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,
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FOi1NDATION
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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:
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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
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