AGENDA #4e
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Amendment to the Community Development Program
DATE: December 6, 2004
The purpose of this memorandum is to recommend an amendment to the Community Development Program.
The attached resolution would amend the Community Development program to allocate approximately $91,318 of Community Development program income and approximately $9,702 of residual funds to the Neighborhood Revitalization Program.
The attached budget ordinance would allocate the program income portion of funds ($91,318) to the 2004-2005 Neighborhood Revitalization Program. A budget ordinance amendment is not required to reallocate the residual funds ($9,702).
On October 11, 2004, the Council adopted a process to amend the Community Development program to allocate Community Development program income and residual funds, and scheduled a public hearing on November 8, 2004. Notice of the hearing was sent to the Community Development mailing list and was published twice in the Chapel Hill Herald. The process also included review of the proposal by the Housing and Community Development Advisory Board on November 23, 2004.
Sources of funds totaling approximately $101,000 for this amendment are:
A. Program Income
The Town has received approximately $91,300 of program income from repayment of Community Development loans previously issued by the Town for a variety of programs including second mortgages to Tandler homeowners, rehabilitation assistance loans to homeowners, and mortgages. These funds are not currently allocated for specific activities.
B. Reallocated Funds
We propose to reallocate approximately $9,700 of residual Community Development funds from the following activities:
Affordable Rentals
The Council allocated $80,000 of 2003-2004 Community Development funds to Affordable Rentals to purchase a unit for permanently affordable rental housing. In January 2004, Affordable Rentals purchased an apartment unit in Ashley Forest (off of Airport Road) for $73,225. The activity is complete; therefore we propose to reallocate the balance of funds ($6,775).
Youth Creating Change
In June 2002, the Council amended the 2001-2002 Community Development program to allocate $2,110 of Community Development Program income to Youth Creating Change to operate a youth training program. Youth Creating Change was not able to meet the regulatory requirements for federal funding. The Town did not receive information from Youth Creating Change to enter into a Performance Agreement for these funds. We recommend reprogramming these funds.
Chapel Hill – Carrboro YMCA
The Council awarded $13,000 of 2003-2004 Community Development funds to the YMCA to continue to operate an after school program for youths living in the South Estes Drive public housing community and the Pine Knolls neighborhood. The program is complete and there is an unused balance of $817. We propose to reprogram these funds.
DISCUSSION
Public Comment
At the November 8, 2004 public hearing, the Council received three comments from residents of the Rogers Road/Purefoy Road neighborhood requesting assistance to connect to the public sewer line.
The 2004 Council goals include a goal to conduct a small area planning process for this neighborhood located in the Town’s urban services area. Work is scheduled to begin in 2005 with a report on a potential process. The plan is envisioned to include a more detailed look at the impacts of providing public services in the area, especially the extension of sewer.
We recommend that the Council consider developing a program to provide sewer connection assistance as part of a future Community Development budget process after completion of a small area plan. The 2005-2006 budget process is scheduled to begin in January 2005. This would allow opportunity to determine how many homeowners would be eligible for assistance, the cost to extend the sewer line, and the amount needed to assist the eligible homeowners.
SUMMARY
We recommend that the Council allocate $101,000 of program income and residual funds to the Community Development Neighborhood Revitalization activity. For the past several years, the Council has allocated funds to Neighborhood Revitalization activities in the Northside, Pine Knolls, and public housing neighborhoods. Eligible activities include: second mortgage assistance; property acquisition and/or renovation; code enforcement; demolition; public improvements (i.e. construction of sidewalks, curb and gutter improvements or parks and recreation facilities); or, community service activities. At this time, approximately $26,000 is available for funding.
If the Council chooses to budget funds to the Neighborhood Revitalization activity, $127,000 of funds would be available for the activities mentioned above ($26,000 plus $101,000). The Council has previously authorized the Manager to approve projects funded through the Community Development Neighborhood Revitalization program. We would continue to follow this practice as projects for funding are presented.
Housing and Community Development Advisory Board Recommendation: A quorum of the Housing and Community Development Advisory Board was not present at its November 23, 2004 meeting.
Manager’s Recommendation: That the Council adopt the attached resolution and ordinance to amend the Community Development program and allocate $91,318 of Community Development program income and $9,702 of Community Development residual funds to the Neighborhood Revitalization activity.
A RESOLUTION AMENDING THE COMMUNITY DEVELOPMENT PROGRAM (2004-12-06/R-4)
WHEREAS, on April 22, 2002, the Council adopted a process to amend the Community Development program to allocate approximately $101,000 of Community Development program income and residual funds; and
WHEREAS, on November 8, 2004, the Council held a public hearing to receive citizen comments on how to allocate Community Development program income and residual funds;
NOW, THERFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council amends the Community Development program to allocate approximately $91,318 of Community Development program income funds and $9,702 of residual funds to the Neighborhood Revitalization Program.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to submit an amended Annual Update to the Consolidated Plan to the U.S. Department of Housing and Urban Development to reflect this amendment.
This the 6th day of December, 2004.
AN ORDINANCE AMENDING THE 2004–2005 COMMUNITY DEVELOPMENT ENTITLEMENT GRANT PROJECT ORDINANCE (2004-12-06/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statues of North Carolina, the following grant project is hereby established:
SECTION I
The projects authorized are the Community Development projects as approved by the Council on April 26, 2004: funds are as contained in the Funding Approval and Grant Agreement between the Town and the U.S. Department of Housing and Urban Development (HUD). The projects are known more familiarly as the 2003 Entitlement Community Development Block Grant. The grant activities include renovation of public housing, neighborhood revitalization, property acquisition, community services to low-income residents, and administration costs for the program.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the grant project within the terms of the grant document(s), the rules and regulations of the U.S. Department of Housing and Urban Development, and the budget contained herein.
SECTION III
The following revenues are anticipated to be available to complete this project:
Current Revised
Budget Budget
Community Development Grant $711,000 $711,000
Program Income: $ 91,318
$711,000 $802,318
SECTION IV
The following amounts are appropriated for the project:
Public Housing $206,000
Renovation of Airport Gardens $150,000
Refurbishing Program $ 50,000
Playground Equipment $ 6,000
Neighborhood Revitalization $213,018
Orange Community Housing and Land Trust $100,000
Comprehensive Rehabilitation Program $100,000
Community Services $ 81,700
Chapel Hill Police Dept. Youth Programs $40,000
Family Resource Center $15,000
Cooperative Extension $13,700
YMCA $13,000
Administration $101,600
Total $802,318
SECTION V
The Finance Director is hereby directed to maintain within the Grant 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 grant agreement(s) and Federal and State regulations.
SECTION VI
Copies of this project ordinance shall be entered into the minutes of the Council and copies shall be filed with in five days of adoption with the Manager, Finance Director and the Town Clerk.
This the 6th day of December, 2004.