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HomeMy WebLinkAboutAgenda - 03-20-2001-7aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 20, 2001 Action Agenda Item No. ~_~ SUBJECT: Oran a Count Housin Rehabilitation CDBG Pro ram DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): Resolution Application Summary INFORMATION CONTACT: Tara L. Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough 732-81$1 Chapel Hill 9fi8-4501 Durham fi88-7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public concerning the development of FY 2001 Housing .Rehabilitation Program Application and approve a resolution authorizing the submission of the formal application document on or about March 30, 2001 and authorize the Chair to sign the application document on behalf of the Board. BACKGROUND: The County was notified by the N.C. Department of Commerce -Division of Community Assistance of the award of $400,000 in Scattered Site Housing Rehabilitation funds under the FY 2001 Community Development Block Grant (CDBG) Program in late Fall 2000. These grant funds must be 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. These funds may nat be used in the Town of Chapel Hill since they receive Community Development Block Grant funding directly from HUD. In order to receive the funds a formal application must be submitted to the State. A public hearing was held on January 18, 2001 to receive citizen comments regarding the use of these grant funds prior to the development of the application document. No comments from the public were received at that time. After the hearing, County officials discussed this program with Carrboro and Hillsborough members of the Orange County HOME Review Committee. That committee agreed that this program would be an extension of the current HOME funded Orange County Housing Rehabilitation Program_ Thus, the same waiting list and program eligibility guidelines would be used for both programs. Further, the Division of Community Assistance requires each community to establish a Selection Committee for this grant. In order to avoid the creation of a new work group, the HOME Program Review Committee will serve as the Selection Committee for this grant and will also serve in a program monitoring capacity throughout grant implementation. The proposed application was not discussed with the Affordable Housing Task Force since there was discussion with the HOME Program Review Committee. The County Housing and Community Development Department administers the Orange County Single Family Housing Rehabilitation Program. The goal of the program is to repair substandard owner-occupied and rents! housing units owned and occupied by law-income families. The program is designed as a deferred loan program with fiive, ten, and fifteen-year , terms depending upon the amount of the loan. Since 1992, the primary source of funding for the program is the HOME investment Partnership Program, as well as funds from the CDB~G Program. To date, approximately 63 substandard homes have been repaired throughout the County under this program. The application has been prepared and approximately fourteen substandard (14) houses will be targeted for repair under this program. The specific houses have not been identified; however, the units will be selected from the existing housing rehabilitation waiting list and will be located in Carrboro, Hillsborough, and Orange County. Families at or below 50% of area median income will occupy all assisted units. In accordance with the Division ofi Community Assistance regulations, a second public hearing must be held to receive citizen comment before submission of the application. Comments received at this hearing wiN be incorporated into the application prior to submission on or before March 30, 2001. FINANCIAL IMPACT. Application for these funds represent an additional $400,000 available for affordable housipg initiatives in the County. REC©MMENDATION~S): The Manager recommends that the Board: 1) Receive citizen comments as additional information. 2) Approve the resolution authorizing the submission of the formal application document on or about March 30, 2001; and 3) Authorize tha Chaic to sign the application document on behalf of the Board.' 3 UItANGF CULJNTY -f3UAI~ OF CO1~~NIISSIUNEIiS RESULUI'lON AUTfIOR7LING AN APPLICATION FOR COMMUNITY DEVELOPl-7F:NT BLOCK GRANT FUNDS WI[EREAS, the County was notified by the N_C. Department of Commerce Division of Community Assistance of the award of 5400,000 in Scattered Site Housing Rehabilitation funds under the FY 2001. Community Development Black Grant (CDBG) Program; and W1l<F.REAS, an application for funding must be sent to the Division of Community Assistance on or before March 30, 2001 in order to receive the funds; and V4'IIEREAS, meant funds must be used to repair substandard pausing in the Tov~rns of Carrboro, Hillsborough, and unincorporated Orange County; and VVIIEREAS, these towns have expressed an interest in participating in this program with the County; and WIIEREAS, there is agreement that this program will operate as an extension of the current HOME funded Oran e County Housing Rehabilitation Program utilizing its waiting lists and program eligibility guidelines; NOW, 7'IIFREFORE BE IT RESOLVED by the Orange County Board of Cominissianers, that an application for F~' 200] Scattered Site Housing Program grant funds under the North Carolina Small Cities Conununity Development Block Grant funds is hereby authorized. The funds requested will be used to repair approximately fourteen (14) substandard dwelling units in the Towns of Carrbaro, Hillsborough, and unincorporated Orange County. The amount of the request will be $400,000. The application will be submitted an or about March 30, ZUU1. FURTHER, the Orange County Board of Commissioners authorizes the Chair of tpe Board to sign the application document on the County's behalf. This the 20a' day of Marcp 2001. 