HomeMy WebLinkAboutAgenda - 03-19-2002 - 7c REVISED 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 19„2002
Action Agenda
Item No.
SUBJECT: FY 2002 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 336-227-2031
PURPOSE: To receive comments from the public regarding the development of a FY 2002
Community Development Block Grant (CDBG) Application for funds for an Individual
Development Account (IDA) Program.
BACKGROUND: The N.C. Department of Commerce announced the availability of
approximately $500,000 in Small Cities Community Development Block Grant Program (CDBG)
funds for the purpose of establishing Individual Development Account (IDA) Programs for first-
time homebuyers with incomes below 80% of the area median income. Specifically, the 80%
income limits are as follows: One-person household - $38,100; two-person household -
$43,500; three-person household - $48,950; and a four-person household - $54,400.
IDAs are dedicated savings accounts, similar in structure 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 on 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.
Currently, a component of the County's TANF Housing Program provides a IDA Program for
approximately twenty (20) families preparing for homeownership through a partnership with the
Women's Center. The families participating in that program are meeting their savings
requirements with some having already purchased a home and others poised to do so in the
coming year. This has been a successful program that can be continued after the expiration of
the TANF Housing Program in June 2002 if we are able to develop a successful funding
application.
REVISED 2
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$50,000 in CDBG
funding for housing purposes. There is a $1 for$1 match requirement that the county should
be-able to meet with currently available resources such as the local Housing Trust fund that has
a balance of approximately $328,000.
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 2002
Community Development Block Grant (CDBG) Application for funds for an Individual
Development Account (IDA) Program.