HomeMy WebLinkAboutAgenda - 02-09-2006-7aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 9, 2006
Action Agenda
Item No. ~-q
SUBJECT: Community Development Block Grant Award - IDA Program
DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Program Summary Tara L, Fikes, 245-2490
Grant Agreement
Funding Approval Form
Signatory Form and Certification
Resolution
PURPOSE: To approve the execution of the Grant Agreement; Funding Approval Form;
Signatory Form and Certification cards; and Resolution for the FY 2005 Community
Development Block Grant Award,
BACKGROUND: Orange County has now been officially awarded a $50,000 Community
Development Block (CDBG) Grant from the N,C. Department of Commerce for an Individual
Development Account Program for first-time homebuyers with incomes below 80% of the area
median income, The County submitted a formal application for these funds in August 2005.
Funds from this grant will be used to match first-time homebuyer participant's savings for a
downpayment to purchase their first home. The match ratio is 2:1, For example, if a participant
saves $1,000 toward the down payment on a home, their savings are matched with $1,000 in
CDBG funding and $1,000 in local funding equating to a 2:1 match of local savings. A program
summary is attached,
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.
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 Ghair of the
Board of Commissioners for all documents required to meet the grant implementation
requirements for the FY 2005 CDBG Award in accordance with the Grant Agreement and
Funding Approval for this grant award,
FINANCIAL IMPACT: This grant represents an available $50,000 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 Farm
and Certification cards; and
2. The approval of the Resolution giving signatory authority to the Chair of the Board
of County Commissioners.
3
Application Summary
FY2005 Community Development Block Grant Program
Individual Development Account (IDA) Program
Background
Individual Development Accounts are dedicated savings accounts, similar in
structure to Individual Retirement Accounts (IRAs) that can only be used for purchasing
a first home in Orange County, They are managed by community organizations and
accounts are held at local financial institutions. Contributions for lower income
participants are matched using both private and public sources, Additionally, all
participants receive economic literacy training that shows them how to clean up their
credit, set up a budgeting and savings schedule, and teaches them the basics of money
management,
The N.C. Department of Commerce and the Division of Community Assistance
has set aside approximately $300,000 of Small Cities Community Development Block
Grant Funds for use in establishing IDAs. These funds will be awarded to applicants
supporting homeownership IDA programs.
Program Administrator
The Women's Center (TWC) successfully administered the County's FY 2001 IDA
program assisting 11 families in buying their first homes. TWC is very interested in
continuing to administer this program as a continuation of the prior years' program, The
organizations will carry out the key components of the program including outreach and
marketing, credit counseling, economic literacy training, financial counseling, account
monitoring and post-purchase counseling.
TWC will be working with several partners in the administration of this IDA program and
has the support of these partners:
Orange County
Habitat for Humanity of Orange County, NC, Inc.
EmPOWERment, Inc.
Orange Community Housing & Land Trust
SunTrust Bank
Brief Program Description
Twenty accounts will be set up for this IDA program. This is an appropriate number of
accounts considering the amount of funding available and staff time necessary to
administer the program.
Participants will be required to save a full $1000 during the course of the IDA program,
Savings account will be opened with a minimum $50 initial deposit and participants will
4
save a minimum of $50 per month that must come from earned income. The minimum
savings period will be six (6) months and the maximum/ideal savings period will be
twenty-four (24) months. In addition, participants will be counseled throughout the
program and especially after the purchase of their home that continued savings are
essential to deal with normal home and lawn maintenance and also far emergencies.
In the event of an emergency, participants may make only one (1) emergency
withdrawal and are required to inform the administrator of their intent to do sa.
Savings contracts will be signed at the IDA Orientation, Participants will be required to
save for at least the minimum period of time (six months) and may be required by the
administrator to save more than the program minimum of $50 per month if planning on
purchasing their home sconer than the maximum eighteen month time period. For
example, a participant planning on purchasing a home within twelve months may be
required to save a minimum of $75 - $85 per month to ensure that they will meet their
savings goal.
