HomeMy WebLinkAboutResolutions - 1987.09.17 - 18115MISCELLANEOUS RESOLUTION NO. 87228 Date: September 3, 1987
BY: PUBLIC SERVICES COMMITTEE - RICHARD D. KUHN, JR., CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - DESIGNATION OF TARGET COMMUNITIES FOR THE
1987 COMMERCIAL ASSISTANCE PROGRAM (CAP) AND REALLOCATION OF RECAPTURED 1985
AND 1986 CAP 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 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; 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 Miscellaneous Resolution #87I79 of July 23,
1987 authorized the recapture of $132,732 in unused 1985 and 1986 CAP funds; and
WHEREAS the County of Oakland by Miscellaneous Resolution #87180 of July 23,
1987 approved the Criteria and Procedure for the Reallocation of Recaptured 1985 and
1986 CAP funds and authorized the Oakland County Community Development Division to
utilize the same to prepare funding recommendations for the reallocation of these
funds; and
WHEREAS 5 of the 48 communities participating in the County's Community
Development Block Grant program through Miscellaneous Resolution #84211 of July 26,
1984 have submitted proposals to participate with the County in the 1987 Commercial
Assistance Program (CAP); and
WHEREAS the Oakland County Community Development Division has recommended
designation of the Village of Clarkston, Independence Township, Village of Lake
Orion, Oakland Township and Royal Oak Township as the 1987 CAP Target Communities and
the reallocation of $92,912 (707. of the recaptured CAP funds) to be proportionately
distributed to these communities in accordance with •the funding formula approved by
Miscellaneous Resolution #87180, as further described in Attachment A, Exhibit A-1,
Step #4; and
WHEREAS 7 of the 18 communities participating in the 1985 and 1986 Commercial
Assistance Programs have depleted 100% of their CAP funds and exhibit a documented
demand for supplemental CAP funds as shown in Attachment A, Table #I; and
-TN
Richard D. Kuhn, Jr., dtairperson
I HEREBY APPROVE THE FOREGOING RESOLUTION /7
WHEREAS the Oakland County Community Development Division has recommended the
reallocation of $39,820 (30% of the recaptured CAP funds) for CAP projects in the
currently participating CAP communities which have depleted their CAP funds as of
June 30, 1987, to be distributed in accordance with the funding formula approved by
Miscellaneous Resolution #87180 as further described in Attachment A, Part #2.
WHEREAS the Community Development Citizens Advisory Council approved by a
unanimous vote, the designation of the 1987 CAP Target Communities and the
reallocation of $132,732 in recaptured CAP funds as specified in Attachment A;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
designates the Village of Clarkston, Independence Township, Village of Lake Orion,
Oakland Township and Royal Oak Township as 1987 CAP Target Communities.
BE IT FURTHER RESOLVED that $92,912 in recaptured CAP funds is hereby
allocated to the 1987 CAP Target Communities for distribution in accordance with
Miscellaneous Resolution #87180 and as specified in Attachment A, Part #1.
BE IT FURTHER RESOLVED that $39,820 in recaptured CAP funds is hereby
allocated for CAP projects in the currently participating CAP communities which
depleted their CAP funds as of June 30, 1987 for distribution to projects in those
communities in accordance with Miscellaneous Resolution #87180 and Attachment A, Part
#2, until those funds are depleted.
Mr. Chairperson, on behalf of the Public Services Committee, I move the
adoption of the foregoing resolution.
Village of Clarkston
Independence Township
Village of Lake Orion
Oakland Township
Royal Oak Township
TOTAL
= $ 22,700.00
$ 16,182.50
= $ 17,641.00
= $ 1 8,876.50
= $ 17,512.00
= $ 92,912.00
ATTACHMENT A
1987 CAP FUNDING ALLOCATIONS
Pursuant to Miscellaneous Resolutions #87199 and #87180 and the attachments thereto
of July 23, 1987, the Community Development Division has utilized the approved
funding formula to the reallocation of $132,732 in recaptured 1985 and 1986 CAP
funds for the 1987 Commercial Assistance Program. In summary, the resolutions
authorize the distribution of funds as follows:
• 70% of the funds are to be allocated to qualified communities not
currently participating in the 1985 or 1986 CAP programs. A three
part CAP funding formula was approved by the Board. The formula
provides for a minimum threshold amount to support $75,000 worth of
rehabilitation, an amount derived from the community's score from the
field visit, and an amount based on the Community's documented demand
for CAP loans.
