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HomeMy WebLinkAboutAgenda - 05-18-1993 - VIII-A 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ViIL-A ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 1993 SUBJECT: Efland CDBG Application - Financial Contribution DEPARTMENT: Housing/Community Dev. PUBLIC HEARING YES: NO: x ATTACHMENT(S) : INFORMATION CONTACT: Tara L. Fikes TELEPHONE NUMBER- Hillsborough - 732-8181 Chapel Hill - 968-4501 Mebane - 227-2031 Durham - 688-7331 PURPOSE: To authorize a financial commitment of an amount not to exceed $130,000 to the Efland CDBG Project and authorize the Chair to sign a letter of commitment to the N.C. Department of Commerce on behalf of the Board. BACKGROUND: The N.C. Department of Commerce requires all applicants for CDBG funding under the Community Revitalization category to contribute local funds to the proposed project. This contribution must be in the form of cash and must come from the County general fund. No in-kind contributions are recognized under this requirement. As you may recall, the Board of County Commissioners approved a total of $125,000 in local funds for the Rencher Street CDBG project awarded in 1988. Activities in this project included housing rehabilitation, relocation of families from dilapidated property, water/sewer improvements and street improvements. Further, the Board 1 authorized a contribution .of $130,000 to this project towards our FY1992 application which was unsuccessful. County staff has investigated the level of financial 1 contributions of other County applicants in the state in past years. Based on this research and other knowledge of the State's ranking system, Orange County should contribute an amount equal to roughly 20 - 25% of the total amount of CDBG funds requested. The maximum amount of CDBG funds available is $600,000, thus, a contribution of $130,000 would represent a 22% participation level. These funds must be pledged at the time of application by a letter of commitment but would not have to be budgeted until the project is funded. Therefore, if the CDBG application is successful, these funds could be budgeted in the subsequent budget years 2 No community in the State of North Carolina has received CDBG funding without making a financial contribution. Therefore, a financial commitment form the County is essential in designing a competitive application. County funds would not be required until FY 94-95 at the earliest. RECOMMENDATION(S) : The Manager recommends that the Board authorize a financial commitment of an amount not to exceed $130,000 to the Efland CDBG Project, with staff to develop recommendations during the next year on financing the County share from either operating or capital funds; and authorize the Chair to sign a letter of commitment to the N.C. Department of Commerce on behalf of the Board.