HomeMy WebLinkAboutResolutions - 2012.08.01 - 20461August 1, 2012
REPORT (MISC. #12199)
BY: Human Resources Committee, John A. Scott, Chairperson
RE: Department of Economic Development & Community Affairs — Community &
Home Improvement Division — 2012 Annual Action Plan and Consolidated
Grant Acceptance for Community Development Block Grant (CDBG), Home
Investment Partnerships Program (HOME) and Emergency Shelter/Emergency
Solutions Grant (ESG) Programs
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Human Resources Committee having reviewed the above referenced
resolution on July 25, 2012 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 Nuccio, Hatchett and Covey absent.
MISCELLANEOUS RESOLUTION # 1 2 19 9 August 1,2012
BY PLANNING AND BUILDING COMMITTEE, DAVID W. POTTS, CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY &
HOME IMPROVEMENT DIVISION - 2012 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT
ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER/EMERGENCY SOLUTIONS 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 2012
Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS the 2012 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/Emergency Solutions Grants (ESG) Program; and
WHEREAS HUD by letter dated June 28, 2012 transmitted to the Community & Home Improvement Division a
Program Year 2012 consolidated allocation of S6,350,320 including $4,950,191 for CDBG, $1,096,668 for HOME and
$303,461 for ESG, for the period of May I, 2012 through April 30, 2013; and
WHEREAS this is the 38th year of grant funding and acceptance for these programs; and
WHEREAS total program revenue for the 2012 CDBG Program will be S5,450,191including $4,950,191 grant
allocation and $500,000 in estimated CDBG Revolving Loan Funds; and
WHEREAS total program revenue for the 2012 HOME Program will be $1,593,419 including $1,096,668 HOME
grant allocation, $246,751 grant match and $250,000 in estimated HOME Program Income; and
WHEREAS funding for the HOME program match is appropriated in the Oakland County 2012 Adopted Budget;
WHEREAS total program revenue for the 2012 ESG Program will be the grant allocation of $303,461; 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 2012 CDBG, HOME and ESG programs appear in
attachment A; and
WHEREAS the grant currently funds 22 Special Revenue (SR) positions in the Economic Development &
Community Affairs/Community & Home Improvement Division (1090611) including 17.25% of one (I) Corn & Home
Imp Specialist (410998, GF/GP BOC 82.75% Sunset 9/30/13); and 40% of one (1) GF/GP Environmental Prog Coord
position (1090207-09809) in Planning & Economic Development Division for an Emergency Shelter/Emergency Solutions
Grant (ESG) Coordinator; and 50% of one (1) GE/GP Accountant III position (1020615-02558) in the Management &
Budget/Fiscal Services Division for grant accounting services; and
WHEREAS the grant funds will cover the following positions in the Community & Improvement Division listed
below as follows:
1 Corn & Home Improvement Asst. - 05413 I Grant Compliance & Program Coord -01370
4 Com & Home Improvement Coord - 01279/03231/03430/06098 I Supv - Corn & Home Impr Admin Serv - 01371
2 Corn & Home Improvement Tech - 03230/01768 2 Supv - Corn & Home Imp -- 00999/03182
2 Corn & Home Imp Specialist - 03567/10806 I Housing Counselor Homeless Sv Supv -03354
2 Corn & Home Imp Field Tech - 01457/09578 I Student - 05341
1 Senior Coin & Home Imp Spec - 00730 1 Chief- Corn & Home Imp - 01708
2 Sr Corn & Home Imp Field Tech - 02426/09522 I Manager - Coin & Home Imp - 00993
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 2012 CDBG Home Improvement Program Revolving Loan Fund
and HOME Program Income actual amounts will be requested by resolution in 2013 after compilation of additional
information and fiscal year closing; and
WHEREAS the 2011 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 $250,000; and
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Nuccio absent.
and
WHEREAS actual program year 2011 program income revenues from the Home Improvement Revolving Loan
Fund totaled $508,426.04 and the HOME Program totaled $410,502.21.
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
$6,350,320, $500,000 in estimated Home Improvement Revolving Loan Funds, $250,000 in estimated HOME Program
Income and HOME County match of $246,751 for a consolidated 2012 program year grant package totaling $7,347,071.
BE IT FURTHER RESOLVED that the 2011 Annual Action Plan and Consolidated Grant Acceptance be
amended to reflect actual revenues generated through the CDBG Home Improvement Revolving Loan Fund totaling
$508,426.04 and Home Investment Partnership Act totaling $410,502.21 during the program year period of May 1, 2011
through April 30, 2012.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners approves the Emergency
Shelter/Emergency Solutions 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 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.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
GRANT REVIEW SIGN OFF — Community & Home Improvement
Division
GRANT NAME: 2012 - Consolidated Grant Acceptance for Community Development Block Grant (CDBG),
HOME Investment Partnership Grant (HOME) and Emergency Shelter/Solutions Grants (ESG)
FUNDING AGENCY: U.S. Department of Housing and Urban Development
DEPARTMENT CONTACT PERSON: Karry L. Rieth (248) 858-5403
STATUS: Grant Acceptance
DATE: July 11, 2012
Pursuant to Misc. Resolution #/01320, please be advised the captioned grant materials have completed internal
grant review. Below are the returned comments.
