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HomeMy WebLinkAboutResolutions - 2011.08.31 - 18701August 31, 2011 REPORT (mIsc. #11190) BY: Human Resources Committee, John A. Scott, Chairperson RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS — COMMUNITY & HOME IMPROVEMENT DIVISION — 2011 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER GRANT (ESG) PROGRAMS TO: Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Human Resources Committee having reviewed the above referenced resolution on August 24, 2011 reports with the recommendation the resolution be adopted. Chairperson, on behalf of the Human Resources Committee, I move the acceptance of the foregoing Report. HUMAN RESOURCES COMMITTEE HUMAN RESOURCES COMMITTEE VOTE Motion carried unanimously on a roll call vote with Bosnic, Nuccio and Hatchett absent MISCELLANEOUS RESOLUTION #11190 August 31, 2011 BY: PLANNING AND BUILDING COMMITTEE. DAVID W. POTTS, CHAIRPERSON IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY & HOME IMPROVEMENT DIVISION -2011 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER GRANT (ESG) PROGRAMS To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners authorized submittal of the Oakland County 2011 Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD); and WHEREAS the 2011 Annual Action Plan contains a consolidated Federal grant application for activities designed to accomplish the goals and objectives for the Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program and the Emergency Shelter Grant (ESG) Program; and WHEREAS HUD by letter dated April 19, 2011, and received August 5, 2011, transmitted to the Community & Home Improvement Division a Program Year 2011 consolidated allocation of $5,178,104 including $3,504,276 for CDBG, 51,503,132 for HOME and $170,696 for ESG, for the period of May 1, 2011, through April 30, 2012; and WHEREAS this is the 37th year of grant funding and acceptance for these programs; and WHEREAS total program revenue for the 2011 CDBG Program will be $4,104,276 including $3,504,276 grant allocation and $600,000 in estimated CDBG Revolving Loan Funds; and WHEREAS total program revenue for the 2011 HOME Program will be $2,141,337 including $1,503,132 HOME grant allocation, $338,205 grant match and $300,000 in estimated HOME Program Income; and WHEREAS funding for the HOME program match is appropriated in the Oakland County 2011 Adopted Budget; and WHEREAS total program revenue for the 2011 ESG Program will be the grant allocation of $170,696; and WHEREAS the CDBG and ESG grants are 100 percent federally funded and no County funds are required; and WHEREAS fund schedules and program descriptions for the 2011 CDBG, HOME and ESG programs appear in attachment A; and WHEREAS the consolidated 2011 program year grant is $850,160 less than requested in the application; and WHEREAS the grant currently funds 22 Special Revenue (SR) positions in the Economic Development & Community Affairs/Community & Home Improvement Division (1090611), and one GF/GP position in Planning & Economic Development Division (1090207); and one SR position in the Management & Budget/Fiscal Services Division (1020622); and WHEREAS the grant funds will not cover all of the position costs previously covered by the grant; therefore, it is requested to continue 22 SR positions in the Community & Improvement Division and continue and change funding of the positions listed below as follows: Position Number (1090611-05413) (1090611-01279,) (03231, 03430, 06098) (1090611-02426 & 09522) (1090611-03230 & 01768) (1090611-01370) Classification (1) FTE C&HI Assistant (4) FTE C&H I Coordinator (2) FTE Sr. C&HI Field Technician (2) FTE C&HI Technician (1) FTE Grant Compliance & Program Coordinator Funding Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Crawford absent. (1090611-01371) (1090611-03567 & 10806) Position Number (1090611-00999 & 03182) (1090611-01457 & 09578) (1090611-01708) (1090611-00993) (1090680-03354) (1090680-00730) (1090611-05341) (1) FTE Supv. — C&HI Admin. Services (2) FTE C.AF-I1 Specialist (2) FTE Sui.)ervisor C&HI (2) FTE CH-il Field Technician (1) FTE Chief — C&HI (1) FTE Manager — C&HI (1) FTE Housing Counselor & Homeless Services Supervisor (1) FTE Sr. C&HI Specialist (1) PTNE Student Special Revenue Special Revenue Funding Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Position Number (1090611-10998) (1020622-01702) (1090207-09809) Classification (1) FTE C&HI Specialist (1) FTE Accountant III (1) FTE Environmental Program Coord. From To GF/GP BOO Sunset 9/30/13 SR CDBG 100% SR CDBG 50% SR CDBG 40% GF/GP 100% WHEREAS the CDBG, HOME and ESG grant agreements have been reviewed by County Executive Departments through the County grant review process (MR. #01320); and WHEREAS acceptance of these grants does not obligate Oakland County to any future commitment; and WHEREAS program budget amendments for 2011 CDBG Home Improvement Program Revolving Loan Fund and HOME Program Income actual amounts will be requested by resolution in 2012 after compilation of additional information and fiscal year closing; and WHEREAS the 2010 Annual Action Plan and Consolidated Grant Acceptance for CDBG, HOME and ESG (MR. #07164) estimated Home Improvement Program Revolving Loan Fund revenue of $600,000 and Home Investment Partnership Act program income revenue of $300,000; and WHEREAS actual program year 2010 program income revenues from the Home Improvement Revolving Loan Fund totaled $607,738.15, the CDBG participating communities totaled $26,005.00, and the HOME Program totaled $278,977.00. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts consolidated CDBG. HOME and ESG grant funding from the U.S. Department of Housing and Urban Development in the amount of $5,178,104, 5600,000 in estimated Home Improvement Revolving Loan Funds, $300,000 in estimated HOME Program Income and HOME County match of $338,205 for a consolidated 2011 program year grant package totaling $6,416,309. BE IT FURTHER RESOLVED that the 2010 Annual Action Plan and Consolidated Grant Acceptance be amended to reflect actual revenues generated through the CDBG Home Improvement Revolving Loan Fund totaling $607,738.15, CDBG participating communities totaling $26,005.00 and Home Investment Partnership Act totaling $278,977.00 during the program year period of May 1, 2010, through April 30, 2011. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners approves the Emergency Shelter Grant subject to the clarifications provided by HUD in the letter from Jeannette Harris, Director, Community Planning and Development, Detroit Field Office, U.S. Department of Housing and Urban Development dated March 20, 2007, that Oakland County's obligations under the grant for discharge policies and participation in the HMIS System is to make these requirements for ESG funded entities. The letter from Ms. Harris is attached and incorporated into this Agreement; and BE IT FURTHER RESOLVED that change in funding of one position (1020622-01702) in Fiscal Services to partial SR funding (50%), one position (1090207-09809) in Waste Resource Management from partial SR funding (40%) to full GF/GP funding currently recommended to be effective with the FY12 budget, and one GF/GP position (1090611-10998) funding by the Board of Commissioners with a sunset date of September 30, 2013; and BE IT FURTHER RESOLVED that the future level of service, including personnel, will be contingent upon the level of Federal funding available for these programs; and BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes both the Board of Commissioners Chairperson and the County Executive to execute the grant agreements and to approve amendments and extensions up to fifteen (15) percent variance from the award, consistent with the agreement as originally approved; and Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE G " • T REVIEW SIGN OFF - Community & Home Improvement Division a, GRANT NAME: 2011 - Consolidated Grant Acceptance for Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME) and Emergency Shelter Grant (ESG) FUNDING AGENCY: U.S. Department of Housing and Urban Development DEPARTMENT CONTACT PERSON Harry L. Rieth (248) 858-5403 STATUS: Grant Acceptance DATE: August 17, 2011 Pursuant to Misc. Resolution #01320, please be advised the captioned grant materials have completed internal grant review. Below are the returned comments. The captioned grant materials and grant acceptance package (which should include the Board of Commissioners' Liaison Committee Resolution, the grant agreement/contact, Finance Committee Fiscal Note, and this Sign Off email containing grant review comments) may be requested to be placed on the appropriate Board of Commissioners' committee(s) for grant acceptance by Board resolution. DEPARTMENT REVIEW Department of Management and Budget: Approved with the following clarification from Kan -y Rieth regarding funding of positions: "PY 2011 CDBG, HOME and ES0 funds cover administration/operations for the period of April 30, 2011 —May 1, 2012. All Division positions are listed on the grant review form because CDBG and HOME funds are the core grants supporting and sustaining general operations for all positions (facilities, IT, insurance, etc.) in addition to salaries and fringes for many positions. Salaries/fringes for some positions are still funded using other grant funds including NSF 1, NSP3 and housing counseling funds. We have completed a full budget assessment of salary/fringe/operations costs for PY 2011 (using all grant funds available) and have enough funds to sustain most staffing through April 30, 2012. I am taking immediate action to reduce staffing in PY 2011 in the Ibilowing -ways: I. A position we share (fund .4 FTE) with Planning & Re. Dev. Services (Whitney Cabo) ends Sept. 30, 2011 and is not included on the PY 2011 grant review listing. 