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HomeMy WebLinkAboutNS - Housing Community Development Block Grant Award - Housing Rehabilitation ProgramORANGE COUNTY BOARD OF COMMISSIONERS • ACTION AGENDA ITEM ABSTRACT Meeting Date: November 5, 2007 Action Agenda Item No. ~_ SUBJECT• Community Development Block Grant Award -Housing Rehabilitation Program DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Program Summary Funding Approval Form Grant Agreement Resolution INFORMATION CONTACT: Tara L. Fikes, 245-2490 PURPOSE: To approve the execution of the Funding Approval Form; Grant Agreement; and Resolution for the FY 2007 Community Development Block Grant Award. BACKGROUND: Orange County has now been officially awarded a $400,000 Community • Development Block (CDBG) Grant from the N.C. Department of Commerce for a Scattered Site Housing Rehabilitation Program. The County was initially notified of the availability of funds. in the fall of 2006 and was invited to submit a formal application in March 2007. Funds from this grant will be used to repair approximately 12 substandard houses occupied by low-income families in the Towns of Carrboro and Hillsborough as well as unincorporated areas of Orange County. See the attached program summary for more information. In order to proceed with grant activities, the attached Grant Agreement and Funding Approval Form must be executed by the Chair of the Board and returned to the N.C. Department of Commerce. Further, many grant implementation documents that were signed in previous years by County staff are required to be signed by the Chief Elected Official or the Chair of the Orange County Board of Commissioners. These implementation documents are very routine documents that must be submitted throughout the life of the grant. To facilitate the execution of these documents, a resolution has been prepared to give signatory authority to the Chair of the Board of Commissioners for all documents required to meet the grant implementation requirements for the FY 2007 CDBG Award in accordance with the Grant Agreement and Funding Approval for this grant award. FINANCIAL IMPACT: This grant represents an available $400,000 for affordable housing • initiatives in the County. 2 RECOMMENDATION(S): The Manager recommends that the Board approve execution of the Funding Approval Form, Grant Agreement and approval of the Resolution giving signatory • authority to the Chair of the Board of County Commissioners. • • 3 . Application Summary • FY2007 Orange County Housing Rehabilitation Program Background Orange County has received a Community Development Block Grant (CDBG) award in the amount of $400,000 from the N.C. Department of Commerce -Division of Community Assistance. These grant funds must be to used to repair substandard housing occupied by low-income families in the Towns of Carrboro and Hillsborough as well as the unincorporated areas of Orange County. Approximately 10% of the award can be used for program administration, thus, effectively $360,000 will be available for housing repair. The Program Selection Committee, as with the FY 2001 and 2004 Scattered Site Grant Applications, consists of the HOME Program Council members from Carrboro, Hillsborough, and the County. This Committee discussed the policies and procedures that should govern this program and agreed that the policies and unit selection process will closely mirror those utilized in the current HOME funded Housing Rehabilitation Program. Program Policies • Eligibility Criteria 1. The applicant must be the Owner of the residential property located in Orange County but outside the corporate limits of the Town of Chapel Hill. 2. The applicant must have total household income at or below 50% of the HUD published area median income. 3. The property must not have received assistance for housing rehabilitation during the previous 15 years. 4. The property must need repairs to meet the Minimum Housing Code. 5. The applicant shall have evidence of title to the property to be rehabilitated. 6. The applicant shall have paid all due property taxes. Particigant/Household Selection Program participants will be selected from the existing Housing Rehabilitation Program waiting list according to date and time of waiting list placement. There are approximately 26 families on the waiting list at this time. In selecting participants, priority will be given to owners that lack indoor plumbing or have plumbing deficiencies, or are elderly or disabled. The Selection Committee will prioritize the potential applicants and County staff will determine eligibility based on the above stated criteria. • No extensive program marketing is anticipated at this time since the number of families on the waiting list at the present time far exceeds available resources. Terms of Assistance 4 All CDBG financial assistance will be in the form of a