The captioned grmt materials and grant acceptance package (which should include the Board of Commissioners'
Liaison Committee Resolution, the grant agreement/contract, 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. — Laurie Van Pelt (7/3/2012)
Department of Human Resources:
Approved. — Karen Jones (7/3/2012)
Risk Management and Safety:
Approved by Risk Management. — Andrea Plotkowski (7/9/2012)
Corporation Counsel:
There are no outstanding legal issues concerning the above grant. — Joellen Shortley Blaszczak (7/10/2012)
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.
The Honorable L. Brooks Patterson
County Executive
County of Oakland
1200 North Telegraph Road
Pontiac, MI 48341-1043
U.S. Department of Housing and Urban Development
Detroit Field Office
Office of Community Pianninc and Development
Patrick V. McNamara Federal Building
477 Michigan Avenue, Room 1710
Detroit, Ml 48226-2592
Tel. (313) 226-6280 FAX (313)
JUN 2 N2C12
SUBJECT: County of Oakland
2012 Annual Action Plan Approval Letter
• Community Development Block Grant (CD BC) B-12-11C-26-0002
HOME Investment Partnerships (HOME) M-12-UC-26-0210
• Emergency Solutions Grant (ESG) E-12-UC-26-0004
• Emergency Solutions Grant (ESG) E-11-UC-26-0002
Dear Mr. Patterson:
We are pleased to approve your Fiscal Year 2012 Annual Action Plan for your program
beginning May 1, 2012. The grant assistance that is being approved with the Plan is as follows:
CDBG Program: $4,950,191.00
HOME Program: 1,096,668.00
ES G Program: 303,461.00
ESG Prouam: 96,017.00 (second PY2011 allocation)
• The total allocation for your community is: $6,446,337
We would like to commend the County on your successful completion of the Action
Plan. We believe the goals and objectives developed through this process provide a solid
foundation for establishing and maintaining partnerships between all levels of government and
the private sectors, including those with for-profit and not-for-profit organizations. These
partnerships are invaluable as you and your partners address the problems of affordable housing,
homelessness, and economic opportunities for all citizens, particularly for very low-income and
low-income persons.
Enclosed are three copies of the required Grant Agreements and Funding Approvals.
This constitutes the contract between the Department of Housing and Urban Development and
the County of Oakland. You should note any special conditions listed in the Funding Approvals.
Please return two executed copies of each grant to the Detroit Field Office's Department of
Community: Planning and Development and retain the remaining copies for your records.
Please return the executed grant agreements to:
Mr. Keith E. Hernandez, AICP
Director, Office of Community Planning & Development
U.S. Department of Housing & Urban Development
477 Michigan Avenue, 17 1h Floor
Detroit, MI 48226-2592
www.huti.gov
Sincere4,.//
"ernandez, AICP
Direct 6r, Community Planpifia- \ind Development
HUD Detroit Field OffW
We look forward to working with you throughout your program year as you strive toward
accomplishing your program goals. If you have any questions or desire assistance concerning
this lettn- or other items related to your federal community development programs, please
contact Cheryl Y. Mathis, Community Planning and Development Representative, at (313)
226-7900 ext. 8060.
Enclosures
Pc:
Karry Reith, County Manager
Sc. Project/Grant No. 3 Sc. Amount Approved
HUD Accounting use Only
Batch TAO Program Y A Reg Area Document No, Projeft Number Category Amount
Effective Date
(mmIddlyyyy)
Entered By Venfied 5y Transaction Code
Project Number
Protect Number
Date Entered PAS (rrirryddlyyvy f Date Entered LOCOS (trrnlOdiyyyy) f Batch Number
I
Amount
Amount
1E1 ri I
Funding Approval/Agreement
Title 1 orthe Housing and Community
Developrners,t Act (Public Law 930333)
HI-005 -15R of 20515R
1, Name of Grantee (as shown in nem 5 of Standard Form 424)
County of Oakland
2. Grantee's Complete Address (as shown in item 5 of Standard Form 424)
1200 N. 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
38-6004876
5a. Project/Grant No. 1
B-12-UC-26-0002
5b. ProjectiGrant No. 2
4. Dole Use Of funds may begin
1:rnmIddiyyyy) 711/2012
6a. Amount Approved
$4,950,191
6b. Amount 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, as 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 he 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 will 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 in item
4 above provided the activities so which such costs arc related are carried out in compliance with all applicable requirements. Pre-agreement costs may not be paid With
funding assistance specified here unless they are authorized in HUD regulations or approved by waiver rind listed in thc 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 the
Secretary pursuant to Section 104(g) of Title I and published in 24 CFR Part 58. The Grantee further 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)
Keith E. Hernandez, AICP
Title ' Title
Director, 0 c if Community Planning and Development
SIgnature Date (ma ' dlyyyy) ,- Signaturu Date (mrnidd)yvyy)
7. Category off I hsistance to is sdtng Action 8. Srpecial Condfticas 9a. Date HUD Received Submission I 10. cheek one
(check only one) (check one) (miniddlyyyy) 03/09/2012 [E a. Orig. Funding
E. a. Entitlement Sec 105 si None 9b, Date Grantee Notified Approval
0 b. tate-Administered, Sec 106(d)(1) Ei Attached (nrntddtyyyy) 5/3/2012 D b. Amendment
0 G. HUD-Administered Small Cities, Sec 106(d)(2)(B) 9c. Date of Start of Program Year Amendment Number
0 d. Indian CDBG Programs, Sec 106(a)(1) (mmIdd/yyyy) 5/1/2012
Ei e. Surplus Urban Renewal Funds, Sec 112(b) 11. Amount of Community Development 0 f. Special Purpose Grants, Sec 107 Block Grant ly (2012) FY FY
El g, Loan Guarantee, Sec 108 a. Funds Reserved fortis Grantee 4950191
b. Funds now being Approved 4950191
c. Reservation in be Cancelled
(Ila minus11b)
12a. Amount of Loan Guarantee Commitment now being Approved 12b. Name and complete Address of Public Agency
Lou Guarantee Acceptance Provisions for Designated Agencies:
The public agency hereby accepts the Grant Agreement executed by the
Department of Housing and Urban Development on the above date with
respect to the above grant number(s) as Grantee designated to receive 12c. Name of Authorized Official for Designated Public Agency
loan guarantee assistance. and agrees to comply with ths terms and
conditions of she Agreement, applicable regulations, and other
requirements of HUD now or hereafter in effect, pertaining to the Title
assistance provided it.
