AGENDA #1e
MEMORANDUM
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Proposal for the 2002-2003 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: March 26, 2002
The purpose of this memorandum is to present a preliminary proposal for use of funds we expect to receive from the U.S. Department of Housing and Urban Development (HUD) under the 2002-2003 Capital Fund Program.
· We have not yet received notification from HUD of the amount of the 2002-2003 Capital Fund grant. However, we have developed a preliminary plan based on the 2001-2002 grant amount of $611,500.
· We expect to receive notification of the 2002-2003 grant by July 31, 2002.
· The preliminary plan includes renovations in about thirteen of the twenty-six apartments at the Airport Gardens neighborhood.
· The deadline for submitting the plan for the 2002-2003 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 30, 2002.
The U.S. Department of Housing and Urban Development allocates modernization funds to localities that manage at least 250 public housing apartments for renovations and resident services. Funds are allocated under a formula basis rather than a competitive application process.
The preliminary proposal for the 2002-2003 Capital Fund Program includes renovations at the Airport Gardens neighborhood because these apartments have not undergone comprehensive renovation work since being built in 1972.
DISCUSSION
We have not received notification from HUD of the amount of the 2002-2003 grant. Therefore, we have developed a preliminary plan for 2002-2003 in the amount of $611,500, the amount of the 2001-2002 grant. Also, the plan includes $115,000 that we expect to be allocated for public housing renovations under the 2002-2003 Community Development Block Grant Program. Therefore, the total amount of the funds expected to be available for public housing renovations and resident services in 2002-2003 is $726,500.
PRELIMINARY PROPOSAL FOR 2002-2003
Proposed Sources of Funds
Capital Fund Program $611,500
Community Development Program $115,000
TOTAL $726,500
Proposed Use of Funds
Airport Gardens Renovations $528,000
Management Improvements $ 61,500
Other Costs $137,000
TOTAL $726,500
The Preliminary proposal for the 2002-2003 Capital Fund Program include the following activities:
1. Renovations at Airport Gardens $528,000
Renovate approximately 13 of the 26 apartments at the Airport Gardens 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 ranges and refrigerators, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, replacement of drainage system and landscaping.
The remaining 13 Airport Garden apartments would be renovated as additional funding becomes available.
2. Management Improvements $ 61,500
We propose to reserve $61,500 to be used for Management Improvements. Managements Improvements includes programs and activities that will be provided for residents of public housing.
A portion of these funds will be used to support the activities of the Residents’ Council. The proposed use of funds would include, but not be limited to, support of activities provided for public housing residents. We would work with the Residents’ Council to determine the funding level and specific activities to incorporate into a performance agreement. (Please see Attachment 3).
We also propose to reserve funds for the ACHIEVE! Family Self-Sufficiency Program and drug use prevention activities.
3. Other Cost $137,000
This activity includes the cost of professional services to design and write specifications for the renovation work, and the cost of day-to-day monitoring of the renovation work, the 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 the relocation of residents affected by the renovations.
Review by Housing and Community Development Advisory Board
The Housing and Community Development Advisory Board will review the Preliminary Proposal for the 2002-2003 Capital Fund Plan on March 26, 2002.
The Residents’ Council will review the Preliminary Proposal for the 2002-2003 Capital fund Plan on April 10, 2002.
CONCLUSION
Next Steps
Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2002-2003 Capital Fund grant. We will present a recommended 2002-2003 Capital Fund Program Annual Statement for the Council’s consideration on April 22, 2002.
ATTACHMENTS
1. Preliminary Annual Statement for 2002-2003 (p.4).
(The Annual Statement provides a summary of proposed Capital Fund Program activities and cost estimates.)
2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p.6).
(This attachment provides a summary of the proposed expenditures that is expected to be available for public housing renovations and resident services over the next five years.)
3. Proposal from the Residents’ Council (p.7).