2. Two positions listed are vacant and will not be filled (1 Corn & Home Imp. Field Tech and 1 Student). 3. Our Accountant ifi Fiscal Services position (Dale Polley) was heretofore 100% funded by our grants and will be reduced to 50% by September 30. This grant funded position will be shared with Workforce Development to meet their accounting needs. Tim has been working with us on this issue. 4. Effective April 30, 2012 (end of PY 2011), we will eliminate one existing PTNE position and convert 5 full time positions to Pr\TE status. This will align us with P-Y- 2011 funding cuts as well as prepare us for a minimum additional cut of 7.5% in ,PY 2012 (beginning May 1, 2012 which is just around the corner). If we see deeper cuts for PY 2012, we will not be able to retain some or all of the PTNEs and/or cut other positions. Maureen, Matt and Nancy are aware of the strategy and affected staff have been informed. We will know more about PY2012 funding when Congress concludes the federal FY2012 budget. 5. These actions will cut staffing/operations for 4-5 FTEs by the end of April 30, 2011. I hope this addresses your questions. The major conversion/elimination of positions will appear on the grant review list when we apply for FY 2012 funding. — Laurie Van Pelt (8/15/2011) Department of Human Resources: Approve. —Karen 'Jones (8115/2011) Risk Management and Safety: 'Approved by Risk Management. .Andrea Plotkow ski (8/16/2011) Corporation Counsel: There are no outstmding legal issues with the above grant agreement. — loellen Shortley Blaszcaik (8/17/2011) COMPLIANCE The grant agreement references a number of federal and/or state regulations. Please review the grant agreement for specific federal and state compliance regulations related to this grant. COMM & H Fru fipRovFMENT eN U.S. Department of Housing Detroit Field Office Office of Community Planning and Development Patrick V. McNamara Federal Building 477 Michigan Avenue, Room 1710 Detroit. MI 48226-2592 Tel. (313) 226-6280 FAX (313) 226-6689 April 19, 2011 Honorable L. Brooks Patterson County Executive County of Oakland 1200 North Telegraph Road Pontiac, MI 48341-1043 Honorable Bill Bullard Jr. Chairperson Board of Commissioners County of Oakland 1200 North Telegraph Rd. Pontiac, MI 48341-1043 SUBJECT: Oakland County Five Year Consolidated Plan and PY2011 Annual Action Plan Approval Community Development Block Grant (CDBG) Program; B-11-11C-26-0002 HOME Investment Partnership (HOME) Program; M-11-UC-26-0210 Emergency Solutions Grant (ESG) Program; E-11-UC-26-0002 Dear Mr. Patterson and Mr. Bullard: We are pleased to approve your Five Year Consolidated Plan and Program Year 2011 Annual Action Plan for your program year that begins on May 1, 2011. The grant assistance that is being approved with the Plan is as follows: CDBG Program $3,504,276 HOME Program $1,503,132 ESG Program $ 170,696 The total allocation for your community is $5,178,104. Enclosed are three copies of each of the required Grant Agreements and Funding Approvals. These constitute the contracts between our Department and Oakland County. You should note any special conditions listed in the Funding Approvals. Please return two executed copies for each Grant to the Detroit Office of Community Planning and Development, and retain the others for your records. Send them to: Keith E. Hernandez, Director Community Planning and Development HUD — Detroit Field Office 477 Michigan Ave., 17th Floor Detroit, Michigan 48226-2592 In addition to the Grant Agreement, we have also enclosed a copy of "Annual Plan Advice and Guidance" applicable to the various programs. Areas of concern were noted from the Fair Housing and Equal Opportunity Division. First, data on race must be included in the various categories of Housing Needs. Second, the Consolidated Plan on page 124 should have included the funding dedicated to fair housing activities. Lastly, the Analysis of Impediments was to be included with this Consolidated Plan but was not. An updated Analysis of Impediments must be included with the next Annual Action Plan submission. We congratulate you and your staff on the preparation of this year's Consolidated Plan. We look forward to working with you during the year to accomplish the goals the County has set forth and to further refine and improve the Consolidated Plan development process. If you have any questions or desire assistance concerning this letter or other items related to the community development programs, please contact Ms. Portia McGoy, Community Planning and Development Representative, at (313) 226-7900, extension 8045. Sincerely, Lana Vacha Field Office Director Enclosures - cc: Karry Rieth, Community and Home Improvement Manager Oakland County, Michigan PY 2011 Annual Action Plan ATTACHMENT A County of Oakland, Michigan PY 2011 Annual Action Plan Comparison of Grant Application with Grant Award able 1: Comparison of Grant Application ith Grant Award GRANT Community Development Block Grant (CDBG) HOME Investment Partnerships Grant (HOME) Emergency Shelter Grant (ESG) APPLICATION $4,213,243.00 $1,698,916.00 $172,054,00 AWARD $3,504,276.00 $1,503,132.00 $170,696.00 VARIANCE ($708,967.00) ($195,784.00) ($1,358.00) Total $6,084,213.00 $5,178,104.00 ($906,109.00) Page 1 of 14 2011 ANNUAL PLAN ADVICE AND GUIDANCE Reporting Requirements for Fiscal Year 2010 Grants The Consolidated Annual performance and Evaluation Reports (CAPER) which includes CDBG, ESG, HOME and HOP WA, if applicable, for the 2010 Program Year are to be submitted in accordance with the instructions provided in the February 18, 1998 Memorandum from CPD Assistant Secretary Saul Ramirez. These reports are due in this Office no later than 90 days after your Program Year ends. Integrated Disbursement Information System (IDIS) Only if there is a need to create other local administrators, change 1DIS identification numbers or change the names of users, you must complete the IDIS ACCESS Request Form with original signatures, notarized and return to this office with the Grant(s) Agreement(s). All active users can have authorization added or deleted by the Local Administrators under the Utilities Menu (F3) if required, as explained by the IDIS Reference Manual. Also, if there is a need to establish or change the depository account to which grant funds are to be wired, a Direct Deposit Sign-Up Form (SF-1199A) must be completed by both the grantee and the financial institution and mailed to our office-attention: Ms. Margaret Dunton. Environmental Review Procedures Certain activities included in the Consolidated Annual Plan are subject to the provisions of 24 CFR Part 58 (Environmental Review Procedures for the CDBG Program). Funds for all non- exempt activities must not be obligated or expended unless the release of funds has been approved in writing by HUD. A request for the release of funds must be accompanied by an environmental certification. Appropriate forms are enclosed. ESG Expenditure Deadlines There are two critical deadlines set forth in the ESG program regulations. Title 24 of the Code of Federal Regulations (CFR), Section 57635(b), requires that all ESG grant amounts be obligated by 180 days and expended by 24 months after the date of the grant award letter. Any grant amounts that are not obligated and expended by these dates may be recovered ad reallocated for use in accordance with 576.67 of the regulations. These deadlines represent maximum time periods. HUD is sure that each grantee will make every effort to obligate and expend all funds within these periods. 