A participant may be disqualified from the IDA program if the participant:
• Has an income that exceeds 80% of the median income
• Provides the program with false information
• Misses more than two (2) deposits in the course of the program
• Saves for fewer than six (5) months
• Saves less than $1000 in eighteen (18) months
• Deposits savings that do not come from qualified earned income
• Does not participate in financial counseling or home ownership workshops
• Makes more than one (1) withdrawal from IDA savings account
Program Schedule
Begin program implementation October 2005
Complete program by September 30, 2007
IDA Program Projected Budget 2005-2007
IDA Savings Match
_ Amount # of families Total
CDBG Match $1,000 x 20 = $20,000
Oran e Coun Match $1,000 x 20 = $20,000
Total IDA Match $2,000 x 20 = $40,000
CDBG -Administrative
CDBG -Housing Services Budget
Service # of
Sessions Cost/
Participant # of
Participants
Total
Partici ant Recruitment $40/hour 75 hours $3,000
Design & U date Curriculum $40/hour x 35 hours $1,400
Orientation 1 x $45 x 20 = $900
Personal Finance Workbooks x $15 x 20 = ~ $300
Homebu er's Worksho s 6 x $45 x 20 = $5,400
Homebu er's Workbooks x $10 x 20 = $200
Individual Housing Counseling 1 x $45 x 20 = $900
Mone Wise Curriculum Materials $5 x 20 = $100
Housing Counselor Certification $10 _ x _ 20 = $200
Credit Counselor Certification $10 x 20 = $200
Individual Financial Counseling 6 x $45 x 20 = $5,400
Travel N/A N/A N/A = $200
Total Housing Services = $20,000
In-Kind Administrative & Housing Services Funding Match
Source Service Amount T pe of Match
Orange Count Government Administrative Ex ense -Sala $10,000 Cash
Orange Count Government Housing Services $5,000 Cash
The Women's Center Housing Services $5,000 Cash
Total Funding Matches $20,000
Total Budget -IDA Program
Source Amount
CDBG Savin s Match $20,000
CDBG Administrative Ex ense $10,000
CDBG Education Ex ense $20,000
Oran a Count Savin s Match $20,000
Oran e Coun Administrative Match $10,000
Oran e Count Housin Services Match $5,000
Women's Center Housin Services Match $5,000
TOTAL $90,000
6
North Carolina Department of Commerce
Division of Community Assistance
Community Development Block Grant Program
Grant Agreement
Individual Development Account (IDA)
Upon execution of this grant agreement, the North Carolina Department of Commerce
(DGC) 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 Bloclc 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 annendments to the approved application and
funding approval and the following general terms and conditions:
Definitions.. Lxcept to the extent modified or supplemented by the agreement, any
term defined in the North Carolina Community Development Block Grant'
Admhistrative 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 meurs the entity designated as a recipient for grant
assistance in the grant agreement and funding approvah
(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,
(f) The date for receiving the grant means the date of the DCA Director's
signature on the Grant Agreement and Funding Approval,.
7
3. 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 turd party or parties to undertake all
or any pazt 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 asswnption of environmental
responsibilities under Rule .1004 of the North Cazolina Community Development
Block Grant Administrative Rules, 4 NCAC 19L. If the recipient contracts with or
designates a third party to mrdertalce all or part of the program in exchange for a
grant or loans from the recipient to the turd party of all, or a portion, of the
recipient's grant funds, the recipient's contract with the third party must require the
turd party to comply wide 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,
druing the tenure of the subject person or for one year thereafter, shall have any
direct or indirect finuicial interest in any contract, subcontract or the proceeds
thereof for work to be performed in connection with the progrann 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 tlis
agreement, or the North Cazolina Community Development Block Grant
Administrative Rules, with respect thereto; provided, however, that reasonable fees
or bona fide tecluical, consultant, managerial or other such services, other than
actual solicitation, aze 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 (I-IUD), and
the Comptroller General at all reasonable times access to and the right to inspect,
copy, monitor, and exunine all of the books, papers, records, and other docmnents
relating to the grant for a period of five years following the completion of all close-
orrt procedures.
2
8
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, Exnendihue 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
prograzn regulations (4NCAC 19L).
9. Method of PaYrrrent. The Department of Commerce uses the Electronic Payment
Form fi°om the Office of State Controller (OSC) to make CDBG payments to units
of local govenunent. Payments on requisitions will be made only by electronic
funds transfer unless arrangements have been made with the Finance Officer in the
Division of Community Assistance,
10. Fair Housing. Por 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
banters 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 th'e
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 aze identified and made
available to low-income residents within the CDBG assisted area to the greatest
extent feasible. Tlus strategy must include (1) identification of training and
tecluucal assistance resources to prepare low-income residents for employment and
procurement opportunities, (2) attempts to reach the numerical targets for new lures
set forth in the Section .3 regulation, which applies to recipients receiving $200,000
or more in nori-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 azea about the components and opportunities of dre program,
1.3. Section 504 and ADA Recipients must complete the Section 504 Survey and
Transition Plan. This plan will not satisfy all the requirements of the Arnericans
with Disabilities Act, but it will meet the minimum requirements for a CDBG
assisted project.
14. Oblieation 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.
3
I5. 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 Cornpletion Activities. The recipient must
satisfy all conditions to release CDBG funds within three months (April 23,
2006) from the date 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 fmzds 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 and expend all funds
within 36 months (,January 23, 2009) 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 April 23,
2009. Consistent with Section ..1104 of the program regulations (4NCAC 19L),
based on review of the recipignt's performance for conformance with the approved
application and approved performance schedules, the Secretary of Commerce may
withdraw the grant, except for fimds already expended.
Upon execution of this agreement by DGC 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
c `~~ ~ ~
Date: January 23.2006 d By: ~_,~ ht.rd`~''
i oria Nance-Sims
Director
Division of Community Assistance
Date:
Name of Recipient
J By:
Signature of Authorized Official
(Title)
10
North Carolina Division of Community Assistance
Community Development Block Grant Program
Funding Approval
L Name and Address of Recipient
Orange County
Post Off ce Box 8181
Hillsborough, Nort1r Carolina 27278
2. C>rant Number and Funding Approval Date
Grant Number: OS-C-1454
Date of Original Funding Approval: January 23, 2006
Date of Amended Fmiding Approval:
3. Approved Project
Project Number and Name Approved Arnount
Orange County IDA Total Grant Award: $50,000
OS-C-1454
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 listeduz item (3), above:
A. Environmental Condition: No funds maybe obligated or expended in any activity
except for the payment of reasonable costs related to the planning, admirstration,
engineering, design and environmental assessments for the approved project until
the recipient has complied with the Enviromnental Review Procedures for the N.C.
