HomeMy WebLinkAboutResolutions - 1987.07.23 - 18030MISCELLANEOUS RESOLUTION NO. 87179 DATE: July 23, 1987
BY: PUBLIC SERVICES COMMITTEE - RICHARD D. KUHN, JR., CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - Recapture of Coauercial Assistance
Program (CAP) Funds from the 1985 and 1986 CAP Participatin9 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 #82233 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 Commercial 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 was the 12 month progress deadline for the 1986 CAP program; and
WHEREAS in accordance with the provisions of Miscellaneous Resolution #85118
regarding recapture of CAP funds, the Oakland County Collulunity Development Division
recommends the recapture of $101,490.75 in 1985 CAP funds and $31,241.25 in 1986 CAP
funds as described in Attachment A; and
WHEREAS the Oakland County Community Development Division has recommended,
in a companion resolution, the criteria and procedure to reallocate the recaptured CAP
funds; and
WHEREAS the Community Development Citizens Advisory Council recommends
approval by a unanimous vote (15-0), 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 Commissioners
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
rrinkf
ATTACHMENT A
RECAPTURE OF COMMERCIAL ASSISTANCE PROGRAM FUNDS FROM THE 1985 AND 1986 CAP
PARTICIPATING COMMUNITIES.
RECOMMENDATION - The Oakland County Community Development Division (OCCD)
recommends the recapture of $101,490.75 in unused 1985 CAP funds and
$31,241.25 in unused 1986 CAP funds from the following communities:
Communities 1985 CAP $ 1986 CAP $ Total
*City of Huntington Woods $ 10,500.00 NA $ 10,500.00
Milford Village 50,913.00 NA 50,913.00
*City of South Lyon 18,743.00 NA 18,743.00
City of Oak Park 5,988.75 -0- 5,988.75
City of Farmington 10,830.00 $ 2,355.25 13,185.25
City of Madison Heights NA 22,324.00 22,324.00
City of Pleasant Ridge NA 6,562.00 6,562.00
Oxford Village 4,516.00 NA 4,516.00
Total $101,490.75 $ 31,241.25 $132,732.00
This recommendation is based on the progress made by the 1985 and 1986 CAP
participating communities in depleting their CAP funding allocation(s). The
recommended recapture amounts reflect all loan applications submitted to OCCD
by 5 p.m., June 30, 1987. During the month of June, OCCD received 55 loan
applications. Due to this tremendous volume, OCCD has accepted all the loan
applications, assuming that both the communities and the applicants are acting
in good faith.
The process and criteria for the recapture of CAP funds are authorized by:
1) Miscellaneous Resolution #85107 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.
Due to the fact that CAP funds were moving slowly, this general recapture
policy was strengthened and made operational by the issuance on February 17,
1987, of more specific performance criteria that would be used as the basis
for the recapture of CAP funds. These criteria identify 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. Please see Exhibit #1 for the
specific performance criteria.
Exhibit #2 to this Attachment presents the background information and
calculations to justify the recommended recapture of $132,732 in 1985 and 1986
CAP funds.
*NOTE - These communities have voluntarily returned their CAP funds to the
County; However, for audit purposes, those funds must be officially
"recaptured" by action of the Board of Commissioners.
page A-1
memososearsman. -Isoseimenesph,
COUNTY MICHIGAN
DEPARTMENT OF PUBLIC WORKS
Daniel T. Murphy, Oakland County Executive
COMMUNITY DEVELOPMENT
Kenneth R. Patterson - Manager
February, 1987
1200 North Telegraph Road
page A-2
Executive Office Bui/ding
ATTACHMENT A - Exhibit #1
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 CAT 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 100% of the community's CAP
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.
ATTACHMENT A - Exhibit #2
JUSTIFICATION FOR RECAPTURE - Historical Summaries of the 1985 and 1986 CAP
Programs
A. The 1985 CAP Program
1. May 23, 1985/Miscellaneous Resolution #85158 - The Oakland County
Board of Commissioners designates the following communities for the
1985 CAP program:
Target Communities
City of Ferndale
Village of Milford
Village of Holly
Village of Oxford
City of Hazel Park
Village of Ortonville
City of South Lyon
City of Walled Lake
Non-Target Communities
City of Berkley
Village of Beverly Hills
City of Farmington
City of Huntington Woods
City of Oak Park
2. August 1, 1985 - $350,000 in 1985 CAP funds is allocated to the above
communities in accordance with the funding formula approved by the
Board of Commissioners in Miscellaneous Resolution #85107 of March 28,
1985. The allocations are shown on Table #1.
3. Fall, 1985/Winter, 1986 - The 1985 CAP participating communities
execute CAP Letters of Agreement with OCCD. The Letter of Agreement
sets an 18 month program period for CAP and establishes quarterly
performance goals for the use of CAP funds.
