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Application Summary
FY2004 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 Scattered Site Grant,
will consist of the HOME Program Council members from Carrboro, Hillsborough, and
the County. Currently serving in that capacity are:
Margaret Brown, Orange County Commissioner
Tara L. Fikes, Housing/CD Director
John Herrera, Carrboro Alderman
James Harris, Carrboro Economic and CD Director
Eric Hallman, Hillsborough Town Commissioner
Margaret Hauth, Hillsborough Planning Director
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.
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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 45 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
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 15 substandard dwelling
units at an average cost of $24,000 per unit. No clearance or relocation
activities will be necessary.
Budget
Housing Rehabilitation $360,000
Program Administration $ 40,000
Program Schedule
Begin program implementation July 1, 2004
Complete program by -October 1, 2006
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North Carolina Department of Commerce
Division of Community Assistance __
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 rules, 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:
Defmitions. 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 funding 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 grant
funds provided under this agreement.
(e) Program means the community development program,
project, or other activities, including the administration
thereof, for which assistance is being provided under this
agreement.
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(f) The date for receiving the grant means the date of the DCA Director's
signature on the Grant Agreement and Funding 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 comply with all other lawful requirements of DOC, all applicable
requirements of the General Statutes of the State of North Carolina and any other
applicable laws and Executive Orders currently or hereafter in force.
3. Obligations of Recipient with Respect to Certain Third Party 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 from the recipient to the third party 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 comply 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 under 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 Improper Expenditures. The recipient will
reimburse DOC for any amount of grant assistance improperly expended.
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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 all reasonable times
access to and the right to inspect, copy, monitor, and examine all of the
books, papers, records, and other documents relating to the grant for. a period _
of three years foIlowing the completion of all close-out procedures.
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.
8. Expenditure of Non-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-CDBG expenditures 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 STEPS-OUT system
for CDBG payments to units of local government. Payments on requisitions will be
made only by electronic funds 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. Equal 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 and complaint tracking.
12. Local Economic Benefit (Section 3 Regulation). 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 tazgets 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 of low-income residents within the
CDBG assisted area about the components and opportunities of the program.
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13. Section 504 and ADA. Recipients must complete the Section 504 Survey 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.
14. Obligation of Recipient With Regard to Vacant Units. The recipient shall ensure
that all vacant units being rehabilitated will be occupied by a low or moderate
income family 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. Schedule for Release of Conditions and Completion Activities. The recipient
must satisfy Funding Approval Conditions to release CDBG funds within 90
days (June 29, 2004) from the- date (April 1, 2004) the Grant Agreement and
Funding Approval are 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 Contract. The recipient must obligate
all funds within 27 months (July 1, 2006} from the date the Grant Agreement
and Funding Approval are signed by the DCA Director. All funds are to be
expended within 30 months (October 1, 2006) from the date the Grant
Agreement and Funding Approval are signed by the DCA Director. Any
remaining funds will be de-obligated. All closeout documents must be
returned to DCA by (January 1, 2007). 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.
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Upon execution of this agreement by DOC and the recipient, the recipient hereby accepts
the assistance on the terms of this grant agreement effective on the date indicated below,
and further certifies that the official signing this document has been duly authorized by the
recipient's governing body to execute this Grant Agreement.
Secretary of the Department of Commerce
Date: April 1, 2004 Q By: l~-,~-e- -
Gloria Nance-Sims
Director
Division of Community Assistance
Date:
Name of Recipient
Q By:
Signature of Authorized Official
(Title)
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NortL Carolina Division of Community Assistance
Community Development Block Grant Program
Funding Approval
1. Name and Address.. of Recipient 2. Grant Number and Funding Approval Date
Orange County Grant Number: 04-C-1239
~P O Box 8181 Date of Original Funding Approval : 4/1/2004
Hillsborough, North Carolina 27278 Date of Amended Funded Approval:
3. Approved Projects
Project Number and Name Approved Amount
Scattered Sites Housing Rehabilitation Program $400,000
Total 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 activity except for the payment of reasonable costs
related to the planning, administration, engineering, desing and environmental assesments for the
approved 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. 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.
C. 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.
D. 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 stated in the SSH application and 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.
E. Disclosure Report Condition•
No funds may be obligated or expended in any project activity except the administration activity
until the recipient has returned to DCA one copy of the properly completed Disclosure Report
Form.
4. Funding Approval Conditions, Continued
F. Closeout Condition
No funds may be obligated or expended in any activity until closeout documentation has been
received by DCA.
