AGENDA #4g
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Acceptance of Economic Development Initiative Special Project Grant for the Community Land Trust in Orange County
DATE: May 22, 2000
The attached resolution and budget ordinance would authorize the Town Manager to execute a Grant Agreement and related documents with the U.S. Department of Housing and Urban Development to accept a $231,250 Economic Development Initiative Special Projects grant. The grant would be used by the Community Land Trust in Orange County to implement land trust projects in Orange County.
The resolution would also authorize the Manager to execute an agreement with the Community Land Trust in Orange County for administration of the grant.
The Town submitted an application to the U.S. Department of Housing and Urban Development on behalf of the Community Land Trust in Orange County on March 20, 2000 for use of $231,250 of Economic Development Initiative Special Project funds.
The Town has recently been notified that the grant was approved (Please see Attachment 1).
If the Council authorizes acceptance of this grant, the Land Trust would implement the activities described below and be responsible for administrative requirements associated with the grant such as completing environmental assessments of projects and project oversight.
The Board of Directors of the Community Land Trust in Orange County has approved the following activities for the grant:
Revolving Loan Fund : $156,250
Funds from the revolving loan funds would be made available to non-profit affordable housing developers as zero-interest loans to develop land trust homes in Orange County. Eligible uses of the fund would include property acquisition, rehabilitation, new construction, and other costs associated with creating affordable housing. The funds could be used in conjunction with other monies available through the Towns of Chapel Hill, Carrboro, Hillsborough, Orange County or other private financial institutions. The funds could also be used to provide small down payment or closing cost assistance to homeowners in the form of second mortgages.
Administration: $65,000
Funds would be used to for a full time Land Trust Project Manager and related administrative expenses. Funds would be used over three fiscal years as follows:
· $5,000 would be used in 1999 – 2000 (the current fiscal year) so the existing part-time Project Manager could become full-time;
· $40,000 would be used in fiscal year 2000 – 2001 (Note: In addition to these funds, the Land Trust has requested $18,000 from both the Town and Orange County, $4,000 from Carrboro and $1,000 from Hillsborough for administrative expenses in fiscal year 2000 – 2001. The Manager’s preliminary recommended 2000-2001 budget allocates $8,000 to the Orange Community Housing Corporation to implement Land Trust activities.);
· $20,000 would be used in fiscal year 2001 – 2002 for a full time Project Manager.
Homeowner’s Emergency Loan Fund: $5,000
Funds would be available to Land Trust homeowners who encounter unforeseen economic circumstances that may put their mortgage in jeopardy of foreclosure. An example is that the Land Trust Board may elect to use funds to assist a homeowner with their mortgage payments.
Educational Campaign: $5,000
Funds would be used to develop marketing and outreach materials for the Land Trust including a brochure explaining the community land trust concept.
If the Council agrees to accept this grant, the attached resolution would authorize the Manager to sign a Grant Agreement and related documents. We also suggest that the Town enter into a Performance Agreement with the Land Trust for implementation of this grant. We recommend that the Performance Agreement include the following terms:
(1) The Town would monitor the Land Trust to review program progress and program compliance.
(2) The Town would have the right to inspect the Land Trust’s financial books and records.
(3) The Land Trust would be required to submit a copy of its annual audit to the Town.
That the Council adopt the attached budget ordinance and resolution authorizing the Town Manager to execute a Grant Agreement and related documents with the U.S. Department of Housing and Urban Development and enter into a Performance Agreement with the Community Land Trust in Orange County for implementation of this grant.
1. Grant approval letter from the U. S. Department of Housing and Urban Development
A RESOLUTION AUTHORIZING THE
TOWN MANAGER TO EXECUTE A GRANT AGREEMENT AND RELATED DOCUMENTS WITH THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR AN ECONOMIC DEVELOPMENT
INITIATIVE SPECIAL PROJECTS GRANT (2000-05-22/R-7)
WHEREAS, on behalf of the Community Land Trust in Orange County, the Town has applied for and received a $231,250 Economic Development Initiative Special Projects Grant from the U. S. Department of Housing and Urban Development; and
WHEREAS, the Board of Directors of the Community Land Trust in Orange County has approved the following activities for the use of the Grant:
Revolving Loan Fund $156,250
Administration $ 65,000
Homeowner’s Emergency Loan Fund $ 5,000
Educational
Campaign $ 5,000
Total $231,250
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to execute a Grant Agreement and related documents with the U.S. Department of Housing and Urban Development for an Economic Development Initiative Special Projects Grant.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to enter into a Performance Agreement with the Land Trust for implementation of activities under this grant and related administrative tasks.
This the 22nd day of May, 2000.
AN ORDINANCE TO ESTABLISH A PROJECT ORDINANCE FOR AN AFFORABLE HOUSING
DEVELOPMENT GRANT (2000-05-22/O-1)
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, that a grant projects ordinance is hereby established for affordable housing development projects funded from a 19990-2000 grant from the U. S. Department of Housing an Urban Development.
The affordable housing projects as authorized by the grant include establishment of a Revolving Loan Fund, a homeowner’s equity loan program, and administration and educational campaign expenses.
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
Revenues anticipated to be available to the Town to complete the project are as follows:
Amounts appropriated are for the project as follows:
Revolving Loan Fund $ 156,250
Administration 65,000
Homeowner Equity Loans 5,000
Education Campaign Costs 5,000
Total $ 231,250
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
Copies of this projects ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 22nd day of May, 2000.