The beginning and ending dates for the communities 18 month program
period vary from community to community depending on how quickly the
community was able to gear up to launch the program.
4. July 14, 1986 - OCCD provides written monitoring reports to the 1985
CAP target communities summarizing their progress in meeting their CAP
performance goals through June 30, 1986. As there had been no CAP
activity in Milford or South Lyon, those two communities were informed
that at least one loan application would have to be submitted to OCCD
by October 30, 1986 (a full 12 months since they started the program).
South Lyon voluntarily withdrew from the program and "returned" their
CAP funds to OCCD. Milford submitted one loan application to OCCD in
late August and avoided a recapture during the program year.
page A-3
See Table 62
See Table #2
See Table #2
$ 10,500
See Table #2
Sub-Total NA $ 10,500
$ 84,672
$ 52,500
1 Communities $350,000
*5. February 2, 1987 - OCCD notifies the 1985 CAP target communities that
the deadline for submittal of CAP loan applications to OCCD is
extended (past their original 18 months) to June 30, 1987. See
Exhibit #2A. In revising the deadline, OCCD agrees to set aside CAP
funds pursuant to loan applications submitted to OCCD by June 30,
1987. That portion of a community's CAP allocation that has not been
disbursed, closed on, committed to or applied for by June 30, 1987
would be automatically recaptured.
*NOTE - This time extension does not apply to the 1985 non-target
communities (Berkley, Huntington Woods, Farmington, Beverly Hills and
Oak Park). Huntington Woods withdrew from the program in April 1986.
The other four communities all applied for and received funding in the
1986 CAP program which began in July, 1986, only 6 months after these
communities had initiated their 1985 CAP program. Consequently, OCCD
handles the monitoring of CAP progress in these communities in a
somewhat different manner. Instead of tracking the progress of each
year's funding separately (with overlapping time periods and
performance criteria), OCCD evaluates these 4 communities in terms of
the progress they are making in "depleting" the total amount of both
their 1985 and 1986 CAP funding allocations. The status of these
communities is addressed in Table #2.
6. July 1, 1987/Table #1 - 1985 CAP Communities Funding Allocation and
Status Report shows the 1985 CAP community allocations and the amount
of CAP funds "depleted" through June 30, 1987. Table #1 indicates
that a total of $84,672 in 1985 CAP funds is to be recaptured from
Milford Village, Oxford Village, South Lyon and Huntington Woods.
TABLE I
1985 CAP COMMUNITIES
FUNDING ALLOCATION AND RECAPTURE STATUS REPORT
Community
Target Communities
1985
CAP Allocation
+$AmountofFunds Balance to
"Depleted" Be -
Through 6-30-87 Recaptured
Ferndale $ 67,235 $ 67,235 -0-
Hazel Park 37,187 37,187
Holly Village 38,080 38,080
Milford Village 55,930 5,017 50,513
Ortonville 27,668 27,668 -0-
Oxford Village 22,015 17,499 4,516
*South Lyon 18,743 -o- 18,743
Walled Lake 30,642 30,642 -0-
Sub-Total $297,500 - $223,328 + $ 74,172
Non-Target Communities
City of Berkley $ 10,830
Village of Beverly Hills 10,830
City of Farmington 10,830
*City of Huntington Woods 10,500
City of Oak Park 10,830
* Funds were voluntarily returned to OCCD by the Community
-Depleted - Means Any Combination of
1) Actual disbursement of CAP loan proceeds upon project completion;
2) reservation of funds upon a loan closing;
3) commitment of funds;
4) application for funds.
page A-4
B. The 1986 CAP Program
1. February 27, 1986/Miscellaneous Resolution #86037 - The Oakland County
Board of Commissioners designates the following communities for the
1986 CAP program:
Target Communities
City of Rochester
City of Berkley
City of Keego Harbor
City of Farmington
Springfield Township
City of Madison Heights
Non-Target Communities
City of Rochester Hills
City of Pleasant Ridge
City of Oak Park
Village of Beverly Hills
2. June 18, 1986 - $350,000 in 1986 CAP funds is allocated to the above
communities in accordance with the formula approved by the Board of
Commissioners in Miscellaneous Resolution #85308 of October 24, 1986.
The 1986 allocations are shown on Table #2.
3. Summer /Fall, 1986 - The 1986 CAP communities execute their Letters of
Agreement with OCCD. For the four communities (Berkley, Farmington,
Oak Park and Beverly Hills) which also received CAP funds in 1985, a
revised 18 month time schedule was established to cover the use of
both years' funding.
