AGENDA#4j

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Establishment of a Project Ordinance for the Capital Fund Program for Public Housing Renovations

 

DATE:             June 30, 2004

 

The attached budget ordinance would establish a project ordinance for the Capital Fund Grant Program in the amount of $95,773.  The project ordinance is based on a special grant from the U. S. Department of Housing and Urban Development (HUD).

 

BACKGROUND

 

The U. S. Department of Housing and Urban Development (HUD) allocates funds for public housing renovations to public housing agencies that manage at least 250 public housing apartments.  Public housing agencies that do not spend their Capital Fund grant allocations on a timely schedule are penalized by HUD.  Unspent funds are distributed to other public housing agencies.

 

Some public housing agencies did not spend all of their 2002-2003 Capital Fund Program allocation and HUD has distributed the unspent funds to other public housing agencies.  HUD has determined that Chapel Hill will receive $95,773 of the unspent funds (please see Attachment 1).

 

DISCUSSION

 

On October 27, 2003, the Council approved a project ordinance for the 2003-2004 Capital Fund Program for public housing renovations.  The project ordinance was based on a 2003-2004 Capital Fund Program grant in the amount of $453,453.

 

The $95,773 will be used to support the activities included in the 2003-2004 Annual Statement for the Capital Fund Program as approved by the Council on April 28, 2003.

 

RECOMMENDATION

 

Manager’s Recommendation:  That the Council enact the attached Project Ordinance for the Capital Fund Grant Program, consistent with the Program previously approved by the Council.

 

ATTACHMENTS

 

1.         Amendment to Annual Contributions Contract (p. 3).

2.         2003-2004 Annual Statement for the Capital Fund Program (p. 4).

 

AN ORDINANCE TO ESTABLISH A CAPITAL FUND PROGRAM (CFP) PROJECT ORDINANCE (2004-06-30/O-4)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby established:

 

SECTION I

 

The project authorized is the Capital Fund Project as approved by the Council on April 28, 2003.  Funds are as contained in an Amendment to the Consolidated Annual Contributions Contract between the Town and the U. S. department of Housing and Urban Development (HUD).

 

SECTION II

 

The Town Manager of the Town of Chapel Hill is hereby directed to proceed with the project within the terms of the Contract document(s), the rules and regulations of the U. S. Department of Housing and Urban Development, and budget contained herein.

 

SECTION III

 

The following revenue is available to complete the project:

 

Capital Fund Program                              $95,773

 

SECTION IV

 

Dwelling Structures                                  $95,773

 

Total                                                       $95,773

 

SECTION V

 

The Finance Director of the Town of Chapel Hill is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to provide the accounting to the U. S. Department of Housing and Urban Development as required by the Annual Contributions contract and federal regulations.

 

SECTION VI

 

Funds may be advanced from General funds for the purpose of making payments as due.  Reimbursement requests should be made to HUD in an orderly and timely manner.

 

SECTION VII

 

The Town Manager is directed to report annually on the financial status of each project in Section IV and on the total revenues received.

 

This the 30^th day of June, 2004.