HomeMy WebLinkAboutResolutions - 1988.06.09 - 17485DATE: May 26, 1C88 MISCELLANEOUS RESOLUTION NO. 88140
BY: PUBLIC SERVICES COMMITiEE - RICHARD D. KUHN, JR., CHAIRPERSON
IN RE; COMMUNITY DEVELOPMENT DIVISION - Recapture of Commercial Assistance Program
(CAP) Funds from the 1985 and 1986 CAP Participating 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 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 Resolutions #84239 of August
30, 1984 and #87134 of May 28, 1987 approved the Rehabilitation Leveraging Agreement
with Manufacturers National Bank of Detroit for a program of financing commercial
property rehabilitation; and
WHEREAS the County of Oakland by Miscellaneous Resolutions #85158 of May 23,
1985 and #86037 of February 27, 1986 designated communities and funding allocations
for the 1985 and 1986 Couiaercial Assistance Programs; and
WHEREAS the County of Oakland by Resolution #85118 of April 18, 1985
approved general criteria and procedures for the recapture and reallocation of
unused CAP funds; and
WHEREAS June 30, 1987 was the loan application deadline for the 1985 CAP
program and March 31, 1,988 was the final deadline for the 1986 CAP program; and
WHEREAS in accordance with the provisions of ,liscellaneous Resolution #85118
regarding recapture of CAP Lunds, the Oakland County Community Development Division
recommends the recapture of $23,498.64 in 1985 CAP funds and $107,150.25 in 1986 CAP
funds as described in Attachment A; and
WHEREAS the Oakland County Community Development Division has recommended,
in a companion resolution, the Modified Criteria and Procedure to reallocate the
recaptured CAP funds; and
WHEREAS the Community Development Citizens Advisory Council recommends
approval (by a 12-0 roll call vote) of the recapture of 1985 and 1986 CAP funds as
specified in Attachment A.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Conwissioners
hereby authorizes recapture of 1985 and 1986 Commercial Assistance Program funds
from the communities and in the amounts as specified in Attachment A.
Mr. Chairperson, on behalf of the Public Services Committee, I move the
adoption of the foregoing resolution.
Richard D. Kuhn, Jr:, Chairperson
1 ' Y APPROVF. T . RESOLUTION ,
DaMel Murphy, .C:6:4:!ri.FExe" Dift
ATTACHMENT A
RECAPTURE OF COMMERCIAL ASSISTANCE PROGRAM FUNDS
FROM THE 1985 & 1986 CAP PARTICIPATING COMMUNITIES
RECOMPTENDAYEN - The Oakland County Community Development Division (OCCD)
recommends the recapture of $23,498.64 in unused 1985 CAP funds and
$107,150.25 in unused 1986 CAP funds from the following communities:
Community 1985 CAP $ 1986 CAP $ Total
$ City of Berkley 0 $ 7,769.00 $ 7,769.00
Village of Beverly Hills 0 8,008.00 8,008.00
Village of Holly 4,730.36 N/A 4,730.36
City of Keego Harbor N/A 37,652.00 37,652.00
Village of Milford 29.00 N/A 29.00
City of Oak Park 0 8,431.25 8,431.25
Village of Ortonville 17;646.40 N/A 17,646.40
Village of Oxford 1,092.88 N/A 1,092.88
City of Pleasant Ridge N/A 6,562.00 6,562.00
City of Rochester Hills N/A 305.00 305.00
Springfield Township N/A 38,423.00 38,423.00
TOTAL: $23,498.64 $107,150.25 $130,648.89
This recommendation is based on the progress made by the 1985 and 1986 CAP
participating communities in depleting their CAP funding allocation.
The process and criteria for the recapture of CAP funds are authorized by:
1. Miscellaneous Resolution 485107 of March 28, 1985 which established an
18 month program period during which the CAP communities could utilize
CAP funds; and
2. Miscellaneous Resolution #85118 of April 18, 1985 which states that CAP
funds may be recaptured from a participating community when it does not
meet the quarterly performance goals (for loan applications, loan
approvals, and projects completed) that are included in its CAP Letter. of
Agreement with OCCD.