• 30% of the funds are to be allocated for projects in the currently
participating CAP communities which had depleted 100% of their CAP
allocation as of June 30, 1987.
The Oakland County Community Development Division (OCCD) recommends the
reallocation of $132,732 in recaptured funds for the 1987 Commercial Assistance
Program.
Part #1 70% of the funds ($92,912) will be provided to new communities.
Exhibit #A1 - "70% CAP Community Funding Allocations" specifies how
these CAP allocations were calculated in accordance with the 3 step
funding formula authorized by Miscellaneous Resolution #87180.
Part #2 30% of the funds ($39,820) will be made available as a pool of funds
for rehabilitation projects in seven (7) communities which have
depleted their CAP funds. These communities have been rank ordered
first to last according to how quickly each depleted their CAP
allocation since the date of their CAP Letter of Agreement with OCCD.
The community which used its funds in the least amount of time is
ranked first and so on. See Table #1.
OCCD will commit funds to one applicant at a time, starting with the
first ranked community and proceeding sequentially through the
communities' first priority projects until the funds run out. The
maximum amount of CAP funds per loan is $18,503.00, enough to support
a $100,000.00 renovation.
OCCD estimates that the available funds ($39,820) may be sufficient to
support rehabilitation projects in only the top three ranked
communities (Rochester, Berkley and Ferndale). Funding for projects
in the remaining communities (Walled Lake, Holly Village, Hazel Park
and Ortonville) may not be available until additional unused CAP funds
are recaptured in the future.
Table #1 below shows the rank order of the seven communities which have used up 100%
of their CAP funds.
TABLE #1
Communities
#1 Rochester
#2 Berkley
#3 Ferndale
#4 Walled Lake
#5 Holly Village
#6 Hazel Park
#7 Ortonville
Date
Program
Started
07-01-86
01-01-86
12-01-85
11-01-85
11-01-85
11-01-85
10-01-85
Date Funds
Were 100%
Depleted
01-02-87
06-30-87
06-30-87
06-26-87
06-29-87
06-30-87
06-16-87
6 months/20 days
18 months
19 Months
19 months/26 days
19 months/29 days
20 months
20 months/16 days
$ 37,006
18,943
101,590
4,966
4,850
42,931
7,754
*Excess Demand
Elapsed Time for CAP $
$218,040
*A community's "excess demand" for CAP represents the loan applications submitted to
OCCD by June 30, 1987 which require the allocation of supplemental CAP funds to the
community if the project is to be approved for a CAP loan.
17.6%
20.8%
16.3%
24.1%
21.2%
54
64
50
74
65
307 100%
$ 2,070.00
2,447.00
1,917.50
2,835.00
2,494.00
$11,763.50
1) Clarkston Village
2) Independence Tap.
3) Lake Orion Village
4) Oakland Tap.
5) Royal Oak Tap.
Community
1) Clarkston Village
2) Independence, Tap.
3) Lake Orion Village
4) Oakland Tap.
5) Royal Oak Tap.
