HomeMy WebLinkAboutResolutions - 1987.05.28 - 18007MISCELLANEOUS RESOLUTION NO. 87133 DATE: May 28, 1987
nrilE:Y APPROVE THE FOREGOING RESOLUTION
Wkty Pato
BY: PUBLIC SERVICES COMMITTEE, RICHARD D. KUHN, JR./ CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - RENTAL REHABILITATION PROGRAM APPLICATION
FOR HOUSING AND URBAN DEVELOPMENT FUNDS - FY 87
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the Oakland County Board of Commissioners by Miscellaneous
Resolution #84175 authorized the establishment of a Rental Rehabilitation Program
and accepted a grant award from the Department of Housing and Urban Development
(HUD), in the amount of $154,000 for Fiscal Year 1984; and
WHEREAS, HUD has allocated $149,000 for the second Fiscal Year 1985 and
$67,000 for the third fiscal year 1986 making the total allocation to date
$370,000 as shown in Schedule I; and
WHEREAS, HUD has notified the Community Development Division of fund
availability for Fiscal Year 1987 in the amount of $187,000; and
WHEREAS, the Community Development Division must submit its application and
program description to HUD no later than May 31, 1987; and
WHEREAS, participation in the Rental Rehaffilitation Program will not involve
County funds; and
WHEREAS, the Comunity Development Division will provide status reports to
the Public Services Committee; and
WHEREAS, this grant application has been reviewed and approved as to form by
the Office of Corporation Counsel; and
WHEREAS, the Oakland County Community Development Citizens Advisory Council
recommends approval by a unanimous roll call vote (14-0) of this Application.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
authorize Community Development Division to make application for the FY 87 Housing
and Urban Development Rental Rehabilitation Program Grant in the amount of
$187,000.
BE IT FURTHER RESOLVED that the the Chairperson of the Oakland County Board
of Commissioners be and is hereby authorized to sign said grant application.
Mr. Chairperson, on behalf of the Public Services Committee, I hereby move
the adoption of the foregoing resolution.
PUBLIC SERVICES COMMITTEE
Award
Accumulated
COMMUNITY DEVELOPMENT DIVISION
RENTAL REHABILITATION PROGRAM
FY 1984 - FY 1987
SCHEDULE 1
Variance
Proposed Increase
1984 1985 1986 1987 (Decrease)
$154,000 $149,000 $ 67,000 $187,000 $120,000
154,000 303,000 370,000 558,000
Funds Obligated To Date:
Funds Uncommitted:
$176,441.
$193,559
$370,000
424-100 INSN 5-10-01-00e-8162
PR-.:1LIS EDITION
IS NO . ...ISABLE
STANDARD FORM 424 PAGE I {R4N 4-443
P33t43134.4& 044/1 CA-3414, 4-10)
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2. APPU- a. N9 ER . STATE ,k NUMRER
. FEDERAL ASSISTANCE CANTS APRS).
T ...-- ARK!. CAON
a TYPE CATION CENT'.
OF 0 NOTICE OF INTENT (OPTIONAL) tOENT1- FIER • b. DATE b. rE 1--, PER VM TO VE 1 suemISS1ON A
(W.'* sp. 1.-1 PREAPPUCATION rasa seeemare slay -4.1,0?„, ASSIGNED rat, ..e.assA 442 y
pernse ft 0 app,....„5crich‘a Is 87 5 3 1 EV STATE la97 5 31
ava)
Lea.r
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4 LEGAL APPLICANT/RECIPIENT 5 EMPLOYER IDENT1FICAT MEIER IIN)
34 Abbecam Name Oakland County
c Orgaraxabon U,111 . Community Development Division a.
c Sosat/P 0 B03 • 1200 North Telegraph Road PRO. a. NUMBER i 1 1 ' i A 1,_ i cAM a ory - Pontiac '6.cc'Y Oakland al Stater
• Michigan a-rPow 48053 fiqu CFC1.4) mth.npLE 0
A. Ca./001 PTort017 (Nava* Kenneth Patterson (313) 858-5403 b. TITLE Rental
sr tr-PapAsas Nal ' Rehabilitation Progr
i-g 7. TITLE OF APPLICANTS PROJECT Wag sect= IV of gIam acam au proAarha a summary claccrOgart cif the & TYPE Or APPLICANT IP. A pratacto ......... 0--0..0.......,- S-ozewswee County of Oakland c-••••0........ 1......,s. imoselt.e. v-t.... _ i
Clawlasiss, .1-beShen
Application forfor Rental Rehabilitation Program 0...........
