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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. 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