Signature
Grantee Name
24 CFR 570 form HUD-7082 (4/93)
1. Participant Name and Address
Oakland Count
2. Participant Number
M-I2-DC-26-0210
3 Date
A',e5/
16. Date
/ /
OMB Approval No. 2506-0171
(Exp. 12131/2012)
U.S. Department of Housing
and Urban Development
Office of Community Planning
and Development
Funding Approval and HOME
Investment Partnerships Agreement
Title II of the National Affordable Housing Act
Public reporting burden for this collection of information is estimated tc average I 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 HOD 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 11 of the Cranston-Gonzalez National Affordable Housing Act or related authorities. Access to Federal grant funds is
contingent on the reporting of certain project-specific data elements. Records of information collected will be maintained by the recipients of the assistance.
Information on activities and expenditures of grant funds is public information and is generally available for disclosure. Recipients are responsible for ensuring
confidentiality when public disclosure is not required.
3. Tax Identification Number 4. DUNS Number
1200 N. Telearapff Road. 38-6004876 13-620-0362
4. Appropriation Number 5- FY (1')/YY)
Pontiac, MI 48341-1043 861130205 2012
6. Previous Obligation (Enter '0" for initial FY allocation) $0.00
a. Formula Funds ,-
b. Community Housing Development Org. (OH DO) Competitive
7. Current Transaction (+ or -) $1,096,668
.,. _...... - —.._.,_- ....---, a. Formula Funds $1,096,668
1. CHDO (For deobligations only) $ .,,,...
— ---...
2. Non- CHDO (For deobligations only) - 4
. . . .
b. CHDO Competitive Reallocation or Deobligation (see #18 below)
8. Revised Obligation
a. Formula Funds —
_—
b. CHDO Competitive Reallocation $ —
9 Special Conditions (check applicable box) 10. Date of Obligation (Congressional Release Date) • Not appiicabie Attached (mm/dcltyyyy) 06/04 2012
This Agreement between the Department of Housing and Urban Development (HUD) and the Participating Jurisdiction/Entity is made pursuant to the authority of
the HOME Investment Partnerships Act (42 U.S.C. 12701 et seq.). The Participating Jurisdiction's /Entity's approved Consolidated Plan submission/Application and
the HUD regulations at 24 CFR Part 92 (as is now in effect and as may be amended from time to time) and this HOME Investment Partnership Agreement, form
HUD-40093, including any special conditions*, constitute parr of this Agreement. Subject to the provisions of this Agreement, HUD will make the funds for the Fiscal
Year specified, available to the Participating Jurisdiction/Entity upon execution of this Agreement by the parties. All funds for the specified Fiscal Year provided by
HUD by formula reallocation are covered by this Agreement upon execution of an amendment by HUD, without the Participating Jurisdiction's execution of the
amendment or other consent. HUD's payment of funds under this Agreement is subject to the Participating Jurisdiction's/Entity's compliance with HUD's electronic
funds transfer and information reporting procedures issued pursuant to 24 CFR 92502_ To the extent authorized by HUD regulations at 24 CFR Part 92, HUD may,
by Its execution of an amendment, deobligate funds previously awarded to the Participating Jurisdiction/Entity without the Participating Jurisdiction's/Entity's
execution of the amendment or other consent. The Participating Jurisdiction/Entity agrees that funds invested in affordable housing under 24 CFR Part 92 are
repayable when the housing no longer qualifies as affordable housing. Repayment shall be made as specified in 24 CFR Part 92. The Participating Jurisdiction
agrees to assume all of the responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR 92.352 and 24
CFR Part 58.
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
CFR 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 CFR pan 170).
11. For the U.S. Department of HUD (Name and Title of Authcrize-d Official)
Keith E. Hernandez, AICP, Director, Office of Community Planning &Development
14. For the Participating Jurisdiction/Entity (Name and Title of Authorized Official)
17. Check one:
El initial Agreement rj Amendment 4
13. Funding information: HC..)ME
Source or Furies Abcropriation Code PAS Code Amount
FY 2012 HOME 861/30203 HMC $1,096,666
*Special Conditions
HOME funds used for projects not completed within
4 years of the commitment date, as determined by a
signature of each party to the agreement shall be
repaid, except that the Secretary may extend the
deadline for 1 year if the Secretary determines that
the failure to complete the project is beyond the
control of the participating jurisdiction_
No HOME funds may be committed to any project
unless each participating jurisdiction certifies that it
has conducted an underwriting review, assessed
developer capacity and fiscal soundness, and
examined neighborhood market conditions to ensure
adequate need for each project.
Any homeownership units funded with HOME funds
which cannot be sold to an eligible homeowner
within 6 months of project completion shall be rented
to an eligible tenant.