EXHIBIT IA -T
70% - Community Funding Allocations
$92,912
Step 11 - Minimum Threshold Allocation Per Community
$ Amount of CAP/CD8G Funds Needed Total $ Needed for a) # of CAP Communities x To Support $75,000 Worth of Rehab = Minimum Allocations
b) 5 Communities x $13,877 Per Community = $69,385 Needed for Minimum Allocations
Step 12 - Allocation Based on Field Visit Score
$ Amount Needed For $ Amount Available To Distribute
a) Total $ Available - Minimum Allocations According to Score
2
b) ($92,912 - $69,385) = $11,763.50 Available to Distribute
2 According to Score
c) Community Scores
Community's Score —
A
as a % of the CAP Allocation as
6 Total Points Scored the Column C %
Community Score By All Communities of $11,763.50
Step 13 - Allocation Based on Demand
a) Total $ $ Amount Needed for
Available Minimum Allocations
2
Amount Available
to Distribute
According to Score
b) ($92,912 - $69,385) = $11,763.50
c) Demand
G H — —
Community's Demand CAP Allocation
E F
— — As a % of as the Column G
Community $ Demand Total Demand % of $11,763.50
2
1) Clarkston Village
2) Independence Tap.
3) Lake Orlon Village
4) Oakland Tap.
5) Royal Oak Tap.
$ 390,000
1,472,585
90,000
501,000
263,000
$2,716,585
14.4%
54.2%
3.3%
18.4%
9.7%
100%
$ 1,694.00
6,376.00
388.00
2,164.50
1,141.00
$11,763.50
Step 14 - Total CAP Allocation L
J -- 1 -- K
— CAP — Total
Minimum Field Visit CAP CAP
Threshold + Score + Demand = Community
Amount (Step #2) (Step #3) Allocation
$13,877 4- $ 2,070.00 + 5 1,694.00 = $17,641.00
13,877 + 2,447.00 4. 6,376.00 = 22,700.00
13,877 + 1,917.50 .1.. 388.00 ,-. 16,182.50
13,877 + 2,855.00 .i. 2,164.50 . 18,876.50
13,877 + 2,494.00 4. 1,141.00 = 17,512.00
$11,763.50 $92,912-00 $11,763.50 $69,385
'
FISCAL NOTE
BY: FINANCE COMMITTEE, DR. G. warTaAm CADDELL, CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - DESIGNATION OF TARGET COMMUNITIES
FOR THE 1987 COMMERCIAL ASSISTANCE PROGRAM (CAP) AND REALLOCATION
OF RECAPTURED 1985 AND 1986 CAP FUNDS - MISCELLANEOUS RESOLUTION #87228
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mt. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Conuittee has reveiwed
Miscellaneous Resolution #87228 and finds:
1. The County of Oakland by Miscellaneous Resolution #87179 of July 23,
1987 authorized the recapture of $132,732 in unused 1985 and 1986 CAP
funds and placed in the Community Development Contingency Fund as
described in Attachment A,
2. The Oakland County Community Development Division recommends
designation of the Village of Clarkston, Independence Township,
Village of Lake Orion, Oakland Township, and Royal Oak Township as the
1987 CAP Target Communities, reallocating $92,912 (70% of the
recaptured CAP funds) proportionately among these communities in
accordance with the funding formula approved by Miscellaneous
Resolution #87180,
3. The Oakland County Community Development Division recommends the
reallocation of $39,820 (30% of the recaptured CAP funds) for CAP
projects in the currently participating CAP communities which have
depleted their CAP funds as of June 30, 1987 in accordance with the
funding formula approved by Miscellaneous Resolution #87180,
4. The Community Development Citizens Advisory Council unanimously
approved the designation of the 1987 CAP Target Communities and the
reallocation of $132,732 as specified in Attachment B,
5. The 1987 Budget be amended as summarized in Attachment C.
FINANCE COMMITTEE
ATTACHMENT A
• Recapture of Commercial Assistance Program (CAP) Funds From the 1985 and
1986 CAP Participating 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
* 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.
ATTACHMENT B
987 CAP FUNDING ALLOCATIONS
Pursuant to Miscellaneous Resolutions #87199 and 1/37180 and the attachments thereto
of July 23, 1987, the Community Development Division has utilized the approved
funding formula to the reallocation of $132,732 in recaptured 1985 and 1986 CAP
funds for the 1987 Commercial Assistance Program. In summary, the resolutions
authorize the distribution of funds as -follows:
•4o 70% of the funds are to be allocated to qualified communities not
currently participating in the 1985 or 1986 CAP programs. A three
part CAP funding formula was approved by the Board. The formula
provides for a minimum threshold amount to support $75,000 worth of
rehabilitation, an amount derived from the community's score from the
field visit, and an amount based on the Community's documented demand
for CAP loans.
