AGENDA #1e
MEMORANDUM
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Proposal for the 2006-2007 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: March 22, 2006
The purpose of this memorandum is to present a preliminary proposal for use of funds we expect to receive from the U.S. Department of Housing and Urban Development (HUD) under the 2006-2007 Capital Fund Program.
We have not yet received notification from HUD of the amount of the 2006-2007 Capital Fund grant. However, we have developed a preliminary plan based on the 2005-2006 grant amount of $601,700.
We expect to receive notification of the 2006-2007 grant by July 31, 2006.
The preliminary plan includes performing renovation work in the 11 apartments at the North Columbia Street neighborhood.
The deadline for submitting the plan for the 2006-2007 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 13, 2006.
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.
DISCUSSION
We have not received notification from HUD of the amount of the 2006-2007 grant. Therefore, we have developed a preliminary plan for 2006-2007 in the amount of $601,700, the amount of the 2005-2006 grant. Also, the plan includes $165,000 that we recommend the Council allocate for public housing renovations under the 2006-2007 Community Development Block Grant Program. The total amount of the funds that would then be available for public housing renovations and resident services in 2006-2007 is $766,700.
PRELIMINARY PROPOSAL FOR 2006-2007
Proposed Sources of Funds
Capital Fund Program $601,700
Community Development Program $165,000
TOTAL $766,700
Proposed Use of Funds
North Columbia Street Renovation $566,100
Replacement of Stoves and Refrigerators $ 32,500
Town Operation Center $ 91,100
Administrative Cost $ 77,000
TOTAL $766,700
The Preliminary proposal for the 2006-2007 Capital Fund Program includes the following activities:
1. Renovations at North Columbia Street $566,100
We propose to renovate the 11 apartments at the North Columbia Street neighborhood. Proposed renovation work would include the replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, installation of air conditioning, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, and landscaping.
2. Replacement of Stoves and Refrigerators $ 32,500
We propose to replace 56 gas ranges and 56 refrigerators at the Rainbow Heights (24 units) and Eastwood (32 units) neighborhoods. The ranges and refrigerators were purchased in the mid-1990s and are beginning to require frequent repairs. These appliances will be replaced with Energy Star products.
3. Town Operation Center $ 91,100
This activity includes paying for the Department of Housing portion of the cost for debt service on the construction of the new Town Operations Center.
4. Administrative Cost $ 77,000
This activity includes the administrative cost for coordinating and implementing the Capital Fund activities.
Review by Housing and Community Development Advisory Board
The Housing and Community Development Advisory Board will review the Preliminary Proposal for the 2006-2007 Capital Fund Plan on March 28, 2006.
CONCLUSION
Next Steps
Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2006-2007 Capital Fund grant. We will present a recommended 2006-2007 Capital Fund Program Annual Statement for the Council’s consideration on April 10, 2006.
ATTACHMENTS
1. Preliminary Annual Statement for 2006-2007 (p. 4).
(The Annual Statement provides a summary of proposed Capital Fund Program activities and cost estimates.)
2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p. 6).
(This attachment provides a summary of the proposed expenditures that is expected to be available for public housing renovations and resident services over the next five years.)