E.'.
S ubmitted: May 31, 1987 A....atataas Came RAW Oproorfante, itilVr
9 AREA OF PROJECT IMPACT (Naw of aisles. masers& xasras. fAc.) Q. ESTIMATED NUh4EER 11_ TYPE OF ASSISTANCE
OF PERSOP-5 ,3ENEFITiNG "-"*"" ri'l c.....r.......
A Oakland County Participating Cormunity 613,672 pram Jrn.nPu , §1
,..,' 1 1 2 pRoPoszo FuNIDING 113 CONGRESSIONAL DISTRICTS...0g, 14. TYPE OF APPIJCAlION
I.-.-a,m
MORAL_ 12,187,000 APPLicAhrr b. PROJECT A-4.......e 1:1-07,......
Lew stawspnous breer
0 APPLICANT ! 00 6, 7, 14, 17, 18 iiCounty—wide ,i, rrg og C1-6ANGE (Far i.ev 6. i=i4J .--------..,-,, /5-Inantadm Room n,-00ver l50,01,0
c STATE 00 15. PROJECT START 16. PROJECT a.....c,,,m.• ow..
DURATION C.....opmer DATE A Reesiscr N/A r.o, morale 4[41, 0.-007,1K. 41araotr. bLOCAL .03 E-4.zo.5,0on
OTH I 10 87 10 1 Mona's; a ER &s.9, mesa
le. DATE DUE TO ram. "undo day perapmwam
1 Total 1d87 1 000 _001 FEDERAL AGENCY at. 19 87 5 31
19 FERAL AGENCY TO RECEIVE REOUESTDept , of Housing & Urban Deve, Detroit, NI 20 Ex'sm4GP-6°El'A"R"NT IDENTIFICATION Nid4EIER
a ORGANIZATIONAL UNIT (IF APPROPRIATE) Is. ADmiNISTRATlVE CONTACT l;IP KNOWN) N/A
c ADDRESS 21 REMARKS ADDED
Yka No
To irse bassi at my Artawkaag., awu Otwel.1 a_ YES. THlS NOTICE OF iNTENTEAPRt.rCA-nowARRuCATIoN WAS MADE AVA,L-AdLE TO THE_ ;-:,-- 7 AYE
data In nes preapolncatton/appacaoarl EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON-
A I APPLICANT We true srd 00‘119C1. Trxt docurmenT Kali 'ATE
t 1 C.::ERTIFIES been c,...+i aonocoad by the gareerrerval
17 --1..41" I,- body cri ne appkant and rat Appi.oarKI NA
!I
mit ccaroky wean ne attached asautar4es b. NO, PROGRAM 15 NOT COVERED BY E 0 12372 0
K Irma assatiance 33 apcaored. OFI PROGRAA4 NAS NOT SEEN SELECTED BY STATE FOR REVIEW 0
20 a TYPED NAME AND TITLE b. SIGNATURE §l tATIE'YlNG
l PEPRE. Roy.Rewold, Chairperson
i sENTATIvE Oakland County Board of Cortrissioners L
24 ,rPOC.k.
RECEIVED 19 r''' Rs.a'"A day
} 2- ACTION TAKEN 2a.
25. FEDERAL AR4'0CATION ICENTIFSCATION NUMBER .26. FEDERAL GRANT IDENTIFICATION
FONEliNG roar iA day 1 3° rear me. OF dgrt
STAR 11110 a AWARDED 29 ACTION DATED- 19 lo.s.rE 19 tt REJECTED a. FEDERAL 3 .00 31. CONTACT POP ADDITIONAL $NFORIAA• l 32 Tea, masa, dem, RETURNED FOR ... '1 T1ON (Nam e sari arlepressr wiresberr !ENDING AMENDMENT b. APPLICANT .00 I DATE 19
r'' ?i 1: d RETURNED FOR
50 12372 SuEoatSSION c. STATE
1
.ao 33 REMARKS ADDED
BY APPLICANT TO LI LOCAL .00 I
3 STATE
I 11 a DEFERRED a OTHER 00
I.
