HomeMy WebLinkAboutAgenda - 09-21-2010 - 6aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 21, 2010
Action Agenda
Item No. (o - q
SUBJECT: Orange Co. Community Development (CDBG) Program - NC Economic
Recovery Program Application for $500,000
DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (Y/N) Yes
Community Development
ATTACHMENT(S): INFORMATION CONTACT:
Application Summary Tara L. Fikes, 919-245-2490
PURPOSE: To authorize the submission of an application to the N.C. Department of
Commerce for Small Cities Community Development Block Grant (CDBG) Program funds from
the NC CDBG Economic Recovery Program in the amount of $500,000.
BACKGROUND: On June 12, 2009, Orange County submitted an application to the N.C.
Department of Commerce -Division of Community Assistance for $500,000 in Community
Development Block Grant (CDBG) funds that the State of North Carolina received under the
American Recovery and Reinvestment Act of 2009 (ARRA). The funds were to be used for
housing rehabilitation, replacement housing, and emergency repair activities in the County.
That application was not successful last year; however, this year the Department of Commerce
has invited 36 communities (including Orange County) that were not funded last year to
resubmit their applications for this year's round of funding. There is approximately $20,792,113
available statewide under the Economic Recovery Program for 2010. Therefore, the County
proposes to resubmit the 2009 application for $500,000 in housing rehabilitation funds. It is
estimated that these funds will serve approximately 20 low-income homeowners with repair
needs.
Prior to submission of an application, at least one public hearing is required to receive
comments from the public regarding the grant application. A summary of the proposed grant
application is attached to this abstract. The public hearing was advertised in the local news
media as required by the County's Citizen Participation Plan. Comments received will be
included in the grant application that is due September 30, 2010.
FINANCIAL IMPACT: A successful application will provide an additional $500,000 in this
community for housing repair activities.
RECOMMENDATION(S): The Manager recommends the Board authorize the submission of
an application for Small Cities Community Development Block Grant Program funds to the N.C.
Department of Commerce from the NC Economic Recovery Program in the amount of $500,000
and authorize the Chair of the Board of County Commissioners to sign the application on behalf
of the Board.
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Application Summary
FY2010 Orange County Economic Recovery Program Application
Background
Orange County has received an invitation from the NC Department of Commerce -
Division of Community Assistance to re-apply for Community Development Block Grant (CDBG)
funds from the 2010 NC Economic Recovery Program. (An unsuccessful application was
submitted in June 2009.)
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.
Participant/Household Selection
Eight participants selected in 2009 will be resubmitted for reconsideration.
No extensive program marketing is anticipated at this time. The Housing, Human
Rights, and Community Development Department currently has a waiting list of
approximately 25 homes in need of rehabilitation assistance.
Terms of Assistance
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 Recapture Period
$15,000 and less 5 years
$15,000 and $25,000 10 years
$25,000 and above 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 eight (8) substandard dwelling units at
an average cost of $45,000 per unit. Clearance and relocation is proposed for one
severely dilapidated dwelling unit that will be replaced from the footing.
Budget
Housing Rehabilitation $359,000
Urgent Repair $100,000
Clearance/Relocation $ 16,000
Program Administration $ 25,000