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HomeMy WebLinkAboutResolutions - 1988.06.09 - 17486MISCELLANEOUS RESOLUTION NO. 88141 DATE: May 26, 1988 BY: PUBLIC SERVICES COMMITTEE - RICHARD D. KUHN, JR., CHAIRPERSON IN RE: COMMUNITY DEVELOPMENT DIVISION - Modified Criteria and Procedure for the Reallocation of Recaptured 1985 and 1986 Commercial Assistance Program Funds 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 H.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 Resolution #85158 of May 23, 1985 and #86037 of February 27, 1986 designated communities and funding allocations for the 1985 and 1986 Commercial Assistance Program; and WHEREAS the County of Oakland by Miscellaneous Resolution #85118 of April 18, 1985 approved general Criteria and Procedures for the recapture and reallocation of unused CAP funds; and in accordance with the provisions of that Resolution the Oakland County Community Development Division has recommended in a companion resolution the recapture of $23,498.64 in 1985 CAP funds and $107,150.25 in 1986 CAP funds; and WHEREAS the Oakland County Coumunity Development Division has recomuended the Modified Criteria and Procedure for the reallocation of the recaptured CAP funds as specified in Attachment A; and WHEREAS the Community Development Citizens Advisory Council recommends approval (by a 12-0 roll call vote) of the Modified Reallocation Criteria and Procedure as specified in Attachment A. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves the Modified Criteria and Procedure for the reallocation of recaptured 1985 and 1986 CAP funds as specified in Attachment A. BE IT FURTHER RESOLVED that the Oakand County Community Development Division is authorized to utilize the Modified Reallocation Criteria and Procedure approved herein to make future allocations to eligible communities from the newly established CAP loan pool. Mr. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. gffe.f2 Richard D. Kuhn, Jr., Chairperson N, APPROVE THE 'INC; RESOL FISCAL NOTE June 9, 1988 BY: FINANCE COHMIITEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: COMMUNITY DEVELOPMENT DIVISION - MODIFICATION CRITERIA AND PROCEDURE FOR THE REALLOCATION OF RECAPTURED 1985 AND 1986 COMMERCIAL ASSISTANCE PROGRAM FUNDS-MISCELLANEOUS RESOLUTION #88141 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mt. Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution 1188141 and finds: 1) The County of Oakland by Miscellaneous Resolution 1185118 of April 15, 1985 approved general creteria and procedures for the recapture and reallocation of unused CAP funds; 2) The Community Development Division recommended a modified criteria and procedure for the reallocation of recaptured funds for 1985 and 1986 and any future reallocations as specified in Attachment A; 3) No budget amendment is required. FINANCE COMMIllEE ATTACHMENT A MODIFIED CRITERIA AND PROCEDURE FOR TEE REALLOCATION OF RECAPTURED 1985 and 1986 COMMERCIAL ASSISTANCE PROGRAM (CAP) FUNDS The Oakland County Community Development Division, with approval of the Community Development Citizens Advisory Council, the Public Services Committee and the Oakland County Board of Commissioners, will establish a Commercial Assistance Program Loan Pool using the $130,648.89 recaptured 1965 and 1986 CAP funds and the $21,477 balance from the previously recaptured funds allocated in accordance with Miscellaneous Resolution #87228 of September 17, 1987. This will make available a total loan pool of $152,125.89. PURPOSE The purpose of the CAP Loan Pool is to provide a source of readily available funds for projects that meet the CAP objectives and are ready to go under construction. LOAN POOL ADVANTAGR Under this system, projects that are in the early stages of development will not tie up funds that could otherwise be available to projects that are ready to go under construction. Funds from the loan pool are not awarded on a competitive basis but are available Rs projects are ready to go under construction. New communities can enter the program (after meeting the criteria as referenced in Exhibit 1) as projects develop. COMMUNITY ELIGIBILITY I. Participating Communities - Communities currently participating in the CAP or communities who have participated in the past, but due to recapture are no longer active in the program, will be eligible to apply for funds from the loan pool. 2. New Communities - New communities who participate in the County's CDBG program are eligible to participate in the loan pool after completion and approval of a CAP community application. The CAP community application will consist of the minimum community eligibility qualifications adopted for the 1986 CAP program by the Board of Commissioners through Miscellaneous Resolution #85308 of October 24, 1985 and modified for this purpose (see Exhibit #1). Community applications will be accepted at any time as long as funds are available. OCCD will review and approve new communities participation in the loan pool based on their successful completion of the application. New communities will be required to enter into a Letter of Agreement with the County. -1- Villages Beverly Hills Clarkston Holly Lake Orion Milford Oxford CAP ALLOCATION I. Participati ties - Every participating community is eligible to receive from the CAP loan pool the difference between what was depleted during the communities program participation and their original allocation plus one project not to exceed $18,000 in CAP funding. The additional project concept is consistent with Board of Commissioners' Miscellaneous Resolution #87228 of September 17, 1987. Table 11 Examples of Funding Available to Participating Communities Community City of Berkley City of Walled Lake City of Rochester Original Allocation $78,021.00 $30,642.00 $52,381.00 Funds Depleted $70,252.00 $30,642.00 $52,381.00 (plus one project) Funds Available From Loan Pool $7,769 1 project 1 additional project $0 2. New Communities - New communities are eligible to receive CAP funds to support up to $100,000 in rehabilitation expenses which represents about $18:000 in CAP funds. PROGRAM MECHANICS Because the allowable allocations exceed the available funds the pool will operate on a first come first serve basis. 2. OCCD will notify all eligible CAP communities funds from the loan pool. ELIGIBLE COMMUNITIES of the availability of Townships Independence Oakland Royal Oak Springfield Cities Berkley Farmington Ferndale Hazel Park Huntington Woods Keego Harbor Madison Heights Oak Park Pleasant Ridge *Rochester Rochester Hills South Lyon Walled Lake -2- Cities Township Villages *The City of Rochester has depleted their original allocation plus one additional project in accordance with the Board of Commissioners Miscellaneous Resolution #87228 of September 17, 1987. At the same time, OCCD will notify the remaining communities in the County CDBG program of their opportunity to participate in the loan pool. 'REMAINING COMMUNITIES • Auburn Hills Clawson Lathrup Village Northville Novi Orchard Lake Village Sylvan Lake Troy Wixom Addison Brandon Commerce Groveland Highland Holly Lyon Milford Orion Oxford Rose West Bloomfield White Lake Leonard Wolverine Lake Before individual project applications will be accepted from new communities, the communities must submit and have approved a community application. 3. The project application process will remain the same as it is under the current 18 month program participation plan. Applications are first reviewed and approved by the local CAP committee then submitted to OCCD. OCCD works with applicants to secure the companion financing to define the scope of work, and to contract for the work to be done. 4. Funds will be committed to the project at the time the project is ready to go under construction and all the documentation is complete. Only when the funds are committed will the reprogramming from the loan pool to the community fund occur. MMS/kjf 2/22/88 CRITERIA -3-- 'day of June 1 988 LYNA. Th LLEN, Count .- Clerk/Register of Resolution # 88141 June 9, 1988 Moved by Richard Kuhn supported by Ruel McPherson the resolution (with Fiscal Note attached) be adopted. AYES: Jensen, R. Kuhn, S. Kuhn, Lanni, Luxon, McDonald, A. McPherson, R. YOherson, Moffitt, Oaks, Page, Pernick, Price, Rewold, Skarritt, Aaron, Bishop, Caddell, Calandro, Crake, Doyon, Hobart. (22) 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 dune 9, 1988 with the original record thereof now rernining 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 this 9th