Prichard Could Lose Unspent Grant

The city of Prichard could lose a $20 million federal grant if it doesn't move fast to spend it.

The money from the Department of Housing and Urban Development was awarded to Prichard last year to revitalize depressed neighborhoods, but after 17 months, the city has spent only $2 million of the $20 million dollar grant, according to Mayor Ron Davis.

"I was hopeful we'd be a lot further along with this process," said Davis, who called the progress disappointing.

The Prichard Housing Authority, which is facilitating the grant, tells News Five the money spent so far has gone toward acquiring eleven pieces of property and refurbishing six homes.

The city blames the delay on construction on the developer working with the city on the project, saying the developer has struggled to secure required private financing.

"Many of the obstacles in the program have been overcome," John Helms, the program coordinator, tells News Five. "Our pace is accelerated now from what it's been in the past," he says.

Construction on the first five homes is expected to begin by the end of the month, but they better move fast.

The project summary called for the construction of 75 news homes, rehabilitation of 50 homes and demolition of 300 blighted homes, and there is not much time.

Half the grant, $10 million, must be spent by February 2012 or the city will lose it, and if the entire grant isn't spent by February 2013, it's gone too.