No HOME funds may be awarded for development
activities to a community housing development
organization that cannot demonstrate that it has staff
with demonstrated development experience.
Paoe 2 of 2 form HUD-40093 (05/2012)
°Grarc4 Agreement
Subtitle B of Title IV of the McKinney-Vent°
Homeless Assistance Act, 42 USC 11371 et seq.
Grant Number: E-12-UC-26-0004
U.S. Depat iwent of Housing and Urban Development
Office of Community Planning and Development
Emergency Shelter Grants/
Emergency Solutions Grants Program
1. Name of Grantee (as shown InTtem 5 of Standard Form 424) 2, Grantee's 9-digit Tax :0 Number
COUNTY OF OAKLAND 38-6004876
3.. Grantee's DUN'S Number:
13-620-0362
4. Grantee's Complete Address (as shown in item 5 of Standard Form 424)
1200 N. TELEGRAPH ROAD; PONTIAC, MI 48341-1043
I
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 Subtitle B of Title IV of the McKinney-Vent° Homeless Assistance Act (42 U.S.C. 11371 at 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
i e to time), and any special conditions attached to this Grant Agreement constitute part 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 HUE). The Grant
may 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
ompi lance with all applicable requirements. The Grantee agrees to assume all of the responsibilides for environmental review, decision making, and
'Actions, as required under the HUD 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 Sub-award and Executive Compensation information at 2 CFR Part 25,
pperidix A to Part 25—Award Term, and 2 CFR Part 170, Appendix A to Part 170—Award Term.
r i 5. Special Conditions (check one): None D Attached
6a. Data HUD Received Grantee's Annual Submission under 24 CFR Part 9j 6b, Date Grantee Nutted;
7. Date of Start of Grantee's Program Year 5. Date Use of Funds May Begin (the later of the date in 5a and the date in?)
5/01/2012 5/01/2012 1 i
9. Funding Approval (check one): 111 Original El Amendment •
I 10. Amount of Emergency Shelter Grant/Emergency
Solutions Grant $303,461
10a. Funas Reserved forthis Grantee $
ob. Funds Now Being Approved $303,461
10c. Reservation to be Cancelled (10a minus 10b)
11. Name and Cornpiete Address of Department Designated to Administer the Grant
Oakland County Community & Home Improvement,
250 Elizabeth Lake Road, Pontiac, MI 48341-0414
11 a. Name of Authorized Official .
Karry Reith
County Manager Thic. Signature lid. Date (mmiddiyyyy)
li e. Phone Number 11f. Fax Number 11g. E-mail Address
lai . a 9 • _1248/ 452-9172 reithco Oakland . mi. us .. II 6 A
.
12. U.S. Department of Housing and Urban Deveopment 13. Grantee Name
Detroit Field Office
1 2a Name of I . N f Athid Official 13a. Name of Authorized Otcial
Keith E. Hernandez, AICP Hon. L. Brooks Patterson
12.O. Title 13e. Title
Director, C mmunity Planning : Development County Executive
2.e. Signet ICc, Signature
12.d P 13a, Date (mm/ddiyyyy)
F.
U.S. Department of Housing and Urban Development
*
1.")& 1110111
\
SPECIAL CONTRACT CONDITION'S - FISCAL YEAR 2012
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 funds on completion of the review
procedures required under Executive Order (E.0.) 12372, Intergovernmental Review of Federal
Programs, and 1-IUD's implementing regulations at 24 CFR Part 52. The recipient shall also
complete the review procedures required under E.O. 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 E. 0. 12372 and implementing
regulations.
www.hud.gov
2012 ANNUAL PLAN ADVICE & GUIDANCE
Reporting Requirements for Fiscal Year 2012 Grants
The Consolidated Annual Performance and Evaluation Reports (CAPER) which includes CD.BG
and HOME, for the 2011 Program Year are to be submitted to this Office no later than July 31,
2012.
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.
Integrated Disbursement Information System (IDIS)
Only if there is a need to create other local administrators, change IDIS 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 Agreements. 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 to the attention of Mr. Keith E. Hernandez, CPD Director,
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.S.
Ho:sim:r; an ci riran
11
Deiroa Pe16 Offiee
Othoe. of CommunTi RarmMg and D.,...".clopment
1,4,-;N21,-;,57,, Feds;-2!Buildin2
477 Vilehican ;,-wonuo.. Room 1710
Detroit, VI 072
Tel. (2,13'; '2:16-7900 PP)/
March 20, 2007
Ms. Korn,/ 11112th
Ooklath Cour.lt-V Corm/a-unity 2n.c1 7, C',D1/101nic Devalop.mesit
Oakland. Pnint Suite' 1900
250 Elizah).--th Road
Pontiac, MT 4234-...1.-04.14
Saar Ms_ Rietth:
ST.I.a0E7.1": ESC.4 alld. EN" S Ce-ftifications
.
-.
for th a
memo dated March. 16, 2007, regarding
.
Oaidend County' s res-oonse to the ESG and HIES Certifications
.
ace.craired by HUD. I have read through each action gahland County
will talte, as they perte_in to the compliance issues liste-d in the,
ESG Certifications. Each action. outlined by
cal,..1-4.La Coirity is
a-otroved. I will tlace a cony of the.metao along vith this
27 e s-pbnse in the Da:kland County file. .-----.----
I under-stand yo l.= concecon aiDout 5 g a certification in
regard to inszitutiorlal discharge noiicies. However, the ESG and
as Certifications as well as. the Disc7-ga policy f.
