AGENDA #1c
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary 2003-2004 Community Development Program
DATE: March 26, 2003
The purpose of tonight’s public hearing is to receive citizen comments on a proposed plan for use of Community Development funds in fiscal year 2003-2004.
The U.S. Department of Housing and Urban Development (HUD) has informed us that the Town will receive $723,000 of Community Development funds in fiscal year 2003-2004. In addition, we recommend that $5,250 previously allocated by the Council to a community group and not used be reallocated to other purposes. The group does not have a plan to use these funds. Therefore, the total for proposed allocation is $728,250.
· We will present a final recommendation to the Council for consideration of a Community Development Plan on April 28, 2003.
· The Town is required to submit an update to the 2000–2005 Consolidated Plan to the Department of Housing and Urban Development by May 15, 200 3.
INTRODUCTION
We propose the following use of Community Development funds for 2003-2004. The proposed plan is based on comments received at the public hearing on January 29, 2003, and applications submitted by agencies requesting funds.
Public Housing $221,000
Renovation of Airport Gardens $165,000
Refurbishing Program $ 50,000
Playground Equipment $ 6,000
Comprehensive Housing Rehabilitation $150,000
Neighborhood Revitalization $115,750
Property Acquisition (Affordable Rentals) $ 80,000
Community Services $ 41,500
Family Resource Center $15,000
Orange County Literacy Council $13,500
YMCA $13,000
Administration $120,000
Total $728,250
The Town of Chapel Hill has received Community Development grants since 1975 under the Housing and Community Development Act of 1974. This legislation provides funds to cities and counties to carry out activities that benefit low and moderate income families including: housing repair, public improvements, acquiring land for housing and economic development.
The primary objective of the Community Development program is to develop viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities for low and moderate income households. Federal regulations define low income as up to 50% of the median income and moderate income as up to 80% of the median family income. According to the U.S. Department of Housing and Urban Development (HUD), 80% of the current median income for a family of four in the Raleigh-Durham-Chapel Hill Metropolitan Statistical Area is $69,800 (Please see Attachment 1 for the 2002 Raleigh-Durham-Chapel Hill Median Family Income by Household Size).
Since the mid 1980’s, the Council has used a significant amount of Community Development funds for the renovation of public housing communities, affordable housing projects and neighborhood revitalization. Funds have been used to rehabilitate the exterior of public housing apartments, for drainage improvements, and to refurbish the interior of apartments. Over the past several years, the Council has also budgeted funds for affordable housing development such as the Legion Road and Meadowmont Townhomes and a Habitat for Humanity subdivision on Rogers Road, neighborhood revitalization activities with EmPOWERment, Inc., and community service activities programs with the YMCA, Community Cuisine and the Orange County Literacy Council. Please see Attachment 2 for a summary of the 2002-2003 Community Development program.
The Consolidated Plan
On May 15, 2000, the Town and Orange County submitted to the U.S. Department of Housing and Urban Development a five-year Consolidated Plan covering fiscal years 2000–2001 through 2004–2005. The purpose of the Plan is to identify and prioritize the housing and community development needs for Chapel Hill and Orange County. The Plan also suggests how the Town and the County will address the needs over a five-year period.
Each year, we are required to submit an update to the 2000-2005 Consolidated Plan that includes an annual plan for spending Community Development and HOME Program funds. The Plan for use of Community Development funds is approved by the Council and the HOME Program Plan is approved by the Council, the Orange County and Hillsborough Commissioners, and Carrboro Board of Aldermen.
This year’s update to the Consolidated Plan will include the 2003-2004 Community Development and HOME Program Plans as well as updates on housing and community development initiatives and programs in Orange County. We will prepare a draft Consolidated Plan for the Council’s consideration on April 28, 2003.
Public Participation Process
On January 29, 2003, the Council held the first public hearing to receive ideas from citizens about how funds could be spent in five areas: the Capital Improvements Program, the Town Budget, the Community Development Program, the HOME Program and the Capital Fund Grant for public housing activities. The hearing represented the first step in the Community Development planning process for 2003-2004.
