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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 20, 2002
Action Agen a f
Item No. I�
SUBJECT: Community Development Block Grant Award — IDA Program
DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
Program Summary INFORMATION CONTACT:
Grant Agreement Tara L. Fikes, ext 2490
Funding Approval Form
Signatory Form and Certification TELEPHONE NUMBERS:
Resolution Hillsborough 732-8181
Grant Project Ordinance Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To approve the execution of the Grant Agreement; Funding Approval Form;
Signatory Form and Certification cards; and Resolution for the FY 2001 Community
Development Block Grant Award and adopt a Grant Project Ordinance for the award.
BACKGROUND: Orange County has now been officially awarded a $40,000 Community
Development Block (CDBG) Grant from the N.C. Department of Commerce for an Individual
Development Account Program for first-time homebuyers with incomes below 80% of the area
median income.. The County submitted a formal application for these funds in April 2002.
Funds from this grant will be used to match first-time homebuyer participant's savings for a
downpayment to purchase their first home. The match ratio is 2:1. 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 equating to a 2:1 match of local savings. A program
summary is attached.
In order to proceed with grant activities, the attached Grant Agreement, Funding Approval form,
and Signatory Form and Certification must be executed by the Chair of the Board and returned
to the N.C. Department of Commerce. Additionally, in order to receive the funds, a Grant
Project Ordinance must be adopted by the BOCC.
Further, many grant implementation documents that were signed in previous years by County
staff are now 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
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requirements for the FY 2001 CDBG Award in accordance with the Grant Agreement and
Funding Approval for this grant award.
FINANCIAL IMPACT: In order for the County to receive the $40,000 grant, the NC Department
of Commerce requires a $40,000 match. Funding for the match would come from funds set
aside in the County's Affordable Housing Trust Fund in previous fiscal years. The attached
grant project ordinance allows for the receipt of the new grant funds.
RECOMMENDATION(S): The Manager recommends that the Board approve
1. Execution of the Grant Agreement; Funding Approval Form; and Signatory Form
and Certification cards;
2. The adoption of the Grant Project Ordinance for this grant award; and
3. The approval of the resolution giving signatory authority to the Chair of the Board
of County Commissioners.
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Application Summary
FY2001Community Development Block Grant Program
Individual Development Accounts
Background
Individual Development Accounts are dedicated savings accounts, similar in
structure to Individual Retirement Accounts (IRAs) that can only be used for purchasing
a first home in Orange County. 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. 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.
Proaram Administrator
The Women's Center (TWC) will administer the IDA program as a continuation of the
current IDA Program funded for the last two years that has assisted more than 15
families in buying their first homes through Habitat for Humanity. TWC's Consumer
Credit Counseling Program would fulfill key roles of outreach, economic literacy training,
financial counseling, account monitoring and post-purchase counseling.
TWC would be working with several partners in the administration of this IDA program
and has the support of these partners:
Orange County
Habitat for Humanity of Orange County, NC, INC.
EmPOWERment, Inc.
Orange Community Housing & Land Trust
Central Carolina Bank
Brief Program Description
Approximately 20 participants will be.required to save a full $1000 during the course of
the IDA program. Savings account will be opened with a minimum $50 initial deposit
and participants will save a minimum of$50 per month that must come from earned
income. The minimum savings period will be six (6) months and the maximum/ideal
savings period will be eighteen (18) months. In addition, participants will be counseled
throughout the program and especially after the purchase of their home that continued
savings are essential to deal with normal home and lawn maintenance and also for
emergencies.
In the event of an emergency, participants may make only one (1) emergency
withdrawal and are required to inform the administrator of their intent to do so.
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Savings contracts will be signed at the IDA Orientation. Participants will be required to
save for at least the minimum period of time (six months) and may be required by the
administrator to save more than the program minimum of$50 per month if planning on
purchasing their home sooner than the maximum eighteen month time period. For
example, a participant planning on purchasing a home within twelve months may be
required to save a minimum of$75 - $85 per month to ensure that they will meet their
savings goal.