--orms are
not st:oj ect to change ac.‘h.form.must be signed to instre
ocelease of funds.
reason.ing for including the dischare
policy in the certifications Wa.-±- t 0 ' bring awareness, to all
parties involved in liotneless provision, of the nea6. for solid
discharge. policies. '.,V..ii.le ETID -understands that Daklanci County
itself cannot. enforce. discharge. policies of other institutions, .
Oakland Con_tty canire that these nolicies, be Ee.veloped.
arLd/or followed as part of contractual obligati
OD.. The idea is
to get the word out 'that ha--v-ing these policies in niec5 is not
caly o-Dod -;-,-
.,ratOtic..s b-Lit should he a requirement for operation. -
Regarding the '`ITIS .i.ssue_, Oakland County's asse_rtion that .
.
it will ensure eacic. T.,-L1'SG
funded si/o-recipient institutes an. laviis
.svste_m is corplet,ely acce-otable. Oakland County is'-under no
obligation to do any-thing more than that.
Please contact- -sour Community Planning and plot
.7-,Lepre.5.aaatativ, 3.vi: . 5-2•'-a:-.,r_ Eefter, if you need any further
c 1 ar i f i o az i on.. S.n..a can. be r. E--
a the..d at (212) 226-'7 90 0 , enttnsi on
0 1 42. 42.
,/
^ 7) 7-111 /
Attachment A — Excerpt from 2 012 Annual Action Plan
Table 1: Comparison of Grant Application with Grant Award
Oakland County, MI
GRANT ' APPLICATION AWARD VAR ANCE 1
Community Development Block Grant (CDBG) $4,950,191 $4,950,191 $0 l
,HOME Investment Partnerships Grant (HOME) S1,096,668 $1,096,668 $0
Emergency Shelter/Emergency Solutions Grant (ESG) $303,461 $303,46 0 l _
ITotal $6,350,320 $6,350,320 $0 I
Community Development Block Grant (CDBG) 91.220(1)(1) CFDA# 14 -218
Statement of Need - Sixty five 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.
Along with the loss of 560,000 manufacturing jobs over the past seven years and more than 7,000
home foreclosures in 2011, 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
• Construction and rehabilitation of public facilities and public infrastructure
• Public services such as transportation, chore services, and meals on wheels
• Removal of architectural barriers
• Down payment and other homeownership assistance
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:
Table 2: Community Development Block Grant Objectives
NATIONAL OBJECTIVES
i Ensure benefit to low income persons;
ll 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.
Page 1 of 12
Attachment A_7 Excerpt from 2 012 Annual Action Plan Oakland County, MI
Table 3: Community Development Block Grant Objectives continued
COUNTY OBJECTIVES
Ensure that not less than 7o0 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 through 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.
I 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
i 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+3L)/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 $5,000 receive $5,000 as a
minimum amount. The formula applies to the "non- minimum allocation" communities. The result is
the community allocations for that given program year.
City of Pontiac - The City of Pontiac plans to join the Oakland County urban county program, as an
independent Metropolitan City (MC) under a "Joint Agreement" option allowing Pontiac to retain its
MC status and HUD to allocate more funding to the County on the City's behalf by using formula ("B")
for the City. HUD used "B" to calculate Pontiac CDBG funding as an independent MC yet uses the
County's formula "A" under a Cooperation Agreement.
Page 2 of 12
AMOUNT
$3,525,192
$500,000
$4,025,192
Attachment A — Excerpt from 2 012 Annual Action Plan Oakland County, MI
Table 4A: PY 2012 CDBG Revenues (Participating Communities)
REVENUE
Federal CDBG Allocation
County Revolving Loan Fund (estimate)
Total Revenues
Table 4B: PY 2012 CDBG Revenues (City of Pontiac
REVENUE AMOUNT
Federal CDBG Allocation $1,424,999 1
Total Revenues $1,424,999 ,
Table 5A: PY 2012 CDBG Allocations (Participating Communities
, ALLOCATION AMOUNT
General Program Administration $619,038
Housing Counseling $180,000
Home Improvement Program $846,041
General Program Administration Revolving Loan Fund (estimate) $100,000
I Housing Counseling Revolving Loan Fund (estimate) $75,000
Home Improvement Program Revolving Loan Fund (estimate) $325,000
Community Allocations $1,880,113
Total Allocations $4,025,192
Table 5B: PY 2012 CDBG Allocations (City of Pontiac _
ALLOCATION. •, AMOUNT
Il General Program Administration (County) l $284,999
1 Home Improvement Program $379,996
Community Allocation $760.004
Total Allocations 1 $1,424,999
Table 6A: PY 2012 CDBG Benefit Distribution (Participating Communities)
CLASSIFICATION PERCENTAGE
Benefit to Low Income Persons 81,74%
l Prevention/Elimination of Slums/Bli ht 0%
l Meeting an Urgent Community Need 0%
l Administration 18.26%
[ Total 100.00%
Public Service Activities I (*1 3% - Independent Calculation)
• 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.
Table 6B: PY 2012 CDBG Benefit Distribution (City of Pontiac
CLASSIFICATION ] PERCENTAGE
Benefit to Low Income Persons 33% ,!
