City Council members are expected to take action allowing the city to participate in the U.S. Department of Housing and Urban Development’s Home Program when they meet in March.

The council heard from Donna Johnson of Grant Works that the program could provide federal funds to either renovate or replace rundown homes, mostly occupied by elderly residents.

She said the total cost to the city for taking part in the program would be $48,000. Of that, at least $18,000 would have to be cash. The other $30,000 of the local contribution could be made by “in-kind” contributions.

That could include waivers for building permit fees and other methods, she said.

Johnson said the program has been around about 15 years now and she has worked with Home Program applications for many years.

Recipients of federal loans must own the home, must use it as their primary residence and must be good citizens (pay their taxes).

“It is a benefit to the homeowner and the city as well,” Johnson said.

The program replaces dilapidated housing that could become a liability for the city and for the neighborhoods where the structures are located with decent housing that can be sold after the owner dies.

The program has been changed in recent years, Johnson said. Instead of an outright grant for a home, the government provides the owner with a deferred and forgivable loan. Each loan has a repayment term of anywhere from five to 15 years, depending on the income of the recipient.

Johnson said she has been told that the government is considering making all such loans repayable in five years because of the age of most of the recipients.

Bee County was active in the Home Program for many years, Johnson said. But it has been a while since the program was active here.

The total amount of grant funds that would be spent in any one year would be $400,000, Johnson said. A maximum of five homes would be selected each year and the government would provide up to $80,000 to build a complete, new house.

Several council members commented on the benefits of the program and expressed an interest in offering it in Beeville again.

The council was unable to take action on the proposal at Tuesday’s meeting because of the wording on its agenda.