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HomeMy WebLinkAboutAgenda - 11-05-2007-4jORANGE 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. 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. 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 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 O North Carolina Department of Commerce Division of Community Assistance Community Development Black Grant Program Grant Agreement Scattered Site J~Iousing {SSA 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 1 of the Tdousing and Community Development Act of 1974, (P.L. 93-383}, as amended, authorized by the DOC funding approval, the North Carolina Community Development Bloclc Grant administrative rules, applicable laws and all other requirements of D4C now or hereafter in effect. The grant agreement is effective an 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: 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 ar 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 undez• this agreement means the grant fluids provided uncles tlvs agreement. (e) Program means the coznznuzuty development program, project, or other activities, including the adzxzizustration thereof, for which assistance is being provided under tlus agreement. (~ The date for receiving the grant means the date of the DCA Director's ' signature on the Grant Agreement and Funding Approval. 2. ®bli~ations of the Recipient. The recipient shall perform the program as specified in the application approved~hy 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 specifically N. C. G. S. 87-1-87-15.9 and any other applicable laws and Executive Orders currently or lxereafter 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 paa•ty or parties to undertake all or any part of the program. The recipient shall comply with alt 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 Black 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 finds, the recipient's contract with the tlurd party must rectuire the thir~art~to comply with the procurement standards set forth in 4 N. C. Administrative Code 19L .0908. 4. Conflict of Interest. None of the following ar their immediate family members, dtuing 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 ill 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 ar 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 ifother-wise eligible as program costs. 5. Reimbursement to DOC for Improper 13xpenditw•es. The recipient shall (and does agree) to reimburse DOC for any amount of grant assistance improperly expended, either deliberately or non-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 fiends that had to be rettrined to DOC. 6. Access to Records. The recipient shall provide any duly authorized representative of DOC, the federal Department of Housing and Urhan Development {I IUD}, and the ComptY•oller 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 z ~~ to the grant for a period of five years fallowing the completion of all close-out procedures. All original files shall be maintained at the Local Goveriirnent 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-kind 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 firnds to be electronically transferred. Arrangements must be made with the Finance Ofhcer in the Division of Community Assistance if a recipient does not want to use the 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 feu housing. Guidance for developing a Fair Housing Plan can be found in DCA Bulletin 93-4. 11. Equal Emuloyment and Procruement 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 Re lug ation). 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 arid 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 resow•ces to prepare low-income residents for employment and procurement opporhuvties, {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 ofat least $100,000 per contract, and (3) education oflow-income residents within the CDBG assisted area about the components and opportnuities of the program. 13. Section 504 and ADA. Recipients must complete the Section 504 Survey and Transition Plan. This plan will not satisfy alI the requirements of the Americans with Disabilities Act, but it will meet tlae minimum requirements for a CDBG assisted project. 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 Bees: Assessments or fees to recover the CDBG funded portion of a utility project maybe charged to properties not owned and occupied by law 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 elate the Grant Agreement and Funding Approval were signed by the DCA Director. The recipient must draw down all CDBG funds, expend all loca] 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 ail funds within 27 months (January 2, 2010) from'the date the Grant Agreement and Funding Approval are signed by DCA•Director. All funds arc 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 Iater than the 28tt' month (I+'ebrua~y 1, 2010) from the date the Grant Agreement end Funding Approval were signed by the DCA Director. Consistent with Section .1104 of the prog~•am regulations {4NCAC 19L), based on review of the recipient's perfarnaance for conformance with the approved application and approved performance schedules, the Secretary of Commerce may withdraw the granfi, except for funds already expended. (b) Schedule far Submission of Compliance Documents. The recipient must submit the following compliance documents within the specified dumber of months from the date the Grant Agreement alid the Funding Approval were signed by the DCA Director: • Environmental - 3 months (January 2, 2008} • Equal Employment and Procurement Play ~ 4 months (February 1, 2008) • Fair Housing - 4 months (February 1, 2008) m Section 3 Plan - 4 months (February 1, 2008) ® Section 504 Plan - 4 months (February 1, 2008) • Request for Release of Funds - S months (March 1, 2008) • Analysis of Irnpediments - 6 months (April 1, 2008) (c) Schedule for Drawdown of Funds: The recipient must comply with the following schedule to ensure that fwrds are drawn down in accordance with section 16 (a} of this Grant Agreement; • 1St Period- 6 months (April 1, 2008) 20% drawn down ($80,000) • 2"~ Period -12 rnontltis (September 30, 2008} 40% drawn down ($160,000) a 3r`t Period -18 months (April 1; 2009) 60 % drawn down ($240,000) © 4`t' Period - 24 months (September 30, 2009) 80% drawn down ($320,000) • 5°i 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 Results Aet (GPRA) of 1993. Tlus 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 airy other data necessary to fulfill the requirements of the CPD Performance Measures System, which includes data for the Integrated Disbursement and Izzformation System (IUIS). Upon execution of this agreement by DOC and the recipient, the recipient hereb~epts the assistance on the terms of this zg •ant agreement effective on the date indicated below, and further certifies that the official signirr~ this document has been duly authorized by the rec~ient's g_overnin~ body to .execute this Giant Agreement. Secretary of the Department of Commerce Date: October 1, 2007 Cif By: ..a„~.-~1~--k- Gloria Nance-Suns Duector Division of Community Assistance Date: Name of Recipient f~l Rv: Signature of Authorized Official (Title) Its North Carolina Division of Community Assistance Community Development Bloclr Grant Program . ~~ Funding Approval 1. Name and Address of Recipient 2. Grant Number and Funding Approval Date County of Orange P O Box 8181 Hillsborough, North Carolina 27278 Grant Number: 07-C-1668 Date of Qriginal Funding Approval : 10/Ol/07 Date of Amended Funded Approval 3. Approved Projects ect Name Amount Scattered Site Housing Rehabilitation Program Total Grant Award 4. Funding Approval Conditions $400,000 $0 $aao,oao 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 maybe obligated or expended in any project activity except for 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 adnnistration 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. Floodplain Condition: No funds maybe 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 riot ul 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 admuiistration 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 Approved Amount 07-C-1668 ll 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 SSII 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 tl~e recipient has . submitted a statement signed by the CEO stating that they will be using an experienced CDBG administrator, either local goveriunent staff, private consultant, regional plaruiing commission staff or-non-profit staff to administer the project. I. Accomplishments & Beneficiaries Condition: No funds may be 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 Mau Condition: No funds may be obligated or expendedrn any project activity except the administration activity until the recipient provides DCA with the LMT and Minority Concentrations Map. County of Orange 2 07-C-1668 ~a 5. Signature of Authorized Official ~. Y.~-t~.~A...~.~~ ~~~~_ _ 10/01/07 Name Glori ance-Sims Date Director, Division of Community Assistance Title 6. Signature of Authorized Local Official Name Title Dafie County of Orange 3 07-C-1668 13 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 5th day of November 2007.