HomeMy WebLinkAboutResolutions - 1985.04.18 - 11082April 18, 1985 MISCELLANEOUS RESOLUTION NO. 85118 DATE:
BY: PUBLIC SERVICES COMMITTEE - JAMES E. LANNI, CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - CRITERIA FOR THE RECAPTURE AND REALLO-
CATION OF COMMERCIAL ASSISTANCE PROGRAM (CAP) FUNDS FROM THE CAP TARGET
COMMUNITIES
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, Oakland County has been a recipient of Community Development
Block Grant funds from the U.S. Department of Housing and Urban Development
since 1974 and has operated a residential rehabilitation program since 1976;
and
WHEREAS, the U.S. Department of Housing and Urban Development has es-
tablished procedures allowing Community Development Block Grant recipients to
draw (in one lump sum) the funds designated for property rehabilitation in their
approved CDBG application in order to establish a Rehabilitation Leveraging Fund
with a private financial institution; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #82283 of
September 21, 1982 adopted the basic concept of utilizing Community Development
Block Grant funds to leverage private financial resources for the rehabilitation
of residential and commercial property; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #83034 of
February 24, 1983 approved the creation of a commercial rehabilitation financing
program with Community Development Block Grant funds and authorized the Community
Development Division to solicit lenders for a financial leveraging agreement; and
WHEREAS, the County of Oakland by Miscellaneous Resolution #84239 of
August 30, 1984 approved the Rehabilitation Leveraging Agreement with Manufacturers
National Bank of Detroit for a program of financing commercial property rehabili-
tation; and
WHEREAS, 17 of the 48 communities participating in the County's Community
Development Block Grant program through Miscellaneous Resolution #84211 of July
26, 1984 submitted proposals to participate with the County in the Commercial
Assistance Program (CAP); and
WHEREAS, the County of Oakland by Miscellaneous Resolution #85107 of
March 28, 1985 adopted CAP goals and objectives; approved the targeting and
allocation of CAP funds; adopted definitions for commercial business district;
approved the CAP community evaluation and selection criteria; and adopted
individual rehab project criteria; and
WHEREAS, Miscellaneous Resolution #85107 authorizes the Oakland County
Community Development Division to select, with approval of the Oakland County
Board of Commissioners, up to 8 communities for designation as CAP target com-
munities;
WHEREAS, in response to the directive in Miscellaneous Resolution
#85107, the County Community Development Division has prepared a recapture
and reallocation process for the CAP target communities; and
WHEREAS, the Community Development Citizens Advisory Council has
recommended approval by unanimous vote of the attached Commercial Assistance
Program Recapture and Reallocation Procedures.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commis-
sioners approves the attached Commercial Assistance Program (CAP) Recapture and
Reallocation Procedures for the CAP target communities.
Mr. Chairperson, on behalf of the Public Services Committee, I move
the adoption of the foregoing resolution.
#8 5 118 April 18, 1985
LEN
Moved by Lanni supported by Rewold the resolution be adopted.
AYES: Skarritt, Webb, Wilcox, Gaddell, Cal andro, Doyon, Fortino, Gosling,
Hassberger, Hobart, R. Kuhn, S. Kuhn, Lanni, Law, McConnell, McDonald, McPherson, Moffitt,
Moore, Nelson, Olsen, Page, Perinoff, Pernick, Rewold. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a -seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution adopted by the Oakland County Board of Commissioners at
their meeting held on April 18, 1985
with the orginial record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
18th - April 85 this day of 19
County Clerk/Register of Deeds
COMMERCIAL ASSISTANCE PROGRAM (CAP)
RECAPTURE AND REALLOCATION PROCEDURES FOR TARGET COMMUNITIES
BACKGROUND - The Oakland County Community Development Division (OCCD), with
approval from the County Board of Commissioners, will select the top ranking eight (8)
communities for designation as "Target Communities" for the Commercial Assistance
Program (CAP). Eighty-five percent of CAP funds will be directed to the property owners
and merchants located in the designated business districts of the CAP Target
Communities.
In May and June, OCCD and each CAP Target Community will negotiate and execute a
Letter of Agreement including but not limited to the following provisions:
o the responsibilities of both parties for:
program marketing
rehab project screening
application review, processing and approval
preparation of rehab specifications
bid solicitation
design review;
o the community's CAP funding allocation — this will be individually determined by
local estimates of need for and interest in the program, and fund availability; and
o performance goals and timetable for CAP use.
Once the Letter of Agreement has been executed, each CAP Target Community will have
18 months to take advantage of CAP financing.
RECAPTURE - The Oakland County Board of Commissioners, upon recommendation of
the Oakland County Community Development Division, will recapture all or a portion of a
CAP Target Community's funding allocation when insufficient CAP performance so
warrants.
There are two major reasons to establish recapture/reallocation procedures.
1. HUD regulations require that "substantial disbursements" (from the Rehab
Fund at Manufacturers National Bank) must begin by September 30, 1985).
2. Community demand for CAP requires that the target communities either
perform or step aside and make way for another community to take advantage
of the rehab financing program.
Recapture Criteria - The recapture process is directly tied to the performance criteria
included in each CAP Target Community's Letter of Agreement.
1. Quarterly goals for community CAP performance will be established and will
include:
o # of CAP applications generated
o # of CAP applications approved by OCCD
o # of CAP applications approved by Manufacturers National Bank
o # of CAP rehab projects completed
OCCD will monitor each CAP Target Community's progress in meeting their CAP
goals. When a community does not attain the established goals for any particular
quarter (due to lack of merchant/property owner interest, bank rejections, weather,
etc.), OCCD may direct the community to complete that work in the next three
month period and/or renegotiate the CAP performance goals, or risk recapture of
some or all of their CAP allocation. If the community is not able to perform after
the three month extension, some or all of their CAP funding allocation may be
recaptured.
2. When a CAP Tar:et Communit does not cornil with the :eneral provisions of the
Letter of Agreement including federal regulations, all or a portion of their CAP
allocation may be recaptured.
Upon recapture of a community's entire CAP allocation, that community will lose its
designation as a "CAP Target Community." Rehab projects in that community may avail
themselves of CAP through th3 15% pool option, depending on fund availability.
REALLOCATION - When CAP funds are recaptured from one of the eight (8) top ranked
Target Communities, the next highest ranking, non-target community will become a CAP
Target Community and enter into a Letter of Agreement with OCCD.
A maximum CAP funding authorization for the next highest ranking community will be
determined by OCDD based on the community's estimate of need/interest minus the dollar
amount of the 15% pool which has already been committed to or used for CAP projects in
that community. The new CAP target community will be entitled to recaptured CAP
funds up to the amount of their maximum CAP funding authorization.
A specific funding allocation will be determined by the actual amount of available
recaptured funds. When this amount exceeds the new target community's maximum
funding authorization, the community's specific funding allocation will equal its maximum
authorization. OCCD will then move on to the next highest ranking community and
proceed accordingly.
If however, the recaptured amount is less than the community's maximum authorization,
the community's specific funding allocation will be periodically adjusted as additional
funds are recaptured, until their maximum funding authorization is reached.
April 16, 1985