A participant may be disqualified from the IDA program if the participant:
• Has an income that exceeds 80% of the median income
• Provides the program with false information
• Misses more than two (2) deposits in the course of the program
• Saves for fewer than six (6) months
• Saves less than $1000 in eighteen (18) months
• Deposits savings that do not come from qualified earned income
• Does not participate in financial counseling or home ownership workshops
• Makes more than one (1) withdrawal from IDA savings account
Pro ram Schedule
Begin program implementation September 2002
Complete program by June 30, 2004
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North Carolina Department of Commerce
Division of Community Assistance
p Community Development Block Grant Program
Grant Agreement
Individual Development Accounts (IDA)
Upon execution of this grant agreement, the North Carolina Department of Commerce
(DOC) agrees to provide to the recipient Community Development Block Grant assistance
under Title I of the Housing and Community Development Act of 1974, (P.L. 93-383), as
amended, authorized by the DOC funding approval, the North Carolina Community
Development Block 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:
1. Definitions. Except to the extent modified or supplemented by the agreement, any
term defined in the North Carolina Community Development Block 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 Carolina 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
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(f) The date for receiving the grant means the date of the DCA Director's
signature on the Grant Agreement and Funding Approval.
2. Obligations of the Reci Tent. 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 lawful requirements of DOC,all applicable
requirements of the General Statutes of the State of North Carolina and any other
applicable laws and Executive Orders currently or hereafter in force.
I Oblisations of Recipient with Respect to Certain Third 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 certificatioa of assumption of environmental
responsibilities under Rule .1004 of the North Carolina Community Development
Block 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
grant or loan from the recipient to the third party of all, or a portion, of the
recipient's grant funds,the recipicnt's contract with the third party 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 commission 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.
5. Reimbursement to DOC for Improver 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
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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.
7. 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.
8. Expenditure of Non-CDBG Funds. The recipient must ensure that non-CDBG
funds are expended along with CDBG funds, following the implementation
schedule described in the approved application and modified by the Performance
Contract, and shall report on 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 Housing. 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
barriers and impediments to affirmatively further fair housing. Guidance for
developing a Fair Housing Plan can be found in DCA,Bulletin 93-4.
11, Equal 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 further 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 ReSuLation). For each year that a CDBG is
active, a recipient must describe a strategy whereby opportunities in employment
and procurement arising 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
technical assistance resources to prepare 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.
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14. Obligation of Recipient With Regard 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 t6 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 activities that meet a CDBG national
objective.
16. Schedule for Release of Conditions and Completion Activities. The recipient must
satisfy all conditions to release CDBG funds within six months of receiving the
grant, and 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 and spend all funds within 30 months
from the date the Grant Agreement and Funding Approval are signed by the
DCA Director. The timetable for completion of activities may be extended, as
wan-anted by extenuating circumstances beyond the control of the recipient local
government, through amendments to the application approved by the Division.
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 performance schedules, the Secretary of Commerce may
withdraw the grant,except for funds already expended.
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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 firther 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: July 24 2002 0 By:
William A.McNeil,AICP
Director
Division of Community Assistance
Date:
Name of Recipient
EZI By:
Signature of Authorized Official
(Title)
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Box ,
North Carolina Division of Community Assistance
Community Development Block Grant Program
Funding Approval
1. Name and Address of Recipient
Orange County
PO Box 8181
Hillsborough,NC 27278
2. Grant Number and Funding Approval Date
Grant Number: 01-C-0894
Date of Original Funding Approval: July 24,2002
Date of Amended Funding Approval:
3. Approved Projects
Project Number and Name Approved Amount
Orange County IDA Total Grant Award: $40,000
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
(Note: administrative funds for )[DA does not include training costs),
engineering, design and environmental assessments 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.
Orange County 1 01-C-0894
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B. Citizen Partici ation and Compliance Condition: No funds may be obligated or
expended in any project except for the administrative activity as noted previously
until DCA is provided with the following documentation of compliance with citizen
participation requirements in the application process 4 NCAC 19L.1002.(b):
publisher's affidavits of notices for and minutes signed by the county of the two
required public hearings.