This year we asked agencies requesting Community Development and/or HOME Program funding to submit a standardized application. The application requested detailed information about the agencies requesting funds and the proposed projects. The application also included a list of eligible Community Development activities, as well as a list of the housing and community development priorities from the 2000–2005 Consolidated Plan adopted by the Council in April 2000. We believe that this process allowed agencies to more clearly understand the criteria by which the projects would be evaluated. This revised application process, along with monitoring procedures (including site visits to each agency to evaluate progress), is designed to improve overall Community Development performance.
Please see Attachment 3 for a summary of Community Development related comments and requests received at the January 29, 2003 public hearing and a summary of applications received.
Funding Increase
The Town’s Community Development award of $723,000 is a 63% increase from the Town’s 2002-2003 allocation ($445,000). The significant change is due to the increase in number of people living in an overcrowded housing situation (more than one occupant per room); and the number of people living in poverty reported in the 2000 Census data for Chapel Hill. We note the following increases reported in the 1990 to 2000 Census for Chapel Hill:
1. The percentage of overcrowded housing units increased from 1.6% in 1990 to 7.8% in 2000.
2. The percentage of the population below the poverty level increased from 16.1% in 1990 to 21.6% in 2000.
[NOTE: We do not know if these figures were influenced by the development of student housing in Chapel Hill.]
As a result of the increase in funding, we will need to place extra emphasis on performance and timeliness because of requirements of the U.S. Department of Housing and Urban Development. Community Development regulations limit the amount of unspent Community Development funds a community can have in its account with the U.S. Treasury on April 30 of each year. If the amount of funds on hand exceeds this limit, the Department could withdraw a percentage of new grant funding. The Town has met the spending threshold this year. However, with an increase in funding, we want to make sure that a significant amount of funds awarded can be spent by April 2004. We intend to incorporate language into Performance Agreements that if a significant portion of funds are not spent by February 2004, the Town could consider reallocating funds for other activities to avoid future fund reduction by the Department of Housing and Urban Development.
DISCUSSION
Five-Year Plan
In April 2000, the Council adopted a five-year plan (please see Attachment 4). The plan includes a projection of Community Development funds through fiscal year 2004–2005, and proposes an amount of funds budgeted for each activity. The plan serves as a guide to the Council when considering the use of future Community Development funds. This plan does not take into account the increase in the Town’s allocation.
The plan proposes to continue funding public housing renovations, affordable housing projects, and community service activities over the next five years. In practice, our recommendations for the Community Service activities budget last year and this year is lower than the projected $56,000. Reducing funds for community service activities allows us to continue focusing our efforts on neighborhood revitalization and the development of affordable housing, especially in the Sykes Street and Northside, and Pine Knolls areas.
The original five-year plan was based on an estimated Community Development grant of $446,000. The increase in funds will allow the Town to consider an enhanced level of housing and neighborhood revitalization activities.
Preliminary 2003-2004 Community Development Plan
We propose the following activities for the 2003–2004 Community Development grant:
Public Housing Activities: $221,000
1. Renovation of Airport Gardens
We recommend that the Council budget $165,000 to renovate the Airport Gardens public housing community. Funds would be used along with Public Housing Capital Grant funds and previously allocated Community Development funds ($100,000 of 2003-2004 funds) to renovate the twenty-six unit community. Proposed renovation work would 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 tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting.
This renovation project is currently under design. We may have an estimated cost from the architect by mid-April, 2003. For the April 28, 2003 recommended budget submissions to the Council, we hope to have a better picture of whether all twenty-six units can be renovated under one contract with the existing and proposed funding available.
2. Refurbishing Program
We recommend that the Council appropriate $50,000 of Community Development funds to continue the public housing refurbishing program. This program includes minor repairs of public housing units.
3. Installation and Repair of Playground Equipment
We recommend that the Council budget $6,000 to repair and replace playground equipment at various public housing sites.
