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HomeMy WebLinkAboutAgenda - 12-09-2003-8hORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 9, 2003 Action Agenda Item No. _ SUBJECT: Housina Bond Proaram - OPC Foundation for Mental Health DEPARTMENT: Housing/Comm., Development PUBLIC HEARING: (Y!N) No ATTACHMENT(S): INFORMATION CONTACT: 1997 Bond Program Status Report Tara L. Fikes, ext, 2490 Letter from Jefferson Parker TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 rurcrust: i o approve the transfer of the appropnanon or ~~uu,uuu rn Housing tsona funding from the Club Nova Apartment Complex sponsored by the OPC (Orange-Person- Chatham) Foundation far Mental Health and the N,C. Mental Health Association to a proposed property acquisition project for homeless, disabled adults and families. BACKGROUND: In November 1997, Orange County voters approved a $1,8 million dollar housing band issue. Affordable housing projects were awarded funding in December 1999 and June 2001, A Status Report of these projects is attached to this abstract, In May 2002, the Board of County Commissioners (BOCC) approved $300,000 in housing bond funds to assist in the development of the Club Nova Apartments in Carrboro by OPC Foundation for Mental Health and the NC Mental Health Association, Club Nova Apartments will contain 24 one-bedroom units and will be at 103 West Main Street in Carrboro behind the existing Club Nova building, All units will serve families with disabilities and with incomes below 30% of Orange County's median income level. The project developers now believe that the previously committed bond money will not be needed for the project, Therefore, OPC Foundation for Mental Health is now asking that these funds be made available to serve as the required match far $300,000 in Continuum of Care funds awarded to the agency by the US Department of Housing and Urban Development (HUD) last year, The agency plans to use the money for the acquisition and rehabilitation of housing units for lease by homeless, disabled adults and small families as detailed in the attached memorandum from Jefferson Parker. FINANCIAL IMPACT: Band funds awarded to this project represent an expenditure of $300,000 of the $1.8 million dollar Affordable Housing Bond approved in November 1997, RECOMMENDATION(S): The Manager recommends the approval of the transfer of the appropriation of $300,000 in Housing Bond funding from the Club Nova Apartment Complex sponsored by the QPC Foundation for Mental Health and the N,C. Mental Health Association to a proposed property acquisition project for homeless, disabled adults and families, E DI O 'O O o C QN ~] ~' ° m m ~ C 7' ~ _N `p O ~ ~ N rn _ ~ o 0 0 d c m E °' N N O ° ~ v u ~ y ° E ~ E u u C ~ m U U a~ o o _ _ _ _I _._ _ .~. .__ __ -. - - n I o ( I 3 9 N N N '1 p N N N L N n n o m c m m ' ~ a ~ i a ~ ~ n _ ..._ . . ..... m _ _ _ _ _ _ _ _ _ _ _ . _... 0 O _ _ _ - ._ -o. O _ _ _ O O o O o O C N O O O O O E u °o ~ ° ~ m ro p , ~ . - v v E a a c U to W _ - _ _ f9 _ _ V __ i _ _ ff3 _ __.~ . w O _ --_ _ ._ i _. O ~ _ _ _ __ _ _ _ O O O ' V tp N N N O O ° N ~ E ~ Y J E ~ n M m U U' G ~ (A to W [ fl lA W ~ m N N o C K ~ l p i p d a (n `» v3 ~» va v a w _._ ._ . - _ ~. _ LL._ -" y m c p.~ o 0 O 0 m 0 o 0 ~ °o o o O o o a w °o 0 o 0 o 0 ~ ° ° ° ° N cb o 0 0 ~ ' rn m v m a o i .. n E O C tO M N .- r W oa U w w v~ w o w e» vi w w _ _. O _ _O _ _ _... 0 .__ _ _ _ __.. N O ~. O O 0 .y.. -- ry E O N O N O N NO m m m .. d ro W ~ 1'p t0 tp lS (D E p ~, _ m o 0 o m o E ~ .- 0 v - _.... - - - - - - - - - - -- - -- rn - - - - --- ~ C u N ~~~yYyY = C C ~ ~ O Q V! p r~' C ~ c N E E p c v .