AGENDA #8b

 

BUDGET WORKING PAPER

 

TO:                  W. Calvin Horton, Town Manager

 

FROM:            Roger Waldon, Planning Director

 

SUBJECT:       Report on HOME Program Funds Allocated and Not Spent

 

DATE: April 30, 2003

 

 

The purpose of this memorandum is to respond to a question raised by a Council member at the April 2, 2003 work session allocated HOME Program funds that have not been spent. 

 

BACKGROUND

 

In 1992, Chapel Hill, Carrboro, Hillsborough and Orange County formed the Orange County HOME Consortium with Orange County acting as the lead entity. The Consortium was established as a local partnership to develop affordable housing throughout Orange County.  In the first year, the Consortium received funds through the State’s HOME Program.  Since 1995, the Consortium has received funds directly from the Department of Housing and Urban Development through the federal HOME Program.  

 

On October 23, 2000, the Council passed a resolution to participate in a HOME Program Review Committee along with Orange County, Carrboro and Hillsborough. The purpose of this Committee is to allow elected officials to have more involvement in the development of the annual HOME Program plan and to review the progress of HOME funded activities on a regular basis.  The Committee is comprised of one elected official from each participating government and the Manager or his designee.  The Council appointed Council Member Edith Wiggins to represent the Town Council.  Assistant Town Manager Florentine Miller and Community Development Coordinator Loryn Barnes also attend Committee meetings.

 

DISCUSSION

 

Please see the attached chart of HOME Program funds that have been allocated but have not yet been spent.  We note that once funds have been budgeted, HOME Program regulations allow two years for funds to be committed (i.e. enter into a Development Agreement with Orange County), and five years to complete the project. 

 

In order to reallocate HOME Program funds, a public hearing and approval from all four participating jurisdictions would be required.  In addition, the HOME Program Review Committee would need to meet to discuss the reallocation.  We estimate that this process could take approximately ninety days. 

 

At this time, there are no HOME funds allocated but not spent that would meet the guidelines for considering reallocation of funds.

 

CONCLUSION

 

We believe no action is warranted at this time. 

 

ATTACHMENTS

 

1.  Summary of Allocated and Unspent HOME Program Funds (p. 3).