Comprehensive Rehabilitation $150,000
We recommend that the Council budget $150,000 for the renovation of owner occupied housing in the Northside neighborhood. We estimate that these funds would rehabilitate four houses and provide for contract staff support. We recommend that we contract with Orange County Department of Housing and Community Development to oversee the rehabilitation work. Town staff would be responsible for the administrative portion of the program (i.e. qualifying households).
As with the Comprehensive Rehabilitation program funded through the HOME Program, funds could be provided as deferred loans to qualified homeowners that could be forgiven over time (typically twenty years, depending on the amount of the loan). The funds would be repaid to the Town if home was sold or conveyed to heirs that do not meet the income guidelines of the program within the affordability period (typically twenty years). We propose to consult with representatives from the Northside Community Association, further develop the criteria for eligibility for the program and a method for prioritizing applicants, and present a recommendation to the Council in April.
Neighborhood Revitalization: $115,750
We recommend that the Council budget $115,750 of Community Development funds to continue neighborhood revitalization activities in the Northside, Pine Knolls, and public housing neighborhoods. Funds could be used for second mortgage assistance, property acquisition or renovation, code enforcement, demolition, public improvements such as installation of sidewalks or road improvements, or community service activities. Activities must serve households earning less than 80% of the HUD published area median income.
We recommend reserving $20,000 of these funds to expand the Police Department’s summer youth work program for youths living in the Pine Knolls, Northside and public housing communities. The youths would work approximately twenty hours per week in various Town Departments. We estimate that at least fifteen to twenty youths could be hired for this program.
In general, we recommend using remaining funds to focus on improving living conditions in the Sykes Street area of Northside. We propose to continue our efforts in this area by working with neighborhood residents, EmPOWERment, Orange Community Housing and Land Trust, and the Sykes Street Steering Committee. We also propose to continue an interdepartmental effort with the Police Department, Planning, Inspections, and Public Works to improve the neighborhood environment. Specific activities in the Northside area could include acquisition and rehabilitation of housing for homeownership, code enforcement, and where necessary, demolition of unsafe homes, construction and repair of sidewalks, and other public improvements.
We recommend that the Council continue to authorize the Manager to approve specific projects for use of these funds. We also recommend that the Council authorize the Manager to approve converting Neighborhood Revitalization funds into grants to Orange Community Housing and Land Trust as opportunities appear to achieve long term affordability of housing projects to be placed in the Land Trust.
Affordable Rentals, Inc.: $80,000
We recommend that the Council budget $80,000 to Affordable Rentals, Inc. to purchase a house in Chapel Hill. The property would be used as permanently affordable rental housing.
Community Services: $41,500
We recommend that the Council allocate funds for three community service activities that meet the Community Development regulations:
Program Administration: $120,000
We recommend that the Council allocate $120,000 for administration of the Community Development program and related housing programs. Currently, the Community Development staff administers Community Development Program and the Housing Loan Trust Fund, coordinates efforts with non-profit organizations that receive Community Development funding from the Town, coordinates activities with the HOME Program Consortium, monitors compliance with Performance Agreements and federal regulations, administers housing loans and grants provided by the Town over time, and coordinates with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations.
We propose to continue to use funds for the Community Development Coordinator’s salary, a portion of the Long Range Planning Coordinator’s salary and a part-time contract Community Development Program Monitor. These costs total approximately $93,000. This year we propose to use approximately $20,000 for financial accounting services, and $5,000 for assistance with the administration of the proposed comprehensive rehabilitation program. The balance of funds, $2,000, would be used for overhead costs.
The following outlines the responsibilities of the existing Community Development staff:
We believe that the increase in our grant amount will increase the complexity of our financial record keeping. Therefore, this year we recommend allocating Community Development funds for part-time financial accountant services. This person would be responsible for financial management required by the U.S. Department of Housing and Urban Development and other Town financial procedures.