- ..T. ! WITHDRAAN TOTAL 4 00 El Ye3 0 .,..,
_...,
COUNTY OF OAKLAND
APPLICATION
FOR RENTAL REHABILITATION PROGRAM
MAY 31, 1987
County of Oakland
Application
for Rental Rehabilitation Program
May 31, 1987
PROGRAM DESCRIPTION
I. Program Activities
Oakland County's housing stock includes a variety of small rental properties in
need of rehabilitation. These rental units provide a major source of housing
for low and moderate income households* Through the HUD Rental Rehabilita-
tion Program the county will increase the supply of standard housing units for
low and moderate income persons. The county will supply governmental funding
in the form of incentive rebates to assist -property owners improving existing
units to Section 8 Housing Quality Standards and the Michigan State Housing _
Development Authority, acting as the county's Public Housing Agency, will
provide rental housing assistance certificates or vouchers to lower income
families to help them to afford the rent in units rehabilitated through this
governmental program.
Rehabilitation funds will be provided to rental units which require moderate
levels of improvement. Rebates will be subject to 10 year deferred principal
liens on the rehabilitated property. Eligible projects may qualify for a rebate
of 50% of the construction cost incurred up to $5,000 maximum per unit
rehabilitated. The remainder of project costs will be provided from the
investor's funds or private financing.
H. Neighborhood Selection
Rehabilitation funds will be utilized to assist in the rehabilitation of projects
located in neighborhoods where the rents, statistical data from the U. S. Census
Bureau or rent surveys indicate that the projects meet eligibility criteria.
Projects which are selected for funding will be located in neighborhoods where
the rents are affordable to low and moderate income families at the time of
the rehabilitation and where the rents after rehabilitation will remain affordable
( within Section 8 Existing Housing Fair Market Rents) to low and moderate
income families. The county will coordinate closely with MSHDA throughout the
rent analysis process to assure selection of projects with stable rents.
The following neighborhood selection guidelines will be utilized to assure com-
pliance with program intent:
-where there is a need for rehabilitation of rental residential
properties principally occupied or to be occupied by low and
moderate income tenants;
-where the rental housing market is stable; and
2
ci -where the rent prior to and following rehabilitation, will
be affordable to low and moderate income tenants and
within Section 8 Existing Housing Fair Market Rents,
III. Lower Income Benefit
The primary emphasis of this housing program is to benefit lower income
families. The county will ensure that the majority of funds are utilized for
lower income families through:
-where rents are and will remain affordable to lower
income tenants;
-when submitting applications property owners will
provide income data on tenants and projects selected
for funding must contain a majority of lower income
families; and
-waiting lists maintained by MSHDA will be utilized to
place lower income tenants in vacant units.
The county will utilize the allotted Section 8 certificates or vouchers to ensure
benefit to lower income families. The lower income benefit standard to be
utilized by the county is 70 percent. A rental rehabilitation program that meets
the 100 percent benefit standard could not be developed by the county and the
proposed standard has been reviewed by public groups. This will minimize the
displacement of tenants in projects. In addition, this reduction to 70 percent
provides for a margin of error. This margin of error allows for sudden changes
in neighborhood rents, failure to complete a project or other unexpected occur-
rences.
Upon receipt of applications, tenant information will be utilized to assess
initial eligibility for Section 8 certificates or vouchers. Vacant units will be
rented according to Oakland County Community Development Division's
Affirmative Marketing Plan.
IV. Use of Rental Rehabilitation Funds for Family Housing .
The county will implement the program in a manner to assure that an equitable
share of housing will be provided for the rehabilitation of units occupied by
large families with children. Every effort will be extended to ensure that a
minimum of 70 percent of the funds will be utilized to rehabilitate units con-
taining two or more bedrooms. All three or more bedroom projects will be
given first priority. The county will continuously monitor this variable to
assure compliance with provisions of the regulations.
V. Use of Rental Rehabilitation Funds for Units in Substandard Condition that are
Occupied by Very Low Income Families
Priority will be given to the rehabilitation of those units with substandard
3
conditions which are occupied by very low income families. Through receipt of
tenant information accompanying each application submittal, the county can
ensure compliance with provision of §511.10(1).
