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ELOY — The city plans to apply for $500,000 in grants to use for a low-income housing rehabilitation program.

The Eloy City Council adopted a resolution for Community Development Block Grants after holding a public meeting during its regular meeting Monday. The hearing was the second one for a CDBG State Special Project accounts to discuss the proposed activities to be submitted for funding consideration.

“This is actually the city’s last opportunity to apply for the SSP grant because the city went under Pinal County and when we did that, that took our opportunity away for any funding from the state SSP grant,” finance director Brian Wright told the council.

Wright added that the city will apply for the maximum amount of $500,000 which will go towards the Owner Occupied Housing Rehabilitation Program.

According to Wright, there are approximately 35 families on the waiting list of the housing program. If the city receives the full funding, it would be able to rehabilitate four houses.

In addition to adopting a resolution to submit the grant, the council committed $55,000 to increase the city’s chance of funding.

Wright added that the grant funding would also pay part of the grant administration’s salary.

The council also approved the adoption of policies and guidelines for establishing revitalization districts in the city.

City manager Harvey Krauss told the council that this is a new tool similar to community facilities districts and local improvement districts.

The revitalization district is a special taxing district that has a board of directors formed by landowners within the district. Those owners will be responsible for the operations of the district and the board will determine the amount, timing and form of financing used by the district.

Krauss told the council that the landowners will be those who have commercial or industrial development in mind and once a district is formed, the city basically does not have a say because the board of the directors are the ones overseeing everything.

Revitalization districts receive no city funds and must be self-supporting.

“The landowners within that area would come to us and, according to these policies and guidelines, they would make an application to the city to form a revitalization district,” Krauss said. “They would pay a proposed $10,000 fee. There is no financial obligation on the city and the city can have multiple revitalization districts. It’s another tool for us to use in economic development purposes.”

The Municipal Airport Advisory Board has an open seat and a subcommittee was formed to review the four applications that were received to fill the open seat and then recommend the best candidate for the council’s approval.

The subcommittee will include two council members, two members from the advisory board and a city staff member.