AGENDA #4b

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Establishment of a Project Ordinance for the 2000-2001 Housing Capital Fund Program (formerly the Comprehensive Grant Program)

 

DATE:             November 27, 2000

 

The attached budget ordinance would establish a project ordinance for the 2000-2001 Housing Capital Fund Program in the amount of $599,512 based on the grant application authorized earlier by the Council and subsequent grant awarded by the U. S. Department of Housing and Urban Development (HUD).

 

BACKGROUND

 

On April 24, 2000, the Council approved a plan for public housing renovations and resident services.  Also on April 24th, the Council authorized the submission of an application for the 2000-2001 Housing Capital Fund Program (formerly the Comprehensive Grant Program) to the U.S. Department of Housing and Urban Development.

 

The 2000-2001 grant year is the third year of the Five-Year Comprehensive Plan that was adopted by the Council on April 27, 1998.

 

Federal regulations require that in completing public housing improvements that priority be given to completing work related to the following statutory requirements.

 

·            Removing or abating lead-based paint

·            Removing or abating asbestos

·            Meeting the needs of disabled or handicapped individuals

 

Therefore, in the third year of the Five-Year Plan, priority is given to the Lindsay Street neighborhood because lead-based paint is present in these apartments.

 

DISCUSSION

 

Proposed renovations and activities for 2000-2001 Grant funds as approved by the Council on April 24, 2000 include the following:

 

  1. Renovate the 9 apartments at the Lindsay Street neighborhood to 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 tile, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting.

 

Allocation:  $516,412

 

In addition to the $516,412 included in the proposed budget ordinance for this project, there has been $239,649 appropriated in previous Comprehensive Grant and Community Development budget ordinances for the Lindsay Street renovations.  Therefore, the total amount available for Lindsay Street renovations is  $756,061.

 

Pending receipt of contractor bids, we estimate that this project, including design and management costs, could be completed and still leave a significant amount of funds that would be applied to the renovation of the Pritchard Park apartments.

 

2.            Continue to support resident activities.  Proposed activities would include, but not be limited to, support of the staffing and operational needs of the Residents’ Council.  The level of support to the Residents’ Council including a specific level of funding would be determined based on a performance agreement with the Residents’ Council.  We also propose to support the ACHIEVE! Family Self-Sufficiency Program.  Grant funds would be used to provide workshops, training, and educational opportunities for Program participants.

 

Allocation:  $62,000

 

3.            Contribution to the cost of the general administration of the Housing Capital Fund Program and maintenance training.

 

Allocation:  $21,100

 

The total amount appropriated from the U.S. Department of Housing and Urban Development for the 2000-2001 Housing Capital Fund Program is $599,512.

 

RECOMMENDATION

 

Manager’s Recommendation:  That the Council adopt the attached Project Ordinance for the 2000-2001 Housing Capital Fund Program.

 

ATTACHMENTS

 

1.            October 24, 2000 letter from HUD (p. 5).

2.         2000 Annual Statement (p. 7).

 

 

 

 

 

 

AN ORDINANCE TO ESTABLISH A HOUSING CAPITAL FUND PROGRAM (HCFP) PROJECT ORDINANCE (2000-11-27-/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, the following project ordinance is hereby established:

 

SECTION I

 

The projects authorized are the Housing Capital Fund Program (HCFP) activities as approved by the Council on April 24, 2000: funds are as contained in the Amendment to Consolidated Annual Contributions Contract between the Town and the U.S. Department of Housing and Urban Development dated October 24, 2000.

 

SECTION II

 

The Manager of the Town of Chapel Hill is hereby directed to proceed with the project within the terms of the Contract document(s), the rules and regulations of the U.S. Department of Housing and Development, and budget contained herein.

 

SECTION III

 

The following revenues are available to complete the project:

 

Capital Fund Program                                  $599,412

 

SECTION IV

 

The following amounts are appropriated for the project:

 

Management Improvements                        $  62,000

Administration                                   $  21,100

Dwelling Structures                                          $516,412

 

Total                                                            $599,412

 

SECTION V

 

The Finance Director is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to provide the accounting to the U.S. Department of Housing and Urban Development as required by the Annual Contributions Contract and federal regulations.

 

 

 

 

SECTION VI

 

Copies of this project ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Finance Director and the Town Clerk.

 

SECTION VII

 

Funds may be advanced from general funds for the purpose of making payments as due.  Reimbursement request should be made to HUD in a timely manner.  The Manager is directed to report annually on the financial status of each project in Section IV and on the total revenues received.

 

This the 27th day of November, 2000.