AGENDA #1e
MEMORANDUM
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Proposal for the 2003-2004 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: March 26, 2003
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 2003-2004 Capital Fund Program.
· We have not yet received notification from HUD of the amount of the 2003-2004 Capital Fund grant. However, we have developed a preliminary plan based on the 2002-2003 grant amount of $584,000.
· We expect to receive notification of the 2003-2004 grant by July 31, 2003.
· The preliminary plan includes additional renovation work in about 10 apartments at the Airport Gardens neighborhood.
· The deadline for submitting the plan for the 2003-2004 Capital Fund Program to the U.S. Department of Housing and Urban Development is April 30, 2003.
The U.S. Department of Housing and Urban Development (HUD) allocates modernization funds for renovation of public housing and support of resident services to localities that manage at least 250 public housing apartments. Funds are allocated under a formula basis rather than through a competitive application process.
The preliminary proposal for the 2003-2004 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 2003-2004 grant. Therefore, we have developed a preliminary plan for 2003-2004 in the amount of $584,000, the amount of the 2002-2003 grant. Also, the plan includes $150,000 that we expect to be allocated for public housing renovations under the 2003-2004 Community Development Block Grant Program. The total amount of the funds expected to be available for public housing renovations and resident services in 2003-2004 is $734,000.
PRELIMINARY PROPOSAL FOR 2003-2004
Proposed Sources of Funds
Capital Fund Program $584,000
Community Development Program $150,000
TOTAL $734,000
Proposed Use of Funds
Airport Gardens Renovation $634,500
Support of Residents’ Council $ 28,500
Other Costs $ 71,000
TOTAL $734,000
The Preliminary proposal for the 2003-2004 Capital Fund Program includes the following activities:
1. Renovations at Airport Gardens $634,500
Previous available funding for public housing renovations has been appropriated to renovate about 13 of the 26 apartments at Airport Gardens. We estimated that the amount of funds we expect to receive in 2003-2004 under the Capital Fund and Community Development Programs would complete renovation work in about 10 of the remaining 13 apartments.
We expect the renovation work to be completed in four phases (first 3 phases would include 7 apartments, the last phase would include 5 apartments). We estimate that the first phase would be completed by December 30, 2003, the next two phases would be completed in 2004, and the last phase, which would include site work would be completed by January 2005.
Proposed renovation work would include the replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, installation of air conditioning, replacement of stoves 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.
2. Residents’ Council Proposal
The Residents’ Council submitted a proposal requesting $43,500 for the support of the Under the Tree Program (please see attachment 3). We propose to reserve $28,500 to support the Residents’ Council Program. We would work with the Residents’ Council to determine specific use of funds which would be incorporated into a performance agreement.
We currently have a 2002-2003 performance agreement in the amount of $28,500 with the Residents’ Council which would end on November 30, 2003. The $28,500 is to be used primarily for the activities of the Under the Tree Program. A 2003-2004 performance agreement would be contingent upon completion of key elements of the current agreement.
3. Other Cost $ 55,470
This activity includes the cost of general administration of the Capital Fund Program. It also includes a portion of the cost for professional services for the initial planning of the new Town Operations Center which will be charged to the Department of Housing. The cost of an energy audit that is required by HUD is also included.
Review by Housing and Community Development Advisory Board
The Housing and Community Development Advisory Board will review the Preliminary Proposal for the 2003-2004 Capital Fund Plan on March 25, 2003.
The Residents’ Council will review the Preliminary Proposal for the 2003-2004 Capital Fund Plan at its next regular meeting on April 9, 2003.
CONCLUSION
Next Steps
Comments received tonight will be taken into consideration in preparing a recommended plan for using the 2003-2004 Capital Fund grant. We will present a recommended 2003-2004 Capital Fund Program for the Council’s consideration on April 28, 2003.
ATTACHMENTS
2. Summary of Five-Year Plan for Public Housing Renovations and Resident Services (p. 6).
3. Proposal from the Residents’ Council (p. 7).