The general recapture policy was made operational on February 17, 1987
with the issuance of specified criteria identifying performance levels
for a CAP community to achieve by 9 months, 12 months, 15 months and 18
months into their 18 month CAP program period. Refer to Exhibit #1.
-1-
JUSTIFICATI(N FOR RECAPTURE
A. The 1985 CAP Program
I. The 1985 CAP communities were given a uniform deadline of June 30,
1987 to submit loan applications to OCCD. That portion of a
community's CAP allocation that was not disbursed, closed on,
committed to or applied for by that date, was recapture on July 23,
1987.
2. OCCD reviewed the status of the 1985 CAP communities in January 1988.
Applicants with applications over six months old which had no recent
activity were notified that in order to continue in the program they
must contact OCCD in March to confirm their interest in CAP
financing. If OCCD was not contacted, the application would be
withdrawn. The communities were informed that funds allocated for
withdrawn applications would be recaptured this spring.
Communities were also informed that all projects must be under
construction or ready to go under construction by December 31, 1988
to avoid recapture in January 1989.
Table #1 shows the 1985 CAP community allocations and the amount of
funds depleted* through March 31, 1988.
Table #1
1985 CAP Communities
Funding Allocation and Recapture Status Report
*Funds Depleted Balance to be
Communities CAP Allocation Through 3/31/88 Recaptured
City of Ferndale $ 67,235
City of Hazel Park 37,187
Village of Holly 38,080
Village of Milford 5,017**
Village of Ortonville 27,668
Village of Oxford 17,499**
City of Walled Lake 30,642
$ 67,235 $ 0
37,187 0
33,349 4,731
4,988 29
10,022 17,646
16,406 1,093
30,642 0
TOTAL: $223,328 = $199,829 $23,499
*Depleted means any combination of CAP funds:
1) disbursed upon project completion
2) reserved upon a loan closing or committment
3) applied for with an active application
**CAP allocation adjusted through a previous recapture
-2-
$ 78,021.00
23,955.00
39,555.75**
45,213.00
22,324.00**
16,646.25**
6,562.00**
70,724.00
13,125.00
46,156.00
$ 70,252.00
15,947.00
39,555.75
7,561.00
22,324.00
8,215.00
0
70,724.00
12,820.00
7,733.00
$ 7,769.00
8,008.00
0
37,652.00
0
8,431.25
6,562.00
0
305.00
38,423.00
$362,282.00 = $255,131.75 -1- $107,150.25
CAP funds:
B. The 1986 CAP Program
1. On December 31, 1987, eight of the ten 1986 CAP communities completed-
their 18 month program participation, one was completed on January 1,
1988 and the final community completed their participation on March
31, 1988.
2. The 1986 CAP communities were sent their 18 month monitoring reports
in early February 1988. Those communities who had not depleted their
funds were notified of the impending recapture. OCCD did allow
communities to accept new applications through mid-March for projects
ready to go under construction this season.
3. Table #2 shows the 1986 CAP community allocations and the amount of
funds depleted* through March 31, 1988.
Table #2
1986 CAP Communities
Funding Allocation and Recapture Status Report
Communities
Balance
CAP *Funds Depleted to be
Allocation Through 3/31/88 Recaptured
City of Berkley
Village of Beverly Hills
City of Farmington
City of Keego Harbor
City of Madison Heights
City of Oak Park
City of Pleasant Ridge
City of Rochester
City of Rochester Hills
Springfield Township
TOTAL:
*Depleted means any combination of
1) disbursed upon project completion
2) reserved upon a loan closing or committment
3) applied for with an active application
**CAP allocation adjusted through a previous recapture.
MMS/kjf
4/22/88
MMS-1
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MOWEIMM111.1.11101.
VOIMIMW
116.
COUNTY MICHIGAN
DEPARTMENT OF PUBLIC WORKS
ATTACHMENT A - EXHIBIT #1
February, 1987
Daniel T. Murphy, Oakland county Executive
Comm.)Ntre DEVELOPMENT „
Kenneth R. Patterson - Manager
COMMERCIAL ASSISTANCE PROGRAM (CAP)
Criteria for the Recapture of Unused CAP Funds
In accordance with Oakland County Board of Commissioners' Miscellaneous
Resolution #85118 of April 18, 1985, all or a portion of a community's
CAP funding allocation will be recaptured when insufficient CAP performance
so warrants. Such insufficient performance is indicated when a community
does not meet its established quarterly performance goals as specified in
their CAP Letter of Agreement with Oakland County.
