AGENDA #7f

 

BUDGET WORKING PAPER

 

TO:                  W. Calvin Horton, Town Manager

 

FROM:            Roger Waldon, Planning Director

 

SUBJECT:       Search for Grant Programs to Pay for IFC Shelter Renovations

 

DATE:             April 2, 2003

 

The purpose of this memorandum is to respond to a question raised by a Council member at the February 28, 2003 Budget Work Session regarding the availability of grant funds to renovate the IFC Shelter located at 100 West Rosemary Street.

 

BACKGROUND

 

• In 1986 and 1987 the Council allocated $150,000 of Community Development Entitlement funds to renovate the IFC shelter for a total of $300,000

 

• In October 1987, the Towns of Chapel Hill and Carrboro, and Orange County submitted a coordinated application to the North Carolina Department of Natural Resources and Community Development, Division of Community Assistance for renovation funds from the Emergency Shelter Grant Program.  Chapel Hill and Orange County received $6,551, and Carrboro received $6,005 for a total of $19,107. 

 

• In 1987 the Town signed a lease with IFC offering the exclusive use of the old Municipal Building on West Rosemary Street as a shelter/community kitchen location.  The lease is renewable every two years upon Council approval.  The property is leased to IFC at no charge. 

 

• In August 1992, the Town was reimbursed by the North Carolina Housing Finance Agency in the amount of $111,916 for energy related rehabilitation expenses.

 

• In FY 2002-03, the Council budgeted $65,000 for the first installment payment on ten-year installment financing building repairs.  On September 9, 2002, the Council approved a reimbursement resolution for this project.

 

DISCUSSION

 

Engineering work for exterior shelter renovations is currently underway.  We expect that a bid for the roof renovations will be awarded before July 1, 2003.  We have identified the following potential sources of grant funds that could be used to renovate the shelter:

 

 

1.      Community Development Block Grant Funds

 

Funds from the Town’s annual Community Development allocation could be used to renovate the IFC shelter facility.  We have requested confirmation from our Department of Housing and Urban Development representative that funds could be used for annual installments on financing of the project.  Funds may also be used to renovate historic buildings.  Funds must be used to benefit low and moderate income persons.  If the project were financed for a ten-year period, it would be reasonable that the project remain as a shelter serving homeless individuals during this time period.  In addition, federal requirements would apply to renovation contracts.  We note that because of competing needs, we have not recommended using Community Development funds to renovate the homeless shelter. 

 

2.  HOME Program Funds

 

We understand from Orange County staff that HOME funds could also be used for the renovation of the shelter facility.  The HOME Consortium typically has required a 99-year affordability provision for housing programs funded by HOME.

 

3.       Other Contacts

 

We contacted the U.S. Department of Housing and Urban Development about the Emergency Shelter Grant Program and the Supportive Housing Program, the North Carolina Housing Finance Agency about its Supportive Housing Program, the NC Department of Economic Opportunity and the State Historic Preservation Office about funds that might be available to renovate the facility.  Currently the agencies do not have funds available for this purpose. 

 

CONCLUSION

 

The Council could choose to allocate Community Development funds for this purpose.  Because of competing needs, we have not recommended using Community Development funds to renovate the homeless shelter.  HOME funds could also be used, although the Consortium has typically required a 99-year affordability provision.  We have not located any other grant possibilities at this time.