HomeMy WebLinkAboutAgenda - 03-01-2005-8aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 1, 2005
Action Agenda
Item No. g~tl
SUBJECT: FY 2005 CDBG Program -IDA Program
DEPARTMENT: Housing/Comm, Development
PUBLIC HEARING: (Y/N) Yes
ATTACHMENT(S):
INFORMATION CONTACT:
Tara L. Fikes, ext. 2490
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-:
PURPOSE: To receive comments trom the public regarding the development of a f Y 'LUUb
Community Development Block Grant (CDBG) Application for finds for an Individual
Development Account (IDA) Program.
BACKGROUND: The N.C. Department of Commerce announced the availability of
approximately $70,000 in Small Cities Community Development Block Grant Program (CDBG)
funds for the purpose of funding an Individual Development Account (IDA) Program in Orange
County for first-time homebuyers with incomes below 80% of the area median income.
Specifically, the 80% income limits are as follows: One-person household - $39,950; two-person
household - $45,650; three-person household - $51,350; and afour-person household -
$57,050.
IDAs are dedicated savings accounts, similar in strtacture to Individual Retirement Accounts
(IRAs), that can only be used for purchasing a first home, 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, For example, if a
participant saves $1,000 toward the down payment an a home, their savings are matched with
$1,000 in CDBG funding and $1,000 in local funding. 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 County just completed a FY 2001 IDA Program with 11 families fully participating in the
program and purchasing homes, The Women's Center served as program administrator.
This public hearing has been advertised in the Chapel Hill Herald, Comments received will be
used to develop a sound CDBG application.
FINANCIAL IMPACT: This grant provides the opportunity to apply for up to $70,000 in CDBG
funding for housing purposes. There is a $1 for $1 match requirement that the County should
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be able to meet with currently available resources through the HOME Investment Partnership
Program.
RECOMMENDATION(S): The Manager recommends that the Board receive comments from
the public as information in order to determine the feasibility of the development of a FY 2005
Community Development Block Grant (CDBG) Application for funds for an Individual
Development Account (IDA) Program.