TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Recommended 2006-2007 Capital Fund Program for Public Housing Renovations and Resident Services

DATE: April 10, 2006

The purpose of this memorandum is to recommend the adoption of the proposed 2006-2007 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 2006-2007 Annual Statement for the Capital Fund Program.

SUMMARY

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 proposed plan includes 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..

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 25, and March 22, 2006, the Council held public forums to receive citizens’ comments on the use of the 2006-2007 Capital Fund grant. No comments were received.

Housing staff held a meeting with residents of public housing on February 28, 2006 to receive comments and suggestions on the use of the Capital Fund grant. Eleven residents attended the meeting. Comments and suggestions received from residents of public housing include:

Need to upgrade landscaping and reseed lawns throughout the public housing neighborhoods.
Need to replace screens, windows and doors.
Need to install security equipment such as locks and security screens.<
Need to replace bathroom sinks, bathtubs, toilets and shower surrounds.
Need to provide homeownership training or counseling.
Need to provide organized sports programs for children.

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

DISCUSSION

We have not received notification from HUD of the amount of the 2006-2007 grant. Therefore, we have developed a proposed 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.

PROPOSED 2006-2007 CAPITAL FUND PROGRAM

Proposed Sources of Funds

Capital Fund Program	$601,700
Community Development Program	$165,000

TOTAL	$766,700

Proposed Use of Funds

North Columbia Street Renovations	$566,100
Replacement of Stoves and Refrigerators	$ 32,500
Town Operations Center	$ 91,100
Administration	$ 77,000

TOTAL	$766,700

The proposed plan for the 2006-2007 Capital Fund Program includes the following activities:

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.
Replacement of Stoves and Refrigerators$32,500

We propose to replace 56 gas ranges and 56 refrigerators at 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 rated products.
Town Operations Center$91,100

This activity includes paying the Department of Housing portion of the cost for debt service on the construction of the new Town Operations Center. The amount is based on the 20-year term financing of the cost of Public Works/Housing portion of the Town Operation Center.
Administration$77,000

This activity includes the general administration, coordination and implementation of the Capital Fund Program and activities.

RECOMMENDATION

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

ATTACHMENTS

Proposed 2006-2007 Annual Statement for Capital Fund Program (The Annual Statement provides a summary of proposed Capital Fund activities and cost estimates.) (p. 5).
Summary of Five-Year Plan For Public Housing Renovations and Resident Services (This attachment provides a summary of proposed expenditures that reflects anticipated funds we expect to be available for the public housing renovations and residents services over the next five years.) (p. 7).