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HomeMy WebLinkAboutAgenda - 11-04-2010 - 6bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 4, 2010 Action Agenda Item No. (o - b SUBJECT: Orange County Community Development Block Grant (CDBG) Program - FY 2010 Scattered Site Housing Rehabilitation Program - $400,000 DEPARTMENT: Housing, Human Rights, and Community Development PUBLIC HEARING: (YIN) Yes ATTACHMENT(S): Resolution Application Summary INFORMATION CONTACT: Tara L. Fikes, 919-245-2490 PURPOSE: To receive public comments regarding a proposed FY 2010 Housing Rehabilitation Program Application and approve a resolution authorizing the submission of the formal application document on November 15, 2010 and authorize the Chair to sign the application document on behalf of the Board. BACKGROUND: The County was recently notified by the N.C. Department of Commerce - Division of Community Assistance of the award of $400,000 in Scattered Site Housing Rehabilitation funds under the FY 2010 Community Development Block Grant (CDBG) Program. These grants are no longer competitive, and each interested county in North Carolina is scheduled to receive an allocation every three years to provide housing rehabilitation funds for the county and the municipalities within the county. Orange County received $400,000 in housing rehabilitation funds in 2001, 2004 and 2007. These grant funds must be 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. These funds may not be used in the Town of Chapel Hill since it receives Community Development Block Grant funding directly from HUD. In prior years, these funds have repaired approximately 36 dwelling units in the County. Families with incomes at or below 50% of area median income that own and occupy deteriorated housing are eligible to participate in the program. For the purpose of this program, deteriorated housing are dwelling units that that have existing housing code violations including houses that lack indoor plumbing. In order to receive this funding, the County must conduct two public hearings. The first hearing was held at the Board's October 5, 2010 regular meeting and provided an opportunity for public comments prior to developing an application. After the hearing, County staff discussed this program with Carrboro and Hillsborough members of the Orange County HOME Review Committee on October 14, 2010. That committee agreed that this program would continue to be an extension of the current HOME funded Housing Rehabilitation Program; thus the same waiting list and program eligibility guidelines would be used for both programs. Further, the 2 Division of Community Assistance requires each community to establish a Selection Committee for this grant. The existing Orange County HOME Review Committee will continue to serve in this capacity. This second hearing has been scheduled after the application has been completed but prior to submission to the N.C. Department of Commerce as required in the application guidelines. An application summary is provided as an attachment. All comments received will be included in the application document. FINANCIAL IMPACT: Application for these funds represents an additional $400,000 available for affordable housing initiatives in the. County. RECOMMENDATION(S): The Manager recommends that the Board: 1) Receive public comments as additional information; 2) Approve the resolution authorizing the submission of the formal application document on November 15, 2010; and 3) Authorize the Chair to sign the application document on behalf of the Board. 3 ~i~.S•a010~08(0 RESOLUTION AUTHORIZING AN APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHEREAS, the County was notified by the N.C. Department of Commerce - Division of Community Assistance of the award of $400,000 in Scattered Site Housing Rehabilitation funds under the FY 2010 Community Development Block Grant (CDBG) Program; and WHEREAS, an application for funding must be sent to the Division of Community Assistance on or before November 16, 2010 in order to receive the funds; and WHEREAS, grant funds must be used to repair substandard housing in the Towns of Carrboro, Hillsborough, and unincorporated Orange County; and WHEREAS, these towns have expressed an interest in participating in this program with the County; and WHEREAS, there is agreement that this program will operate as an extension of the current HOME funded Orange County Housing Rehabilitation Program utilizing its waiting lists and program eligibility guidelines; NOW, THEREFORE BE IT RESOLVED by the Orange County Board of Commissioners, that an application for FY 2010 Scattered Site Housing Program grant funds under the North Carolina Small Cities Community Development Block Grant funds is hereby authorized. The funds requested will be used to repair approximately ten (10) substandard dwelling units in the Towns of Carrboro, Hillsborough, and unincorporated Orange County. The amount of the request will be $400,000. The application will be submitted on or about November 15, 2010. FURTHER, the Orange County Board of Commissioners authorizes the Chair of the Board to sign the application document on the County's behalf. This the 4th day of November 2010. 4 -Application Summary FY2010 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 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, 2004, and 2007 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. Participant/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 36 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. 5 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 $12,000 and less $12,000 and $16,000 $16,001 and $20,000 $20,001 and more Recapture Period 5 years 6 years 7 years 8 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 10 substandard dwelling at an average cost of $36,000 per unit. No clearance or relocation activities will be necessary. Budget Housing Rehabilitation $360,000 Program Administration $ 40,000 Program Schedule Begin program implementation April 1, 2011 Complete program by September 30, 2013