AGENDA # 4e

 

MEMORANDUM

 

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Recommended 2000 - 2005 Consolidated Plan

 

DATE:             May 8, 2000

 

The attached resolution would authorize submittal of the 2000 - 2005 Consolidated Plan to the U.S. Department of Housing and Urban Development.

 

Because the Town receives federal Community Development funds and is a member of the Orange County HOME Consortium, the Department of Housing and Urban Development requires the Town to jointly submit with Orange County a 2000 – 2005 Consolidated Plan by May 15, 2000.

 

SUMMARY

 

The Consolidated Plan serves four separate, but integrated functions.  The Plan is:

 

  1. A planning document for the Town and County;
  2. An application for federal funds that the Town and County receive including the Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME).  Other jurisdictions use the Plan to apply for Emergency Shelter Grant funds (ESG) and funds for Housing Opportunities for Persons with AIDS (HOPWA);
  3. A strategy to be followed in carrying out HUD programs; and
  4. An action plan that provides a basis for assessing performance. 

 

On April 24, 2000, the Council approved 2000 – 2001 Community Development and HOME Program plans (please see Attachment 1 for a list of activities approved for the Community Development and HOME Programs).

 

BACKGROUND

 

In 1995, the Orange County HOME Consortium received federal HOME funds, and the Town received federal Community Development funds, therefore we jointly submitted the 1995 - 2000 Consolidated Plan to HUD in May 1995.   Fiscal year 1999 – 2000 represented the final year covered by the 1995 – 2000 Plan.  We have been notified that the Town and the County will continue to receive federal Community Development and HOME Program funds in fiscal year 2000 – 2001.  Therefore, the Consortium is required to submit a new five-year Consolidated Plan. 

 

DISCUSSION

 

On April 24, 2000, we presented a draft of the Consolidated Plan to the Council.   Please see Attachment 2 for a revised Consolidated Plan.   Minor revisions to the Special Needs, Fair Housing, and Assisted Housing Inventory sections, and other editorial changes have been made to the Plan since it was presented to the Council on March 29. 

 

Although Orange County is the lead entity of the Consortium, it is necessary to have approval of the Consolidated Plan from all four jurisdictions before the document is submitted to the Department of Housing and Urban Development on May 15, 2000.  The Orange County Commissioners considered the Plan on May 3, the Hillsborough Board of Aldermen on May 8, and the Carrboro Board of Aldermen on May 9.  

 

MANAGER’S RECOMMENDATION

 

That the Council adopt the attached resolution authorizing the submittal of the 2000 – 2005 Consolidated Plan to the U.S. Department of Housing and Urban Development.

 

ATTACHMENT

 

1.           Summary of 2000 – 2001 Community Development and HOME Program activities (p. 4)

2.           Revised 2000 – 2005 Consolidated Plan for Housing and Community Development Programs in Orange County (begin new page 1)

A RESOLUTION AUTHORIZING THE SUBMITTAL OF THE 2000 – 2005 CONSOLIDATED PLAN (2000-05-08/R-5)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to submit the 2000 - 2005 Consolidated Plan to the U.S. Department of Housing and Urban Development, including all understandings, assurances, and certifications required therein, for a program of $466,000 of Community Development Block Grant funds and $536,550 of federal HOME Program funds by May 15, 2000.

 

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

 

This the 8th day of May, 2000.

ATTACHMENT 1

 

Summary of 2000 – 2001 Community Development Program

(Approved by the Chapel Hill Town Council on April 24, 2000)

 

 

Rehabilitation of Public Housing:                        $190,000

 

A portion of these funds, $120,000 will be used to rehabilitate the nine-unit Lindsay Street public housing community.   Funds will be used for renovation expenses and for a portion of the Assistant Housing Director’s salary for oversight of the public housing renovation projects.  Funds from the Comprehensive Grant will also be used for this renovation project.  Proposed renovation work would include the abatement of lead-based paint and asbestos, replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting.

