AGENDA #1e
MEMORANDUM
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Proposal for the 2004-2005 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: March 24, 2004
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 2004-2005 Capital Fund Program.
· We have not yet received notification from HUD of the amount of the 2004-2005 Capital Fund grant. However, we have developed a preliminary plan based on the 2003-2004 grant amount of $453,500.
· We expect to receive notification of the 2004-2005 grant by July 31, 2004.
· The preliminary plan includes additional renovation work in 8 apartments at the Airport Gardens neighborhood.
· The deadline for submitting the plan for the 2004-2005 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 30, 2004.
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.
The preliminary proposal for the 2004-2005 Capital Fund Program includes continuing renovations at the Airport Gardens neighborhood.
DISCUSSION
We have not received notification from HUD of the amount of the 2004-2005 grant. Therefore, we have developed a preliminary plan for 2004-2005 in the amount of $453,500, the amount of the 2003-2004 grant. Also, the plan includes $150,000 that we recommend the Council allocate for public housing renovations under the 2004-2005 Community Development Block Grant Program. The total amount of the funds that would then be available for public housing renovations and resident services in 2004-2005 is $603,500.
PRELIMINARY PROPOSAL FOR 2004-2005
Proposed Sources of Funds
Capital Fund Program $453,500
Community Development Program $150,000
TOTAL $603,500
Proposed Use of Funds
Airport Gardens $370,200
Residents’ Council Activities $ 25,000
Other Costs $208,300
TOTAL $603,500
The Preliminary proposal for the 2004-2005 Capital Fund Program includes the following activities:
1. Continuation of Renovations at Airport Gardens $370,200
Previous available funding for public housing renovations has been appropriated to renovate 18 of the 26 apartments at Airport Gardens. We estimated that the amount of funds we expect to receive in 2004-2005 under the Capital Fund and Community Development Programs would complete renovation work in the remaining 8 apartments. However, the expected funds would not be enough to complete the site work and provide an adequate contingency.
We expect the renovation work to be completed in four phases (the first three phases would include the 26 apartments, the last phase would include the site work). We estimate that the first three phases would be completed by April 2005. The last phase would be completed when funds become available.
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 stoves and refrigerators, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, replacement of part of the stormwater drainage system and landscaping.
2. Residents’ Council Activities $ 25,000
We propose to reserve $25,000 to support activities of the Residents’ Council. We would work with the Residents’ Council to determine specific use of funds which would be incorporated into a performance agreement for consideration by the Council.
We are currently working with the Residents’ Council to develop a 2003-2004 performance agreement in the amount of $28,500.
3. Other Costs $ 208,300
This activity includes the cost of $37,500 for general administration of the Capital Fund Program and the cost of $25,000 for a computer software package for the public housing program. It also includes the Department of Housing portion of the cost of $145,800 for professional services in the design of the new Town Operations Center.
Review by Housing and Community Development Advisory Board
The Housing and Community Development Advisory Board will review the Preliminary Proposal for the 2004-2005 Capital Fund Plan on March 23, 2004.
The Residents’ Council will review the Preliminary Proposal for the 2004-2005 Capital Fund Plan on April 14, 2004.
CONCLUSION
Next Steps
Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2004-2005 Capital Fund grant. We will present a recommended 2004-2005 Capital Fund Program Annual Statement for the Council’s consideration on April 26, 2004.
ATTACHMENTS
1. Preliminary Annual Statement for 2004-2005 (The Annual Statement provides a summary of proposed Capital Fund Program activities and cost estimates.) (p. 4).
2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (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.) (p. 6).