NEXT STEPS
The plan under consideration tonight is a preliminary recommendation. All comments received during tonight’s public hearing and after the hearing will be summarized and submitted with the Consolidated Plan to the Department of Housing and Urban Development. The Housing and Community Development Advisory Board reviewed the proposed plan on March 25, 2003. We will forward the Board’s recommendation to the Council on April 28, 2003.
We will submit a final recommended Community Development plan to the Council for consideration on April 28, 2003. A final Consolidated Plan must be submitted to the Department of Housing and Urban Development by May 15, 2003.
ATTACHMENTS
1. 2003 Median Family Income Chart (p. 9).
2. Summary of 2002-2003 Community Development Program (p. 10).
3. Summary of Comments and Community Development Requests (p. 13).
4. Adopted Five-Year Community Development Plan (p. 18).
5. National Objectives of Community Development Legislation (p. 19).
2003 Raleigh-Durham-Chapel Hill MSA
|
Household |
100% of Median |
80% of Median |
|
1 |
$49,900 |
$39,550 |
|
2 |
$57,040 |
$45,200 |
|
3 |
$64,150 |
$50,850 |
|
4 |
$71,300 |
$56,500 |
|
5 |
$77,000 |
$61,000 |
|
6 |
$82,700 |
$65,550 |
|
7 |
$88,400 |
$70,050 |
|
8 |
$94,100 |
$74,600 |
Source: U.S. Department of Housing and Urban Development (HUD)
3/2003
2002-2003 Community Development Plan
Approved by the Chapel Hill Town Council on April 22, 2002
The U. S. Department of Housing and Urban Development awarded the Town $445,000 of Community Development funds in fiscal year 2002-2003. The budget also includes $12,000 of program income received in the 2001-2002 program year. We anticipate that we will receive an additional $4,000 of program income during 2002-2003 from repayment of mortgages and a small business loan. Therefore, we propose activities for a total of $461,000.
1. Rehabilitation of Public Housing: $170,000
The Council budgeted $115,000 of Community Development funds for the rehabilitation of twenty-six units at the Airport Gardens public housing community. Community Development funds will be used for architectural work related to renovation. The Council allocated $15,000 for a portion of the Assistant Housing Directors’ salary for oversight of the renovation project. Housing Capital Grant funds will be used for renovation expenses for the community. Proposed renovation work will 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 tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, and drainage improvements to the site.
The Council also budgeted $55,000 of Community Development funds to continue the public housing refurbishing program. This program provides for repairs and limited modernization at public housing.
2. Neighborhood Revitalization: $168,500
The Council budgeted $153,500 of Community Development funds to continue neighborhood revitalization activities; and $15,000 for staff costs related to the implementation of this program, especially for activities in the Sykes Street area. We will continue to concentrate use of funds in the in Northside, Pine Knolls, and public housing neighborhoods, with special emphasis on the Sykes Street area. Funds could be used for second mortgage assistance, property acquisition or renovation, code enforcement, demolition of unsafe and un-repairable houses, public improvements, or community service activities. Activities must serve households earning less than 70% of the HUD published area median income.
The Council approved an increase in these funds this year to support improvements in the Sykes Street area of Northside. We will maintain our efforts in this area by continuing interdepartmental effort with the Police Department, Planning, Inspections, and Public Works to improve the neighborhood environment. We will continue to work with the residents of the Sykes Street neighborhood to determine the feasibility of and interest in building sidewalks in the area. We will also continue to work with the residents to identify possible solutions for improving the Sykes/Nunn/Whitaker Street intersection.
The Council continued to authorize the Manager to approve specific projects for use of these funds. We also recommend that the Council authorize the Manager to approve converting Neighborhood Revitalization funds into grants to Orange Community Housing and Land Trust as opportunities appear to achieve long term affordability for housing projects.
The Council allocated $17,000 to Habitat for Humanity to acquire property adjacent to land Habitat currently owns on Rusch Road, off Rogers Road or for infrastructure improvements at this site. Habitat intends to develop sixteen houses on the land for households earning less than 50% of the area median income. Acquisition of the additional property would allow Habitat to develop a larger subdivision.