deferred loan that is proportionally forgiven over the applicable term of recapture. CDBG Assistance $15,000 and less $15,000 and $25,000 $25,000 and above Recapture Period 5 years 10 years 15 years All deferred loans will be secured with a note and deed of trust recorded in the Orange County Register of Deeds. Target Number of Substandard Units This program will target the repair of an estimated 12 substandard dwelling (Four (4) units in each jurisdiction) at an average cost of $30,000 per unit. No clearance or relocation activities will be necessary. Budget Housing Rehabilitation $360,000 Program Administration $ 40,000 Program Schedule Begin program implementation January 2, 2008 Complete program by December 31, 2010 • • 0 • -• North Carolina Department of Commerce Division of Community Assistance p Community Development Block Grant Program Grant Agreement Scattered Site Housing {SSH) Upon execution of this grant agreement, the North Carolina Department of Commerce (DOC) agrees to provide to the recipient Community Development Block Grant assistance under Title I of the Housing and Community Development Act of 1974, (P.L. 93-383), as amended, authorized by the DOC funding approval, the North Carolina Community Development Block Grant administrative rotes, applicable laws and all other requirements of DOC now or hereafter in effect. The grant agreement is effective on the date the grant agreement and funding approval are signed by the recipient. 'The grant agreement consists of the approved application, including the certifications, maps, schedules and other submissions in the application, any subsequent amendments to the approved application and funding approval and the following general terms and conditions: 1. Definitions. Except to the extent modified or supplemented by the agreement, any term defined in the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L, shall have the same meaning when used herein. (a) Agreement means this grant agreement, as described above, and any amendments or supplements thereto. (b) Recipient means the entity designated as a recipient for grant assistance in the grant agreement and fiinding approval. (c) Certifications mean the certifications submitted with the grant application pursuant to the requirements of Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. (d) Assistance provided under this agreement means the giant funds provided under this agreement. (e) Program means the commtuury development progaam, project, or other activities, including the administration thereof, for which assistance is being provided under this agreement. (f) The date for receiving the grant means the date of the DCA Director's signature on the Grant Agreement and rending Approval. • 2. Obligations of the Recipient. The recipient shall perform the program as specified in the application approved~by DOC. The recipient shall comply with the certification pursuant to Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. The recipient shall also eompIy with all other lawful requirements of DOC, all applicable requirements of the General Statutes of the State of North Carolina specifically N. C. G. S. 87-1-87-15.9 and any other applicable laws and Executive Orders currently or hereafter in force. 3. Obligations of Recipient with Respect to Certain Third Pariy Relationships. DOC shall hold the recipient responsible for complying with the provisions of this agreement even when the recipient designates a third party or parties to undertake all or any part of the program. The recipient shall comply with all lawful requirements of DOC necessary to insure that the program is carried out in accordance with the recipient's certifications including the certification of assumption of environmental responsibilities under Rule .1004 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. If the recipient contracts with or designates a third party to undertake all or part of the program in exchange for a grant or loan fibm the recipient to the third pasty of all, or a portion, of the recipient's grant funds, the recipient's contract with the third party must require the third party to comkly with the procurement standards set forth in 4 N. C. Administrative Code 19L .0908. 4. Conflict of Interest. None of the following or their immediate family members, during the tenure of the subject person or for one year thereafter., shall have any direct or indirect financial interest in any contract, subcontract or the proceeds thereof for work to be performed in connection with the program assisted under this agreement: employees or agents of the recipient who exercise any function or responsibility with respect to the program, and officials of the recipient, including members of the governing body. The same prohibition shall be incorporated in all such contracts or subcontracts. The assistance provided undex this agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining DOC approval of the application for such assistance, or DOC approval of applications for additional assistance, or any other approval or concurrence of DOC required under this agreement, or the North Carolina Community Development Block Grant Administrative Rules, with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not prohibited if otherwise eligible as program costs. 