C. Administration Contracts/Inter-local Agreements Condition: No funds may be
obligated or expended in any activity except for 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.
D. 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.
E. Legally Binding Commitment Condition: No funds may be obligated or
expended in any project activity except for the administration activity until the
recipient provides DCA with a copy of the legally binding commitment(s) between
the County and the Women's Center(TWC).
F. Authorized Signatures on CDBG Federal and State Certifications Condition:
No funds may be obligated or expended in any project activity except for the
administration activity until the recipient provides DCA with a copy of CDBG
Federal and State Certifications signed by the chief elected official.
S. Signature of Authorized Official
Name William A.McNeil
Director.Division of Community Assistance 07/24/02
Title Date
6. Signature of Authorized Local Official
Name
Title Date
Orange County 2 01-C-0894
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SIGNATORY FORM AND CERTIFICATION Giant No.
Recipient Name
Address:
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Signatures of individuals authorized to sign Requisition for Funds fors.(Two signatures required on each requisition.)
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(Signature) (Typed Name) (Typed Title)
(Signature) (Typed Name) (Typed Title)
(Signature) (Typed Name) (Typed Title)
(Signature) ped Name) (Typed Title)
CERTIFICATION
1. ( ) 1 certify that the signatures above are of the individuals authorized to sign Requisition for Funds form for the i
above recipient.
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Certifying Official + Title
2 ( ) The goveming board has passed a resolution authorizing the persons above to sign Requisition for Funds fors
for the above recipient. A copy of the resolution is.attached.
I certify that the signatures above are those of the individuals authorized by resolution of the governing board
of the recipient to sign Requisition for Funds fors.
Certifving Official + Title
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RESOLUTION
Whereas, Orange County has received a FY 2001 Community
Development Block Grant (CDBG)Award for the Individual Development
Account Program in the amount of$40,000 from the N.C. Department of
Commerce on June 15, 2001; and
Whereas, these CDBG funds will be used to provide match funding for the
savings of a first-time homebuyer participating the local IDA Program at a 2:1
ratio; and
Whereas, the Orange County Board of Commissioners approved the
execution of the Grant Agreement, Funding Approval; and Signatory Form and
Certification by the Chair of the Board on August 20, 2002; 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 2001 Community
Development Block Grant Award for the Individual Development Account
Program.
This, the 20"' day of August, 2002.
Community Development Block Grant/individual Development Account Program
Grant Project Ordinance
Be it ordained by the Orange County Board of County Commissioners that pursuant to Section
13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is
hereby adopted.
Section 1. The project authorized is the Community Development Block Grant
(CDBG)/Individual Development Account Program as awarded to Orange County
Housing and Community Development by the North Carolina Department of
Commerce. Funds from this grant will be used to match first-time homebuyer
participants' savings for a down payment to purchase their first home. To qualify for
this match, homebuyers must have incomes below 80% of the area median income.
Section 2. The officers of the County are hereby directed to proceed with the grant project
within the grant document, the rules and regulations of the North Carolina
Department of Commerce.
Section 3. The following revenue is anticipated to be available to complete this project:
InteWmm zr&d- CDBG(7mkUmd D'erar nneA xwt Program $40,000
Section 4. The following amount is appropriated for this project:
F.3imanSerwces -bduslluallkxzlopmerrtAccoumProgram $40,000
Section 5. The finance officer is hereby directed to maintain within the Grant Project sufficient
specific detailed accounting records to provide the accounting to the grantor agency
required by the grant agreement and federal and state regulations.
Section 6. Funds may be advanced from the General Fund for the purpose of making
payments due. Reimbursement requests should be made to the grantor agency in
an orderly and timely manner.
Section 7. Copies of this grant project ordinance shall be made available to the finance officer
for direction in carrying out this project.
Section 8. No full-time equivalent County positions are related to this grant.
Section 9. This project period goes through June 30, 2003.
Adopted this 201h day of August 2002