• 30% of the funds are to be allocated for projects in the currently
participating CAP communities which had depleted 100% of their CAP
allocation, as of June 30, 1987.
The Oakland County Community Development Division (OCCD) recommends the
reallocation of $132,732 in recaptured funds for the 1987 Commercial Assistance
Program.
Part PI 70% of the funds ($92,912)
Village of Clarkston
Independence Township
Village of Lake Orion
Oakland Township
Royal Oak Township
TOTAL
will be provided to new communities.
$ 17,641.00
= $ 22,700.00
$ 16,182.50
=1. $ 1 8,876.50
$ 17,512.00
$ 92,912.00
•L
Exhibit #A1 — "707. CAP Community Funding Allocations" specifies
these CAP allocations were calculated in accordance with the 3
funding formula authorized by Miscellaneous Resolution #87180,
Part 12 30% of the funds ($39,820) will be made available as a pool of fonds
for rehabilitation projects in seven (7) communities which have
depleted their CAP funds. These communities have been rank ordered
first to last according to how quickly each depleted their CAp
allocation since the date of their CAP Letter of Agreement with OCCD.
The community which used its funds in the least amount of time is
ranked first and so on. See Table 1/1..
OCCD will commit funds to one applicant at a time, starting with the
first ranked community and proceeding sequentially through the
communities' first priority projects until the funds run .out. The
maximum amount ofCAP funds per loan is $18,503,00, enough to support
a $100,000.00 renovation.
OCCD estimates that the available funds ($39,820) may be sufficient to
support rehabilitation projects in only the top three ranked
communities (Rochester, Berkley and Ferndale), Funding for projects
in the remaining communities (Walled Lake, Holly Village, Hazel Park
and Ortonville) may not be available until additional unused CAP funds
are recaptured in the future.
how
step
ATTAC1-NENT
OAKLAND COUNTY, MICHIGAN .
PROPOSED 1987 BUDGET AMENDMENT
COMMUNITY DEVELOPMENT DIVISION
COMMUNITIES
CITIES:
Auburn Hills
Berkley
Clawson
Farmington
Ferndale
Hazel Park
Huntington Woods
Keego Harbor
Lathrup Village
Madison Heights
Northville
Novi
Oak Park
Orchard Lake
Pleasant Ridge
Rochester
Rochester Hills
South Lyon
Sylvan Lake
Troy
Walled Lake
Wixom
TOTAL CITIES:
1987
ADOPTED BUDGET
$ 217,746.00
274 0 981.00
166,413,00
162,201.00
590,592.00
710,427.00
51,272.00
122,789.00
21,721.00
1,599,334.00
18,318.00
190,363.00
622,406.00
12,369.00
47,581.00
187,529.00
• 471,081.00
84,521.00
10,813.00
• 315,742.00
87,599.00
110,950,00
$ 6,0760748.00
1987
AMENDED BUDGET
$ 222,403.41
323,867.46
108,204.26
150,488.94
508,699.43
535,266.79
3,285,00
92,812.92
25,712.38
565,437.73
12,491.82
239,616.39
477,890.85
14,604.96
43,563.17
81,996.70
241,984.20
1,151,00
16,480,23
347,522.56
78,585,14
60,097.65
4,152,162.99
VARIANCE
4,657.41
48,886.46
(58,208.74)
(11,712.06)
(81,892.57)
(175,160.21)
(47,987)