5. Reimbursement to DOC for Im~r,_per Expenditures. The recipient shall (and does agree) to reimburse DOC for any amount of grant assistance improperly expended, either deliberately ornon-deliberately. A contract for administrative services should include a clause holding the administrator' organization responsible for reimbursement to the recipient for any improperly expended grant funds that had to be reh~rned to DOC. 6. Access to Records. The recipient shall provide any duly authorized representative of DOC, the federal Department of Housing and Urban Development (HUD), and the Comptroller General at alI reasonable times access to and the right to inspect, copy, monitor, and examine all of the books, papers, records, and outer documents relating 7~ • to the grant for a period of five years following the completion of all close-out procedures. All original files shall be maintained at the Local Goverrunent offices for access purposes. 7. Project Savings. The recipient is obligated to contribute 100 percent of its pledged cash contribution to the CDBG project even if the project experiences a savings after authorized activities are completed. Any project savings accrue to the CDBG program. Substitution of in-bind contributions for cash is not allowed. 8. Expenditure ofNon-CDBG Funds. The recipient must ensure that non-CDBG funds are expended along with CDBG funds, following the implementation schedule described in the approved application and modified by the Performance Contract, and shall report on non- CDBGexpenditures with each Annual Performance Report, consistent with Section .1100 PERFORMANCE of the program regulations (4NCAC 19L}. 9. Method of Payment. The Department of Commerce uses the Office of State Controller (OSC) to make CDBG payments to units of local government. The Electronic Payment Form from OSC must be completed for fiends to be electronically transferred. Arrangements must_ he made with the Finance Officer in the Division of Community Assistance if a recipient does not want to use the electronic fiends transfer. 10. Fair Housing. For each grant year that a CDBG is active, a recipient must describe the actions it will take in the areas of enforcement; education and removal of barriers and impediments to affirmatively further fair housing. Guidance for developing a Fair Housing Plan can be found in DCA Bulletin 93-4. . 11. E~aual Employment and Procurement Opportunity. A recipient must describe the actions it will take annually while the grant is open in the areas of enforcement, education and removal of barriers and impediments that affirmatively further equal access in employment and procurement. This includes a description of steps to be taken in the areas of advertisement, compliance azid complaint tracking. 12. Local Economic Benefit (Section 3 Re lgii ationl. For each year that a CDBG is active, a recipient must describe a strategy whereby opportunities in employment and procurement arising out of a CDBG assisted project are identified and made available to low-income residents within the CDBG assisted area to the greatest extent feasible. This strategy must include (1) identification of training and technical assistance resources to prepare low-income residents for employment and procurement opportunities, (2) attempts to reach the numerical targets for, new hires set forth in the Section 3 regulation, which applies to recipients receiving $200,000 or more in non-administrative line items expended for construction contracts of at least $100,000 per contract, and (3) education oflow-income residents within the CDBG assisted area about the components and opportunities of the program. 13. Section 504 and ADA. Recipients must complete the Section 504 Swvey and Transition Plan. This plan will not satisfy all the requirements of the Americans with Disabilities Act, but it will meet the minimum requirements for a CDBG assisted project. 0 14. Obligation of Rec~ient With Regard to Vacant Units. The recipient shall ensure that all vacant units being rehabilitated will be occupied by a low or moderate income person by the time close-out occurs. 15. Utility Assessments or Fees: Assessments or fees to recover the CDBG funded portion of a utility project may be charged to properties not owned and occupied by low and moderate income persons. Such assessments are program income and, as such, must be used for eligible CDBG activities that meet a CDBG national objective. 16. Schedules ' (a) Schedule for Release of Conditions and Completion Activities. The recipient must satisfy all Funding Approval Conditions to release CDBG funds within 3 months (January 2, 2008) from the date the Grant Agreement and Funding Approval were signed by the DCA Director. The recipient must draw down all CDBG funds, expend all local non-CDBG funds and complete all project activities in conformance with the activities implementation schedule in the application as modified by the Performance Based Contract. The recipient must obligate all funds within 27 months (January 2, 2010) from the date the Grant Agreement and Funding Approval are signed by DCA.Director. All funds are to be expended within 30 months (April 1, 2010) from the date the Grant Agreement and Funding Approval are signed by DCA Director. Any remaining funds will be de-obligated. All closeout documents must be returned to DCA by (July 1, 2010). Any request for extensions or amendments must be submitted no later than the 28th month (February 1, 2010) from the date the Grant Agreement and Funding Approval were signed by the DCA Director. Consistent with Section .1104 of the program regulations (4NCAC 19L), based on review of the recipient's performance for conformance with the approved application and approved performance schedules, the Secretary of Commerce may withdraw the grant, except for funds already expended. (b) Schedule for Submission of Compliance Documents. The recipient must submit the following compliance documents within the specified number of months from the date the Grant Agreement and the Funding Approval were signed by the DCA Director: • Environmental - 3 months (January 2, 2008) • Equal Employment and Procurement Plan - 4 months (February 1, 2008) • Fair Housing - 4 months (February 1, 2008} • Section 3 Plan - 4 months (February 1, 2008) Section 504 Plan - 4 months (February 1, 2008) • Request for Release of Funds - 5 months (March 1, 2008) • Analysis of Impediments - 6 months (April 1, 2008) (c) Schedule for Drawdown of Funds: The recipient must comply with the following schedule to ensure that funds are drawn down in accordance with section 16 (a) of this Grant Agreement: • ls~ Period- 6 months (April 1, 2008) 20% drawn down ($80,000} • 2nd Period -12 months (September 30, 2008} 40% drawn down ($160,000) • 3rd Period -18 months (April 1; 2009) 60 % drawn down ($240,000) • 4th Period - 24 months (September 30, 2009) 80% drawn down ($320,000} • Soh Period - 30 months {April 1, 2010} 100% drawn down and expended . ($400,000) ' 4 0 17. Performance Measures The CPD Performance Measurement System is HUD's response to the standards set by the Government Performance and Resiilts Aet (GPRA) of 1993. This act holds all Federal agencies accountable for establishing goals and objectives and measuring achievements. (a) The recipient must ensure that all activities in the funded project(s) meet the appropriate objectives, outcomes, and indicators established by HUD and selected by DOC. CDBG funds cannot be used to pay for any activity that does not meet the above requirement. (b} The recipient must also assist DOC, when requested, in collecting indicators and any other data necessary to fulfill the requirements of the CPD Performance Measures System, which includes data, for the Integrated Disbursement and Information System {IDIS). Upon execution of this agreement by DOC and the recipient, the recipient herebv accepts. the assistance on the terms of this grant agreement effective on the date indicated below, and further certifies that the official sign~g this document has been duly authorized by the recipient`s g_overnina body to execute this Grant Agreement. Secretary of the Department of Commerce • Date: October 1, 2007 ~ By: I..~UC~-~- j1LJ~(~ Gloria Nance-Sims Director Division of Community Assistance Date: Name of Recipient ~ By: Signature of Authorized Official (Title) C7 . 1(J , North Carolina Division of Community Assistance ~~.~;A- Community Development Black Grant Program . Funding Approval 1. Name and Address of Recipient 2. Grant Number and Funding Approval Date County of Orange Grant Number: 07-C-1668 P O Box 8181 Date of Original Funding Approval : 10/01/07 Hillsborough, North Carolina 27278 Date of Amended Funded Approval: 3. Approved Projects Project Name Amount _ _ ___ ~ Approved Amount Scattered Site Housing Rehabilitation Program $400,000 $0 Total Grant Award $400,000 4. Funding Approval Conditions The following conditions must be removed in writing by the Division of Community Assistance (DCA) in order for all funds to be released for the approved projects listed in item (3), above: A. Environmental Condition: No funds may be obligated or expended in any project activity except far the administration activity in the C-1 project until the recipient has complied with the Environmental Review Procedures for the N.C. CDBG Program and the CDBG regulations contained in 4 NCAC 19L.1004. B. Citizen Participation and Compliance Condition: No funds may be obligated or expended in any project activity except for the administration activity until DCA is provided with the following documentation of compliance with citizen participation requirements in the application process [4NCA 19L.1002(b)]: publisher's affidavits of notices for and minutes signed by the town (or the county as applicable) clerk of the two required public hearings. C. Floodnlain Condition: No funds may be obligated or expended in any project activity except for the administration activity until the recipient provides DCA with a certification signed by the CEO stating that the project area is not in a floodplain; or with certification that the recipient participates in the flood insurance program, all properties assisted in the project will be covered for flood insurance prior to beginning construction on the property, and all public facilities will be constructed to comply with the applicable floodplain regulations D. Administration Contracts/Inter-local agreements Condition: No funds may be obligated or expended in any project activity except the administration activity until the recipient has submitted either a copy of the contract awarded for administration of this grant or a statement signed by the CEO stating that the contract will be administered internally. County of Orange 07-C-1668 11 4. Funding Approval Conditions, Continued • E. Performance Based Contract Condition: No funds may be obligated or expended in any project activity except for the administration activity until the recipient has returned to DCA one copy of the properly completed Performance Based Contract signed by the CEO. F. Amendment Condition: No funds may be obligated or expended in any project activity except for the administration activity until the recipient provides written assurance that it commits to assisting the number of units as well as the financial feasibility on completing the number of units stated in the SSH application. In addition, the recipient must provide documentation that all units rehabilitated are considered real property. If the number of units to be assisted, the method of selection, or the policies that have been designed for this grant changes, the local government is responsible for following DCA amendment procedures. G. Closeout Condition No funds may be obligated or expended in any activity until closeout documentation has been received by DCA. H, Use of Experienced CDBG Administrator: No funds may be obligated or expended for the administration activity until the recipient has submitted a statement signed by the CEO stating that they will be using an experienced CDBG administrator, either local government staff, private consultant, regional planning commission staff . or non-profit staff to administer the project. I. Accomplishments & Beneficiaries Condition: No funds maybe obligated or expended in any project activity except for the administration activity until DCA is provided with the Accomplishments and Beneficiaries form for each activity J. LMI Map Condition: No funds may be obligated or expended in any project activity except the administration activity until the recipient provides DCA with the LMI and Minority Concentrations Map. County of Orange 2 07-C-1668 ~a 5. Signature of Authorized Official ~ /~ ~. V.~~-C_~i.~t. ~t Q ~to~ --- ioiotro7 Name Glori ance-Sims Date Director, Division of Community Assistance Title 6. Signature of Authorized Local Official Name Date Title County of Orange 3 07-C-1668 ~~ • ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION Whereas, Orange County has received a FY 2007 Community Development Block Grant (CDBG) Award for the Scattered Site Housing Rehabilitation Program in the amount of $400,000 from the N.C. Department of Commerce on October 1, 2007; and Whereas, these CDBG funds will be used for the repair of approximately twelve (12) substandard dwelling units in the Towns of Carrboro, Hillsborough and unincorporated Orange County; and Whereas, the Orange County Board of Commissioners approved the execution of the Grant Agreement and Funding Approval by the Chair of the • Board on November 5, 2007; and Whereas, throughout grant implementation, the N.C. Department of Commerce will require the execution of additional documents as required by the Grant Agreement and Funding Approval approved by the BOCC. NOW, THEREFORE, be it resolved, that the Orange County Board of County Commissioners hereby authorize the Chair of the Board to execute all documents required by the N.C. Department of Commerce -Division of Community Assistance for the implementation of the FY 2007 Community Development Block Grant Award for the Scattered Site Housing Rehabilitation Program. This, the 5~' day of November 2007. C, •