MEMORANDUM
FROM: Tina Vaughn, Director, Department of Housing
Glenn Davis, Operations and Special Projects Coordinator
SUBJECT: Recommended 2009-2010 Capital Fund Program under the American Recovery and Reinvestment Act (ARRA) of 2009 for Public Housing Renovations
DATE: March 23, 2009
PURPOSE
The purpose of this memorandum is to recommend the adoption of the proposed 2009-2010 plan for use of the Capital Fund Program grant under the American Recovery and Reinvestment Act (ARRA) of 2009 that we expect to receive from the U.S. Department of Housing and Urban Development (HUD).
· We have received notification from HUD that we have been awarded $732,519 of the 2009-2010 Capital Fund grant under the ARRA. Therefore, we have developed a proposed plan based on this grant amount.
· The proposed plan includes renovation work in 15 apartments at the South Roberson neighborhood.
· The deadline for submitting the plan for the 2009-2010 Capital Fund Program under the ARRA to the U.S. Department of Housing and Urban Development is April 9, 2009.
The U.S. Department of Housing and Urban Development (HUD) is allocating modernization funds under the American Recovery and Reinvestment Act (ARRA) of 2009 for renovation of public housing and support of resident services to localities that manage public housing apartments. The ARRA was passed into law on February 17, 2009 to provide $787 billion of Federal tax reductions and Federal spending increases to accelerate the nation’s economic recovery and preserve and create jobs. HUD will allocate these funds in accordance with the 2008 Capital Fund formula 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 developed a proposed plan for 2009-2010 Capital Fund Program under the ARRA in the amount of $732,519, based on the notification we received from HUD. Also, the plan includes the normal allocation of 2009-2010 Capital Fund grant in the amount of $578,700, based on the amount of the 2008-2009 grant and $150,000 that we recommend the Council allocate for public housing renovations under the 2009-2010 Community Development Block Grant Program. 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 under ARRA $732,519
Capital Fund Program $578,700
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:
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.
RECOMMENDATIONS
That the Council adopt the attached resolution.
ATTACHMENTS
1. Proposed Annual Statement for 2009-2010 Capital Fund Program (p. 5).
2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p. 6).