TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Preliminary Proposal for the 2005-2006 Capital Fund Program for Public Housing Renovations and Resident Services

DATE: March 23, 2005

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 2005-2006 Capital Fund Program.

SUMMARY

· We have not yet received notification from HUD of the amount of the 2005-2006 Capital Fund grant. However, we have developed a preliminary plan based on the 2004-2005 grant amount of $530,600.

· We expect to receive notification of the 2005-2006 grant by July 31, 2005.

· The preliminary plan includes completing the site work at the Airport Gardens neighborhood and renovation work in eight of the 11 apartments at the North Columbia Street neighborhood.

· The deadline for submitting the plan for the 2005-2006 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 15, 2005.

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.

DISCUSSION

We have not received notification from HUD of the amount of the 2005-2006 grant. Therefore, we have developed a preliminary plan for 2005-2006 in the amount of $530,600, the amount of the 2004-2005 grant. Also, the plan includes $167,000 that we recommend the Council to
allocate for public housing renovations under the 2005-2006 Community Development Block Grant Program. The total amount of the funds that would then be available for public housing renovations and resident services in 2005-2006 is $697,600.

PRELIMINARY PROPOSAL FOR 2005-2006

Proposed Sources of Funds

Capital Fund Program $530,600

Community Development Program $167,000

TOTAL $697,600

Proposed Use of Funds

Airport Gardens $124,000

North Columbia Street $444,000

Other Costs $129,600

TOTAL $697,600

The Preliminary proposal for the 2005-2006 Capital Fund Program includes the following activities:

1. Continuation of Renovations at Airport Gardens $124,000

Previous available funding for public housing renovations has been allocated to renovate 26 apartments and a portion of the site work at Airport Gardens. We estimated that about $124,000 would be needed to complete the remaining site work at Airport Gardens. We expect the remaining work to be completed by April 2006.

Proposed site work would include the replacement of retaining walls, replacement of sidewalks, replacement of playground equipment, replacement of wooden planters, resurfacing parking lots, replacement of part of the storm water drainage system, grading, reseeding and landscaping.

2. Renovations at North Columbia Street $444,000

We propose to renovate eight of the 11 apartments at the North Columbia Street neighborhood with the funds expected to be available. The remaining three units would be renovated in the future as 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, and landscaping.

3. Other Cost $129,600

This activity includes $55,600 for general administration of the Capital Fund Program. It also includes $74,000 for the Department of Housing portion of the debt service for the construction 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 2005-2006 Capital Fund Plan on March 22, 2005.

CONCLUSION

Next Steps

Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2005-2006 Capital Fund grant. We will present a recommended 2005-2006 Capital Fund Program Annual Statement for the Council’s consideration on April 11, 2005.

ATTACHMENTS

1. Preliminary Annual Statement for 2005-2006 (p.4)

(The Annual Statement provides a summary of proposed Capital Fund Program activities and cost estimates.)

2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p.6).

(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.)