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HomeMy WebLinkAboutAgenda - 05-18-2004-5lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 2004 Action Agenda Item No. ~ ~- SUBJECT: Community Development Block Grant Award -Housing Rehabilitation Program DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Program Summary Grant Agreement Funding Approval Form Signatory Form and Certification Performance Based Contract Resolution INFORMATION CONTACT: Tara ~. Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732-8181 968-4501 688-7331 336-227-2031 PURPOSE: To approve the executicn of the Grant Agreement; Funding Approval Form; Signatory Form and Certification cards; Performance Based Contract and Resolution for the FY 2004 Community Development Block Grant Award. BACKGROUND: Orange County has now been officially awarded a $400,000 Community Development Block (CDBG) Grant from the N.C. Department of Commerce far a Scattered Site Housing Rehabilitation Program. The County was initially notified of the availability of funds in the summer of 2003 and was invited to submit a formal application in October 2003, Funds from this grant will be used to repair approximately 15 substandard houses occupied by low-income families in the Towns of Carrboro and Hillsborough as well as unincorporated areas of Orange County, See the attached program summary for more information, In order to proceed with grant activities, the attached Grant Agreement, Funding Approval farm, Signatory Form and Certification, and a Performance Based Contract must be executed by the Chair of the Board and returned to the N.C. Department of Commerce, Further, many grant implementation documents that were signed in previous years by County staff are required to be signed by the Chief Elected Official or the Chair of the Orange County Board of Commissioners, These implementation documents are very routine documents that must be submitted throughout the life of the grant. To facilitate the execution of these documents, a resolution has been prepared to give signatory authority to the Chair of the Board of Commissioners for all documents required to meet the grant implementation requirements for the FY 2004 CDBG Award in accordance with the Grant Agreement and Funding Approval for this grant award. FINANCIAL IMPACT: This grant represents an available $400,000 for affordable housing initiatives in the County. RECOMMENDATION(S): The Manager recommends that the Board approve Execution of the Grant Agreement; Funding Approval Form; Signatory Form and Certification cards; and the Performance Based Contract; and approval of the Resolution giving signatory authority to the Chair of the Board of County Commissioners, 3 Application Summary FY2004 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 Commerce -Division of Community Assistance. These grant funds must be to 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, Approximately 10% of the award can be used for program administration, thus, effectively $360,000 will be available for housing repair. The Program Selection Committee, as with the FY 2001 Scattered Site Grant, will consist of the HOME Program Council members from Carrboro, Hillsborough, and the County. Currently serving in that capacity are: Margaret Brown, Orange County Commissioner Tara L. Fikes, Housing/CD Director John Herrera, Carrboro Alderman James Harris, Carrboro Economic and CD Director Eric Hallman, Hillsborough Town Commissioner Margaret Hauth, Hillsborough Planning Director This Committee discussed the policies and procedures that should govern this program and agreed that the policies and unit selection process will closely mirror those utilized in the current HOME funded Housing Rehabilitation Program, 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 Code. 5, The applicant shall have evidence of title to the property to be rehabilitated. 6, The applicant shall have paid all due property taxes. 4 Participant/Household Selection Program participants will be selected from the existing Housing Rehabilitation Program waiting list according to date and time of waiting list placement. There are approximately 45 families on the waiting list at this time. In selecting participants, priority will be given to owners that lack indoor plumbing or have plumbing deficiencies, 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. No extensive program marketing is anticipated at this time since the number of families an the waiting list at the present time far exceeds available resources. Terms of Assistance All CDBG financial assistance will be in the form 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. Target Number of Substandard Units This program will target the repair of an estimated 15 substandard dwelling units at an average cost of $24,000 per unit. No clearance or relocation activities will be necessary. Budget Housing Rehabilitation $360,000 Program Administration $ 40,000 Program Schedule Begin program implementation .July 1, 2004 Complete program by October 1, 2006 North Carolina Department of