5c. Project/Grant No. 3 6c. Amount Approved Title Director, Office of Community Plannin signat and Developme I Dale (mmicid/yyyy) 4/19/2011 9a. Date HUD Received Submission (mmlcidlyyyy) 03/16/2011 • 9b. Date Grantee Notified (mm/delfyyyy) 04/1912011 90. Date of Start of Program Year (mm/cIdeffly) 05/01/2011 0. :kink one 0 a. Dig. Funding Approval h. Amenernent Amendment Number 8. Special Conditions (check one) 0 None Attached HUD Accounting use Only Batch TAO Program Y A Reg Area Document No. ID OLIO 12c, Name Title Signature Project Number Project Number Project Number Authorized Official for Designated Pubic Agency Amount Category Effective Dale (ITImidd5Y157) I 0 UI Amount Amount Funding Approval/Agreement Title 1 of the Housing and Community Development Act (Public Law 9303E13) H1-00515R of 20515R 1. Name oi Grantee (as shown in item 5 of Standard Form 424) COUNTY OF OAKLAND 2. Grantee's Complete Aredress (as snows in item 5 of Standard Form 424) 12(X) NORTH TELEGRAPH ROAD PONTIAC, MI 48341-1043 U.S. Department of Housing and Urban Development Office of Community Planning and Development Community Development Block Grant Program 3. Grantee's 9-digit Tax ID Number 4. Date use of funds may begin 386004876 (rnm/ddiyyyy) 05/01/2011 5a. ProjeceGrant No. 1 6a Amount Approved B-11-1.5C-26-0002 $3,504,276 5b. ProjetedGrant Na. 2 6b. Ameunt Approved Grant Agreement: This Grant Agreement between the Department of Housing and Urban Development (HUD) and the above named Grantee is made pursuant to the authority of Title 1 of the Housing and Community Development Act of 1974, a.s amended, (42 USC 5301 et seq.). The Grantee's submissions for Title I assistance, the HUD regulations at 24 CFR Part 570 (as now in effect and as may be amended from time to time), and this Funding Approval, including any special conditions, constitute part of the Agreement. Subject to the provisions of this Grant Agreement, HUD v.611 make the funding assistance specified here available to the Grantee upon execution of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay costs incurred after the date specified ill item 4 above provided the activities to which such costs arc related are carried out in compliance with all applicable requirements, Pm-agreement costs may not be paid with funding assistance specified here unless they are authorized in HUD regulations or approved by waiver and listed in the special conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review, decision making, and actions, as specified and required in regulations issued by thc Secretary pursuant to Section 104(g) of Title land published in 24 CFR Part 58. The Grantee fur tiler acknowledges its responsibility for adherence to the Agreement by sub-recipient entities to which it makes funding assistance hereunder available. U.S. Department of Housing and Urban Development (By Name) Grantee Name Keith E. Hernández 7. Ca ny of/Title I Assistance for thidllficling Action (check only one) a. Entitlement, Sec 146(b) le State-Administered. Sec 106(dX1) c, HUD-Administered Sing Citiee, Sec 106(d)(2)(B) d. Indian COBS Programs, Sec 106(aX1) e. Surplus Urban Renewal Funds, Sec 112(b) 0 1. Special Purpose Grants, Sec 107 g. Loan Guarantee, Sec 106 12a. Amount of Loan Guarantee Commitment now being Approved Title a. Funds Reserved tor this Grantee b, Funds now being Approved c. Reservation to be Cancel (11a minus 11b) 1 12b, Name and complete Address of Pubic Agency 11. Amount of Community Development Block Grant FY(2011) 276 504276 Loan Guarantee Acceptance Provisions for Designated Agencies: The public agency hereby accepts the Grant Agreement executed by the Department of Housing and Ultima Development an the above date with respect to the above grant number(s) as Grantee designated to receive 1021T1 guarantee assistance, and agrees to comply with the terms and conditions of the Agreement, applicable regulations, and other requirements of HUD now or hereafter in effect, pertaining to the assistance provided it. for Date Entered PAS (mm/ckl/yyyy) Date Entered LOCOS (rneilddyyyy) Batch Number Transacton Code Entered By 4 CFR 570 Verified By MU 0-70 (4'93) SPECIAL CONTRACT CONDITIONS - FISCAL YEAR 2011 Notwithstanding any other provision of this agreement, no funds provided under this agreement may be obligated or expended for the planning or construction of water or sewer facilities until receipt of written notification from HUD of the release. of fonds on completion of the review procedures required under Executive Order (B.O.) 12372, Intergovernmental Review of Federal Programs, and HUD's implementing regulations at 24 CFR Part 52. The recipient shall also complete the review procedures required under ED. 12372 and 24 CFR Part 52 and receive written notification from HUD of the release of funds before obligating or expending any funds provided under this agreement for any new or revised activity for the planning or construction of water or sewer facilities not previously reviewed under ED. 12372 and implementing regulations. In addition to the cOnditions contained on form HUD 7082, the grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Dun and Bradstreet Data Universal Numbering System (DUNS), the Central Contractor Registration (CCR) database, and the Federal Funding Accountability and Transparency Act, including Appendix A to Part 25 of the Financial Assistance Use of Universal Identifier and Central Contractor Registration, 75 Fed. Reg. 55671 (Sept. 14, 2010)(to be codified at 2 CPR part 25) and Appendix A to Part 170 of the Requirements for Federal Funding Accountability and Transparency Act Implementation, 75 Fed. Reg. 55663 (Sept. 14, 2010)(to be codified at 2 CPR part 170). 12. Se , Alp"- r 15. Signa re 13. Date 04/19/2011 16. Date / / /11/1.11L/Voll INILL L-DUID-LI I f (Exp. 12/31/2012) u.o. LreparLmern or nousing and Urban Development Office of Community Planning and Development 1-unding Approval and HOME investment Partnerships Agreement Title IT of the National Affordable Housing Act Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number. The HOME statute imposes a significant number of data collection and reporting requirements. This includes information on assisted properties, on the owners or tenants of the properties, and on other programmatic areas. The information will be used: 1) to assist HOME participants in managing their programs; 2) to track performance of participants in meeting fund commitment and expenditure deadlines; 3) to permit HUD to determine whether each participant meets the HOME statutory income targeting and affordability requirements; and 4) to permit HUD to determine compliance with other statutory and regulatory program requirements. This data collection is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act or related authorities. Access to Federal grant funds is contingent on the reporting of certain project-speciffc data elements. Records of information collected will be maintained by the recipients of the assistance. Information on activities and expenditures of want funds is public information and is generally available for disclosure. Recipients are responsible for ensuring confidentiality when public disclosure is not required. 1. Participant Name and Address 2. Participant Number OAKLAND COUNTY 1n411-UC260210 3. Tax Identification Number 4. DUNS Number 1200 NORTH TELEGRAPH 38-6004876 136200362 4. Appropriation Number 5. FY PONTIAC, MI 483414043 861/30205 2011 6. Previous Obligation (Enter "0" for initial FY allocation) I $0,00 _ a. Formula Funds b. Community Housing Development Org. (CHDO) Competitive 7. Current Transaction (+ or -) $15O3. , a. Form ula Funds $1.503,132 . CHDO (For deobligations only) 2. Non- CHDO (For deobligations only) $ . -- b. CHDO Competitive Reallocation or DeobligatiOn (see #18 below) . Revised Obligation a. Formula Funds . b. CHDO Competitive Reallocation $ I 9. Special Conditions (check applicable box) 10. Date of Obligation (Congressional Release Date) [2] Not applicable • Attached July 15 ,2011 2 11. For the U.S. Department of HUD (Name and Title of Authorized Official) Keith E. Hernández, Community Planning & Development Director 14. For the Participating Jurisdiction/Entity (Name and Title of Authorized Official) 17. Check one: Initial Agreement LI Amendment # 18. Funding Information: HOME Source of Funds Appropriation Code PAS Code Amount 2011 HOME 861/30205 HMC 1,503,132 Page 1 of 1 form HUD-40093 $170,696 170,696 I lb. Title Community & Home Improvement M lie. Phone Number 248-858-54(r 3. U.S. Department of I-lousing and Urban Developmen Detroit Field Office 11c. Signature 11f, FaX Number 248-858-5311 13, Grantee Name Oakland County 12a. Name of Authorized Official Keith E. Hernandez 12h. Title Community Planning and Development Director 12c. Svaiteilire 12d. Daffe I 13d. Date (mrciddiyyyy) 04/19/2011 11d. Data (mmidcUyyyy) I 11g. E-mail Address Liethk@oak_gov.com t3a. Name of Authorized Official L. Brooks Patterson Bill Bullard, Jr. 13b.iPtle County Executive 13c. Signature Chair, Board of Comm issio Grant Agreement Subtitle B of Title IV of the McKinney-Vento Homeless Assistance Act, 42 USC 11371 et seq. U.S. Department of Housing and Urban Development Office of Community Planning and Development Emergency Shelter Grants/ Emergency Solutions Grants Program Grant Number: E-11-UC-26-0002 1. Name of Grantee (as shown in item OAKLAND COUNTY 3. Grantee's DUNS Number; 136200362 4. Grantee's 1200 N. TELEGRAPH ROAD, PONT1AC,MI 48341-1043 Standard Form 424) mplete Address (as shown In item 5 of Standard Form 424) 2. Grantee's 9-digit Tax ID Number 138-6004876 ;rant Agreement: This Grant Agreement between the Department of Housing and Urban Development (HUE)) and the above named Grantee is made pursuant to the authority of Subtitle B of Title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.). The Grantee's ubmissions under 24 CFR Part 91 that pertain to this Grant, the HUD regulations at 24 CFR Part 576 (as now in effect and as may be amended from ime to time), and any special conditions attached to this Grant Agreement constitute pail of this Grant Agreement. Subject to the provisions of this rant Agreement, HUD will make the Grant available to the Grantee upon execution of the Grant Agreement by the Grantee and HUD. The Grant , ay be used to pay costs incurred after the date specified in item 8 below, provided the activities to which the costs are related are carried out in ompliance with all applicable requirements_ The Grantee agrees to assume all of the responsibilities for environmental review, decision making, and