4. Community Services: $30,500
The Council budgeted $30,500 for three community service activities that meet the Community Development regulations:
5. Program Administration: $75,000
The Council budgeted $75,000 for general administration of the Community Development program. General administration expenses include: implementation, administration and monitoring of Community Development program activities, administration of the Housing Loan Trust Fund; coordination of efforts with non-profit organizations that receive Community Development funding from the Town; coordination of activities with the HOME Program Consortium; and coordination with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations. Funds will be used for a portion of the Community Development Coordinator’s salary, a portion of the Long Range Planning Coordinator’s salary, a portion of a part-time contract Community Development Program Monitor, and overhead costs.
As previously noted, we have included $15,000 of staff costs in the Neighborhood Revitalization budget to implement the program. Federal Community Development regulations limit the amount of funds able to be charged to general administration of a Community Development program to 20% of the total grant plus program income (approximately $92,000 in 2002-2003). By charging actual staff time spent on Neighborhood Revitalization activities to the program, we would not approach the limit of the Community Development general program administration cap.
The citizen comments received at the January 29, 2003 public hearing and applications for funding are summarized below. We note that all agencies that requested funding were required to submit an application.
Activities eligible for Community Development funding must meet one of three National Objectives:
· Benefit low- and moderate-income persons; or
· Aid in the prevention or elimination of slums and blight; or
· Treat urgent needs posing an immediate threat to public health and welfare.
Examples of eligible activities include acquisition and /or renovation of property, second mortgage assistance, and site development.
The following comments and applications were considered:
1. Affordable Rentals
Affordable Rentals requested $90,000 of Community Development funds to purchase and renovate a house on McMasters Street for rent to a very low-income household (earning between 30% and 50% of the area median income). The organization also applied for a $22,500 loan from Harrington Bank for this project.
Staff Comment: The proposed plan recommends allocating $80,000 to Affordable Rentals for this project. According to the application submitted, Affordable Rentals has access to private financing; we recommend this source be used to supplement the recommended amount of Community Development funds.
2. Chapel Hill Department of Housing
The Chapel Hill Department of Housing requested $385,500 of Community Development Program funds for the following purposes: $300,000 to pay part of the cost to renovate twenty-six apartments in the Airport Gardens public housing community; $79,500 to continue the Five-Year Refurbishing Program to refurbish about thirty-eight apartments; and $6,000 to install and repair playground equipment.
Staff Comment: The proposed plan includes $165,000 for the renovation of Airport Gardens, $50,000 for refurbishing apartments and $6,000 for playground equipment. The Town’s public housing is an important source of affordable rental housing and the Town’s investment in this property should be maintained. The renovation of public housing units is an eligible Community Development activity.
This renovation project is currently under design. We may have an estimated cost from the architect by mid-April, 2003. For the April 28, 2003 recommended budget submissions to the Council, we hope to have a better picture of whether all twenty six units can be renovated under one contract with the existing and proposed funding available.
3. Chapel Hill Department of Housing – Transitional Housing
The Chapel Hill Department of Housing requested $125,000 of Community Development funds to purchase a home for the Transitional Housing Program. Funds would be used to acquire and renovate a house. The purpose of the Transitional Housing Program is to provide a supportive environment that fosters a transition to private market housing for public housing residents.
Staff Comment: Though the acquisition of property is an eligible Community Development activity, the preliminary plan does not recommend budgeting funds for this program. We recommend that the Council focus funding efforts on renovation of Airport Gardens public housing community at this time. The Town has been awarded funds for the Transitional Housing Program through the HOME Program and through the Orange County Affordable Housing Bond program that could be used for this purpose.
4. EmPOWERment, Inc.
EmPOWERment did not submit a formal application for funding, but submitted a letter requesting that the Council allocate $250,000 to purchase property in the Sykes Street area of the Northside neighborhood.
Staff Comment: The preliminary plan does not include funds specifically for use by EmPOWERment. However, the plan does include $115,750 for Neighborhood Revitalization activities.