Commerce Division of Community Assistance _ Cp Community Development Block Grant Program Grant Agreement Scattered Site Housing (SSH) Upon execution of this grant agreement, the North Carolina Department of Commerce (DGC) agrees to provide to the recipient Community Development Block Grant assistance under Title I of the Housing and Community Development pct of 1974, (P.L. 93-383), as amended, authorized by the DOC funding approval, the North Carolina Community Development Bloctc Grant administrative rules, applicable laws and all other requirements of DOC now or hereafter in effect. The grant agreement is effective on the date the grant agreement and funding approval are signed by the recipient. The grant agreement consists of the approved application, including the certifications, maps, schedules and other submissions in the application, any subsequent amendments to the approved application and funding approval and the following general terms and conditions: Definitions. Except to the extent modified or supplemented by the agreement, any term defined in the North Carolina Community Development Bloclc Grant Administrative Rules, 4 NCAC 19L, shall have the same meaning when used herein. (a) Agreement means this grant agreement, as described above, and any amendments or supplements thereto. (b) Recipient means the entity designated as a recipient for grant assistance in the grant agreement and funding approval. (c) Certifications mean the certifications submitted with the grant application pursuant to the requirements of Paragraph (e) of Rule .0407 of the North Cazolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. (d) Assistance provided under this agreement means the grant funds provided under this agreement. (e) Program means the community development program, project, or other activities, including the administration thereof, for which assistance is being provided under this agreement, 6 (f) The date for receiving the grant means the date of the DCA Director's signature an the Grant Agreement and Funding Approvah 2. Oblieations of the Recipient. The recipient shall perform the program as specified in the application approved by DOC., The recipient shall comply with_the _ certification pursuant to Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. The recipient shall also comply with all other lawfirl requirements of DOC, all applicable requirements of the General Statutes ofthe State of North Carolina and any other applicable laws and Executive Orders currently or hereafter in force. 3. Oblieations ofRecipient with Respect to Certain Tlurd Party Relationships. DOC shall hold the recipient responsible for complying with the provisions of this agreement even when the recipient designates a third party or parties to undertake all or any part of the program. The recipient shall comply with all lawful requirements of DOC necessary to insure that the program is carried out in accordance with the recipient's certifications including the certification of assumption of envhonmental responsibilities under Rule ,1004 of the North Carolina Community Development Btoc(c Grant Administrative Rules, 4 NCAC 19L. If the recipient contracts with or designates a third party to undertake all or part of the program in exchange for a b ant or loan from the recipient to the third party of all, or a portion, of the recipient's grant funds, the recipient's contract with the third pazty must require the third party to comply with the procurement standards set forth in 4 N. C. Administrative Code 19L .0908. 4 Conflict of Interest. None of the following or their immediate family members, during the tenure of the subject person or for one year thereafter, shall have any direct or indirect financial interest in any contract, subcontract or the proceeds thereof for work to be performed in connection with the program assisted under this agreement: employees or agents of the recipient who exercise any function or responsibility with respect to the program, and officials of the recipient, including members of the governing body, The same prohibition shall be incorporated in all such contracts or subcontracts. The assistance provided under this agreement shall not be used in the payment of any bonus or cornmission for the purpose of obtaining DOC approval of the application for such assistance, or DOC approval of applications for additional assistance, or any other approval or concurrence of DOC required under this agreement, or the North Carolina Community Development Block Grant Administrative Rules, with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not prohibited if otherwise eligible as program costs, Reimbursement to DOC for Improper Expenditures. The recipient will reimburse DOC for any amount of grant assistance improperly expended, 6. Access to Records. The recipient shall provide any duly authorized representative of DOC, the federal Department of Housing and Urban Development (HUD), and the Comptroller General at all reasonable times access to and the right to inspect, copy, monitor, and examine all of