e= tions, as required under the 1-EUD regulations at 24 CFR Part 576. The grantee agrees to follow the HUD standards for participation, data, and reporting . nder a local Homeless Management Information System. The Grantee shall also comply with the Office of Management and Budget requirements for niversal Identifier and Central Contractor Registration and Reporting Subaward and Executive Compensation Information at 2 CFR Part 25, • ppendix A to Part 25—Award Term, and 2 CFR Part 170, Appendix A to Pant I70—Award Term. 5. Special Conditions (check one): DI None El Attached 5a. Date HUD Received Grantee's Annual Submission under 24 CFR Part 91 03/16/2011 6b. Dale Grantee Notified: 04/19/2011 7. Date of Start of Grantee's Program Year 05/01/2011 8. Date Use of Fund 05/01/2011 ay Begin (the later of the date in 6a and the date in 7) 9. Funding Approval (check one): 2 Original 0 Amendment 10. Amount of Emergency Sheller Grant/Emergency Solutions Grant: 10a. Funds Reserved for this Grantee 10b, Funds Now Being Approved 10c. Reservation to be Cancelled (10a minus 10b) 11. Name and Complete Address of Department Designated to Administer the ECON. DEV. & COMMUNITY AFFAIRS DEPARTMENT, COMMUNITY & HOME IMPROVEMENT DIVISION 250 ELIZABETH LAY" ROAD, SUITE 1900, PONTIAC, MI 48341-0414 11a. Name of Authorized Official KARRY L. RIETH COM, & ROV E NT MAR 2 7 zoo 7 ette Harris, DirOtor CoMMunity Planning and Development vs,11AEN r fp - -A !Lii , tillilif U.S. Department of Housing and Urban Development Delroit Field Office Office of Community Planning and Dc>veloprnerit Pallid< V. McNamara Federal Building 477 Michican Avenue, Room 1710 Detroit, MI 48226-2592 TeL (313) 226-7900 FAX (313) 226-6599 March 20, 2007 Ms. Karr v Reth Oakland County Department of Community and Economic Development Oakland Pointe Suite 1900 250 Elizabeth Lake Road Pontiac, MI 48361-0414 Dear Ms. Rieth: SUBJECT: ESG and HMIS Certifications Thank you for the memd dated March 16, 2007, regarding Oakland County's response to the ESG and HMIS Certifications required by HUD. I have read through each action Oakland County will take as they pertain to the compliance issues listed in the ESG Certifications. Each action outlined by Oakland County is approved. I will place a copy of the-memo along with this response in the Oakland County file. I understand your concern about signing a certification in regard to institutional discharge policies. However, the ESG and HMIS Certifications as well as. the Discharge Policy form are not subject to change. Each form mustbe Signed to insure release of funds. HUD's reasoning for including the discharge policy in the certifications was-to -bring awareness, to all parties involved in homeless provision, of the need for solid discharge policies. While HUD understands that Oakland County itself cannot enforce 6ischarge policies of other institutions, . Oakland County can require that these policies be developed and/or followed as part of contractual obligation. The idea is to get the word out thathaving these policies in place is not only good praCtice but should be a requirement for operation.. Regarding the HMIS issue, Oakland Countys- assertion that. it will ensure each ESG funded Sub-recipient institutes an HMIS system is completely acceptable. Oakland County is under no obligation to do anything more than that. Please contact your Community Planning and Development Representative, Ms. Shannon Hefter, if you need any further clarification. She can be reached at (313) 226-7900, extension 8148. Oakland County, Michigan PY 2011 Annual Action Plan ATTACHMENT B County of Oakland, Michigan PY 2011 Annual Action Plan Community Development Block Grant (CDBG) 91 .220(L) (1) CFDA# 14-218 PY 2011 Program Narrative Statement of Need - Sixty two percent of the participating communities fell below the County's 2000 overall per capita income level of $32,534. Nearly half the participating communities have median family income (MFI) levels below the County's overall level of $75,540 based on 1999 income data. On February 1, the U.S. Department of Commerce, Bureau of Labor Statistics (BLS) released updated Local Area Unemployment Statistics for December 2010 and Oakland County's jobless rate fell from 10.6% to 9.6%. The County's unemployment rate is now at its lowest point since December 2008 and is 1% lower than the rate for the State of Michigan. The 12-month unemployment rate was 12.6% compared to 13.1% for the State of Michigan. Along with the loss of 560,000 manufacturing jobs over the past seven years and home foreclosures reaching 9,727 in 2010, Oakland County faces great challenges. Housing values are also expected to stay depressed for the foreseeable future and Oakland County faces a looming shortage of skilled workers as the proportion of residents age 65 or older grows. Economists have predicted that the proportion of residents over the age of 65 in Oakland County, currently at one in eight people, will rise to one of every four by 2035. That trend, which is not unique to either Oakland County or the state at large, is expected to create huge shortages in meeting the demand for more services associated with aging demographics. Assessment of Relationship of CDBG Funds to Goals and Objectives - The Community Development Block Grant (CDBG) program was initiated by the Housing and Community Development Act (HCDA) of 1974. The primary objective of the CDBG program is the development of viable urban communities, by providing decent housing, suitable living environments, and expanded economic opportunities, principally for low income persons. Through the CDBG program, HUD provides funds to local governments for a wide range of community development activities for low income persons. CDBG funds are likely the most flexible federal funds available to local governments. Activities include: • Housing rehabilitation • Down payment and other homeownership assistance • Construction and rehabilitation of public facilities • Removal of architectural barriers • Public services such as transportation, chore services, and meals on wheels Consistent with the primary goal Oakland County gives maximum feasible priority to housing, public service, and capital improvement projects that are consistent with one or more of the national and county objectives: Page 2 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Table 1: Co unity Development Block Grant Objectives NATIONAL OBJECTIVES Ensur... benefit to lo ,.v inc -,me persons; Aid in the prevention or elimination of slums or blighting community conditions; and Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. COUNTY OBJECTIVES Ensure that not less than 70% of CDBG funds received annually are used for activities that principally benefit low income persons. Improve the human environment through infrastructure and public facilities projects in eligible areas of participating communities. Provide public services for eligible residents. Improve, upgrade, maintain or increase property values through the concentration of rehabilitation efforts within neighborhoods. Reduce the number of substandard dwelling units within the county thrdugh the rehabilitation of existing residential units. Improve living conditions within housing units and reduce the financial burden of low income persons. Reduce housing maintenance and fuel costs and enable low income persons to remain in their units. Instill within homeowners the incentive to maintain and improve conditions within the housing unit. Assist homeowners in using available funding sources to accomplish housing rehabilitation activities. Reduce the isolation of income groups and increase housing opportunities for low income persons. Minimize displacement and relocation through a detailed plan in accordance with Uniform Relocation and Real Property Acquisition Policies Act requirements. Ensure that the county maintains no more than 1.5 times its current year's allocation worth of CDBG funds unexpended in accordance with HUD spending performance guidelines. Encourage communities to realistically plan for, and invest in, future development. Assist communities in developing the capacity to implement activities. Provide technical assistance to participating communities to enable them to more effectively carry out CDBG projects and ensure compliance with federal regulations. The County's philosophy is that local communities know local needs best; therefore, by formula participating communities receive two-thirds of all CDBG funds, less administration. The communities determine how to allocate resources within the program's overall objectives, regulations, and laws. The Oakland County Board of Commissioners approved a revised CDBG distribution formula in 2003. The formula still follows the federal "option one" method of CDBG distribution to grantees as found in the Housing and Community Development Act of 1974, as amended [42 USC 5306(b)(2)]. The county formula is expressed as: (P-F3L)/4 P= ratio of participating community's population to population in all participating communities L= ratio of the community's low income population to all communities The low income ratio is factored three times and then multiplied by the total amount of CDBG funds available to communities in a given year. All communities falling below $8,000.00 receive $8,000.00 as