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South end Redevelopment Commission <br />Specia Meeting April 20, 1978 <br />6. NEW BUSINESS (Cont'd <br />Mr. Butler: Well, it certainly is inconsistent. Generally, my <br />understanding of the history of that regulation is that we have <br />been pricing ourselves out of the market throughout the country, <br />and unable to get bids because the prevailing rate is too high <br />for a residential type of rehabilitation work. We have had a <br />problem in the past of obtaining bids when we were bidding these <br />on an individual house -by -house basis. Since we have gone to the <br />multiple residence, the package deal, we have been much more <br />successful. So this is not a problem here, and we don't need, <br />at least this has been the determination in the past, the kind <br />of relief or exception in the case of this program in order to <br />get the job done. <br />Mr. Nimtz: Mr. Brownell, what does it do to us if we get audited <br />nine months from now, and they issue a non - compliance criticism? <br />Mr. Brownell: I don't know exactly what they do under the community <br />development program. I have never experienced that of course, since <br />the community program is new. Over on our side of the fence, that <br />was serious because we got our loan and grant money directly from <br />HUD, and when you have a non - compliance, they issued another <br />letter that said you can't use the money, and you can't spend the <br />money. <br />Mr. Wiggins: Is there an appeal on that kind of ruling at that <br />level? I think Mr. Harcus raised a very valid point. Mr. Dew <br />has approved and audited this sort of thing over several years <br />now and he will look bad if he comes out and changes it now. <br />Mr. Butler: It wouldn't be the first time. <br />Mr. Brownell: The other thing, of course, is that these rates <br />have always, in the past, been published in the Federal Register <br />and somehow or other we never had any difficulty. We went to <br />the Federal Register and found out the rate. <br />Mr. Wiggins: I understand when we had Frank Alford on board, <br />when we were into this thing on our own, that was one of <br />his principle functions to make sure that they were in compliance <br />on the rates. <br />Mr. Brownell: Yes, Frank and I went to the library one time, as a <br />matter of fact, to check the rate. <br />-7- <br />