the books, papers, records, and other documents relating to the grant for. a period of three years following the completion of all close-out procedures. Project Savings. The recipient is obligated to contribute 100 percent of its pledged cash contribution to the CDBG project even if the project experiences a savings after authorized activities are completed. Any project savings accrue to the CDBG program. Expenditure of Non-CDBG Funds. The recipient must ensrue that non-CDBG funds aze expended along with CDBG funds, following the implementation schedule described in the approved application and modified by the Performance Contract, and shall report nn non-CDBG expenditures with each Annual Performance Report, consistent with Section ..1100 PERFORMANCE of the program regulations (4NCAC 19L), 9. Method of Payment. The Department of Commerce uses the STEPS-OUT system for CDBG payments to units of local government. Payments on requisitions will be made only by electronic funds transfer.. 10. Fair Housinu. For each grant year that a CDBG is active, a recipient must describe the actions it will take in the areas of enforcement, education and removal of bazriers and impediments to affirmatively further fair housing, Guidance For developing a Fair Housing Plan can be found in DCA Bulletin 93-4.. 11. L-nual Employment and Procurement Opportunity. A recipient must describe the actions it will take annually while the grant is open in the areas of enforcement, education and removal of barriers and impediments that affirmatively fiirther equal access in employment and procurement. This includes a description of steps to be taken in the areas of advertisement, compliance and complaint tracking. 12, Local Economic Benefit (Section 3 Regulation), For each year that a CDBG is active, a recipient must describe a strategy whereby opporhurities in employment and procurement azising out of a CDBG assisted project are identified and made available to low-income residents within the CDBG assisted area to the greatest extent feasible, This strategy must include (1) identification of training and tecimical assistance resources to prepaze low-income residents for employment and procurement opportunities, (2) attempts to reach the numerical targets for new hires set forth in the Section 3 regulation, which applies to recipients receiving $200,000 or more in non-administrative line items expended for construction contracts of at least $100,000 per contract, and (3) education of low-income residents within the CDBG assisted area about the components and opportunities of the program.. 13. Section 504 and ADA. Recipients must complete the Section 504 Survey and Transition Plan. This plan will not satisfy all the requirements of the Americans with Disabilities Act, but it will meet the minimum requirements for a CDBG assisted project. 14. Oblieation of Recipient With Reeazd to Vacant Units. The recipient shall ensure that all vacant units being rehabilitated will be occupied by a low or moderate income family by the time close-out occurs. 15. Utility Assessments or Fees: Assessments or fees to recover the CDBG funded portion of a utility project may be charged to properties not owned and occupied by low and moderate income persons. Such assessments are program income and, as such, must be used for eligible CDBG activities that meet a CDBG national objective. 16. Schedule for Release of Conditions and Completion Activities. The recipient must satisfy Funding Approval Conditions to release CDBG funds within 90 days (June 29, 2004) from the date (April 1, 2004) the Grant Agreement and Funding Approval are signed by the DCA Director. The recipient must draw down all CDBG funds, expend all local non-CDBG funds and complete all project activities in conformance with the activities implementation schedule in the application as modified by the Performance Contract, The recipient must obligate all funds within 27 months (July 1, 2006) from the date the Grant Agreement and Funding Approval are signed by the DCA Director. All funds are to be expended within 30 months (October 1, 2006) from the date the Grant Agreement and Funding Approval are signed by the DCA Director. Any remaining funds will be de-obligated. All closeout documents must be returned to DCA by (January 1, 2007). Consistent with Section 1104 of the program regulations (4NCAC 19L), based on review of the recipient's performance for conformance with the approved application and approved perfomrance schedules, the Secretary of Commerce may withdraw the grant, except for fiords already expended. Upon execution of this agreement by DOC and the recipient, the recipient hereby accepts the assistance on the terms of this grant agreement effective on the date indicated below, and further certifies that the official signing this document has been duly authorized by the recipient's governing body to execute this Grant Agreement. Secretary of the Department of Commerce Date: April 1.2004 Q By: ti~ ~~~-- Gloria Nance-Sims Director Division of Community Assistance Date: Name of Recipient