a minimum amount. The formula applies to the "non- minimum allocation" communities. The result is the community allocations for that given program year. Page 3 of 14 Home Improvement Revolving Loan Fund Admin. (est.) Home Improvement Revolving Loan Fund Housing Counseling (est.) Benefit to Low Income Persons 72.6% 72.6% Prevention/Elimination of Slums/Bligh 7.4% 7.4% 0% 20% 100.00% 0% 20% 100.00% Meeting an Urgent Community Need Planning & Administration Total Oakland County, Michigan PY 2011 Annual Action Plan Table 2: Summary of Specific CDBG Outcomes P"ii` 2011 RY 2011 PROjEtT OBJECTIVE OUTCOME .P,I"l...iCATION AWARD 1 Homing Rehabilitation Decent Housing $1,680,761 3927,328 Improve Affordability ' Minor Home Repair* Decent Housing $597,135 $509,745 Improve Affordability Rehab Pub Owned Residential Decent Housing $4,600 34,600 Improve Affordability Rehabilitation Administration Decent Housing $571,151 $933,828 Improve Affordability Remove Architectural Barriers Suitable Living Environment $138,041 $113,787 Improve Sustainability Senior Centers Suitable Living Environment $172,394 $144,795 Improve Sustainability Parks-Recreational Facilities Suitable Living Environment $95,883 $93,889 Improve Sustainability Parking Facilities Suitable Living Environment $31,005 $25,581 Improve Sustainability Water Sewer Improvements Suitable Living Environment $5,993 $5,600 Improve Sustainability Sidewalks Suitable Living Environment $49,384 $41,322 improve Sustainability Street Improvements Suitable Living Environment $45,021 $10,969 Improve Sustainability Fire Station Equipment Suitable Living Environment $25,114 $23,011 Improve Sustainability Public Services Suitable Living Environment $520,835 $525,641 Improved Availability/Accessibility Housing Counseling Suitable Living Environment $111,151 $187,341 Improved ' Availability/Accessibility Code Enforcement Suitable Living Environment $348,589 $318,834 Improve Sustainability Admin & Planning N/A $1,012,541 $700,849 N/A *Minor Home Repair (MHR) includes: MHR, Mobile Home MHR and Emergency MHR LMI — Low income, HH — Households Table 3: PY 2011 CDBG Revenues - Application versus Award • REVENUE APPLICATION AWARD Federal CDBG Allocation $4,213,243.00 $3,504,276.00 County Revolving Loan Fund (estimated) $500,000.00 $600,000.00 Total Revenues $4,713,243.00 $4,104,276.00 Table 4: PY 2011 CDBG Allocations - Application versus Award ALLOCATION evolving Loan Fund (estiniated Home Improvement Home Improvement Program Direct Project Costs CDBG Administration Housing Counseling Community Allocations Total Allocations AMOUNT $400,000.00 $100,000.00 $0 $1,047,798.00 $807,230,00 $111,151.00 32,247,064.00 $4,713,243.00 AWARD $390,000.00 $120,000.00 $90,000.00 $927,328.00 $610,660.00 $97,341.00 $1,868,947.00 $4,104,276.00 Table 5: PY 2011 CDBG Benefit Distribution - Application versus Award c,ASSIFICATION APPLICATION PERCENTAGE AWARD PERCENTAGE Public Service Activities (*15% - Independent Calc) (*15% - Independent CaIc) Public Service activities cannot exceed 15% of the total and are calculated independently. Public service activity funds are included in the benefit to low income amounts. Page 4 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Table 6: PY 2011 Regulatory Program Caps - Application versus Award _ _ _ _ PROGRAM APPLICATION AMOUNT Public Services (PS) (15% Cap) Communities I $520,835.00 AWARD $428300.00 $111151.00 $97,341.00 Total Public Service Planning & Administration (20% Cap) Planning Communities $631,986.00 $59,214.00 $525,641.00 $52,346.00 Administration Communities $76,205.00 $37.843.00 Administration County $807,230,00 $610.660.00 Total Planning & Administration $942,649.00 I $700,849.00 Page 5 of 14 Oakland County, Michigan PY 2011 Annual Action Plan ATTACHEMENT C County of Oakland, Michigan PY 2011 Annual Action Plan HOME Investment Partnership Program (HOME) 91.220(L) (1) CFDA# 14-239 PY 2011 Program Narrative Statement of Need - According to the Oakland County Comprehensive Housing Needs Assessment almost 103,000 households (22% of all households) face affordability problems. Nine percent (almost 40,600 households) face severe affordability problems. Oakland County's elderly households face affordability problems much more frequently than younger households. Twenty-nine percent of all elderly households face cost burden (2nd highest rate in the state). Fourteen percent face severe cost burden (highest rate in the state). Affordability problems impact all income groups in the county. In addition, Oakland County's special needs populations that frequently have very low incomes face severe affordability problems. Affordability problems are especially prevalent among households at or below low income, but a considerable number of middle-income families also face affordability problems. The amount of older housing stock continues to increase, and the need for home improvement loans is expected to rise. In addition, many septic fields in the County are beginning to fail and many wells are failing due to lower water tables. Subsequently, houses in many older communities are in need of connections to municipal water and sewer systems. Assessment of Relationship of HOME Funds to Goals and Objectives - The HOME program developed as a result of the National Affordable Housing Act of 1990. HOME provides federal funds for the development and rehabilitation of affordable rental and ownership housing for low income households (defined as below 80% of area median income). The program gives local governments the flexibility to fund a wide range of affordable housing activities through housing partnerships with private industry and non-profit organizations. HOME funds can be used for activities that promote affordable rental housing and homeownership, including: • Property and/or building acquisition • New construction and reconstruction • Moderate or substantial rehabilitation • Homebuyer assistance • Tenant-based assistance Strict requirements govern the use of HOME funds including the use funds for activities that target low income families and a 25% non-federal match. In Oakland County, HOME funds are used in combination with CDBG funds to address priority affordable housing needs. Table 1: HOME Investment Partnership Grant NATIONAL OBJECTIVES Expand supply of decent, safe, sanitary, and affordable housing for very low and low income residents; Strengthen ability of the county to design and implement strategies for achieving adequate supplies of decent, affordable houjng; and Encourage public, private, and nonprofit partnerships in addressing affordable housing_needs. COUNTY OBJECTIVES Fund housing rehabilitation for low income households, Work to nurture community housing development organizations (CHD0s) to provide decent, safe, sanitary, and affordable housing for low income persons. Strengthen public-private partnership through provision of HOME match. Page 6 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Estimated Use of HOME Funds and Matching Contributions - The Consolidated Plan indicates that Oakland County's housing stock is overwhelmingly single-family owner-occupied. The goal of the HOME Program is to "expand the supply of decent, safe, sanitary, and affordable housing" for low income persons (s.92.1). Oakland County meets the goal through the rehabilitation of single-family homes owned and occupied by low income persons. The county's Consolidated Plan puts great emphasis on housing rehabilitation as a proven rriPthori for improving the quality of housing stock in which low income persons reside. HOME Tenant-Based Rental Assistance - Tenant based rental assistance is a need in Oakland County. However, single family housing rehabilitation is the priority need in fulfilling the County's HOME Program goal of "expanding the supply of decent, safe, sanitary, and affordable housing and preserving Oakland County's aging housing stock" for low income persons. Due to limited HOME funding and the County's need to maximize returns on investments in providing additional affordable housing, tenant based rental assistance is not funded as a primary housing need for the County. Other Forms of Investment - Oakland County will not invest HOME funds in a loan guarantee account as an eligible activity as indicated in 24 CFR 92.205(b) Reservation of HOME Funds for County Operated Programs - According to the Oakland County Comprehensive Housing Needs Assessment, Oakland County's housing stock is dominated by single family structures (78% of all in 2000), most of them traditional detached units. Moderate Rehabilitation - Oakland County plans to undertake moderate rehabilitation of single- family owner-occupied housing for low income families. Specifically, the program is used to rehabilitate the principal residence of an owner whose family qualifies as low income (i.e. income not exceeding 80% of area median income) at the time HOME funds are committed to the housing (s.92.254 (b)). Participants will reside in one of the communities participating in the Oakland County HOME Program. The value of the property, after rehabilitation, will not exceed the area's mortgage limit for single-family housing under HUD's single-family insuring authority, the National Affordable Housing Act (s.92.254 (b)). For Oakland County, the value of housing, after HOME-funded repairs, may