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County of Orange 2 04-C-1239
12
5. Signature of Aut orized Official
- ~ -
Name _ Gloria Nance-Sims
Director, Division of Community Assistance
Title
04/01/04
Date
6. Signature of Authorized Local Official
Name
Title
Date
County of Orange 3 04-C-1239
SIGNATORY FORM AND CERTIFICATION
Recipient Name ~,._Or.ange County
Address: P . 0 . Box 8181
Hillsborough, N.C. 27278
Grant No. 04~ C-12 3 9
Signatures of individuals authorized to sign Requisition for Funds forms. (Two signatures required on each requisition.)
Kenneth T. Chavious,Fin~nce Director
.~~T......-.~
(Signature) (Type ~lamej (i'yped i lej ~'~~^~ ,
Roderick Visser, Asst. County Manager
(Signature) (Typed Name) (Typed Title)
(Signature)
Gwen Harvey, Asst. County Manager
(Typed Name) (Typed Title)
(Signature)
(Typed Name) (Typed Title)
CERTIFICATION
~. () I certify that the signatures above are of the individuals authorized to sign Requisition for Funds form for the
above recipient.
Certifying Official + Title
2. ()The governing board has passed a resolution authorizing the persons above to sign Requisition for Funds forms
for the above recipient. A copy of the resolution is,attached.
I certify that the signatures above are those of the individuals authorized by resolution of the governing board
of the recipient to sign Requisition for Funds forms.
Certifying Official + Title
First quarter be¢ins on the date of DCA Director's si¢nature on the Grant A¢reement and Fundine Approval
List goals to be accomplished each Qusrter.
lst Quarter 2nd Quarter 3rd Quarter 4th Quarter 5th Quarter 6th Quarter 7th Quarter 8th Quarter 9th Quarter 10th Quarter
Process % Process % Process % Process % Process % Process % Process % Process % Process % Process
Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed
Description Description Description Description Description Description Description Description Description Description
1. Administrative Activities
a Grant Agreement/Funding Approval
1~~~
b. Environmental Condition
1~~%
c. Citizen Participation Condition
1 00°~
d. Flood Plain Compliance Condition
1 ~0~
e. Other Conditions
1~~~
F~+
i
Fi~uarter be¢ina oa the date of DCA Director's sienature on the Grant A¢reement and Fuadin¢ Approval
List goals to be accomplished each Quarter. Activities should correspond to those on the Budget and National Objective Part A Benefit: Low and Moderate Income forms in application approved far funding.
Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Sth Quarter 6th Quarter 7th Quarter 8th Quarter 9th Quarter 10th Quarter
%Units %Units %Units %Units °h Units %Units %Units %Units
2. Housing Activities
a Relocation
b. Acquisition
o. Disposition
d. Clearance
e. Rehabilitation of Privately
owned dwellings
(Includes any on-site
installations; e.g., septic 13 . 2 6 . 3 9 .5 2 .6 5 .7 8 .91 10 0 10 0%
tanks, wells)
f. Units Constmcted
g. Units Occupied
2 4 6 8 10 12 14 15 15
S: PROGDEV: CR:PFMBASE
F-+
N/ A
List Flrst quarter 6eains on the date of DCA Director's si¢nature on the Grant AEreement and Fund[n¢ Approval.
goals to be accomplished each Quarter. Activities should correspond to those on the Budget and National Objective Part A Benefit: Low and Moderate Income forms in application approved for funding.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 5th Quarter 6th Quarter 7th Quarter 8th Quarter 9th Quarter 10th Quarter
%Process %Process %Process %Process %Process %Process %Process %Process %Process %Process
Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed
Description Description Description Description Description Description Description Description Description Description
3. Water Improvements.
Engineering
Bidding Process
Contract Awarding
Conswcti on/lnstal lation
Work Completed
4. Sewer Improvements
Engineering
Bidding Process
Contract Awarding
Work Construction
Work Completed
5. SUeet Improvements
Engineering
Bidding Process
Contract Awarding
Construction/Install ation
Work Completed
6. Drainage Improvements
Engineering
Bidding Process
Contract Awarding
Constmctio n/Instal lation
Work Completed
7.Other Improvements
Work Completed
8. Signature of Authorized Local Official
Barry Jacobs
Name
Chair, Orange County Bd. of County Commissioners
Title
9. Signature of Authorized DCA Official
Name Gluria Nance-Sims
Director, Division of Communitv Assistance
Title
Date
Date
Fr
V
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RESOLUTION
Whereas, Orange County has received a FY 2004 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 April 1, 2004; and
Whereas, these CDBG funds will be used for the repair of approximately
fifteen (15) 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, Funding Approval; Signatory Form and
Certification; and Performance Based Contract by the Chair of the Board on May
18, 2004; 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 2004 Community
Development Block Grant Award for the Scattered Site Housing Rehabilitation
Program.
This, the 18~' day of May 2004.