HomeMy WebLinkAboutAgenda - 09-19-2006-8aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 19, 2006
Action Agenda
Item No. ~-q
SUBJECT: CDBG Scattered Site Housing Rehabilitation Program
DEPARTMENT: Housing/Comm, Development PUBLIC HEARING: (Y/N) Yes
ATTACHMENT(S):
Program Summary
Program Revision
INFORMATION CONTACT:
Tara L, Fikes, 245-2490
PURPOSE: To conduct a public hearing to receive citizen comments regarding a change in the
dwelling units targeted for repair under the County s Community Development (CDBG)
Scattered Site Housing Rehabilitation Program.
BACKGROUND: Orange County submitted a formal application to the N,C. Department of
Commerce for $400,000 in Community Development Block Grant funds for a Scattered Site
Housing Rehabilitation Program. The grant was officially awarded in May 2004.
Funds from this grant will be used to repair approximately 15 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 October 2003
and August 17, 2004, the targeted units were identified by address, however, since that time,
circumstances such as death, ownership changes, and eligibility issues have required staff to
make substitutions among the targeted dwelling units.. Additionally, the average cost of
completing housing repairs of $33,000 per house also reduces the total number of houses to be
repaired from the original 2003 estimate from 15 to 10 dwellings. These changes were
discussed with state officials during a recent monitoring visit and they are anticipating this
proposed change in program design.
The attached document provides detailed information regarding the proposed program
revisions. These changes have been reviewed with our partners in the Towns of Carrboro and
Hillsborough and they are in agreement with the proposed changes.
In order to proceed with the housing rehabilitation program, the Department of Commerce
requires the County to conduct a public hearing regarding the proposed changes. All comments
received will be incorporated into the official program record for this program..
FINANCIAL IMPACT: This grant represents an available $400,000 for housing rehabilitation
activities in the County..
RECOMMENDATION(S): The Manager recommends that the Board receive comments as
information and authorize the staff to proceed with grant implementation.
2
Application Summary
Orange County Scattered Site CDBG Housing Rehabilitation Program
Background
Orange County 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 in May 2004. 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 is available for housing repair
The Program Selection Committee consisted 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 would 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 Mousing 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 were selected from the existing Housing Rehabilitation Program
waiting list according to date and time of waiting list placement.
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 are secured with a note and deed of trust recorded in the Orange
County Register of Deeds.
Program Schedule
Begin program implementation July 1, 2004
Complete program by December 31, 2006
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