Prevention/Elimination of Slums/Blight 67%
Meeting an Urgent Community Need 0% 1
Total 100.00% ,
Page 3 of 12
Attachment A — Excerpt frorn 2012 Annual Action Plan Oakland County, MI
HOME Investment Partnership Program (HOME) 91.220(1)(1) CFDA# 14-239
HOME Program Proposed Rule - The U.S. Department of Housing and Urban Development (HUD) published
a significant proposed regulation for the HOME program in the Federal Register on December 16, 2011. The
proposed changes are intended to enhance performance and accountability and clarify certain existing
provisions. Public comments on the proposed changes are due February 14, 2012. The County will evaluate
the impact of the proposed rule on its existing programs and will adjust accordingly to meet the effective date.
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 7: 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 i ll decent, affordable housing; and ii 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.
,i Strengthen public-private partnership through provision of HOME match.
Page 4 of 12
Attachment A — Excerpt - from 2 012 Annual Action Plan Oakland County. MI
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 method for improving the quality of housing stock in
which low income persons reside. The following details the county's plan for use of PY 2012 HOME
funds.
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)
Table 8: Maximum Per-Unit Subsidy (as of 7/1/2011)
0-BEDROOM1-BEDROOM 2-BEDROOM 3-BEDROOM:„ 4,BED.ROOK:
$143,813 I $165 ;972 $201,822 $261,090 $286,597
Source: U.S. Department of Housing and Urban Development (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 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. Congress mandates that all housing rehabilitation and/or new construction
projects funded with PY 2012 HOME funds are subject to matching fund requirements.
Oakland County ensures that rehabilitation projects receive one-dollar of matching funds per every
four dollars of HOME funds expended, in accordance with federal guideline (s.92.218). Before
disbursement of HOME funds, the CHDO/PJ must execute a contract. This grant agreement will
identify the grant amount, grant terms and the programmatic responsibilities of the CHDO.
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.
Page 5 of 12
Attachment A — Excerpt from 2012 Annual Action Plan Oakland County, MI
Women and Minority Business Enterprise (W/MBE) Outreach - Oakland County's W/IVIBE
strategy in the HOME Program focuses on enhancing and overseeing existing W/MBE outreach
efforts in the single family owner-occupied housing rehabilitation program administered by Oakland
County, The county maintains a list of licensed and insured contractors/residential builders for both
the CDBG and HOME financed home improvement program (HIP). Contractors on the contractor list
may bid on HIP jobs on an alternating basis. The county includes at least one W/MBE in its invitation
to bid every HIP job. The Division participates with the Oakland County Purchasing and Planning
Divisions to expand W/MBE opportunities in Oakland County. The county distributes contractor
brochures at local building departments to promote the HIP to potential '1/4/V/MBE contractors. The
Division advertises contractor participation through its Website, Annual Report, newsletters,
brochures and other media. All HOME funded CHDOs include at least one W/MBE in invitations to
bid on affordable housing developments.
Section 215 Guidelines - HUD requires the County to comment upon its adherence to Section 215
guidelines. The guidelines provide that rental and homeownership housing shall qualify as affordable
only if households qualifying as low income occupy the units. Oakland County will address Section
215 requirements for rental units. Oakland County's homeownership programs qualify as affordable
housing under Section 215 since the housing-
1. has an initial purchase price that does not exceed 95 percent of the median purchase price for the area, as
determined by the Secretary with such adjustments for differences in structure, including whether the housing is
single-family or multifamily, and for new and old housing as the Secretary determines to be appropriate;
2. is the principal residence of an owner whose family qualifies as a low-income family--
A. in the case of a contract to purchase existing housing, at the time of purchase;
B. in the case of a lease-purchase agreement for existing housing or for housing to be constructed, at the time the
agreement is signed; or
C. in the case of a contract to purchase housing to be constructed, at the time the contract is signed;
3. is subject to resale restrictions that are established by the participating jurisdiction and determined by the Secretary to
be appropriate to—
A. allow for subsequent purchase of the property only by persons who meet the qualifications specified under
paragraph (2), at a price which will--
i. provide the owner with a fair return on investment, including any improvements, and
ii. ensure that the housing will remain affordable to a reasonable range of low-income homebuyers; or
B. recapture the investment provided under this subchapter in order to assist other persons in accordance with the
requirements of this subchapter, except where there are no net proceeds or where the net proceeds are insufficient to
repay the full amount of the assistance; and
4. if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section
12709 of this title.
Affirmative Marketing - In accordance with 24 CFR 92.351(a), Oakland County will carry out
affirmative marketing for all HOME assisted homebuyer projects of five or more units. Actions will
provide information to attract eligible persons in the housing market area to available housing without
regard to race, color, national origin, sex, religion, familial status or disability. Community Housing
Development Organizations (CHD0s) will develop advertising campaigns to provide Federal fair
housing law and Equal Housing Opportunity (EHO) within the market area. All promotional materials
will include the EHO logotype or slogan. Each CHDO under contract must certify that it 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 of each CHDOs
affirmative marketing efforts, Annually, Oakland County will meet CHDOs to assess the success of
their affirmative marketing actions and discuss corrective steps as needed.
Page 6 of 12
Attachment A — Excerpt from 2012 Annual Action Plan Oakland County, MI
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.
Home Improvement Program (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 will be 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. Typically eligible homeowners receive a zero
percent interest deferred loan, a 3% interest loan or a combination loan based on income. On
February 17, 2010 the Division presented a recommendation to the Citizens Advisory Council that
eligible homeowners receive a zero percent interest deferred loan. 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 zero percent 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 the
Michigan Residential Code. (Maximum loan amounts are subject to periodic updates.)
General Program Administration - Ten percent of the County's PY 2012 HOME allocation will be
reserved for administrative and planning costs per s.92.207.
