Council Member Hudson on accountability for capital improvement loans
Hudson asks what accountability measures ensure loans and grants are used effectively and produce measurable improvements. Phillips describes the IPNA, architect/contractor process, and monthly HPD/lender construction monitoring.
Okay, we have Councilmember Hudson followed by Councilmember Riley.
Thank you so much, Chair.
Just a couple of quick questions.
What accountability measures are in place to ensure that loans and grants awarded for Mitchell-Lama capital improvements are used effectively, completed on schedule, and produced?
Measurable improvements for residents?
So prior to construction, we require, like I mentioned before, the IPNA, which outlines the potential scope of work.
Then we have an architect work to develop the scope of work and a contractor that completes the scope of work.
During construction, HPD and the private lender monthly go to the building to ensure that work is completed.
And then after that work is completed, payment is released to the contractor.
So every month there's the lender and HPD, if we have city capital in the project, monitoring construction to ensure that the capital is spent correctly.
And in accordance with the scope of work.