MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Tina Vaughn, Director, Department of Housing Glenn Davis, Operations and Special Projects Coordinator
SUBJECT:	Preliminary Proposal for the 2009-2010 Capital Fund Program for Public Housing Renovations and Resident Services
DATE:	March 23, 2009

PURPOSE

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 2009-2010 Capital Fund Program.

SUMMARY

• We have not yet received notification from HUD of the amount of the 2009-2010 Capital Fund grant.   However, we have developed a preliminary plan based on the 2008-2009 grant amount of $578,700.
• We expect to receive notification of the 2009-2010 grant by July 31, 2009.
• The preliminary plan includes renovation work in 15 apartments at the South Roberson neighborhood.  The preliminary plan also includes design work and renovations at the South Roberson neighborhood.
• The deadline for submitting the plan for the 2009-2010 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 17, 2009. 

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.

Federal regulations require that the Town give priority to completing renovation work related to statutory or other requirements such as asbestos testing and abatement, and renovation work necessary to meet the special needs of disabled persons.

DISCUSSION

We have not received notification from HUD of the amount of the 2009-2010 grant.  Therefore, we have developed a preliminary plan for 2009-2010 in the amount of $578,700, the amount of the 2008-2009 grant.  Also, the plan includes a special allocation of 2009-2010 Capital Fund Program grant under the American Recovery and Reinvestment Act of 2009 in the amount of $732,519, based on the notification we received from HUD and $150,000 in 2009-2010 Community Development Block Grant Program funding that we recommend the Council allocate for public housing renovations.  The total amount of the funds that would then be available for public housing renovations and resident services in 2009-2010 is $1,461,219.

PROPOSED 2008-2009 CAPITAL FUND PROGRAM

Proposed Sources of Funds

Capital Fund Program	$578,700
Capital Fund Program under ARRA	$732,519
Community Development Program	$150,000
TOTAL	$1,461,219

Proposed Use of Funds

Renovation of South Roberson	$1,107,168
Appliances Replacement at Eastwood, Caldwell & Oakwood	$ 57,400
Professional Service and Relocation Costs	$129,500
Section 504 Compliance	$ 19,000
Administrative Costs	$148,151
TOTAL	$1,461,219

The preliminary proposal for the 2009-2010 Capital Fund Program includes the following activities:

1. Renovations at South Roberson                                                                           $1,107,168     

We propose to perform the design work and renovate the 15 apartments at the South Roberson 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.  Energy Star products will be used with replacement of appliances, fixtures, equipment and systems.

2. Replacement of Appliances at Eastwood, Caldwell/Church and Oakwood        $ 57,400

We propose to replace 82 refrigerators and stoves with Energy Star products at the Eastwood, Caldwell/Church and Oakwood neighborhoods.  During recent inspections, we have determined that these appliances have passed their serviceable years and need to be replaced due to frequent maintenance work and major repairs.

3. Professional Services and Relocation Costs                                                         $129,500

We propose to hire an architect to design and write specifications for the renovation work at the South Roberson neighborhood. We also propose to hire a construction manager to monitor and inspect the renovation work daily, prepare work records and interview workers as required by HUD.  Also, included are the costs for relocating families during the renovation process.

4. Section 504 Compliance                                                                                       $ 19,000

We propose to hire an intern to assist with the preparation of quarterly reports to be submitted to HUD, review and update Housing policies to conform to Section 504/Americans with Disabilities Act regulations, and assist with the processing of residents’ requests for reasonable accommodations as required by HUD. 

5. Administrative Cost                                                                                              $ 148,151

This activity includes the administrative cost for coordinating and implementing the Capital Fund activities and training of maintenance staff.

Review by Public Housing Program Advisory Board

The Public Housing Program Advisory Board will review the Preliminary Proposal for the 2009-2010 Capital Fund Plan on March 24, 2009. 

CONCLUSION

Next Steps

Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2009-2010 Capital Fund grant.  We will present a recommended 2009-2010 Capital Fund Program Annual Statement for the Council’s consideration on April 15, 2009.

ATTACHMENTS

1.  Preliminary Annual Statement for 2009-2010 (p. 4).

2.  Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p. 5).