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HomeMy WebLinkAboutAgenda 08-14-2001 - 8m ' 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 14, 2001 Action Agenda Item No. —m SUBJECT: Community Development Block Grant Award — Housing Rehabilitation Program DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Program Summary INFORMATION CONTACT: Grant Agreement Tara L. Fikes, ext 2490 Funding Approval Form Signatory Form and Certification TELEPHONE NUMBERS: Resolution Hillsborough 732-8181 Grant Project Ordinance Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To approve the execution of the Grant Agreement; Funding Approval Form; Signatory Form and Certification cards; and Resolution for the FY 2001 Community Development Block Grant Award and adopt a Grant Project Ordinance for the 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 late Fall 2000 and was invited to submit a formal application in March 2001. Funds from this grant will be used to repair approximately 14 substandard housing occupied by low income families in the Towns of Carrboro and Hillsborough as well as the unincorporated areas of Orange County. See the attached program summary. In order to proceed with grant activities, the attached Grant Agreement, Funding Approval form, and Signatory Form and Certification must be executed by the Chair of the Board and returned to the N.C. Department of Commerce. Additionally, in order to receive the funds, a Grant Project Ordinance must be adopted by the BOCC. Further, many grant implementation documents that were signed in previous years by County staff are now 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 2001 CDBG Award in accordance with the Grant Agreement and Funding Approval for this grant award. A 2 FINANCIAL IMPACT: This grant represents an available $400,000 for affordable housing initiatives in the County. RECOMMENDATION(S): The Manager recommends that the Board approve 1. Execution of the Grant Agreement; Funding Approval Form; and Signatory Form and Certification cards; 2. The adoption of the Grant Project Ordinance for this grant award; and 3. The approval of the Resolution giving signatory authority to the Chair of the Board of County Commissioners. r 2a Application Summary FY2001 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. In January 2001, a Program Selection Committee was formed as an extension of the HOME Program Review Committee. Members of the Committee are as follows: Margaret Brown, Orange County Commissioner John M. Link, Jr., County Manager Tara L. Fikes, Housing/CD Director Jacqueline Gist, Carrboro Alderman James Harris, Carrboro Economic and CD Director Kenneth Chavious, 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. 2b ; 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 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 exceed 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 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 14 substandard dwelling units at an average costs of $25,000 per unit. No clearance or relocation activities will be necessary. Budget Housing Rehabilitation $360,000 Program Administration $ 40,000 Program Schedule Begin program implementation September 1, 2001 Complete program by December 31, 2003 i 3 North Carolina Department of Commerce I_ C_ Division of Community Assistance Community Development Block Grant Program Grant Agreement 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: 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 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. 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 certifications pursuant Paragraph(e) of Rule .0407 of the North Carolina Community Development Page 1 4 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. 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. 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 five years following the completion of all closeout 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. Page 2 5 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 Pa ment. The Department of Commerce uses the STEP-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 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 of low-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 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. ' Page 3 6 16. Schedule for Release of Conditions and Completion Activities. The recipient must satisfy all conditions to release CDBG funds within six months of receiving the grant, and draw down all CDGB 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 and spend all funds within 30 months from the date the Grant agreement and Funding Approval is signed by the DCA Director. The timetable for completion activities may be extended, as warranted by extenuating circumstances beyond the control of the recipient local government, through amendments to the application approved by the Division. Consistent with Section .1104 of the program regulations (4NCAC 19L), based on review of the recipient's performance for conformance with the approved application approved performance schedules, the Secretary of Commerce may withdraw the grant, except for funds already expended. 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: June 15, 2001 H By: `44o William A. McNeil, AICP Director Division of Community Assistance Date: Name of Recipient CamI By: Signature of Authorized Official r Page 4 J , 7 ICA North Carolina Division of Community Assistance Community Development Block Grant Program Funding Approval 1. Name and Address of Recipient Orange County 200 S. Cameron Street Hillsborough,North Carolina 27278 2. Grant Number and Funding Approval Date Grant Number: 01-C-0799 Date of Original Funding Approval: June 15,2001 Date of Amended Funding Approval: 3. Approved Projects Project Number and Name Approved Amount SSH-1 Orange County Scattered Site Housing $400,000 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 activity except for the payment of reasonable costs related to the planning,administration,engineering, design and environmental assessments 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. County of Orange 1 01-C-0799 S FUNDING APPROVAL 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 [4 NCAC 19L.1002]: 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. F000dplain 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 that the project area is not in a floodplain;or with certification that the recipient participates in the flood irmirance 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. 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. F. SSH Disclosure Form: 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 SSH Disclosure Form. G. 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. County of Orange 2 01-C-0799 9 t 5. Signature of Authorized Official VO Name William A. McNeil Director. Division of Community Assistance �O Or� Title Date 5. Signature of Authorized Local Official v Name Title Date County of Orange 3 01-C-0799 10 SIGNATORY FORM AND CERTIFICATION Grant No. 01-0-0799 Recipient Name Orange County Address: P•0. 8181 Hillsborough, N.C. 27278 Signatures of individuals authorized to sign Requisition for Funds forms.(Two signatures required on each requisition.) John M. Link.,, County Manager (Signature) (Typed Name) (Typed Title) Roderick Visser, Asst. County Manager (Signature) (Typed Name) (Typed Title) Kenneth T. Chaxious, Finance Director (Signature) (Typed Name) (Typed Title) (Signature) (Typed Name) (Typed Title) CERTIFICATION 1_ ( ) 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. Certifving Official + Title b 11 RESOLUTION Whereas, Orange County has received a FY 2001 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 June 15, 2001; and Whereas, these CDBG funds will be used for the repair of approximately fourteen (14) 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; and Signatory Form and Certification by the Chair of the Board on August 14, 2001; 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 2001 Community Development Block Grant Award for the Scattered Site Housing Rehabilitation Program. This, the 14"' day of August, 2001. a t 12 Scattered Site Housing Rehabilitation Program - 2001 Grant Project Ordinance Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby adopted. Section 1. The project authorized is the Scattered Site Housing Rehabilitation Program — 2001 as awarded to Orange County Housing/Community Development by the North Carolina Department of Commerce through the Community Development Block Grant Program. The project will provide repairs to approximately fourteen (14) substandard dwelling units occupied by low income families in the Towns of Carrboro and Hillsborough, as well as the unincorporated areas of Orange County. Section 2. The officers of the County are hereby directed to proceed with the grant project within the grant document, and the rules and regulations of the North Carolina Department of Commerce. Section 3. The following revenue is anticipated to be available to complete this project: Intergovernmental(2001-02) $400,000 Section 4. The following amount is appropriated for this project: Housing/Community Development-Housing Rehabilitation $400,000 Section 5. The finance officer is hereby directed to maintain within the Grant Project sufficient specific detailed accounting records to provide the accounting to the grantor agency. Section 6. Funds may be advanced from the General Fund for the purpose of making payments due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner. Section 7. Copies of this grant project ordinance shall be made available to the finance officer for direction in carrying out this project. Section 8. This project ordinance is in effect through June 30, 2002. Adopted this 14th day of August 2001.