The Board of Commissioners' approved CAP recapture procedures are made
operational through the following indicators of loan application activity.
1. At least one complete, locally approved CAP loan application must be
submitted to the Oakland County Community Development Division by the end
of the 9th month of the community's 18 month CAP program period. When this
condition is not met, 25% of the Community's CAP funding allocation will be
recaptured.
2. By the end of the 12th month, the *active loan applications and *active
loan commitments must represent at least 50% of the community's CAP funding
allocation. When this condition is not met, 25% of the community's CAP
allocation will be recaptured.
3. By the end of the 15th month, the *active loan applications and *active
loan commitments must represent at least 75% of the community's CAP funding
allocation. When this condition is not met, 25% of the community's CAP
funding allocation or the balance if less, will be recaptured.
4. By the end of the 18 month CAP program period, the *active loan applications
and the *active loan commitments must represent 1007. of the community's CAF
allocation. If this condition is not met, then the balance will be recaptured.
* NOTE- An active loan application means one that has been locally approved,
submitted to Oakland County Community Development, and has neither
been withdrawn by the applicant or denied by a financial institution.
An active loan commitment means one that has been issued by a financial
institution and/or Oakland County Community Development for a project
that has not withdrawn from the program and is proceeding toward loan
closing and construction in a timely fashion.
Executive Office Building 1200 North Telegraph Road Pontiac, Michigan 48053 p1 858-0493
FISCAL NOTE June 9, 1988
BY: FINANCE COMMITTEE, DR. G. WITLIAM CADDELL, CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - RECAPTURE OF COMMERCIAL
ASSISTANCE PROGRAM (CAP) FUNDS FROM THE 1985 AND 1986 CAP
PARTICIPATING COMMUNITIES - MISCELLANEOUS RESOLUTION #88140
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has
reviewed Miscellaneous Resolution 1188140 and finds:
1) The County of Oakland by Miscellaneous Resolution 1188141 of
May 26, 1988 authorized the recapture of $130,649 in 1985 and
1986 CAP funds to be made available as a pool of funds for loan
applications in eleven (11) communities as described in
Attachment A, and to be committed to one applicant at a time on a
first cone - first served priority basis;
2) The 1988/1989 Budget is to be amended per attached Schedule
I.
FINANCE OONIMIllEE
t 191 01 COMMON1111
CURS:
1JU,W1') 5 30,919 $ 130,649 $ 130,6411
1 2,//7,488 5 3,054,879 53,054,879
1 MI 1 i
I Vi 11 '19,01V. '11AN
1 ,J118/19119 iJ182 71,11 Now Nn., 1 i; 11 Ain uHri) 11.1NDS
,
19118 1q118 11)1.19 1088 1989
AMINICJ Al' 18NP:, MIZID 701,1k1) CAP FUNDS PROPOSEC
lolw 1 kl
.71 1! 1J IRIDG1 I n01-,t 1 laCANUNED BUUGL1
AUHURN HILTS $ 213,709 $ 713,/09 $ 210,861 $ 210,861
BERKLEY A/6,01/ (1,169) 361,818 134,15/ (7,769) 426,388
CLAWSON 65,4/9 55,179 65,449 55,449
FARMINGTON 183,716 1133,116 207,509 207,509
IERNDAIE 1-)75,471) ,,25,475 554,171 554,174
8A1E1 PARK 122,790 472,790 790,254 296,251