 

The remaining $70,000 will be used to continue the public housing refurbishing program.  This program includes painting the interior of apartments, and minor repairs of public housing units.

 

Meadowmont Affordable Townhomes  $80,000

 

The Orange Community Housing Corporation will use funds to develop a site and infrastructure improvements in Meadowmont to construct thirty-two townhomes.  The townhomes will be developed for first time homebuyers earning less than 80% of the area median income.   We note that $40,000 of this budget includes program income that we anticipate would be received in fiscal year 2000 – 2001.

 

Neighborhood Revitalization:                             $72,600

 

Funds will be used to continue neighborhood revitalization activities in the Pine Knolls, Northside and public housing neighborhoods.  Eligible activities must serve households earning less than 70% of the HUD published area median income.  Funds could be used for second mortgages, property acquisition or renovation, public improvements, or community service activities.  Money will be allocated to eligible projects as specific requests are made.

 

Community Services:                                        $47,000

 

The Chapel Hill – Carrboro YMCA will use $25,000 of these funds to continue operation of after school programs for children living in the South Estes Drive and Pine Knolls communities.   The program for the children living in the South Estes Drive community will continue to be held at the South Estes Drive Community Center.   If the Pine Knolls Community Center is not available, the program for children living in Pine Knolls neighborhood may be held in the Lincoln Center gym or an alternate location.  Funds will be used to assist with operating expenses for the program.   

 

The remaining funds, $22,000 will be budgeted to Community Cuisine to continue operation of its youth and adult culinary skills programs for lower income Chapel Hill residents.   

 

Program Administration:                                    $76,400

 

Funds will be used for administration of the Community Development program including the Community Development Coordinator’s salary, a portion of the Long Range Planning Coordinator’s salary, and overhead costs.  HUD allows up to 20% of a Community Development grant to be spent on administrative expenses; the recommended administrative budget is 17% of the Town’s total grant. 

 

 

Summary of 2000 – 2001 HOME Program Activities

(Approved by the Chapel Hill Town Council on April 24, 2000)

 

Property Acquisition / Rehabilitation:     $120,000

 

Funds will be allocated to Orange Person Chatham Mental Health Area Program to acquire and if necessary rehabilitate houses in Orange County for persons with disabilities.

 

Rehabilitation:                                                   $130,250

 

A portion of these funds, $30,000 will be budgeted to the Orange Community Housing Corporation to continue operation of the Urgent Repair Program.  Eligible properties must have repair needs that pose a threat to the life, safety, or health of the occupants, or need accessibility modifications for a disabled occupant. 

 

The remaining $100,250 will be allocated to the Abundant Life Center to renovate its building on West Rosemary Street.  The Abundant Life Center is a single room occupancy facility that provides very low-cost housing for twenty-eight individuals.    These funds will be used in conjunction with $40,000 of Community Development funds approved by the Council on February 28, 2000.

 

Community Revitalization:                                 $100,000

 

Funds will be budgeted to continue revitalization efforts throughout Orange County.  Eligible activities must serve households earning less than 70% of the HUD published area median income.  Funds could be used for second mortgage assistance, property acquisition and rehabilitation.  A qualified 501(c )(3) organization is eligible to use these funds. 

 

New Construction:                                            $80,000

 

Funds will be allocated to the Orange Community Housing Corporation to construct thirty-two affordable townhomes in Meadowmont.  The townhomes will be sold to first time homebuyers earning less than 80% of the area median income.  Funds will be used for site development expenses. 

 

New Construction:                                            $62,500

 

Funds will be allocated to Habitat for Humanity to construct five homes in Orange County.  The funds will be converted into permanent second mortgages for the homebuyers.  The homes will be sold to families earning less than 50% of the area median income.  

 

Administration:                                      $43,800

 

The remaining $43,800 will be appropriated to the Orange County Housing and Community Development Department for administration of the HOME program, as allowed by HUD.