Communities
Target 18 Month Program Period
City of Rochester
City of Berkley
City of Keego Harbor
City of Farmington
Springfield Township
City of Madison Heights
Non-Target
City of Rochester Hills
City of Pleasant Ridge
City of Oak Park
Village of Beverly Hills
7/1/86
7/1/86
10/1/86
7/1/86
8/1/86
7/1/86
7/1/86
7/1/86
7/1/86
7/1/86
- 12/31/87
- 12/31/87
- 3/31/88
- 12/31/87
- 1/31/88
- 12/31/87
- 12/31/87
- 12/31/87
- 12/31/87
- 12/31/87
4. February 17, 1987 - OCCD provides written monitoring reports to the
1986 CAP participating communities summarizing their 3 month or 6
month progress in the program. The communities were also provided
with additional information on the criteria to be used for recapturing
unused CAP funds. See Exhibit #2A f recapture criteria.
page A-5
-5-
-0--
-0-
$ 67,191
4(,911
45,213
44,648
52,381
46,156
YES ;3-31-87)
NO (3-31-87)
YZS (6-30-87)
170 (3-31 -87)
YES (3-31-87)
YES (4-30-87)
One Loan Application
Sub,titted or: 75!
of the Total of 1985/88
Funds to Recaptured
SAT.t.ont
To Be
Recs:,tured
-0-
$13,155.25
-0-
12,162,00 -0- -0-
5,201.00
-6-
5. April 15, 1987 - OCCD provides written monitoring reports to the 1986
CAP communities summarizing their 6 month or 9 month progress in the
program. Farmington, Madison Heights and Pleasant Ridge were informed
that they had not achieved the 9 month performance criteria of
submitting one loan application to OCCD. These communities were
advised that OCCD would recommend recapture of 25% of their funding
allocation.
6, July 1, 1987/Table #2 - 1985/86 and 1986 CAP Communities Funding
Allocation and Status Report shows the allocations for the 1986
program and the allocations for the four communities participating in
both the 1985 and 1986 programs.
Table #2 indicates the following:
a) $27,628.25 in 1985 and 1986 CAP funds is to be recaptured from
Farmington, Madison heights and Pleasant Ridge in accordance
with the 9 month performance criteria of one loan application
or 25% recaptured.
b) $20,431.75 in 1985 and 1986 CAP funds is to be recaptured from
Madison Heights, Pleasant Ridge and Oak Park in accordance
with the 12 month performance criteria of 50% of funds are to
be depleted or 25% recaptured.
TABLE 12
1986 AND 1985/86 CAP COMMUNITIES
FUNDING ALLOCATION AND RECAPTURE STATUS REPORT
1985 CAP 1986 CAP 1 One
AZIZ,C.,,,TT01;
Re.,,eived?
rget
City of Berkley $10,830
City of Farmitan 10,830
City of Keego Narbor -
City of Madison 1:eights -
City of Rochester -
Springfield Tap.
1905/86 AND 1988 CAP
Local Progress Criteria to Prevent Recapture
(See Exhibit
12 n':;THS
50`: of Fondr are
Depleted
Or 257: uf
the Total of 185.1618
Funds is Recaptured
Slucont 507;
Pepisted
77-7 7)
$ 78,021 Yes
37,006 Yes
17,388 19-I2 Months is 9M/87
18,503 No $11,1$2.110
52,381 Yes
12,952 88-I2 Months is 7/30/87 -0-
Cveramities
Non-Tstfet
V1, of Beverly Silis
City of Oak Park_
City of Pleasant Rdg
City of Rochester dills
810,830 13,125
10,830 13,125
13,125
13,125
YES (3-31-87)
YES (3-31-87)
(3-31-87)
:TS (3-31-87)
12,027 155 -0-
9,252 tio 5,988.75
No 3,281.0
7,557 Yes -0-
Total Allocations 543,320 $550,000 Total to be Recatturo6 , 827,628.25 $245,08/ Total to Sr Recantured 520,432.75
page A-6
RESOLUTION 87179
July 23, 1987
Moved by Richard Kuhn supported by Angus McPherson the resolution be
adopted.
AYES: Richard Kuhn, Susan Kuhn, Lanni, Law, McConnell, McDonald, Angus
McPherson, Rue] McPherson, Moffitt, Nelson, Page, Perinoff, Pernick, Price,
Rowland, Skarritt, Wilcox, Aaron, Caddell, Calandro, Gosling, Jensen. (22)
NAYS: None. (0)
ABSTAIN: Rewold. (1)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn D. Allen, Oakland County Clerk/Register of Deeds, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on July 23 1987 with the original record now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County
of Oakland, Pontiac, Michigan this 23rd day of Alb J EY mow
LLEN, Oakland County Clerk