lD By: Signature of Authorized Official (Title) 10 Nortb Carolina Division of Community Assistance Community Development Block Grant Program Funding Approval 1. Name and Address of Recipient 2. Grant Number and Funding Approval Date Orange County Grant Number: 04-C-1239 P O Box 8181 Date of Original Funding Approval : 4/1/2004 Hillsborough, North Cazolina 27278 Date of Amended Funded Approval: 3. Approved Projects ect Number and Name Scattered Sites Housing Rehabilitation Program Total Award Approved Amount $400,000 $400,000 4. Funding Approval Conditions The following conditions must be removed in writing by the Division of Community Assistance (DCA) in order for all funds to be released for the approved projects listed in item (3), above: A. Environmental Condition: No funds may be obligated or expended in any activity except for the payment of reasonable costs related to the planning, administration, engineering, desing and environmental assesments for the approved project until the recipient has complied with the Environmental Review Procedures for the N.C. CDBG Program and the CDBG regulations contained in 4 NCAC 19L 1004, B. Administration Contracts/Inter-local aereements Condition: No funds may be obligated or expended in any project activity except the administration activity until the recipient has submitted either a copy of the contract awarded for administration of this grant or a statement signed by the CEO stating that the contract will be administered internally, C. Performance Based Contract Condition: No funds may be obligated or expended in any project activity except for the administration activity until the recipient has returned to DCA one copy of the properly completed Performance Based Contract, D. Amendment Condition: No funds may be obligated or expended in any project activity except for the administration activity until the recipient provides written assurance that it commits to assisting the number of units stated in the SSH application and if the number of units to be assisted, the method of selection, or the policies that have been designed for this grant changes, the local govenunent is responsible for following DCA amendment procedures. E. Disclosure Report Condition: No funds may be obligated or expended in any project activity except the administration activity until the recipient has returned to DCA one copy of the properly completed Disclosure Report Form.. 11 4. Funding Approval Conditions, Continued F. Closeout Condition No fiords may be obligated or expended in any activity until closeout documentation has been received by L)CA. County of Orange 2 04-C-1239 12 5. Signature of Aut, o/rJized Official f~~@~~~s~-„ 04/01/04 Name Gloria Nance-Sims°S~i'm~s Date Director, Division of Community Assistance Title 6. Signature of Authorized Local Official Name Date Title County of Orange 3 04-C-1239 13 O m O_ w' (D N ~' ~ n o ~ v n N W O (D • ~ cp O ~ m w m ~ ~ ~ o- n ~ -ow o? ' , bw ~ m ~ ~ ~ ~ ° ~ ~ m , w y ~ ~ o ~. w ~ w . w ~ m " ~ C y C ~ m D'o m ~ ~ ~ ~ w O N `'OG d O , o m o w m w ~ m w ~ so m 0 ~~ o 0 ~ m ~ N O ~' o ~ m Q ~ ~ C ~m v i , a m ~ ~ o o <. ~ C ~ O f/~ N Ana ^ wn ~ mi c ~?m w. ? ~O N wv ~'Z awl o w o n ~, ( m o m O w ., o m °n N a ~ ai O' ~ 0 + ~ p (n _ C G ~ O _ N O ~ m C ~ ~ w _ O ~ ~ o ~n ~ c ~ ~ O O ~ m C ~ O ~ o 3 ~O . 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E„ rv B°UO v c ° o ~ g a a`oM r" o9 Vq o - a ~ o ~ - n N 9 ~o 9 v = ~ 9 _ ~ E ~ C _ C v p E m a } Sc ~ ~ ~ o S~ ? a ~ rd a m o ~ ~ o u v „ a o E , 0 4 ~ , o 4 ° E ~ ° c , a ¢ u m c V E ~S' 0 °. m c `~ c V V E ' ~ ~ `u m E~ c ca. G o E ~ `~ '~ ~ E o U ~ ~'O 'O C C° ° E' v ~,f ~ C 9 C° E.- -a'9 ,~ J C 9 E C G e~Ea ~ ~v Cy .° C C° O O C E %1 w~v v3 ">wmu33 ~w©c~c°r3 C - ~wmuu3 zy 3 ~, ~ w e o a m 16 17 O a `A y m T C O .N N N C O U O V a c N G1 ~~ G 18 RESOLUTION Whereas, Orange County has received a FY 2004 Community Development Block Grant (CDBG) Award for the Scattered Site Housing Rehabilitation Program in the amount of $400,000 from the N.C, Department of Commerce on April 1, 2004; and Whereas, these CDBG funds will be used for the repair of approximately fifteen (15) substandard dwelling units in the Towns of Carrboro, Hillsborough and unincorporated Orange County; and Whereas, the Orange County Board of Commissioners approved the execution of the Grant Agreement, Funding Approval; Signatory Farm and Certification; and Performance Based Contract by the Chair of the Board on May 18, 2004; and Whereas, throughout grant implementation, the N,C, Department of Commerce will require the execution of additional documents as required by the Grant Agreement and Funding Approval approved by the BOCC.. NOW, THEREFORE, be it resolved, that the Orange County Board of County Commissioners hereby authorize the Chair of the Board to execute all documents required by the N.C. Department of Commerce -Division of Community Assistance for the implementation of the FY 2004 Community Development Block Grant Award far the Scattered Site Housing Rehabilitation Program, This, the 18~h day of May 2004.