AGENDA #7d
MEMORANDUM
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended 2003-2004 Capital Fund Program for Public Housing Renovations and Resident Services
DATE: April 28, 2003
The purpose of this memorandum is to recommend the adoption of the proposed 2003-2004 plan for use of funds we expect to receive from the U.S. Department of Housing and Urban Development (HUD) under the Capital Fund Program.
The attached resolution would approve a 2003-2004 Annual Statement for the Capital Fund Program.
· We have not yet received notification from HUD of the amount of the 2003-2004 Capital Fund grant. We have developed a proposed plan based on the 2002-2003 grant amount of $584,000.
· The proposed plan includes additional renovation work in about 10 apartments at the Airport Gardens neighborhood.
· The plan for the 2003-2004 Capital Fund Program will be submitted to the U.S. Department of Housing and Urban Development after approval by the Council.
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 proposed plan for the 2003-2004 Capital Fund Program includes renovations at the Airport Gardens neighborhood because these apartments have not undergone comprehensive rehabilitation work since being built in 1972.
Citizen Participation Process
The Council held public forums on January 29 and March 26, 2003, to receive citizens’ comments on the use of the 2003-2004 Capital Fund grant. No comments were received.
Housing staff held a meeting with the residents of public housing on February 18, 2003, to receive comments and suggestions on the use of the Capital Fund grant. Five residents attended the meeting. Housing staff also distributed the preliminary proposal for use of the 2003-2004 Capital Fund grant to residents of public housing at the April 9, 2003 meeting of the Residents’ Council. Comments and suggestions received from residents of public housing include:
· Need to upgrade landscaping and reseed lawns throughout the public housing neighborhoods.
· Need to replace bathroom sinks, toilets, bathtub and shower surrounds.
· Need to install outdoor benches.
· Need to replace mailboxes.
· Need to replace kitchen sinks and cabinets.
· Need to provide organized sports programs for children.
· Need to install security equipment such as locks and security screens.
Comments received from residents of public housing will be taken into consideration when designing the renovation work.
DISCUSSION
We have not received notification from HUD of the amount of the 2003-2004 grant. Therefore, we have developed a proposed 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 about $734,000.
PROPOSED USE OF 2003-2004 CAPITAL FUND
Proposed Sources of Funds
Capital Fund Program $584,000
Community Development Program $150,000
TOTAL $734,000
Proposed Use of Funds
Airport Gardens Renovations $634,500
Management Improvements $ 28,500
Other Costs $ 71,000
TOTAL $734,000
The proposed plan for the 2003-2004 Capital Fund Program include 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.
When renovations begins, we estimate that 7 of the 26 apartments would be vacant. When renovation work has been completed, 7 families would be relocated into these newly renovated apartments. Therefore, 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 Activities $ 28,500
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. The Under the Tree Program is designed to enhance public housing residents’ awareness and understanding of the Residents’ Council. A 2003-2004 performance agreement would be contingent upon completion of key elements of the current agreement.
3. Other Cost $ 71,000
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 that will be charged to the Department of Housing. The cost of an energy audit that is required by HUD is also included.
RECOMMENDATIONS
Housing and Community Development Advisory Board’s Recommendation: The Housing and Community Development Advisory Board reviewed the proposed use of the 2003-2004 Capital Fund grant on March 25, 2003. The members of the Board voted 4 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 2003-2004 Annual Statement for Capital Fund Program (the Annual Statement provides a summary of proposed Capital Fund activities and cost estimates) (p. 6).
2. Summary of Five-Year Plan For Public Housing Renovations and Resident Services (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) (p. 8).
3. Proposal from the Chapel Hill-Carrboro Residents’ Council (p. 9).
A RESOLUTION APPROVING AN ANNUAL STATEMENT FOR 2003-2004 CAPITAL FUND PROGRAM (2003-04-28/R-9)
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 28, 2003, 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 $584,000 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 28th day of April 2003.