5. Northside Community Association
The Northside Community Association requested $275,000 of Community Development funds to establish a rehabilitation program for owner-occupied homes in the Northside and Pine Knolls neighborhoods.
Staff Comment: The preliminary recommendation includes $150,000 for this program. We estimate that funds could be used to renovate approximately four homes. We propose to contract with the Orange County Department of Housing and Community Development to administer this program. We would develop criteria for eligibility for the program for the Council’s consideration in April, and consult with representatives from the Northside Association. Renovation of owner-occupied homes is an eligible Community Development activity.
6. Habitat for Humanity of Orange County
Habitat for Humanity requested $40,000 of Community Development funds for planning costs related to the development of property it recently purchased on Sunrise Road. Habitat intends to develop the property and sell homes to first time buyers earning less than 50% of the area median income.
Staff Comment: Using funds for architectural design costs for new construction projects is not an eligible Community Development activity. This request could be considered for funding from a Housing Loan Trust Fund allocation already available to Habitat for the Rusch Road subdivision.
The use of funds for public service activities is eligible under federal Community Development regulations. Examples of public service activities includes programs concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, homebuyer down payment assistance or recreational needs. The amount of Community Development funds used for public services cannot exceed 15% of the Town’s Community Development grant ($108,450 in 2003-2004).
In addition to meeting one of the National Objectives listed above, community or public service activities must provide:
(1) a new service; or
(2) a quantifiable increase in the level of an existing service than what was provided over the last fiscal year.
In the past, the Council has funded public service projects that support other Community Development objectives and activities, especially public housing and Neighborhood Revitalization. Some emphasis has also been placed on job training for low-income residents. We evaluated the following applications in terms of previous performance and their relationship to other Community Development objectives. In general, we are recommending that some funding be set aside for community services, but that the Council emphasizes housing objectives as contained in the Consolidated Plan.
The following agencies submitted applications for Community/Public Service activities:
1. Orange County Family Resource Centers
The Orange County Family Resource Centers requested $15,000 of Community Development funds to operate an after school program at the South Estes Drive public housing community. The Center would provide free after school care for about thirteen children.
Staff Comment: The preliminary plan includes $15,000 for this project. We believe that the provision of after school services is an important activity and supports the Town’s efforts in providing services to public housing residents. This would be the first allocation provided to this organization using Community Development funds.
2. Orange County Literacy Council
The Orange County Literacy Council requested $13,500 to continue funding a Program Coordinator for the Community Computer-based Literacy Program. The Program provides computer-based literacy and GED classes to public housing residents and low-income Chapel Hill residents.
Staff Comment: The proposed plan includes $13,500 for the Literacy Council. We believe that the Literacy Council’s Community-based Computer Literacy Program provides a valuable service to public housing and other lower income Chapel Hill residents. The program helps its clients learn to read and work to attain their GEDs, as well as to learn to use computers. The Town funded $15,000 for 1999-2000 to establish the program and $9,000 for 2001-2002 and $11,500 for 2002-2003 to continue the program. It currently operates in the South Estes and Trinity Court/Pritchard Park public housing communities and the Hargraves Center, and provides one-on-one tutoring at various sites. The program has made slow but steady progress over the past four years to improve its effectiveness.
3. Chapel Hill–Carrboro YMCA
The Chapel Hill–Carrboro YMCA requested $12,680 of Community Development funds to continue operation of After School Programs for children living in the Pine Knolls and South Estes Drive Family communities.
Staff Comment: We recommend that the Council allocate $12,680 to the YMCA to continue its after school program for youths living in the Pine Knolls and South Estes Drive public housing communities.
Since 1994, the Town has provided Community Development funds to the YMCA for its After School Program at the Pine Knolls Community Center. In 1999, the YMCA established a similar program at the South Estes Drive Community Center. This year, approximately three children from Pine Knolls and fourteen children from South Estes were served by these programs. In February, the YMCA moved the program from the South Estes Drive Community Center to the YMCA facility so the children could receive a more enriching and diversified after school experience. The YMCA continues to operate a successful program.