Reservation of HOME Funds for Community Housing Development Organizations (CHDOs)-
CHDOs receive the required fifteen percent of HOME funds, per regulations at s92.300. In keeping
with Consolidated Plan goals, a qualified CHDO may receive funds to implement Home Buyer
Assistance through acquisition with rehabilitation and /or new construction.
Page 7 of 12
Attachment A — Excerpt from 2012 Annual Action Plan Oakland County, MI
Home Buyer Assistance - Oakland County will continue to provide technical assistance to
certified CHDOs under contract with Oakland County to ensure continued success. 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.
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. 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.
Lease Purchase - For homebuyers purchasing under a Lease-Purchase program the housing
must be purchased by the initial homebuyer within 36 months of signing the lease-purchase
agreement. However, if this hornebuyer is unable to purchase the unit within the 36 months, the
CHDO shall have 6 additional months to qualify a new buyer to purchase the unit. If the CHDO is
unable to sell the property within 42 months after project completion, the HOME affordability
requirements for rental housing in 24 CFR 92.252 shall apply, including ongoing property
standards and occupancy and rent limit compliance. In addition, this project is subject to ongoing
compliance requirements of the HOME Program as a rental property for a maximum of 20 years
from the date of initial occupancy. During this compliance period, the CHDO will assure continued
compliance with HOME Program affordability requirements.
Rental Housing - As a substantial amendment to the 2005-2009 Consolidated Plan the County
under the CHDO component of the HOME Program 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 housing options. Providing CHDOs with the
opportunity to acquire and rehabilitate affordable rental housing offers a response to the need and
a flexible development strategy. The rental assistance component of the HOME CHDO set aside
has not yet been fully developed. The HOME program requirements for rental housing will be
incorporated into the final program design which is to be included in the PY 2012 CHDO
application process.
Pace 8 of 12
Attoteltment A — Excerptfroin 2 0 1 ,2 Annual Action Plan Oakland County,11/1
Community Housing Development Organizations - The HOME Program requires a minimum of
15% of each program year grant be awarded to non-profit housing developers. These Community
Housing Development Organizations (CHD0s) develop affordable housing and sell units to HOME
qualified low income homebuyers. The decline in the Michigan economy and the downturn of the
housing market has greatly impacted homebuyer programs and the CHDOs.
Venture, Inc. - In 2006, Venture received a HOME/CHDO contract to construct five single family
homes in Royal Oak Township for low income homebuyers. Due to the failed housing market and
lack of demand construction did not begin until fall 2010. The original contract was amended to
four units with garages, bricked first floors, and Energy Star appliances to attract more potential
homebuyers. The CHDO has hired a realtor to market the units and as of February 2, 2012 there
is a purchase agreement on one of the units. The Township also received NSP 1 and NSP 3
funds to clear blighted properties in the area which may help to attract more buyers.
Springhill Housing Corporation - In 2011, Springhill received a HOME/CHDO contract to
acquire rehabilitate and sell up to five single family units through a lease purchase option for low
income homebuyer. Springhill works with all eligible clients but specializes in working with
households that have a least one person with a disability. Springhill establishes the readiness of
its client pool prior to acquiring properties. Once the client meets the homebuyer criteria including
credit and homebuyer counseling they begin to search for a home to meet their needs. As the
project proceeds the rehabilitation includes energy efficiency items, and safety and accessibility
improvements as needed.
Table 9: PY 2012 HOME Budget Revenues
7-- i REVENUE I AMOUNT
HOME Allocation $1,096,668
Match Obligation $246,751
HOME Program Income (estimate) $250,000
Total $1,593,419
Table 10: PY 2012 HOME Budaet Allocations
HOME 25% HOME 0 AT1ON TOTAL FUNDS :MATCH* P1 (EST) '
Housing Rehabilitation (Home Improvement Program) $822,501 $205,625 $225,000 $1,253,126
CHDO Activities (15% of HOME Allocation) $164,501 $41,126 $205,627
County Administration (10% of HOME Allocation) $109,666 N/A $25,000 $134,666
Total $1,096,668 $246,751 $250,000 ,593,419 1
*HOME requires a 25% match of funds for housing rehabilitation and new construction activities.
Page 9 of 12
Attachment A — Excerpt from 2012 Annual Action Plan Oakland County , MI
Emergency Solutions Grant (ESG) CFDA# 14-231
Public Law 111- On May 20, 2009, the President signed into law "An Act to Prevent Mortgage Foreclosures
and Enhance Mortgage Credit Availability," which became Public Law 111-22. This law implements a variety
of measures directed toward keeping individuals and families from losing their homes. Division B of this law is
the HEARTH Act, which consolidates and amends three separate homeless assistance programs carried out
under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 17371 et seg.) (McKinney-Vento
Act) into a single grant program that is designed to improve administrative efficiency and enhance response
coordination and effectiveness in addressing the needs of homeless persons, The HEARTH Act codifies into
law and enhances the Continuum of Care planning process, the coordinated response for addressing the
needs of homelessness established administratively by HUD in 1995. The single Continuum of Care program
established by the HEARTH Act consolidates the following programs: the Supportive Housing program, the
Shelter Plus Care program, and the Moderate Rehabilitation/Single Room Occupancy program.