not exceed $226,100 (56FR36985). These figures may vary as HUD publishes new limits in the Federal Register. Housing that is assisted with HOME funds will comply with the Michigan Residential Code, the Residential Construction Performance Guidelines published by the National Association of Home Builders, the Oakland County Community & Home improvement Guidelines and any and all codes adopted by the governmental unit in which the property is located. Examples of rehabilitation work that can be financed through this program may include, but are not limited to the following: plumbing, wells, septic systems, structural repairs, electrical work, heating, roof replacement, masonry work, energy items, lead remediation, and barrier-free access. The total property-related indebtedness after improvement may not exceed the property's value. This value is determined by doubling the current State Equalized Value (SEV), or by the Mortgage Application Acceleration Program (MAAP) through the Oakland County Equalization Division. Total indebtedness is determined as a sum of the existing property debt and the amount of the home improvement loan. Income eligibility is determined for each household based on gross household income and family size in accordance with HUD's Technical Guide for Determining Income and Allowances for the HOME Program. Page 7 of 14 Oakland County, Michigan PY 2011 Annual Action Plan On February 17, 2010 the Community & Home Improvement Division presented a recommendation to the Citizens Advisory Council that eligible homeowners receive 0% interest deferred loans: This change is based upon the current housing and employment market. The need for housing rehabilitation is still present but homeowners are less able to make necessary repairs from their own resources and a 0% loan with no monthly payment provides a more attractive option. Loans are limited to $18,000 plus a $2,000 contingency for a total possible loan amount of $20,000. On a case by case basis, the loan amount may increase due to the amount of lead based paint remediation or the amount of work needed to meet MI Residential Code. Maximum loan amounts are subject to periodic updates. County Program Administration - Ten percent of the County's PY 2011 HOME allocation will be reserved for administrative and planning costs per s.92.207. Reservation of HOME Funds for Community Housing Development Organizations - Community Housing Development Organizations (CHD0s) receive a required 15% of HOME funds, per regulations at s92.300. Qualified CHDOs may receive funds to implement Home Buyer Assistance through acquisition with rehabilitation and/or new construction. Before disbursement of HOME funds, the CHDO/PJ must execute a contract. This grant agreement identifies the grant amount, grant terms and the programmatic responsibilities of the CHDO. The decline in the Michigan economy and the downturn of the housing market has greatly impacted the first time homebuyer programs and the CHDOs. They have built new energy efficient homes, remodeled 1950 bungalows and lowered sales prices and, the houses remain empty. In order to expend the funds, staff is exploring new activities eligible for CHDOs. Venture, Inc - HOME Program Homeownership Assistance: In 2006, Venture received a $415,000 HOME/CHDO contract for five units in Royal Oak Township. During PY 2008, the housing market precluded Venture from development. However, it marketed properties acquired from the Township. Due to the failed housing market, Venture requested a contract revision to reduce the number of housing units from 5 to 3 and to offer the lease purchase option. The Township received an NSP 1 allocation from the County and is performing demolition. The clearance of blighted properties will create a more desirable housing market in the Township. In response to NSP 1 efforts, Venture began construction in late Fall 2010 on three energy efficient homes to be completed by late Summer 2011. Springhill Housing Corporation - HOME Program Homeownership Assistance: Under a 2006 HOME/CHDO contract, Springhill received $415,000 for seven units to be purchased, rehabbed and sold throughout Oakland County. Springhill targeted their program to low income individuals with at least one person with a disability as part of the household. Establishing the readiness of its client pool has been essential to the success of their program. Springhill completed and sold three units under this contract. Due to the decline in housing values, Springhill requested a contract revision to reduce the number of units from 7 to 4 and to offer a lease purchase option. Springhill purchased, rehabbed and sold (under a lease-purchase) the last home for the 2006 contract in September 2010. In late 2010 Springhill proposed a program for 3-4 additional homes to be sold under the lease-purchase option. This contract is pending. Page 8 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Home Buyer Assistance - Oakland County will continue to provide technical assistance to two certified CHDOs under contract with Oakland County to ensure continued successes with HOME funding. A CHDO may use HOME funds to acquire and rehabilitate existing single family homes and/or acquire vacant property and construct new or emplace modular homes for sale to qualified low income homebuyers. Typically, CHDOs would sell the property to a qualified homebuyer by immediately transferring the title. However, due to the current economic situation in Michigan including job losses, high foreclosure rates, and increased inventory of housing the County has implemented a lease purchase option. This option will enable CHDOs to transfer title to qualified low income homebuyers within 36 months of signing a lease-purchase agreement. All forms of home buyer assistance include pre and post purchase housing counseling requirements. HUD has established a maximum HOME funded investment level based on the number of bedrooms per unit. Table 2: Maximum Per-Unit Subsidy (as of 11/1/2010 — r O-B$1760609 M 1 -BEDROOM 2-BEDROO. `-BEDROOM 4-BEDROOM $162,400 $197.478 S255,471 $280,430 Source: HUD The appraised value of the property after rehabilitation may not exceed limits established by HUD ($226,100 for a single-family unit). The home sales price may not exceed the appraised value limit. At the time of purchase, housing that is newly constructed or rehabilitated using HOME funds must comply with the MI Residential Code, the Residential Construction Performance Guidelines published by the National Association of Home Builders, the Oakland County Community & Home Improvement guidelines and any and all codes adopted by the governmental unit in which the property is located. Congress mandates that all housing rehabilitation and/or new construction projects funded with PY 2011 HOME funds are subject to matching fund requirements. Oakland County ensures that rehabilitation projects receive $1 of match per every $4 of HOME funds expended, in accordance with federal guideline (s.92.218). Rental Housing - As a substantial amendment to the 2005-2010 Consolidated Plan the County identified a need for rental rehabilitation of multi-unit properties with less than 11 units. The foreclosure crisis and double digit unemployment have increased the need for affordable rental options. Providing CHDOs with the opportunity to acquire and rehabilitate affordable rental housing offers a flexible development strategy. The rental assistance component of the CHDO set aside has not yet been fully developed. HOME program requirements for rental housing will be incorporated into the final program design which is to be included in the PY 2011 CHDO application process. Resale/Recapture Provisions - [24CFR 92.254(a)(5)] states that housing that qualifies as affordable and is for purchase is subject to resale and/or recapture provisions. Oakland County uses a recapture provision. Under the county's recapture provision, the HOME investment that is subject to recapture is the HOME assistance that enables the homebuyer to buy the dwelling unit. This homebuyer assistance is a subsidy ($1,000.00 minimum) that makes the home affordable to a low income homebuyer. HUD accepts three different options under the recapture requirements including full recapture, reduction during affordability, and shared net proceeds. Oakland County follows the recapture provision that allows for the entire amount of homebuyer assistance to be recaptured. Oakland County's home buyer assistance is a deferred payment loan with 0% interest. Oakland County Community & Home Improvement secures its interest in the property with a mortgage and note. One hundred percent of the HOME investment is recaptured upon conversion of property use and/or ownership unless, due to foreclosure, there are not enough proceeds to pay the full amount of the loan. Page 9 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Oakland County will accept the balance of the net proceeds as payment in full, the debt will be extinguished and the affordability period ends. The recaptured funds must be used to carry out HOME-eligible activities. Monitoring - The county and CHDO will follow a monitoring plan for the HOME program. The plan includes technical assistance to a CHDO, program monitoring, required single audits, spending performance reviews, on-site