Lyon County voted to withdrawal from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program during Thursday morning’s action session because of increased liability for the county.
Sam Seeley, Lyon County flood plain manager and zoning director, told commissioners last month about the program through HUD that “will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that otherwise become sources of abandonment and blight within their communities,” according to HUD’s web site.
Seeley said the Kansas Department of Commerce’s rural-development division, in partnership with the Kansas Housing Resource Corp., home division, will implement the program on a state level.
The county filled out an action plan and sent it to the program. Upon further study, the county is withdrawing its participation. It does not have a binding contract with the program. Seeley said the county would have to be careful how it manages the properties because the liability could fall on the county.
Commission Chairman Scott Briggs expressed concern over the program.
“The money seems to be tied up in the properties and the liability for the county and the citizens of Lyon County,” he said. “I’m just not sure the money is going to the right place.”
Commissioner Teresa Walters expressed concern about how fast the program was thrown together and County Controller Dan Slater said the county is a “terrible landlord.”
“This appears to be another situation where the county would become landlords where we’re not equipped to do,” Slater said.
In other business, county commissioners discussed the April financial numbers with Bob Agler of A&M Consultants. Agler said the county is in good shape with an unencumbered balance of $12,675,000. Revenues are dropping below what was budgeted, however, Agler added.
“For the most part, because of the sales tax assumed it would be in the last 9 months and this is the first one that that really sticks out,” he said.
Agler said the total expenditures of the prorated budget are $329,000 under budget.
“Which is a good sign,” Agler said, adding that the county should encourage this trend to continue so it doesn’t get eaten up. “There’s been years past where we’ve been sitting right at budget so I think this is a positive sign.”