CDBG Program and the CDBG regulations contained in 4 NCAC 19L.1004,
B. Administration Contract Condition: No funds may be obligated or expended in
any activity except for the administrative 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.
Orange County 1 OS-C-1454
C. Performance Based Contract Condition: No funds may be obligated or expended
for any project activity except for the administration activity until the grantee has
returned to DCA two copies of the properly completed Performance Based Contract.
D. Quarterly I2epm•ting Condition: No fluids may be obligated or expended for any
project activity except for the administration activity until the grantee has submitted
a statement signed by the lead administrator agreeing to report IDA pazticipant
progress to DCA on a quarterly basis in a mazmer defined by DCA.,
1;. Use of Experienced CDBG Administrator: No funds maybe obligated or
expended except the administrative activity mrtil die recipient has submitted a
statement that they will be using an experienced CDBG administrator, eidler local
govermnent staff, private consultant, regional planning commission staff or non-
profit staff to administer the project.
P. Executed Memm•andum of Understanding Condition: No funds may be
obligated or expended in any project activity except for die administration activity
until the recipient provides DCA wide a copy of the executed memorandum of
understanding between Orange Cormty and The Women's Center as the lead entity
for the Orurge Cormty IDA program.
G. Certified Housing and Credit Counselor Condition: No funds may be obligated
or expended except for the administration activity until the grantee has submitted
documentation for the certification of the housing and credit counselor drat is to
work with die IDA program as described in the application.
H. Citizen Participation Condition: No fuids may be obligated or expended except
for the administration activity until DCA is provided wide publisher's affidavits of
the published notices in a local newspaper as well as die certified minutes for the
two required public hearings for this grant in accordance with die citizen
participation requirements of 4 NCAC 19L.1002(b).
I. Participant Contract Condition: No fwrds may be obligated or expended for any
project activity, except for the administration activity, until the grantee provides
DCA with a copy of the contract that is to be used between the IDA lead entity and
the program participants..
Orange County 2 OS-C-1454
is
5. Signature of Authm~ized OfTcial jG~~ _,~./~J
y r ~,J6d+'
Nary e ~ orra~ns
Director, Division of Community Assistance
Title
6. Signature of Authorized Local Official
Name
Title
January 23.2006
Date
Date
Orange County 3 OS-C-1454
13
~,
0
Z
C
N
C7
~ .!=
.- tr
~ ~
K Q
fA A
N
O r-i
•r{
w x
N
m
Z
C y
N N
p N
U D
m 9
Q Q
to ~+
m a
~ ~
ro v
~ v
u ro s~
~, ~ Q
(.%' 1~i N
£ ~ ~
?v U C
~ •~
G W
~ ~
U N m
~ ~
0
u _ •~
h d Sa d ~
f- N F .C
~ ~ ~ ~ U
"~ ~ T D T
a~ x~ F
~ U m .[
~ E -a E .u
az "mz ~
~ ~ ~ ~i
h T a T rY+
a
Y €
o ~ a
E w
v
c
~'
~ c
LL >
N
0 0 0
c m
~
LL c
O m
=
O y Q
c
o °
~T c
o
'
°
~ -.
.
m o
d 1= ~ m
~ } ~
c
~ T
n
m
O m >
~ LT N
o -- ro -
`
~ O ~ o
N
~ t
N
D
,C ~- Cy N
O ~ C N t
dL U ~
~
ro ~
O ~
Q N Ol: >
~
c f0 _
.~ W
~~ r+y cE
~~ ~ o ~~-
W
c ~ ~ N
_
U O C
N c O
O N m O
w ~ u.
O ~ ~ ~
N O
N W w y
~ N O C
N ~p O d
~ N
°
~ N O. `~
o
«{ N V N O
o. ¢ ~ ~
~ c
c =aci mm
m 'Vi'a mo
N
: p U N r..
N .. p N N r
m
~
m a a m
~ p ~
~ a
ri O O d ~_ N
C> ~« CL
va L v~
p
W i- - O
r [V
w
m
O
O
14
RESOLUTION
Whereas, Orange County has received a FY 2005 Community
Development Block Grant (CDBG) Award for the Individual Development
Account Program in the amount of $50,000 from the N.C, Department of
Commerce on January 19, 2006; and
Whereas, these CDBG funds will be used to provide match funding for the
savings of a first-time homebuyer participating the local IDA Program at a 2:1
ratio; 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 Febnaary 9, 2006; and
Whereas, throughout grant implementation, the N,C, Department of
Commerce will require the execution of additional documents including
administrative and pertormance contracts 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 far the implementation of the FY 2005 Community
Development Block Grant Award for the Individual Development Account
Program,
This, the 9th day of February, 2006,