Going against the advice of its consultant, Wheatland council has decided that participants in its housing-rehabilitation program must choose the contractor who submits the lowest bid.

The only exception is if a homeowner agrees to pay the difference between the low bid and the bid that they prefer, said Chris Conti, planner for Mercer County Regional Planning Commission, which is administering the $250,000 Community Development Block Grant funding the program.

Jane Waltz, who works for her husband’s company, Mourice Waltz Planners and Consultants, Sharpsville, said she likes to allow homeowners to choose a contractor they feel comfortable with.

The firm has run housing rehabilitation programs in Sharpsville, South Pymatuning Township, West Middlesex, Ellwood City and elsewhere.

But council wants to assure that as many houses as possible are rehabilitated, Conti said.

Subtracting administration costs, the borough has an estimated $216,000 of the grant for upgrades.

If someone chooses a contractor that is $400 more expensive, "that would be $400 someone else couldn’t have," Conti said, summarizing council’s position.

The state only requires that the "lowest responsible bidder" be hired, Conti said.

Homeowners who choose a higher bid would have to put their money into escrow before any work is done, he added.

Council also set the maximum cost of the work at $12,000, although council can agree to raise the amount in certain cases, solicitor William Madden said.

Under the program, homeowners who meet low- and moderate-income guidelines and are current on taxes and utilities are eligible for deferred loans for building code-related repairs.

If the homeowner remains in the home for five years, the loan does not have to be paid back.

Council also decided Wednesday that once a homeowner dies, the heirs will have to pay back the loan at the deferred rate, Conti said. The amount of the loan to be reback decreases by 20 percent a year.

There had been discussion about letting the heirs of a homeowner who dies within the five years to sit on a home until the end of the term.

Council had concerns about being notified in the event of a sale. Since there will be a lien placed against the house, a lawyer handling the sale would have to notify the borough to make arrangements to satisfy the lien, Madden said.

Wheatland council members approved the rehab program guidelines Wednesday, but the planning commission, Madden and council need to sign a final draft of the plan before it goes into effect.

You can e-mail Herald Staff Writer Joe Pinchot at jpinchot@sharon-herald.com