City facing a clawback

Published 5:40 pm 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.

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

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