ATTACHMENT 2
MEMORANDUM
FROM: Tina Vaughn, Director, Department of Housing
Glenn Davis, Operations and Special Projects Coordinator
SUBJECT: Preliminary Proposal for the 2007-2008 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: March 28, 2007
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 2007-2008 Capital Fund Program.
· We have not yet received notification from HUD of the amount of the 2007-2008 Capital Fund grant. However, we have developed a preliminary 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 preliminary plan includes performing renovation work in the 11 apartments at the North Columbia Street neighborhood. The preliminary plan also includes design work and renovations at the South Roberson Street 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.
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 2007-2008 grant. Therefore, we have developed a preliminary 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.
PRELIMINARY PROPOSAL FOR 2007-2008
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
The Preliminary proposal 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.
Review by Public Housing Program Advisory Board
The Public Housing Program Advisory Board will review the Preliminary Proposal for the 2007-2008 Capital Fund Plan on March 27, 2007.
CONCLUSION
Next Steps
Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2007-2008 Capital Fund grant. We will present a recommended 2007-2008 Capital Fund Program Annual Statement for the Council’s consideration on April 11, 2007.
ATTACHMENTS
A. Preliminary Annual Statement for 2007-2008 (p. 29).
(The Annual Statement provides a summary of proposed Capital Fund Program activities and cost estimates.)
B. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p. 30).
(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.)