VI. Proposal Selection Procedures
The county will approve proposals which represent the most efficient use of
funds. Each investor will be required to provide a minimum of 50 percent of
construction costs from private financing or owners funds. In addition, Section 8
certificates or vouchers will be allocated to income qualified tenants presently
residing in rehabilitated units. When filling vacant units, investors are required
to follow the Oakland County Community Development Division's Affirmative
Marketing Plan in selecting tenants.
VII. Financial Feasibility
The county will provide a rebate of 50 percent of construction cost incurred up
to $3,000 maximum per unit rehabilitated. The remainder of project costs will
be provided by the investor,
VIII. Neighborhood Preservation
The implementation of this rental rehabilitation program will have a positive
impact on neighborhood preservation in Oakland County. The provision of a 30
percent rehabilitation subsidy leveraged with private funding will instill within
property owners the incentive to provide and preserve standard housing units
for low and moderate income people.
The obligation to repay the rehabilitation subsidy is designed to be forgiven
over a specified period of time on a pro rata basis. This process will provide
additional incentive to property owners for preserving or maintaining their
rehabilitated units over a 10 year period. These incentives will influence the
long term stabilization and preservation of our lower income neighborhoods.
IX. Schedule for Committing Rental Rehabilitation Grant Amount
The county has identified a quarterly schedule for the implementation of the 1987
funding in conjunction with prior fiscal years.
X. Need for Rental Assistance
This is not applicable.
XL Nondiscrimination and Equal Opportunity
The investor will be required to affirmatively market their vacant rental units
as mandated in accordance with Oakland County Community Development
Division's Affirmative Marketing Plan. In addition to
4
a.
b.
the Affirmative Marketing Plan, Oakland County will:
a. Establish an advertising campaign within the participating
communities that will include reference to the affirmative
marketing policy of the county and a description of the
fair housing laws. Al! promotional materials will include
the Equal Housing Opportunity logo; and
b. Continue to fund a position for a HUD certified housing
counselor to counsel people on tenant nights, availability
of housing, mediate tenant-landlord disputes and credit
counseling.
To further ensure the meeting of affirmative marketing requirements, when the
county issues a commitment letter to the investor, the investor must certify
that they will abide by Oakland County's eTenant Assistance Policy and Oakland
County's Affirmative Marketing Plan
Recordkeeping:
The county will maintain records for the purpose of 1) documenting efforts
in affirmatively marketing and 2) assessing results of affirmative marketing.
The following actions will be taken:
Upon receipt of an application, investors will be asked to
complete a "tenant information form" that identifies racial,
income and gender characteristics of the tenants. Upon
completion of the units, the same information will be
obtained on each tenant; and
The Oakland County Community Development Division receives
monthly reports from our public housing authority. Annually, we
monitor each investor for compliance to our Affirmative Marketing
Plan.
XII. Grantee's Organizational Structure
The administration of this program will be within:
The Oakland County Community Development Division
1299 North Telegraph Road, Pontiac, Michigan 48053
Contact Person: Kenneth R. Patterson, Manager
5
6
GALAntb
XIII. PHA Participation
As indicated by letter dated April 20, 1987 MSHDA agrees to partici-
pate in the Rental Rehabilitation Program and to provide certificates and
vouchers in support of the county's program. The program will be implemented
in accordance with the Memorandum of Understanding The PHA contact is:
Michigan State Housing Development Authority
401 South Washington Square, P. 0. Box 30044
Lansing, Michigan 48909
Contact Person: Ms. Pamela Shaver, Housing Specialist
(517) 373-9194
XIV. Approvals of Project Costs in Excess of $5.000 Per Dwelling Unit
Not applicable.
28th day o 1 987
ALLEN
Misc. #87133
May 28, 1987
Moved by Richard Kuhn supported by Jensen the resolution be adopted.
AYES: Gosling, Hobart, Jensen, Richard Kuhn, Susan Kuhn, Lanni, Law,
McConnell, Angus McPherson, Ruel McPherson, Moffitt, Nelson, Page, Perinoff, Pernick,
Price, Rewold, Rowland, Skarritt, Wilcox, Aaron, Calandro, Crake, Doyon. (24)
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
this Miscellaneous Resolution adopted by the Oakland County Board of Commissioners
at their meeting held on May 28,1987
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
this
CounAy Clerk/Register of Deeds