property inspections, project reviews for compliance with program requirements and necessary documentation. As necessary, a CHDO will receive letters of deficiencies to ensure corrective actions. Refinancing - Oakland County does not intend to refinance existing debt secured by multifamily housing rehabilitated with HOME funds. Affirmative Marketing - The Community & Home Improvement Division (OCCHI) will implement an affirmative marketing plan in accordance with 24 CFR 92.351(a) to assure that eligible persons from all racial, ethnic and gender groups in the designated housing market are aware of and invited to apply for any available housing assistance which it directly administers. The following affirmative market requirements apply only to structures containing five (5) or more units assisted with HOME funds. In addition the Division will provide CHDOs with guidance in affirmative marketing of HOME assisted units. The OCCHI affirmative marketing strategy focuses on the following efforts: • Community Housing Development Organization (CHD0s) will develop advertising campaigns to provide Federal fair housing law and equal housing opportunity information within the market area. • All promotional materials will include the Equal Housing Opportunity logotype or slogan. • Each CHDO under contract with Oakland County must certify that they will affirmatively market projects of five or more housing units in accordance with the County's Affirmative Marketing Plan. • In addition, each CHDO must provide written procedures indicating their plan to inform and solicit applications from persons in the housing market area who are least likely to apply for the housing without special outreach. • The County will maintain records to document each CHDOs affirmative marketing efforts for HOME projects and assess the results of each. • Annually, the Division will meet with each certified CHDO to assess the success of their affirmative marketing actions and discuss corrective actions that will be taken where affirmative marketing requirements were not met. Women and Minority Business Enterprise (W/MBE) Outreach - The Community & Home Improvement Division strategy to achieve W/MI3E participation focuses on the following efforts: • Maintains a list of licensed and insured contractors/residential builders for the County's Home Improvement Program, Contractors on the bid list may submit bids on home improvement jobs on an alternating basis. The county makes every effort to ensure that at least one VV/MBE receives an invitation to bid on every home improvement job. • Participates with the Purchasing Division to expand W/MBE opportunities. • Distributes contractor brochures at area home improvement stores to promote the Home Improvement Program to potential W/MBE contractors. • Advertises contractor participation through its website, Annual Report, newsletters, brochures and other media. • Participating CHDOs are also required to maximize W/MBE opportunities in the development of affordable housing. Page 10 of 14 HOME FUNDS Housing Rehab Home Improvement Program $1,274,187.00 25% MATCH* $318,547.00 HOME PI (EST) $300,000.00 ALLOCATiON APPUCATiON TOTAL $1,892,734.00 Community Housing Development Org (CHDO) Activities (15% of Allocation) $50,731.00 $276,201.00 $225,470.00 ALLOCATION — AWARD Housing Rehab Home Improvement Program HOME FUNDS 1,127,349.00 25% MATCH* I HOME PI (EST) $287,474.00 $300,000.00 TOTAL $1,714,823.00 Oakland County, Michigan PY 2011 Annual Action Plan Section 3 - Section 3 of the Housing and Urban Development Act of 1968, {12 U.S.C. 1701u) (Section 3) and implementing regulations at 24 CFR 135 states that the purpose of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very low income persons. OCCHI is updating policies and procedures to "ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible be directed to low and very low income persons and to business concerns which provide economic opportunities to low and very low income persons". Section 215 Guidelines - HUD requires that the County comment upon its adherence to Section 215 guidelines of the HOME program. The guidelines provide that rental housing shall qualify as affordable housing only if households qualifying as low income occupy the units. Oakland County has not addressed Section 215 requirements for rental units inasmuch as the County does not fund rental projects. Oakland County meets Section 215 requirements for homeownership projects as: • 100% of HOME assisted units are for 80% or less of area median income (AM I) • Initial purchase price of the unit does not exceed 95% of the median purchase price for area • The units serve as the principal residence of the owner • All newly constructed housing meets energy efficiency standards • Recapture provisions allow Oakland County to provide subsidies to make homes affordable to low income homebuyers. The assistance is a deferred loan, secured by a mortgage and note, (0% interest) payable upon property conversion and/or ownership Table 3: PY 2011 HOME Revenues - Application versus Award REVENUE APPUCATION AWARD HOME Allocation $1,698.916,00 ,503,132.00 HOME Program Income (estimated) $300,000.00 $300,000.00 Match Obligation $382.256.00 $338,205.00 Total $2,381,172.00 $2,141,337.00 Table 4: PY 2011 HOME Allocations - Application $300,000.00 Community Housing Development Org (CHDO) Activities (15% of Allocation) County Administration (10% of Allocation) Total $254,8 37.00 $169.892.00 $1,698,916.00 $63,709.00 $382,256.00 $318,546.00 $169.892.00 $2,381,172.00 'HOME requires a 25% match of funds for housing rehabilitation and new construction activities. Table 5: PY 2011 HOME Allocations - Award - County Administration (10% of Allocation) Total $150,313 00 $1,503,132.00 $338,205.00 $300,000,00 $150,313 00 $2,141,337.00 *HOME requires a 25% match of funds for housing rehabilitation and new construction activities. Page 11 of 14 Oakland County, Michigan PY 2011 Annual Action Plan ATTACHEMENT D Emergency Shelter Grant (ESG) 2011 CFDA# 14-231 PY 2011 Program Narrative Statement of Need - Assessment of the six shelters that participated in the 2010 Oakland County Emergency Shelter Grant (ESG) program reveals 1,527 men, women, and children used these facilities from June 2009- May 2010. Homelessness continues to be a countywide problem. Table 1: Emeraencv Shelter Grant Objectives 'National Objectives increase the number and quality of emergency shelters and transitional housing facilities for homeless individuals and families, to operate these facilities and provide essential social services, and to help prevent homelessness. County Objectives Provide essential supportive services, homeless prevention activities and operational support for area shelters. Emergency Shelter Grant - The ESG program provides essential supportive services, homeless prevention activities and operational support for area shelters. Oakland County plans to allocate ESG monies based on program goals to expand and improve the quality of existing emergency shelters. Local non-profit organizations will receive funding to support certain operating expenses such as maintenance, insurance, utilities, and furnishings as well as essential service expenses and organizational support (shelter administration) costs as provided by ESG regulations. Allocations are competitive and based on the following elements: ratio of beds utilized at 100% capacity (utilization), ratio of clients whose last known address was an Oakland County participating community weighted twice (residency), and number of available beds (capacity). Inventory of Facilities and Assistance Serving the Homeless - The six shelters that received 2010 ESG program funds are South Oakland Shelter (SOS), Place of Hope Warming Center, HAVEN (Help Against Violent Encounters Now), New Bethel Outreach Ministry, Lighthouse PATH, and the Common Ground Sanctuary (A Step Forward and Graduate Apartment Program). Each participating shelter provides services for residents from all parts of Oakland County. Place of Hope, HAVEN, and New Bethel Outreach Ministry, are all located in the City of Pontiac. Lighthouse PATH is located in Pontiac and provides added services in the City of Oak Park. The Common Ground Sanctuary is located in the City of Royal Oak. All of the shelters except the SOS are permanently sited. South Oakland Shelter is a consortium of approximately 55 sites designed to provide a weekly rotating emergency shelter program. The SOS network consists of churches and synagogues with capacity to house and provide services to approximately 30 homeless individuals each night. Last year 230 persons were assisted. The mission of SOS is to provide safe emergency shelter, work with individuals and families toward goal of improving existing situations (i.e. attaining employment/income, budgeting and saving, and locating affordable and appropriate housing) and ultimately eliminating the cycle of homelessness one person at a time. SOS provides overnight lodging; morning and evening meals; box lunches for those seeking employment; professional counseling; personal care packages; laundry service; transportation; and clothing, housing, employment, social service, social security, medical, veteran's counseling, and substance abuse referrals. Based on client need, SOS has increased the length of