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HomeMy WebLinkAboutAgenda- 06-19-2018 12-7 - Information Item - Memorandum - Performance Improvement Plan Update MEMORANDUM TO: Orange County Board of Commissioners FROM: Annette M. Moore, Director RE: Performance Improvement Plan Update DATE: June 8, 2018 As you are aware the Orange County Fair Housing Assistance Plan program was placed on a 90- day Performance Improvement Plan by HUD in October 2017. The effective date of the Performance Improvement Plan was from November 1, 2017 through January 31, 2018, with a brief extension through February 7, 2018. On April 24, 2018 we were sent a letter from HUD indicating we had successfully completed all the requirements of the Performance Improvement Plan and had been deemed to be performing at an acceptable level. Attached you will find the letter outlining HUD’s findings. We are still waiting on a decision as to whether we will be recertified or not. I will keep you informed as I receive information. If you have any questions, don’t hesitate to contact me at (919) 245-2317. 1 9314 8000 3B60 0209 9892 92 00000007 yo U. 8, Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity, Region IV *!�c A t � Five Points Plaza fl I Ilj�f 40 Marietta Street. Ole Atlanta, Georgia 30303 -2806 CERTIFIED TAR, — RETURN RECEIPT RE' AND ELECTRONIC MAIL April 24, 2018 Bonnie Hamnrersley, County Manager Orange County North Carolina Government P.O. Box 8181 Hillsborough, NC 27278 -8181 Dear Ms. Hammersley: SUBJECT: Fair Housing Assistance Program (FHAP) Completion of Performance Improvement Plan (PIP) On October 10, 2017, the Orange County Human Relations Deparfinent (OCHRD) Nvas notified of its placement on a Pcrfonnance Improvement Plan (PIP) because of deficiencies noted during the onsite. performance assessment conducted June 29 -31, 2017, The PIP was originally effective for a 90 -day period from November 1, 2017 to January 31, 2018. A brief extension was requested and granted until February 7, 2018 to allow for the completion of all corrective actions. Below is an assessment of OCHRD'S performance during the PIP. A. Organizational Structure and Staffing: The corrective actions have been satisfied. The Orange County Board of Commissioners separated the Division of Human Rights and Relations in the Department of Housing Human Rights and Community Development. The division is now the Department of Harman Rights and Relations (DHRR), a separate department within Orange County government. The agency further demonstrated that the staff has the skills to administer the program or will obtain them through the implementation of a training plan and hired a new intake specialist. Additionally, the agency addressed the potential conflict of interest issue by indicating that the Director would not serve as the Staff Attorney for the DHRR. B. Performance Standard #1: Commence cornplaint proceedings, carry, forward such proceedings, complete investigations, issue determinations, and make final administrative dispositions in a timely manner. [24 C.F.R. § 115.206(e)(1)]. The corrective actions have been satisfied. Although the agency did not meet its original proposed deadline of January 16, 2018, all cases aged over 200 and 300 days were closed by February 7, 2018. At completion of the PIP, a case status update was received on February 27, 2018, indicating projected dates of completion that will prevent remaining cases from aging over 200 days. ® HUD's mission is to create strong, sustainable, inclusive communities and quality, affordable homes for all. rrr.� «wiv.hud.gov wmiw.hud.goyigeorgta espauol.hud.gov �i 9314 8000 3860 0209 9892 92 00000007 3 K C. Performance Standard #3: During the period beginning `vith the filing of a complaint and ending with filing a. charge or dismissal, the agency, to the extent feasible, attempts to conciliate the complaint. After the charge has been issued, the agency, to tine extent feasible, continues to attempt settlement until a hearing or a judicial proceeding has begun. [24 CFR § 115.206(e)(3)]. The corrective actions have been satisfied. A conciliation agreement template was provided to the GTM on January 5, 2018. The final version of the conciliation agreement template contained standard language that meets the FHAP Criteria for Processing. D. Perforinance Standard #4: The agency conducts compliance reviews for settlements, conciliation agree €vents, and orders resolving discriminatory, housing practices. 124 CFR § 115.206(e)(4)] The corrective actions have been satisfied. The agency submitted a conciliation agreement template which contained a provision authorizing it to conduct compliance reviews. The agency also identified the Civil Rights Investigator as the person responsible for conducting the review. F. Performance Standard #5: The agency must consistently and affinnatively seek and obtain the type of relief designed to prevent recurrences of discriminatory practices. 