4. Youth Creating Change
Youth Creating Change has requested $44,902 of Community Development funds to establish a contract with the Town of Chapel Hill to provide limited maintenance service such as: trash pick-up, bus clean-up and light lawn service, and to establish a youth individual development account (IDA) program.
Staff Comment: We do not recommend funding for this proposal. The Town currently operates a youth job training program during the summer through the Police Department and we believe that this would be a duplication of services. In addition, in June 2002, the Council amended the Community Development program and budgeted $2,110 to the organization for a job training program. We are currently working with Youth Creating Change to identify documentation needed to enter into a Performance Agreement for this project. Until the initial project is complete and we have an opportunity to evaluate the organization’s progress, we do not recommend that the Council provide additional funds to this organization at this time.
5. Residents of the Emily/Partin Road Neighborhood
Major Geer, representing residents of the Emily/Partin Road neighborhood requested assistance from the Town to install sewer lines in the neighborhood.
Staff Comment: At the January 29, 2003 Council meeting, the Council suggested that the residents of the Emily/Partin Road neighborhood consider approaching OWASA for an assessment project. When the project is closer to implementation, the Council could consider allocating future years’ Community Development funds for this request. Use of Community Development funds would need to meet the federal requirements that the area or individuals benefiting from the funds would be lower-income.
Economic Development Requests
1. Delaine’s House of Beauty requested $30,608 of Community Development funds to purchase equipment for the beauty salon located on North Graham Street.
2. Young Minds After School Program requested $18,900 of Community Development funds to purchase toys and games for an after school program, and for overhead expenses.
Staff Comment: At this time, we do not recommend using Community Development funds for economic development projects. Based on the Town’s experience of providing one small business loan and the experience of other local communities, we do not recommend operating an economic development program.
|
Activity |
2000–2001 |
2001–2002 |
2002–2003 |
2003–2004 |
2004–2005 |
|
Public Housing Renovation |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
|
Public Housing Refurbishing |
$70,000 |
$60,000 |
$60,000 |
$50,000 |
$50,000 |
|
Neighborhood Revitalization |
$72,600 |
$79,000 |
$79,000 |
$80,000 |
$80,000 |
|
Meadowmont Townhomes |
$80,000 |
$80,000 |
$0 |
$0 |
$0 |
|
Affordable Housing Projects |
$0 |
$0 |
$71,000 |
$80,000 |
$80,000 |
|
Community Services |
$47,000 |
$47,000 |
$56,000 |
$56,000 |
$56,000 |
|
Administration |
$76,400 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
TOTAL GRANT |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
National Objectives of Community Development Legislation
Congress established the Community Development program in 1974 by consolidating a number of grant programs into one “block grant”. The primary objective is:
“development of viable urban communities, including decent housing and a suitable living environment and expanding economic opportunity, principally for persons of low and moderate-income.” (Housing and Community Development Act of 1974)
To receive future Community Development Block Grant funds, Chapel Hill must certify that its overall program carries out this primary objective. In addition, each Community Development Block Grant activity must:
1. Benefit low- and moderate-income persons; or
2. Aid in the prevention or elimination of slums and blight; or
3. Treat urgent needs posing an immediate threat to public health and welfare.
Eligible activities for Community Development Block Grant funding
(from Federal Regulations)
Community Development Block Grant funds may be used for the following types of activities (provided national objectives are also met):
· acquisition of property
· disposition of property
· public facilities and improvements
· clearance, demolition and removal of buildings
· some public services (subject to some limits in regulations)
· relocation
· housing rehabilitation, preservation and code enforcement
· economic development activities
· new housing construction (subject to some limits in regulations)
· planning and administrative costs
Alternatives that are generally not eligible include:
· buildings used for the general conduct of government
· general government expense
· political activities
· purchase of equipment and personal property
· operating and maintenance expenses