stay, extended business hours, and made improvements in operations. South Oakland Shelter was at capacity 56 days last year. Page 12 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Lighthouse PATH (Pontiac Area Transitional Housing), a subsidiary of Lighthouse of Oakland County (a Pontiac-based nonprofit agency), is a transitional housing program for homeless women and their young children. PATH operates 18 private apartments and six adjacent residential structures within a two-block radius. In addition, 12 scattered site apartments are available (7 in Oak Park/5 in Waterford). The program is in the process of adding 15 beds for homeless women with high-risk pregnancies and pregnant teens. Guests can stay up to 24 months. While the program currently has 132 beds, Oakland County's ESG program funds a portion of the Pontiac campus, which consists of 103 beds. 90 individuals were assisted, 52 were children, last year. PATH provides its clients shelter, counseling, training, mentoring, and day care. Each adult is required to work, attend school, or volunteer 40 hours per week. The Lighthouse PATH program was at not at capacity last year. HAVEN is a private, nonprofit agency that serves Oakland County residents as an emergency shelter for women and children left homeless due to physical, sexual, and/or emotional abuse. The shelter has a capacity of 45 beds. HAVEN provides food, shelter, clothing, transportation, counseling services, child care, advocacy, parenting classes, and referral services to financial, legal, housing, medical, and other agencies that aid family stabilization. HAVEN serves all of Oakland County. Haven's shelter assisted 537 clients (301 children) last year. Common Ground Sanctuary's A Step Forward program is a transitional living program for homeless runaway/throwaway youth ages 16-20. Teens may stay for up to 18 months. A Step Forward shelter has 7 beds and is located in Royal Oak. For those who need less than 24-hour supervision, the Graduated Apartment Program has three scattered site apartments which houses two teens each. Teens may stay up to 24 months. Programs promote self-sufficiency through various residential and non-residential services such as a 24-hour crisis line; information/referrals; training; meals; individual, family, group, aftercare, and peer counseling; mentoring; substance abuse education and assessment; family preservation; and support groups for youth, parents, and families. Forty-seven were assisted last year. New Bethel Outreach Ministry is a short term, 30-day emergency shelter for women with or without children. The shelter teams with other agencies to provide counseling, mental health services, food, medical, clothing, furniture, first and last month's rent, and security deposits. They are also assisted with minimal transportation, housing search, life skill management, and employment search. Two hundred sixty clients including (72 children) were served during the past 12 months. New Bethel was over capacity 115 days during the program year. Place of Hope is a warming center that currently operates out of Baldwin United Methodist Church, Pontiac, from December 1 to the end of April. They hope to expand to a year round rotating shelter for northern Oakland County. They have a capacity of 55 individuals and served 363 people during the three-month period last year. Place of Hope does not accept children. They offer food, warmth, hospitality and support. Hygiene kits and a limited number of showers are available. Place of Hope does not screen its clients and will accept any individual who will abide by its rules. Page 13 of 14 Oakland County, Michigan PY 2011 Annual Action Plan Shelters respond to the immediate needs of the County's homeless population. Emergency Shelter Grant funds will enable providers to target services to the homeless to foster economic autonomy, self-sufficiency, and functional family units. The Emergency Shelter Program as an essential component in assisting the homeless. Many of the homeless lack jobs, the basic means to take care of themselves, social support networks, and may also face substance abuse; physical, emotional and/or mental health concerns and vocational needs. HAVEN, New Bethel Outreach Ministry, Place of Hope, and SOS have taken the first step in attempting to address a very complex issue by simply offering a safe place to sleep, a warm meal, and a listening ear. The Lighthouse PATH and Common Ground Sanctuary offer both housing and independent living options. Oakland County plans to allocate ESG monies based on program goals to expand and improve the quality of existing emergency shelters. Local non-profit organizations will receive funding to support certain operating expenses such as maintenance, insurance, utilities, and furnishings as well as essential service expenses and organizational support (shelter administration) costs as provided by ESG regulations. Allocations are competitive and based on the following elements: ratio of beds utilized at 100% capacity (utilization), ratio of clients whose last known address was an Oakland County participating community weighted twice (residency), and number of available beds (capacity). The following budget assumes that each participating shelter will take the maximum allowable for essential services (30 percent) and organizational support and shelter administration (10 percent). Donations of time, material, and labor satisfy match requirements. Table 2: PY 2011 ESG Application versus Award 7 - - -- PROJECT CLASSIFICATION APPLICATION AWARD Operations and Maintenance Expenses $103,233.00 $102,417.00 Essential Services Expenses $51,616.00 $51,209.00 Organizational Support (Shelter Administration) S17,205.00 $17,070.00 Total $172,054.00 $170,696.00 ESG funds are required to be soft-matched, dollar for dollar, with contributions such as volunteer time, wages paid by the shelter from non-ESG sources, and the value of donated materials. In 2011, shelters will contribute at least $170,696 of ESG soft match. Page 14 of 14 August 31, 2011 FISCAL NOTE (MSC #11190) BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY & HOME IMPROVEMENT DIVISION - 2011 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER GRANT (ESG) PROGRAMS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to FRHIP XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Oakland County Community and Home Improvement Division has received program year 2011 funding from the U.S. Department Housing and Urban Development for the consolidated Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME), and Emergency Shelter Grant (ESG) in the amount of $5,178,104. 2. The award includes $3,504,276 for the Community Development Block Grant, $1,503,132 for the HOME Investment Partnership Grant and $170,696 for the Emergency Shelter Grant. 3. The award also includes $600,000 in estimated Home Improvement Revolving Loan Funds, $300,000 in estimated HOME Program Income, and requires a HOME County match of $338,205 for a consolidated 2011 program grant total of $6,416,309. 4. The Federal grant award of $5,178,104 is $906,109 less than the 2010 program year award of $6,084,213. 5. Local County match of $338,205 (25%) is required for grant funding allocated to housing rehabilitation and/or new construction activities for the HOME Investment Partnership Grant, a decrease of $44,051 over the PY 2010 County Match of $382,256. The 25% match percentage requirement is the same as the match requirement in the 2010 HOME Investment Partnership Grant. 6. County Match of $338,205 is available in the Non-Departmental Grant Match line item of the FY 2011 General Fund Budget, account #10100-9090101-196030-730800. No additional appropriation is required. 7. Indirect costs associated with this grant are not paid due to administrative and planning limits. 8. The resolution also amends the 2010 Annual Action Plan and Consolidated Grant Acceptance to reflect actual funding generated through the CDBG Home Improvement Revolving Loan Fund, CDBG participating communities, and Home Investment Partnership Act during the program year period of May 1,2010 through April 30, 2011. 9. A FY 2011 Budget is amended as follows: GENERAL FUND #10100 Expenditures 9090101-196030-730800 Non-Dept. Grant Match ($338,205) 1090659-196030-788001-29711 Transfer Out 338,205 -0- Home Investment Partnership Fund #29711 Revenue 1090659-132240-695500-10100 Transfer In $ 287,474 1090659-132260-695500-10100 Transfer In 50,731 $ 338,205 Expenditures 1090659-132240-730884 Housing Rehab Match $ 287,474 1090659-132260-730261 CHDO Match 50,731 $ 338,205 $ -0- FINANCE COMMITTEE Finance Committee Vote: Motion carried unanimously on a roll call vote FOREGZS RESOLUTION gfn Resolution #11190 August 18, 2011 Moved by Dwyer supported by Covey the resolutions (with fiscal notes attached) be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Taub, Weipert, Woodward, Zack, Bosnic, Covey. (25) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) were adopted (with accompanying reports being accepted). STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Bill Bullard Jr., Clerk of the County of Oakland, 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 August 31, 2011, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 31 s' day of August, 2011. Bill Bullard Jr., Oakland County