~ rv U ` ff VV1I ¢ E °m ~ ~ E ~ c a~i y o ff Z c o ~ W p p ~a ~ - = i x N m o N 'S ~ ~ m m ~ t U ~ d ~ ~ m O a m L° w ¢ a . O ~ ~ a v ~ ~~ m E = p o U " ~ m m = W = Z ~ U S _ - - _ __ __ _ _ - - - __ ._ - - --_ _ __ ___ _ _ _ « _9 N T O I ~ L L ` VI C ~ N S V O m a p c E ~ E m m ! E '~' ~ O °' ~' ° E o c m u tJ g~ ( o ° ,: v w c m 'c ~ ' ~ E c D E E tY ~ ~ . ~- u1 O ~ ~ b 01 c ~ m U o ~ ' v F V v ~ - U ~ c U Z SU ( ¢ U v U c m ' - p U Z x .pU a o Z _ v ~ N > U Z c im ~ Z c= ff ~ n K Z - ~ K F' O c Z o ~ _ S IL C ~ O O ` p ~ p ~ S 3 7~ T = 9 c - p Z o ~ O ,O~ W J ~ - ` " = d U K U G C- U U U = U f c CD 4 . U N 0 N N FOi1NDATION ~a~~~fOY~~~-~~ MENTAI: HEALTH Administrative Offices 100 Europa Drive Suite 490 Chapel HiII, NC 27514 (919)913-4012 November 19, 2003 .John M. Link, Jr. County Manager Orange County 200 S. Cameron Street Hillsborough, NC 27278 Dear Mr. Link: I am writirig to request the reallocation of funds from-the Orange County Affordable Housing Bonds that were allocated to the Club Nova Apaztments project. The OPC Foundation would like to use those funds to acquire and rehabilitate affordable housing units in Orange County for homeless disabled adults and small families, The OPC Foundation for Mental Health, a co-sponsor of the Club Nova Apartments, has a conditional grant from the US Department of Housing and Urban Development for $525,000 to house homeless disabled individuals in permanent housing with supported services. This grant was awazded as part of the 2002 Orange County Continuum of Caze application, in which the County was a partner agency represented by Taza Fikes. This grant is divided into acquisition and rehabilitation, supportive services, operating costs, and administrative costs. The $300,000 from Orange County would be used as a required dollar-for-dollaz match to $300,000 from HUD for acquisition and rehabilitation. Together, with the other activities and matching funds, the County's $300,000 would allow the OPC Foundation to put together a project totaling $900,200 (see attached breakdown of sources and activities). Federal law requires the OPC Foundation to have site control over the units that will be acquired by December 26, 2003 (one yearpast award).. Unfortunately, it tools most of this year to work out a flaw in the application that required the Inter-Faith Council for Social Services to be a financial intermediary in the administration of the grant. So, the Foundation is in danger of losing this grant unless we can acquire properties quickly.. The Foundation is willing to risk putting contracts on properties without having all of the funding in place, but the County's quick commitment to reallocating these funds would help insure that these fiords can be brought into the community. Here are some lcey points for the County about this project: 4 OPC • The County's funds are estimated to make up only 46% of the property cost, and 33% of the total project. ^ The OPC Foundation will be able to house homeless disabled individuals without using Section 8 rental assistance, but the tenants will pay the same rent as if they had Section 8 vouchers. ^ The County, along with many other agencies, worked very hazd to bring in funds in the 2002 Continuum of Care application cycle, and this Supportive Housing Grant represents 72% of the total fiords for that application. ^ The OPC. P.rea Program is in a financial predicament, and this program will pay for afull-tirne case manager to work with the homeless for three yeazs without drawing on OPC's tight resources. Thanks for your help and please let me know if you have any questions or if I can be of any assistance. The Foundation would be in the best position to secure these grant funds if we know about the bond decision by December 15. However, we recognize the short time frame for the County and I believe that if we know by .lanrrazy I S that it is likely that we can use the funds. Sincere y ~~~~,. erson D. Parker, on behalf of the OPC Foundation for Mental Health Director of Housing OPC Area Program 100 Europa Drive, Suite 490 Chapel Hill, North Carolina 27514 919-913-4070 919-913-4001 (fax) cc: Tom Maynard, Area Director, OPC Area Program Tara Fikes, Direct of'Housing and Community Development, Orange County Gretchen Davis, Executive Director, OPC Foundation for' Mental Health Sonnie VanSant, Chair of the Board of Directors, OPC Foundation for Mental Health Supportive Housing Grant Acquisition and rehabilitation HUD Supportive Housing Orange County Bonds OPC downsizing funds (pending) Supportive Services HUD Supportive Hotusing OPC billing (e,g., Medicaid) Operating Costs HUD Supportive Hotasing Tenant rent (3 years) Administrative costs $ 325,000.00 $ 300, 000.00 $ 25,000.00 $ 650,000,00 $ 100,800.00 $ 25,200.00 $ 126,000,00 $ 75,000.00 $ 25,000.00 $ 100, 000, 00 $ 24,200,00 6