5:40pm Saturday, August 10, 2013

Failure to build five houses and sell them qualifying people could cost Washington a quarter of a million dollars, according to a city document.

Washington’s City Council, during its meeting Monday, is scheduled to consider authorizing City Manager Brian Alligood to execute a legally binding commitment with Metropolitan Housing and Community Development Co. to at least minimize what the city might have to pay back to the N.C. Department of Commerce’s Division of Community Assistance.

The division closed out a $250,000 Community Development Block Grant because those five houses were not built and sold. The city contributed $90,000 to the project.

“All of the funds were expended and we are required to repay $250,000 at the rate of $25,000 per year for ten years beginning July 1, 2013,” reads a memorandum from Matt Rauschenbach, the city’s chief financial officer and assistant city manager, to the mayor and City Council. “The repayment will be reduced by $50,000 for each home that is built and occupied but prior repayments are not eligible to be returned to the City. The City currently has a promissory note for the original contribution of $60,000. The City Manager will be discussing this agreement with Reverend (David) Moore and developing a plan to have the homes built and occupied.”

Moore is CEO of Metropolitan Housing & CDC, which has obtained grants to build residential developments in Washington and surrounding areas.

The council meets at 5:30 p.m. Monday in the Council Chambers in the Municipal Building, 102 E. Second St. To view the council’s agenda for a specific meeting, visit the city’s web­site at, click “Government” then “City Council” heading, then click “Meeting Agendas” on the menu to the right. Then click on the date for the appropriate agenda.

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