AGENDA #4h

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Tina Vaughn, Housing Director Glenn Davis, Operations and Special Projects Coordinator
SUBJECT:	Recommended 2007-2008 Capital Fund Program for Public Housing Renovations and Resident Services
DATE:	April 11, 2007

The purpose of this memorandum is to recommend the adoption of the proposed 2007-2008 plan for use of funds we expect to receive from the U. S. Department of Housing and Urban Development (HUD) under the Capital Fund Program. 

The attached resolution would approve a 2007-2008 Annual Statement for the Capital Fund Program. 

SUMMARY

• We have not yet received notification from HUD of the amount of the 2007-2008 Capital Fund grant.  However, we have developed a proposed plan based on the 2006-2007 grant amount of $541,360.
• We expect to receive notification of the 2007-2008 grant by July 31, 2007.
• The proposed plan includes performing renovation work in the 11 apartments at the North Columbia Street neighborhood. The proposed plan also includes design work and renovations at the South Roberson neighborhood.
• The deadline for submitting the plan for the 2007-2008 Capital Fund Program to the U. S. Department of Housing and Urban Development is April 17, 2007. 

BACKGROUND

The U.S. Department of Housing and Urban Development (HUD) allocates modernization funds for renovation of public housing and support of resident services to localities that manage at least 250 public housing apartments. Funds are allocated under a formula basis rather than through a competitive application process.

Citizen Participation Process

On January 31 and March 28, 2007, the Council held public forums to receive citizens’ comments on the use of the 2007-2008 Capital Fund grant.  No comments were received.

Housing staff held a meeting with the residents of public housing on February 20, 2007 to receive comments and suggestions on the use of the Capital Fund grant.  Ten residents attended the meeting.  Comments and suggestions received from residents of public housing include:

• Need to upgrade landscaping, plant new trees and shrubs, and reseed lawns throughout the public housing neighborhoods.
• Need to replace or repair screens, windows and doors.
• Need to install outdoor benches.
• Need to provide residents security with neighborhood watch program and training.
• Need to replace bathroom sinks, toilets, bath tub and shower surrounds.
• Need to provide major repairs or replacement of deteriorated floors.
• Need to provide organized sports programs for children.
• Need to provide training or counseling on becoming a homeowner.
• Need to establish programs for residents to achieve economic independence and self-sufficiency.

Comments received from residents of public housing were considered in developing the proposed Capital Fund Program activities.

DISCUSSION

We have not received notification from HUD of the amount of the 2007-2008 grant.  Therefore, we have developed a proposed plan for 2007-2008 in the amount of $541,360, the amount of the 2006-2007 grant.  Also, the plan includes $165,000 that we recommend the Council allocate for public housing renovations under the 2007-2008 Community Development Block Grant Program.  The total amount of the funds that would then be available for public housing renovations and resident services in 2007-2008 is $706,360.

PROPOSED 2007-2008 CAPITAL FUND PROGRAM

Proposed Sources of Funds
Capital Fund Program	$541,360
Community Development Program	$165,000
TOTAL	$706,360
Proposed Use of Funds
North Columbia Street Renovations	$112,400
South Roberson Street Renovations	$413,702
Replacement of Furnaces at Oakwood	$  16,000
Town Operations Center	$  87,158
Section 3 compliance	$    8,000
Administrative Costs	$  69,100
TOTAL	$706,360
Proposed Sources of Funds
Capital Fund Program	$541,360
Community Development Program	$165,000
TOTAL	$706,360

The proposed plan for the 2007-2008 Capital Fund Program includes the following activities:

1. Continuation of Renovations at North Columbia Street                                      $112,400

Previous available funding for public housing renovations has been appropriated to renovate eight of the 11 apartments at the North Columbia Street neighborhood.  We estimated that the amount of funds we expect to receive in 2007-2008 would complete renovation work in the remaining three apartments. 

Proposed renovation work would include the abatement of asbestos tiles, replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, installation of air conditioning, replacement of flooring and tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, and landscaping.

2. Renovations at South Roberson Street                                                                 $413,702

We propose to complete design work and renovate seven of the 15 apartments at the South Roberson Street neighborhood.  Proposed renovation work would include the replacement of furnaces, installation of air conditioning, replacement of windows and screens, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, replacement of interior and exterior doors, and landscaping.

3. Replacement of Furnaces at Oakwood                                                                 $ 16,000

We propose to replace eight furnaces at the Oakwood neighborhood.  During recent inspections, we determined that eight furnaces need to be replaced due to frequent maintenance and major repairs. Also, these furnaces have passed their serviceable years and could pose a potential safety hazard to the residents if not replaced.

4. Town Operations Center                                                                                       $ 87,158

This activity includes paying the Department of Housing portion of the cost for debt service on the construction of the new Town Operations Center.

5. Section 3 Compliance                                                                                           $ 8,000

We propose to hire a consultant to assist with the compliance of Section 3 of the Housing and Urban Development Act of 1968 as required by federal regulations.  HUD requires that we, to the greatest extent feasible, provide economic opportunities to low- or very low-income residents and businesses in connection with renovation projects and activities. 

6. Administrative Cost                                                                                              $ 69,100

This activity includes the administrative cost for coordinating and implementing the Capital Fund activities.

RECOMMENDATIONS

Public Housing Program Advisory Board’s Recommendation: The Public Housing Program Advisory Board reviewed the proposed plan for use of the 2007-2008 Capital Fund grant on March 27, 2007.  The members of the Board voted 5 to 0 to recommend that the Capital Fund Program be approved as proposed. 

Manager’s Recommendation: That the Council adopt the attached resolution.

ATTACHMENTS

1. Proposed 2007-2008 Annual Statement for Capital Fund Program (The Annual Statement provides a summary of proposed Capital Fund activities and cost estimates.) (p. 6).
2. Summary of Five-Year Plan For Public Housing Renovations and Resident Services (This attachment provides a summary of the proposed expenditures that are expected to be available for the public housing renovations and residents services over the next five years.) (p. 7).