TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Recommended 2001-2002 Capital Fund Program for Public Housing Renovations and Resident Services

DATE: April 23, 2001

INTRODUCTION

The purpose of this memorandum is to present a proposed plan for use of funds we expect to receive from the U.S. Department of Housing and Urban Development (HUD) under the 2001-2002 Capital Fund Program.

The attached resolution would approve a 2001-2002 Annual Statement for the Capital Fund Program.

SUMMARY

· We received notification from HUD that the 2001-2002 Capital Fund grant is expected to be $611,585. Therefore, we have developed a proposed plan based on that amount.

· The proposed plan includes renovations in all fifteen apartments at the Pritchard Park neighborhood.

· The deadline for submitting the plan for the 2001-2002 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 30, 2001.

BACKGROUND

The U.S. Department of Housing and Urban Development (HUD) allocates modernization funds to localities that manage at least 250 public housing apartments for renovation and support of resident services. Funds are allocated under a formula basis rather than through a competitive application process.

The proposed plan for the 2001-2002 Capital Fund Program includes renovation in the Pritchard Park neighborhood, because these have not had comprehensive rehabilitation work since being built in 1972.

Citizen Participation Process

On January 23, 2001, the Council held a public forum to receive citizens’ comments on the use of the 2001-2002 Capital Fund grant. No comments were received.

Housing staff held a meeting with the residents of public housing on February 22, 2001 to receive comments and suggestions on the use of the Capital Fund grant. Comments and suggestions received at the meeting include:

· Improvements to playground equipment are needed in the public housing neighborhoods.

· Need to provide homeownership training and counseling for residents of public housing.

· Need to replace screens, windows and doors.

· Need organized sports programs for children.

· Need to install outdoor benches.

· Need to upgrade landscaping throughout the public housing neighborhoods.

· Need to provide training or counseling on housekeeping.

· Daycare or head start programs are needed in the public housing neighborhoods.

On March 28, 2001, the Council held a second public forum to receive citizens’ comments on the use of the Capital Fund grant.

At the March 28^th public forum, on behalf of the Residents’ Council, Ms. Joann Shirer-Mitchell stated that the Residents’ Council would not be requesting funding from the 2001-2002 Capital Fund grant. She requested that funds allocated in the 2000-2001 grant be reserved for the Residents’ Council 2001-2002 activities (Please see Attachment 3).

Also, Ms. Tracy Dudley, on behalf of the Housing and Community Development Advisory Board, requested that the proposed plan for the use of Capital Fund grant should be approved as proposed.

DISCUSSION

On April 4, 2001, we received notification from HUD that the amount of the 2001-2002 Capital Fund grant is expected to be $611,585. Therefore, we have developed a proposed plan for 2001-2002 based that amount. Also, the plan includes $115,000 that we expect to be allocated for public housing renovations under the 2001-2002 Community Development Block Grant Program. The total amount of the funds expected to be available for public housing renovations and resident services in 2001-2002 is about $726,500.

PROPOSED USE OF 2001-2002 CAPITAL FUND

Proposed Sources of Funds

Capital Fund Program $611,500

Community Development Program $115,000

TOTAL $726,500

Proposed Use of Funds

Pritchard Park $585,000

Other Costs $141,000

TOTAL $726,000

The proposed plan for the 2001-2002 Capital Fund Program include the following activities:

1. Renovation at Pritchard Park $585,000

Renovate the 15 apartments at the Pritchard Park neighborhood. Proposed renovation work would include the replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, air conditioning, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting.

2. Other Cost $141,000

This activity includes the cost of professional services to design and write specifications for the renovation work. And also, the cost of day-to-day monitoring of renovation work, preparation of work records, and interviewing of workers as required by HUD. It also includes the cost of general administration of the Capital Fund Program, maintenance training and relocation of residents affected by the renovations.

This year, the Residents’ Council did not submit a proposal requesting funding from the Capital Fund Program. The Residents’ Council has not spent all of the funds allocated in previous years. We believe the remaining balance of about $50,000 is sufficient to cover expenses in 2001-2002. We expect to receive a request from the Residents’ Council in 2002-2003.

RECOMMENDATIONS

Housing and Community Development Advisory Board’s Recommendation: The Housing and Community Development Advisory Board reviewed the proposed use of the 2001-2002 Capital Fund grant on March 27, 2001. The members of the Board, including Mary Winne Sherwood, Tracy Dudley and Chris Beacham, voted 3 to 0 to recommend that the Capital Fund Program be approved as proposed.

Manager’s Recommendation: That the Council adopt the attached resolution.

ATTACHMENTS

1. Proposed 2001-2002 Annual Statement for Capital Fund Program (p. 6) (The Annual Statement provides a summary of proposed Capital Fund activities and cost estimates.)

2. Summary of Five-Year Plan For Public Housing Renovations And Resident Services (p. 8) (This attachment provides a summary of the proposed expenditures that is expected to be available for the public housing renovations and residents services over the next five years.)

3. Request from the Chapel Hill-Carrboro Residents’ Council (p. 9)

A RESOLUTION APPROVING OF AN ANNUAL STATEMENT FOR 2001-2002 CAPITAL FUND PROGRAM (2001-04-23/R-4)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the Capital Fund Program Annual Statement, as described in the Manager’s memorandum to the Council dated April 23, 2001. And that the Manager is authorized to submit the Capital Fund Program Annual Statement to the U.S. Department of Housing and Urban Development (HUD), including compliance with the HUD policies, procedures and regulations required therein, for a program of $611,585 in Capital Fund Program funds.

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

This the 23^rd day of April, 2001.