4 A lication Summa FY2D!01 Orange County Housing Rehabilitation Program Background .Orange County has received a Community Development Block Grant (CDBG) award in the amount of $400,000 from the N.C. Department of Ccimmerce -Division of Community Assistance. These grant funds must be to used to repair substandard housing occupied by low-income fiamilies in the Towns of Carrboro and Hillsborough as well as the unincorporated areas of Orange County. Approximately 10°!0 of the award can be used for program administration, thus, effectively $360,000 will be available for housing repair. Application Development Process In ,1992, the Towns of Carrboro, Chapel Hiil, Hillsborough, and Orange County formed the Orange County HOME Consortium for the purpose of participating in the first year of the state HOME Investment Partnership Program. In the next year, .the County HOME Cansortium was designated as a Participating Jurisdiction (PJ) under the federal program and has received a direct HOME allocation each year since then. Orange County is designated as the lead entity and is responsible for program administration. The Agreement also establishes a HOME Program Council comprised of a staff member from each jurisdiction to monitor .the program. This Council meets monthly to discuss HOME Program activities and works together closely to develop the Consolidated Housing Plan for the County and the yearly Annual Action Plan. Additionally, in late 2000, in the interest of involving elected officials in the Annual Action Plan development process .early, a HOME Program Review Committee was established. Membership in the Committee includes one elected official from each of the four consortium -member governments and the Manager or his designee from each jurisdiction. This group meets at least quarterly tv discuss program activities and to develop future spending plans. In preparation of this application, this Committee (minus the Town of Chapel Hill) has discussed the policies and procedures related thereto and have agreed that the policies and unit selection process will closely mirror those utilized in the current HOME fiunded Housing Rehabilitation Program. Further, the members of the HOME Program Review Committee, with the exception of the Chapel Hill members, will serve as the Selection Committee for the purposes of the Scattered Site Housing Rehabilitation Program. Discussions regarding this program took place at the January and March meetings of the Committee. 5 Selection Committee Members are: Margaret Brown, Orange County Commissioner John M. Link, Jr., County Manager Tara L. Fikes, Housing/CD Director Jacqueline Gist, Carrboro Alderman James Harris, Carrboro Economic and CD Director Kenneth Chavious, Hillsborough Town Commissioner Margaret Hauth, Hillsborough Planning Director 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 Housing Cade. 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/Hausehold Selection The Consortium has undertaken housing rehabilitation activities under the HOME Program yearly since its inception. Since 1992, over 100 families have contacted the County indicating a need for assistance from the Housing Rehabilitation Program. To date, approximately 41 substandard homes have been rehabilitated under this program. There are approximately 40 families on the waiting list for assistance. Program participants will be selected from the existing Housing Rehabilitation Program waiting list according to date and time of waiting list placement. In selecting participants, priority will be given to owners that lack indoor plumbing, or are elderly or disabled. The Selection Committee will prioritize the potential applicants and County staff will determine eligibility based on the above stated criteria.. The Housing Rehabilitation Program will be explained during an initial interview to gather information to determine program eligibility. No extensive program marketing is anticipated at this time since the number of families on the waiting list at the present time far exceed available resources. Terms of Assistance All CDBG financial assistance evil! be in the fiorm 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 will be secured with a note and deed of trust recorded in the Orange County Register of Deeds. Taraet Number of Substandard Units This program will target the repair of an estimated 14 substandard dwelling units at an average costs of $25,000 per 'unit. No clearance or relocation activities will be necessary. Bu, dget Housing Rehabilitation $360,000 Program Administration $ 40,000 Program Schedule. Submit application March 30, 2001 Receive funding decision May 3D, 200"1 .Begin program implementation June 1, 2001 Complete program by December 31, 2D03 :~ ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 20, 2001 Action Agenda Item No. _`~~Q _~: SUBJECT: Bud et Amendment #8 DEPARTMENT; Budget PUBLIC HEARING; (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Budget As Amended Spreadsheet Donna Dean 245-2151 CHCCS Smith Middle School Construction Capital Project Ordinance TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham fi88-7331 Mebane 33fi-227-2031 PURPOSE: To approve budget ordinance amendments and CHCCS Smith Middle School Construction Capital Project Ordinance. BACKGROUND: Department on Human Rights and Relations 1. On. March 6, 2001, the Board adopted a resolution that amended the present cooperative agreement between Orange County and the United States Department of Housing and Urban Development (HUD) for services related to the County's Human Rights and Relations Department. In accordance with the resolution, the Human Rights and Relations Department will receive an additional $10,000 to off set costs associated with the upcoming for the Southeast Regional Civil Rights Summit to be hosted by Orange County. The additional funds off set costs associated with the conference including training supplies, printing costs, space and equipment rental, and other administrative costs. This budget amendment provides for the receipt of these funds (see column #1, attachment 1). Chapel Hill-Carrboro City Schools 2. At its March 6, 2001 meeting, the Board approved a capital project ordinance for Chapel Hill- Carrboro City Schools Elementary School #9. The project ordinance provided project funding through the Planning Phase of the construction project. The funding sources for this phase included savings from the District's Smith Middle School Construction Project ($247,816) and an appropriation from the School Capital Projects Fund Balance ($192,462). This technical amendment provides the mechanism to allow for the transfer and to appropriate the fund balance. (See column #2 of Attachment 1 of this abstract and the Smith Middle School Construction Capital Project).