Questions raised about late payments from housing organization
Millersburg building contractor Steve Robbins went before members of the Presque Isle County Board of Commissioners last Thursday to express concerns about late payments he is receiving from an organization that administers housing projects in Presque Isle County. “Everything went fine for the bulk of that period,” Robbins said, during the time allotted for citizens to appear before the board. He has worked for the last year-and-a-half on projects administered by the Rural Michigan Community Development Corporation, formerly known as the Montmorency Area Rural Community Housing (MARCH).
The non-profit organization provides low interest loans to qualified homeowners. Some loans, for projects such as the installation of new windows or for someone needing a new furnace in an emergency situation, can go for an interest rate as low as one percent.
“A COUPLE OF months ago there was some kind of upheaval within MARCH and we stopped getting paid on time,” said Robbins. “I’ve got a job right now that I’ve turned bills in on…and I haven’t seen a dime. I have $12,000 in material in that job and I haven’t seen a penny of it.” Robbins said he is working on a rehabilitation project on Second Street in Rogers City that is on hold until he can catch up on material bills, which are about $25,000.
“There are a couple of other Presque Isle County contractors that are in the same boat as me,” said Robbins. He said the county could save money by administering the program themselves. “The money saved could do two, or three, or four more projects in Presque Isle County,” said Robbins. “Everything was fine until six weeks ago and then it just fell apart. It can’t be the girls in the office because it’s the same people that were there before. It’s got to be in the
CHAIRMAN ALLAN BRUDER said the board knows “There is a problem with the way they are paying their bills. We are trying to correct it. It doesn’t make us very happy either.” District 3 commissioner Mike Darga, who works as a local building contractor in Rogers City, has performed work for the organization and received partial payment on a bill his family-owned company submitted. “It took a month and a half to get the final balance,” said Darga. Darga agreed with Robbins, saying it’s difficult to continue normal business operations when money is tied up.
Robbins said he is fortunate to deal with patient building suppliers but “there are a lot of issues that could jeopardize future projects.” Vice chairman Gary Wozniak has looked into questions raised about late payments and the MARCH administration and has made contact with other organizations that run housing programs. It’s also been referred to Presque Isle County prosecutor Don McLennan, Bruder said.