AGENDA #4v
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Request from The Community Land Trust in Orange County
DATE: August 28, 2000
The purpose of this memorandum is to respond to a request from the Community Land Trust in Orange County to reallocate $16,538.30 of Economic Development Initiative Special Projects Grant funds for property acquisition. (Please see Attachment 1).
The attached resolution would reallocate funds in the Community Land Trust in Orange County Economic Development Initiative Special Projects Grant for property acquisition as follows:
Original Revised
Activity Budget Budget
Revolving Loan Fund $156,250 $139,711.70
Administration $ 65,000 $ 65,000.00
Property Acquisition $ -0- $ 16,538.30
Homeowner’s Emergency Loan Fund $ 5,000 $ 5,000.00
Educational Campaign $ 5,000 $ 5,000.00
$231,250 $231,250.00
On May 22, 2000, the Council authorized the Manager to execute a grant Agreement with the U.S Department of Housing and Urban Development to accept a $231,250 Economic Development Initiative Special Projects Grant, approved activities, and established a project ordinance for the grant. The funds were to be used by the Community Land Trust in Orange County to implement land trust projects in Orange County. It was agreed that the Land Trust would implement the grant activities and be responsible for administrative requirements associated with the grant.
THE REQUEST
In a letter dated August 8, 2000, the Land Trust requested a revision to the original budget approved by the Council. In March, a property owner approached the Land Trust with an opportunity to purchase a house and vacant lot in Carrboro. Habitat for Humanity loaned $16,538.50 to the Land Trust to purchase the property, and intends to build a house on the vacant lot. The Land Trust requests a revision to the budget so they may reimburse Habitat for the borrowed funds. The Land Trust Board approved this request on March 28, 2000.
DISCUSSION
The Land Trust was presented with an opportunity to purchase a house and vacant lot in Carrboro. This acquisition will allow the Land Trust will create two housing units that will be permanently more affordable for lower income families in Orange County.
The Economic Development Initiative Grant regulations do not require prior HUD approval for budget revisions that are less than 25% of the grant.
If the Council were to approve this request, we would incorporate the amendment into a Performance Agreement with the Land Trust. We also recommend that the Council authorize the Manager to approve future amendments to this grant that have been approved by the Board of the Land Trust.
That the Council adopt the attached resolution to reallocate funds in the Community Land Trust in Orange County Economic Development Initiative Special Project Grant.
1. August 8, 2000 letter from the Community Land Trust in Orange County (p. 4)
A RESOLUTION TO AUTHORIZE REALLOCATION OF FUNDS IN THE COMMUNITY LAND TRUST IN ORANGE COUNTY ECONOMIC DEVELOPMENT INITIATIVE SPECIAL PROJECTS GRANT FOR PROPERTY ACQUISITION (2000-08-28/R-17)
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, on May 22, 2000, the Council authorized 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, established a project ordinance, and authorized the Manager to enter into a Performance Agreement with the Land Trust for implementation of activities under this grant and related administrative tasks;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes reallocation of funds in the Community Land Trust in Orange County Economic Development Initiative Special Projects Grant for property acquisition as follows:
Original Revised
Activity Budget Budget
Revolving Loan Fund $156,250 $139,711.70
Administration $ 65,000 $ 65,000.00
Property Acquisition $ -0- $ 16,538.30
Homeowner’s Emergency Loan Fund $ 5,000 $ 5,000.00
Educational Campaign $ 5,000 $ 5,000.00
$231,250 $231,250.00
BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate this amendment into a Performance Agreement with the Community Land Trust in Orange County.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to approve future amendments to this grant that have been approved by the Board of the Community Land Trust in Orange County.
This the 28th day of August, 2000.