TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Recommended 2004-2005 Capital Fund Program for Public Housing Renovations and Resident Services

DATE: April 26, 2004

The purpose of this memorandum is to recommend the adoption of the proposed 2004-2005 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 2004-2005 Annual Statement for the Capital Fund Program.

SUMMARY

· 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.

· The proposed plan includes additional renovation work in 8 apartments at the Airport Gardens neighborhood.

· The plan for the 2004-2005 Capital Fund Program will be submitted to the U.S. Department of Housing and Urban Development after approval by the Council.

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.

The proposed plan for the 2004-2005 Capital Fund Program includes continuing renovations at the Airport Gardens neighborhood.

Citizen Participation Process

On February 2, 2004, the Council held a public forum to receive citizens’ comments on the use of the 2004-2005 Capital Fund grant. No comments were received.

Housing staff held a meeting with residents of public housing on March 11, 2004 to receive comments and suggestions on the use of the Capital Fund grant. Six 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 bathroom sinks, bathtubs, toilets and shower surrounds.

· Need to install outdoor benches.

· Need to replace kitchen sinks and cabinets.

· Need to provide homeownership training and counseling.

On March 24, 2004, the Council held a second public forum to receive citizens’ comments on the use of the Capital Fund grant.

At the March 24^th public forum, Ms. Tracy Dudley, on behalf of the Housing and Community Development Advisory Board, requested that $3,000 be reserved for resident activities instead of the $25,000 included in the preliminary plan for Residents’ Council activities. Ms. Dudley stated that specific use of the funds would be determined by residents of public housing, the Housing and Community Development Board and Housing staff.

Ms. Dudley commented on the unspent $28,500 reserved in the 2003-2004 Capital Fund Program for Residents’ Council activities. None of the $28,500 has been spent because the Residents’ Council has not submitted a proposal for use of the funds that they were able to recommend for consideration by the Council.

Ms. Dudley also commented on the Housing and Community Development Advisory Board’s concern that the two key positions of the Residents’ Council are held by individuals who are not residents of the Chapel Hill public housing program.

Comments received from residents of public housing and the March 24^th public forum were considered in developing the proposed plan for the Capital Fund Program. Comments received will also result in changes to the 2003-2004 Capital Fund Program. We recommend that the unspent $28,500 reserved for Residents’ Council activities be used for public housing renovations.

DISCUSSION

We have not received notification from HUD of the amount of the 2004-2005 grant. Therefore, we have developed a proposed 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 expect to be allocated for public housing renovations under the 2004-2005 Community Development Block Grant Program. The total amount of the funds we expect to be available for public housing renovations and resident services in 2004-2005 is about $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 $392,200

Resident Activities $ 3,000

Other Costs $208,300

TOTAL $603,500

The Preliminary proposal for the 2004-2005 Capital Fund Program includes the following activities:

1. Renovations at Airport Gardens $392,200

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. We are proposing to complete the renovation work in phases because the total amount of funds available is less than the amount needed to complete the entire renovation project.

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 storm water drainage system and landscaping.

2. Resident Activities $ 3,000

We propose to reserve $3,000 to support activities for residents of public housing. The residents of public housing in conjunction with the Housing and Community Development Advisory Board and Housing staff will determine specific use of the funds.

3. Other Cost $ 208,300

This activity includes $37,500 for general administration of the Capital Fund Program and $25,000 for a computer software package for the public housing program. It also includes $145,800 for the Department of Housing portion of the cost of professional services for the design of the new Town Operations Center.

RECOMMENDATIONS

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

ATTACHMENTS

1. Proposed 2004-2005 Annual Statement for Capital Fund Program (The Annual Statement provides a summary of proposed Capital Fund activities and cost estimates.) (p. 6).

2. 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. 8).

RESOLUTION APPROVING AN ANNUAL STATEMENT FOR 2004-2005 CAPITAL FUND PROGRAM (2004-04-26/R-14)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the Capital Fund Program Annual Statement, as described in the Manager’s memorandum to the Council dated April 26, 2004, and that the Manager is authorized to submit the Capital Fund Program Annual Statement to the U.S. Department of Housing and Urban Development (HUD), including compliance with the HUD policies, procedures and regulations required therein, for a program of $453,500 in Capital Fund Program funds.

BE IT FURTHER RESOLVED that the Manager is hereby designated as the authorized representative of the Town to act in connection with submittal of an Annual Statement and to provide such additional information as may be required.

This the 26^th day of April, 2004.