Tuesday, Kosciusko County thought it was going to have to pay $8,465 back to the Indiana Housing Finance Authority for the Home Remedies Grant.

But today, they no longer have to give the money back.

Pam Kennedy, Warsaw Housing Authority, told the commissioners Tuesday that the grant was closed out in May and audited in August.

With money so tight in Indiana, the rules are starting to change rather quickly, she said, and the housing authority has had three audits since Kennedy took over in the summer.

Part of the grant provides for home rehabilitation for couples if they make no more than $38,350 in income per year.

An elderly couple in Claypool were given assistance through the program whose income was $39,350 per year. But the local housing authority thought they had qualified because after deducting medical expenses, the couple made $36,067.

After the August audit, the state financing authority told the local authority that medical deductions could not be made for rehabilitations, so the senior couple did not qualify for the program and the county would have to pay the $8,465 back.

After the meeting, Kennedy said the housing authority made the deductions for others before for rehabilitations of homes, but without the deductions, no one ever exceeded the limited amount of income before so there was never any problem.

Kennedy said after the audit, Kosciusko County was on suspension for receiving any more of the grants until the $8,465 is paid back. The housing authority attempted to change the state's mind, but the state didn't go for it initially.

Southern district commissioner Avis Gunter said during Tuesday's meeting that she thought the program was helping county residents, but in this case, the state was punishing the county.

"I really don't appreciate that at all," she said.

Sue Ann Mitchell, county auditor, said that on the commissioners behalf, she could appeal to some state legislatures for a waiver. If that does not work, Kennedy said the housing authority could take money out of a fund and pay the county for the $8,465. The fund the money would come out of is the county's money anyhow.

But today, Kennedy called the Times-Union to report that the state financing authority agreed the county didn't owe the money afterall. The Claypool couple refinanced their house and paid the Warsaw Housing Authority back. Under the rules, if someone in the program sells their house or returns monies, the housing authority has to spend that money on another house immediately, which it did.

Since the housing authority did not spend the money on the elderly couple's home afterall, the state said the money did not have to be paid back.

In other business, the county commissioners:

• Approved Gary Green's petition to vacate a 50 by 90 foot right of way on the west side of Green Avenue in Turkey Creek Township in Jared's First Addition Two Yaht Harbor.

• Approved Rodney and Phyllis Carey's petition to vacate a 12-foot-by-50-foot strip of alley on the south side of Winona Lake in Wayne Township.

• Approved Sue Huffman's petition to rezone 131 acres from agricultural to residential. The property is in Plain Township near CRs 350N and 100E.

• Learned Jim Moyer is the new president of the county trustees and assessors association.

• Approved for the Warsaw Rotary Club to donate and put a 36-feet-by-50-feet Thaddeus Kosciuszko monument on the north side of the courthouse lawn.

• Acknowledged the appointment of Ron Sharp as the official Kosciusko County historian as recognized by the Indiana Historical Society.

Commissioners are Ron Truex, middle district; Brad Jackson, northern district; and Avis Gunter, southern district. They meet at 9 a.m. in the county courthouse every other Tuesday.

For more information about the commissioners or any other county office, visit online at www.kcgov.com [[In-content Ad]]