(29,976,08)
3,991,38
(1,033,896.27)
(5,826.18)
49,253.39
(144,515,15)
2,235.96
(4,017.83)
(105,532.30)
(229,096.80)
(83,370.00)
5,667.23
31,780,56
(9,013.86)
(50,852.35)
$(1,924,585.01)
TOWNSHIPS:
Addison
Brandon
Commerce
Groveland
Highland
Holly
Independence
Lyon
Milford
Oakland
Orion
Oxford
Rose
Royal Oak
Springfield
West Bloomfield
White Lake
TOTAL TOWNSHIPS:
58,778.00
58,077.00
239,024.00
• 35,413,00
249,738.00
27,388.00
132,226.00
123/492.00
61,208.00
62 /589.00
224 /737.00
62,491.00
53,416.00
143,387.00
• 120,296.00
158,548.00
• 283,160.00
$ 2,093,968.00
37,853.63
66,888.62
122,822.17
41,251.13
149,649.87
45,012.88
160,342.57
87,977.60
700033.57 ,
91,472,56
161,894.92
57,967.76
63,318.57
171,449.85
139,740.73
199,115.93
274,514.83
1,941,307,19
$ (20,924,37)
8,811.62
(116,201.83)
5,838.13
(100,038.13)
17,624.88
28,116.57
(35,514.40)
8,825.57
28,883.56
(62,842.08)
(4,523.24)
9,902.57
28,062,85
19,444.73
40,567.93
(8,645.17)
(152,660.81)
30% of funds on reserve 39,820 39,820
OAKLAND COUNTY, MICHIGAN
PROPOSED 1987 BUDGET AMENDMENT
COMMUNITY DEVELOPMENT DIVISION
CONTINUED:
VILLAGES:
1987 .
ADOPTED BUDGET
1987
AMENDED BUDGET VARIANCE
Beverly Hills
Clarkston
Holly
Lake Orion
Leonard
Milford
Ortonville
Oxford
Wolverine Lake
TOTAL VILLAGES:
$ 165,612.00
17,903.00
108,906.00
41,975.00
11,814.00
196,980.00
61,417.00
102,039.00
37,835.00
$ 744,481.00
98,589.14
32,520.39
82,893.08
68,55,0.55
8,065.41
104,842.27
29, 665.52
51,61103
33,798.11
$ 510,535,50
(67,022.86)
(14,617.39)
(26,012.92)
(26,575.55)
(3,748.59)
(92,137.97)
(31,751.48)
(50,427.97)
(4,036.89)
$ (233,945.50)
BALANCE RENTAL CARRY- $
IN AND ALLOCATION:
C.V.T. TOTALS:
OAKLAND COUNTY
TOTAL UNITS:
$ 8,915,197.00
$ 3,626,900.00
$12,542,097.00
167,000.00
$ 6,643,825.68
$ 2,495,948.65
$ 9,139,774.33
$ 330,838.00
($2,271,371.32)
($1,130,951.35)
($3,402,322.67)
163,838.00
TOTAL: $12,709,097.00 $ 90470,612.33 ($3,238,484.67)
GAL/kjf
7/29/87
day this 17th
Miscellaneous Resolution #87228 September 17, 1987
Moved by Richard Kuhn supported by Wilcox the resolution (with positive
Fiscal Note attached) be adopted.
Mr. Rewold stated he would abstain from voting on the resolution
because there is a possibility he might bid on this id* it could be
considered a conflict of interest.
AYES: Gosling, Hobart, Jensen, R. Kuhn, S. Kuhn, Lanni, Law, Luxon,
McConnell, McDonald, A. McPherson, R. McPherson, Moffitt, Page, Pernick, Price,
Skarritt, Wilcox, Aaron, Caddell, Calandro, Crake, Doyon. (23)
NAYS: None. (0)
ABSTAIN: Rewold. (1)
A sufficient majority having voted therefor, the resolution (with a
positive Fiscal Note attached) 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 LS SILLie"ss° LU---t-122. adoptedb ----Lt12.-9-aal-q--C--L-D-Y---L-3o lr-ct-9-f--C-9-m2-11-s-i21rJ..--
at their meeting held on September 17, 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, have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan