HomeMy WebLinkAboutAgenda -11-06-2008 - 5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 6, 2008
Action Agenda
Item No. 5 •q
SUBJECT: CDBG Scattered Site Housing Rehabilitation Program
DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) Yes
ATTACHMENT(S):
Program Summary
Program Revision
INFORMATION CONTACT:
Tara L. Fikes, 245-2490
PURPOSE: To conduct a public hearing to receive citizen comments regarding a change in the
dwelling units targeted for repair under the County's Community Development (CDBG)
Scattered Site Housing Rehabilitation Program.
BACKGROUND: Orange County submitted a formal application to the N.C. Department of
Commerce for $400,000 in Community Development Block Grant funds for a Scattered Site
Housing Rehabilitation Program. The grant was officially awarded in May 2004.
Funds from this grant will be used to repair approximately 12 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. At the time of
application for these funds, March 2007, the targeted units were identified by address.
However, since that time, circumstances such as death, ownership changes, and eligibility
issues have required staff to make substitutions among the targeted dwelling units. Additionally,
the average cost of completing housing repairs of $40,000 per house also reduces the total
number of houses to be repaired from the original 2007 estimate from 12 to 10 dwellings.
The attached document provides detailed .information regarding the proposed program
revisions. These changes have been reviewed with partners in the Towns of Carrboro and
Hillsborough and there is agreement with the proposed changes.
In order to proceed with the housing rehabilitation program, the Department of Commerce
requires the County to conduct a public hearing regarding the proposed changes. All comments
received will be incorporated into the official program record for this grant.
FINANCIAL IMPACT: This grant represents an available $400,000 for housing rehabilitation
activities in the County.
RECOMMENDATION(S): The Manager recommends that the Board receive comments as
information and authorize the staff to proceed with grant implementation.
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Program Summary
FY2007 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 and 2004 Scattered Site
Grant Applications, consists of the HOME Program Council members from Carrboro,
Hillsborough, and the County. 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.
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 26 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 on the waiting list at the present time far exceeds available resources.
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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 12 substandard dwelling
(Four (4) units in each jurisdiction) at an average cost of $30,000 per unit.
No clearance or relocation activities will be necessary.
Budget
Housing Rehabilitation $360,000
Program Administration $ 40,000
Program Schedule
Begin program implementation January 1, 2008
Complete program by December 31, 2010
FY 2007 Scattered Site Housing Rehabilitation Program Revisions
11 /2008
Original Targeted Residences Reason for Change New Targeted Residences
March 1, 2007 November 6, 2008
1 1400 Hensle Road; Cedar Grove, NC Deceased
2 7704 Ma Hall Rd., Rou emont, NC Withdrawn
3 2205 Gemena Rd., Carrboro, NC
4 2509 Mill Creek Rd., Mebane, NC Withdrawn 36 South Circle Dr.; Cha e/ Hill, NC
5 1709 Rusch Rd., Cha el Hill, NC
6 418 Calvin Street; Hillsborou h, NC Withdrawn 521 S ruce Street; Hillsborou h, NC
7 528 Tuli tree Rd., Hillsborou h, NC
8 225 W. Oran a St; Hillsborou h, NC
9 104 Starlite Dr., Carrboro, NC
10 109 Jones Fer Road; Carrboro, NC
11 207 Broad Street; Carrboro, NC
12 109 Starlite Dr., Carrboro, NC