HUN1INGION WOODS H,596 13,1196 14,609 11,509
KEEGO HARBOR 68,921 (31,552) 31,269 47,423 (37,652) 9,776
LATHROP VILLAGE 31,861 31,861 :19,264 39,264
MADISON HEIGHTS 6/4,182 674,182 724,900 774,900
NORTHVILLE 1,821 7,824 6,000 6,000
NOVI 276,819 2/6,819 320,202 320,202
OAK PARK 358,600 (8,431) 360,159 746,306 (6,431) 237,877
ORCHARD LAKE 19,329 19,329 24,053 24,053
PLEASANT RIDGE 53,924 (6,562) 47,362 59,217 (6,562) 52,655
ROCHESTER 29,131 29,131 31,124 31,174
ROCHESTER HILLS - 103,068 (305) 102,763 107,988 (305) 107,683
50111 1YON .14,Y19 )4M9 70,515 20,815
SYLVAN LAKE 72,480 22,480 30,715 30,775
TROY 412,116 132,415 037,181 532,161
WALLED LAKE 97,777 97,777 119,492 119,492
WIXOM 29,445 29,415 30,965 30,965
IDEAL CITIES: $ 4,0A1,0633 $ (60,/19) $ 3,9/0,339 $ 4,163,6)5 $ (50,719) $4 ,102,596
TOWNSHIPS:
ADDISON $ 23,388 $ 23,388 $ 15,442 $ 15,442
BRANDON 5/,006 57,006 50,101 50,101
COMMERCE 159,09! 159,09/ 56,620 56,620
GROVELAND 48,640 18,640 57,465 57,455
HIGHLAND 27,820 21,820 57,096 57,096
HOLLY 67,834 57,834 84,322 84,322
INDEPENDENCE . 189,751 169,751 201,882 201,882
LYON 64,804 : 64,804 14,409 44,409
MILFORD 83,1/1 83,171 96,012 98,012
OAKLAND 85,801, 86,806 102,994 102,994
ORION 266,2/3 256,273 213,711 213,714
OXFORD 57,468 57,468 59,733 59,733
ROSE 76,469 76,469 .91,520 91,520
80875 OAK 181,474 I811,401 212,000 212,000
SPINGF1ELD 165,386 (38,423) 125,062 101,033 (3)3,423) 155,610
WEST BLOOMFIELD 221,680 221,680 418,351 418,351
out LAKE 291,055 293,095 318,629 318,629
TOTk. TOWNSHIPS: $ 2,049,014 $ (30,423) $ 2,010,551 $ 2,276,323 $ (38,423) 52,237,900
VIII A0(5:
1118FPIY 1111IS $ w,541 1, )',1108) $ 14,513 . $ 21,931 $ (8,008) $ 13,923
CLARKSTON 10,268 10,268 6,000 6,000
HOTLY 98,271 (1,791) 93,510 115,813 (4,731) 111,082
LAKE ORION 55,09/ 55,097 • 59,283 59,263
1608A91) 6,000 6,000 6,000 6,000
mILIORD 1/3,160 (29) 113,721 194,021 (29) 193,992
ORTONVILLE 19,614 (17,646) 1,998 21,440 (17,646) 3,794
MORO 11,916 (1,091) '10,873 - 13,110 (1,093) 12,017
WOIVI_RINE tAKI A0,/96 30,/96 29,533 29,633
TOTAL VILLAGES: $ 476,283 $ (31,507) $ 416,776 $ 467,23) $ (31,507) $ 435,724
101AI UIMMIINI IllS $ (! w,61A 5 6,121,11u 5 6,901,169 $(13u,649( $6,05M0
C088(95171 1116191
PROGRAM -CAP)
0741 AND 108818
BAIANCI I986
RtNIAI ,CARRY IN
AILOCAIION
GRAND 101Ai
$ 1 ,0,000
$ 9,529,903
194,00 t 611,000 $ 58,000
5 9,929,9U11 510,020,048 $10,020,048
.7L MWSKEZ47ZUWWV6 SM.11787601.7M EWMMXWIAMMR MUMWM.Maili
June 9, 1988 Resolution # 88140
June 1388
ALLEN, County Cierk/Register of _
'day of
Moved by Richard Kuhn supported by Susan Kuhn the resolution (with
Fiscal Note attached) be adopted.
AYES: R. Kuhn, S. Kuhn, Lanni, Luxon, McDonald, A. McPherson,
R. -McPherson,' Moffitt, Oaks, Page, Pernick, Price, Rewold, Skarritt, Aaron,
Bishop, Caddell, Calandro, Crake, Doyon, Gosling, Hobart, Jensen. (23)
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 the attached Resolution
which was adopted by the Oakland County Board of Commissioners at _their meeting held
on June 9, 1988
with the original record thereof no remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, have hereunto set my hard and affixed the
seal of said County at Pontiac, Michigan
this 9th