AGENDA #10b

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Allocation of Community Development Neighborhood Revitalization Funds

 

DATE:             February 28, 2000

 

 

The attached resolution allocates $185,380 of Community Development Neighborhood Revitalization funds as follows:

 

            Sources of Funds

 

The following sources of funds are available for Neighborhood Revitalization projects:

                                                                         

1.      Proposed Reallocation of

Community Development funds:                                          $ 52,880              

(from Agenda Item 10a)

     

2.      Existing Neighborhood Revitalization

Budget: 

Original Budget:                                    $50,000

      10/11/99 Amendment:              $82,500           $132,500                                                                                                                           $185,380

               

            Proposed Use of Funds

 

            Acquisition of Properties (Police Dept. Request)                       $  70,000

            Abundant Life Center Renovation Project                                 $  40,000

            Neighborhood Revitalization (General)                          $  75,380

                                                                                                            $185,380

 

BACKGROUND

 

On October 11, 1999, the Council amended the Community Development program and budgeted $181,500 of Community Development program income.  During the public participation process, the Council received three requests for activities that would be eligible under the Community Development Neighborhood Revitalization activity:

 

Ř      A request from the Chapel Hill Police Department that the Town purchase a vacant lot, and purchase and renovate a vacant house in the Northside neighborhood ($80,000) (Please see Attachment 1); and          

 

Ř      A request from the Abundant Life Center for funds to renovate their existing building on West Rosemary Street ($125,000) (please see Attachment 2); and

 

Ř      A request from EmPOWERment Inc. for funds to purchase properties in the Pine Knolls and Northside neighborhoods ($110,000) (please see Attachment 3).

 

The Council also received a request from Community Cuisine for $21,000 to continue support of its culinary skills programs. 

 

At that time, we recommended that the Council budget $82,500 of the funds for the general category of Neighborhood Revitalization, increasing the budget to $132,500.  We also reported that we would return with a specific proposal for the use of these funds at a later date.   

 

On tonight’s agenda, we propose an amendment to the Community Development Program to add $52,880 to the Neighborhood Revitalization activity, increasing the budget to $185,380 (please see Agenda Item 10a).

 

DISCUSSION

 

Since October, we have received additional information regarding the above requests.  

 

1.  Police Department Request to Purchase Properties in the Northside Neighborhood

 

The Police Department requested that the Council consider using Community Development funds to purchase a vacant house and neighboring vacant lot on Nunn Street. We mailed notices to the owners of the properties asking if they were interested in selling their properties to the Town.    The assessed value for tax purposes of the vacant house and neighboring lot are $33,304 and $8,073 respectively.

 

Staff Recommendation:  The owners of the properties have not had the opportunity to respond to the Town’s notices.   We recommend that the Council reserve $70,000 of Community Development funds to purchase one or possibly both of these properties if the property owners are interested in selling to the Town.    If the Town purchases the properties, we recommend that we work with EmPOWERment Inc. to renovate and sell the home to a household earning less than 80% of the area median income.    We believe that improving the properties would enhance the Town’s current efforts to revitalize the Northside neighborhood.

 

2.  Request from the Abundant Life Center

 

The staff has continued to work with Ms. Ester Tate to pursue sources of funds to renovate the Abundant Life Center on West Rosemary Street, a facility that provides housing for eighteen low-income, high-risk individuals.   We have identified two sources of funds through the NC Housing Finance Agency that could be used for this renovation project.   The Agency’s programs could provide zero interest loans to the organization to renovate the building.  Both programs would require the applicant to secure matching funds for the project.

 

Staff Recommendation:  The Abundant Life Center is the only single room occupancy facility in Chapel Hill and we believe that it is important that the Center continue to provide this service.   We recommend that we continue to work with Ms. Tate to apply for funds through the NC Housing Finance Agency, the Orange County HOME Program or other sources.  We also recommend that the Council reserve approximately $40,000 of Neighborhood Revitalization funds for the required matching funds for the NC Housing Finance Agency’s programs, or to be used in conjunction with other funds such as the HOME Program.   If the Council approves, we would continue to work with Ms. Tate to submit an application for funding through the Housing Finance Agency or the HOME Program.  

 

3.   Requests from EmPOWERment

 

EmPOWERment Inc. requested that the Council consider allocating $110,000 to the Neighborhood Revitalization activity for property acquisition and renovation expenses.  EmPOWERment has identified five properties in the Pine Knolls and Northside neighborhood that they intend to purchase, renovate and sell households earning less than 70% of the area median income ($41,650 for a family of four). 

 

In a letter dated January 29, 2000, EmPOWERment Inc. also requested $15,000 of current year Community Development funds to purchase a four-unit apartment building on Knolls Street in the Pine Knolls neighborhood (Please see Attachment 4).  

 

Staff Recommendation:  We recommend that the Council reserve the remaining $75,380 of funds for Neighborhood Revitalization activities.   We also recommend that the Council authorize the Manager to approve specific projects for use of the funds.   Eligible activities would include property acquisition and/or rehabilitation, second mortgage assistance, public improvements, and community services.  A qualified 501(c )(3) non-profit organization, including EmPOWERment Inc., could apply to the Town for the use of the funds. 

 

The proposed recommendation addresses each proposal received for use of Neighborhood Revitalization funds.

 

RECOMMENDATIONS

 

Manager’s Recommendation:  That the Council adopt the attached resolution and budget $185,380 of Neighborhood Revitalization funds as follows:

 

            Acquisition of Properties (Police Dept. Request)                       $  70,000

            Abundant Life Center Renovation Project                                 $  40,000

            Neighborhood Revitalization                                                     $  75,380

                                                                                                            $185,380

 

Housing and Community Development Advisory Board Recommendation:  On February 22, 2000, the Housing and Community Development Advisory Board voted 4-0 recommending that the Council allocate Neighborhood Revitalization funds as proposed. 

 

ATTACHMENTS

 

1.      Request from the Chapel Hill Police Department (p. 6)

2.      August 25, 1999 Request from the Abundant Life Center (p. 7)

3.      August 23, 1999 Request from EmPOWERment Inc. (p. 15)

4.      January 31, 2000 Request from EmPOWERment Inc.(p. 16)

 

A RESOLUTION ALLOCATING $185,380 OF COMMUNITY DEVELOPMENT NEIGHBORHOOD REVITALIZATION FUNDS (2000-02-28/R-12)

 

WHEREAS, on October 11, 1999, the Council amended the Community Development program and allocated $132,500 of Community Development program income to the Neighborhood Revitalization Activity; and

 

WHEREAS, on February 14, 2000, the Council allocated an additional $52,880 of Community Development funds for Neighborhood Revitalization activities;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council allocates $185,380 of Community Development Neighborhood Revitalization funds as follows:

 

Acquisition of Properties in Northside (Police Dept. Request)    $  70,000

            Abundant Life Center Renovation Project                                             $  40,000

            Neighborhood Revitalization                                                                 $  75,380

                                                                                                                        $185,380

 

This the 28th day of February, 2000.