Funding hurdles discussed for local housing projects

By Rana Jones, Gazette Reporter
Posted 9/30/24

On Wednesday, Sept. 25, Elizabeth Blackwell, grants and loans manager for the Office of State Lands and Investments, addressed the town councils of Kemmerer and Diamondville, the Lincoln County …

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Funding hurdles discussed for local housing projects

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On Wednesday, Sept. 25, Elizabeth Blackwell, grants and loans manager for the Office of State Lands and Investments, addressed the town councils of Kemmerer and Diamondville, the Lincoln County Commissioners, and the Joint Powers Board for Water and Wastewater.

She conveyed that while technical assistance is available for cities seeking funding, the current application for the Gateway PUD and Canyon Road housing development project cannot proceed.

During a roundtable discussion on loans and grants for infrastructure funding, Blackwell highlighted several challenges the towns face.

“The applicant must be the owner of the project for which funding is being requested,” she said, noting that public funds cannot be allocated to a private entity due to legal constraints.

While she praised the collaborative effort of the towns and county to seek funding, she clarified the reasons for the project’s ineligibility. She pointed out that Lincoln County’s application had complications due to co-borrowing, making it ineligible since the guidelines require the applicant to own the project.

As the invoices are in the developer’s name, Kemmerer is unable to apply for funds because of the developer’s private entity status.

“We cannot take public funds and invest them into a private entity,” Blackwell said.

Raising other concerns, Blackwell said, “The developers are driving the bus rather than the communities driving the bus,” and warned against creating new infrastructure without adequate support for maintenance.

Blackwell urged the community to consider the difference between the peak population during construction of the TerraPower nuclear plant and the long-term population once the plant is operational.

Blackwell explained that awarded funds can be used to match other funding sources, including developer contributions, but cannot be given or loaned to a private entity, which was why the city was also denied the Mineral Royalty Grant (MRG). She encouraged officials to think creatively about funding applications, stating, “I’m all about creative ways to fund projects.”

Additional concerns related to indebtedness were raised regarding Capital Construction Loans (CCL), and Blackwell noted that altering rules for the State Loan and Investment Board (SLIB) isn’t straightforward. Other financing options discussed included the State Revolving Funds (SRF) and the Clean Water State Revolving Fund, which assist local governments with costly projects.

Blackwell urged the community to consider the long-term costs of maintaining new infrastructure and whether the city is building to meet actual demand. She proposed that the community think about constructing a hotel to accommodate construction workers before gradually developing housing for permanent residents.

She advised that, if growth is anticipated, supporting documentation is essential.

“That needs to be the population that you are building for,” Blackwell said.

She suggested the community assess the expected permanent population increase once the plant is operational.

Senior grants and loans analyst Shawn King echoed Blackwell’s insights, emphasizing that proving anticipated population growth is the first hurdle for funding.

“We will need to have some type of population study,” he said, noting the necessity for a detailed engineering report for the Environmental Protection Agency (EPA) alongside the study.

Blackwell cautioned against overdevelopment.

“You do it slowly, monotonously and as needed,” she said.

She raised concerns about the quality of homes linked to heating pumps without natural gas lines, which could be appealing to construction workers but difficult to resell.

“Think about these things that will ultimately impact your communities,” she said, reminding attendees that developers will not reside in the community.

She encouraged the community to consider future implications and to build responsibly.

“The hard part of all this is it’s all fluid,” she said. “No one has a crystal ball.”

Yet she affirmed that Kemmerer will need housing and expressed hope that the city will achieve great new homes for incoming residents.

Wyoming Business Council Southwest Regional Director Kiley Ingersoll also presented on available infrastructure funding options for housing developments. Kathy Lenz, resource and economic development manager and grant coordinator for Sen. Cynthia Lummis’ office, participated online, encouraging the panel not to be discouraged.

“I hope we can take this information and come up with a solid plan,” she said. “I believe in this project and want the best for your community.”