124 CFR § 115.206(e)(5)]. The corrective actions have been satisfied. The GTNI provided sample conciliations agreements to the agency prior to the start of the PIP which were used to develop its template. The agency fin-ther indicated that ongoing conciliation attennpts are consistently documented in HEMS. F. Perforinance ,Standard #9: The agency must conform its performance to the provisions of any written agreements executed by the agency and HUD related to substantial equivalence certification, including but not linnited to the interim agreement or MOU. [24 CFR § 115.206(e)(9)]. The corrective actions have been satisfied. The agency confirmed that it world conform to all written agreements executed related to its performance. During the PIP, the GTM and Director met frequently to discuss the agency's progress and exchanged ideas for fiirtlner improvements. G. Budget and Finance Requirements- Agencies that enforce antidiscrimination laws in addition to fair housing must provide annual certifications to HUD confirinirrg that it spends at least 20% of its total operating budget (not including FHAP funds) on fair housing activities. 124 CFR § 115.307(5)]. FHAP funds trust be segregated from the agency's and the state or local government's other fiords and must be used for the purpose that HUD provided the fiends. [24 CFR § 115.307(6)]. The agency draws down its funds in a timely manner. [24 CFR § 115307(9)]. The corrective actions have been satisfied. In collaboration with the FHAP Division Program Analyst, the GTM reexamined fitnatncial documents reviewing FHAP fiends expended by OCHRD from July t, 2014 to June 30, 2017. The Program Analyst and GTM also reviewed the Single Act Audit report year ending Jane 30, 2016 for Orange County, NC government. Although the Single Act Audit report did not reveal findings in the agency's 9314 8000 3860 0209 9892 92 00000007 4 FHAP, in several instances the report Indicated that the County needed a better internal controls framework over its federal awards, Wide the FHAP of Orange County has been structurally separated from its original entity, taken the auditor's recommetdatiotr into account, FHEO also suggests that the agency formalize internal policies and procedures on the handling of accounting for, and expenditure of FHAP fiends. Pursuant to 24 CFR §115.307(6), FHAP finds must be segregated fi•oni the agency's and the state or local govermnent's other fiends and must be used for the purpose that HUD [FHEO] provided the fiends. The agency submitted spending plans for FHAP Trauutig fiends and Administrative Cost filtlds on January 8, 2018 with costs totaling $36,791 and $38,090, respectively. 'Are are in the process of working with you to approve both plans. Once approved, please ensure that costs are appropriately allocated to the correct funding codes to avoid potential appearances of commingling futxis. With respect to timely drawdowns, the agency now has access to eLOCCS and has completed drawdown of Fir 2015 and FY 2017 Case Processing fiends in the amount of $15,400. A balance of $70,375.00 is in eLOCCS as of March 1, 2018 as depicted in the table below. Performance PcT�orl G' i t riutn6er Ttauui ?hdm�frafi� e T ©ts€I (eLOCCS FHAP Cash on Hand 566,050.00 $38,900.00 NIA 7/01/2014 -- 6/30/2015 FF204KI54022 $17,875.00 $6,000.00 $23,875.00 7/0112015 -- 6/30/2016 FF204KI64022 $16,250.00 $7,000.00 $23,250.00 7/01/2016 — 6/30/2017 FF204KI74022 $16,250.00 $7,000.00 $23,250.00 Total Funds Available $116,425.00 $58,900.00 $70,375.00 Lastly, the agency submitted financial documents as evidence that the previously misappropriated FHAP fiords had been reallocated to the FHAP accounting codes. H. Data Support Systeins Requirements: The corrective actions have been satisfied. OCHRD indicated that it has developed a plan for entering data in HEMS within 3 business days of receipt of the document, interview or other information. Additionally, it was indicated that the Case Closure Checklists will be uploaded to the Documents section of the HEMS case record and will be reviewed and sighed by the Director prior to submission to HUD. I. FoRo`v -up Updates: The agency Director was very responsive to HUD's request and met with the GTNI as required per the PIP. Based on the aforementioned, the OCHRD, now the DHRR, successfully completed the requirements of the PIP and the agency's performance has improved to an acceptable level. As a result, this serves as the closeout of the PIP. If, however, DHRR fails to continue to meet the 9314 8000 3860 0209 9892 92 00000007 5 4 performance standards, we may implement a new PIP or recommend the suspension of the agency's substantial equivalency certification in accordance with 24 CFR §115.210. We would like to express our thanks for the diligence and hard work that you and your staff maintained to correct the performance deficiencies. The results of this assessment of the agency's perforniance will be forwarded to the FHEO FHIP Division to assist them in evaluating whether DI-IRR continues to qualify for certification as a participant in the Fair Housing Assistance Program in accordance with 24 CF, R Part 115. We loom forward to a continued partnership in fitalrcring fair housing. If you have any questions please contact your GTNI, Lashelle klangrunr at (336) 851 -8042 or Branch Chief, Vicki Ray at (678) 732 -2446. Sincerely, 4��a Carlos Osegueda FHEO Region IV Director/Cooperative Agreement Officer Office of Fair Housing and Equal Opportunity cc: Annette Moore, Director Orange County Department of Human Rights and Relations P.O. Box 8181 Hillsborough, NC 27278 -8181 Copy distributed internally to HUD: Joseph Pelletier, FHAP Division Director