Background - In 1988, the McKinney-Vento Act implemented the Emergency Shelter Grant as a way
for the federal government to assist local units of government to fund emergency shelters. Although
originally an independent grant to the County, it became part of the consolidated plan and its formula
allocation was applied for through the annual action plan. At that time, the sole purpose of the grant
was to fund emergency shelters and transitional housing programs. Specific statutory caps were
required of 30 percent for essential services (case management, food, medical, transportation) 10
percent for shelter administrative costs, and 5 percent for County administration. Up to 100 percent
of the grant could be used for shelter operations. In 1997, the Board of Commissioner's adopted the
following formula to distribute the funding:
Formula - Utilization + 2 (Residency) + Capacity
4
Definitions -
Utilization: ratio of the number of beds utilized at 100% capacity during the previous program year
Residency: ratio of clients whose last known address was a community that participates in the
Oakland County CDBG program. This ratio is weighted by a factor of two.
Capacity: number of available beds
In 2004, the emergency shelter grant regulations were amended to allow up to 30 percent of the grant
to be used toward prevention activities. As prevention was not part of our allocation policy, we limited
the ability to apply to established shelters, but did permit dollars to be used for prevention activities.
No shelter requested use of such funds during 2004-2010. On May 22, 2009, the Homeless
Emergency Assistance and Rapid Transition to Housing Act (HEARTH act) was signed into law
changing the focus of the program from addressing the needs of those in emergency or transitional
shelters to assisting people to quickly regain housing stability after a crisis. The Emergency Solutions
Grant name change reflects this new emphasis and the regulations became effective January 4,
2012.
Pale 10 of 12
Attachment A — Excerpt from 2 012 Annual Action Plan Oakland County, MI
Emergency Solutions Grant Components - The Emergency Solutions Grant allows for six basic
components:
1. The Street Outreach component permits funds to be used for the cost of providing essential
services necessary to reach out to unsheltered homeless people and connect them with
appropriate services.
2. The Emergency Shelter component provides the cost of essential services and shelter
operations for emergency shelter programs. Up to 60 percent of the grant or the amount granted
to shelters during PY2010, whichever is greater, can be used for this component. The new
regulations expanded the definition and removed the cap on essential services. We will be
limiting the allowable services in our guidelines. Renovations to shelters and relocation are also
eligible under this component put will not be a part of Oakland County's program.
3. Housing relocation and Stabilization Services for prevention and rapid re-housing pays for the
non-rent financial assistance cost including rental application fees, security deposits, utility
deposits and payments, moving costs, housing search and placement, case management,
inspections, and program related costs for the provider.
4. Short-Term and Medium-Term Rental assistance provides a program participant up to 24
months of rental assistance during any three-year period. Oakland County will be limiting
assistance for up to six months during any one program year.
5. The Homeless Management Information System is a mandated system which provides client
level data and analysis and is required for program reporting.
6. Up to 7.5 percent can be used for Administrative Costs related to the planning and execution of
the ESG activities including planning, general management, oversight, and coordination.
Match - The Emergency Solutions Grant requires a 100 percent match. This match will be passed on
to the grant recipients. The match may be cash or an in-kind amount and cannot be counted as
satisfying the matching requirement of another federal grant. Eligible types of match include cash
contributions or noncash contributions including volunteer hours, real property, equipment, goods or
services, or costs paid by program income.
Table 11: Emeraencv Solutions Grant ri--- !: NATIONAL. OBJECTIVES
Maximize communitywide planning and strategic use of resources to prevent and end homelessness;
improve coordination and integration with mainstream services to marshal all available resources, capitalize
on existing strengths, and increase efficiency; improve coordination within each community's homeless
services, including services funded by other programs targeted to homeless people; build on lessons learned
from years of practice and research, so that more resources are invested in demonstrated solutions to end
homelessness, such as rapid re-housing; expand resources and services available to prevent
homelessness; realign existing programs and systems to focus on shortening homelessness; direct funding
to the most critical services to help people achieve long-term housing stability and avoid becoming homeless
again; standardize eligibility determinations and improve the targeting of resources to help those most in
r need; improve data collection and performance measurement; and allow each community to tailor its
program to the particular strengths and challenges within that community.
COUNTY OBJECTIVES
Implement the Emergency Solutions Grant to provide administration, HMIS, Emergency Shelter, Housing
Relocation and Stabilization Services/Rental Assistance.
Page 11 of 12
Attachment A — Excerpt.from 2012 Annual Action Plan Oakland County, MI
Scope of Proposed Activities, Allocation and Selection Criteria - The Community & Home
Improvement Division is proposing the following allocation and selection criteria:
Emergency Shelter - 60 percent of the grant will be used to continue funding emergency
shelters. Transitional housing providers are only eligible if they received funding in 2010 and are
continually funded thereafter. A request for Proposals will be issued. All qualified agencies
meeting threshold will be funded under the following formula:
Formula - Utilization + 2 (Residency) + Capacity
4
Definitions: Utilization: ratio of the number of beds utilized at a minimum of 90% capacity during the previous
program year. Residency: ratio of clients whose last known address was a community that participates in the
Oakland County CDBG program. This ratio is weighted by a factor of two. Capacity: number of available beds
Housing Relocation and Stabilization Services/Rental Assistance - The balance of the grant
will be allocated for prevention and/or rapid re-housing programs. A maximum of two agencies
will be funded through a request for proposal process based on the following scoring criteria:
Capacity/Experience 40 points), Outreach Plan (25 points) HMIS (15 points), prior experience with
use of Mainstream Resources/Leveraging (15 points), Oakland County Continuum of Care
participation (5 points).
Homeless Management Information System (HMIS) - The Homeless Management Information
System lead agency will receive up to 7.5 percent of the grant.
Administration - Oakland County will retain 7.5 percent of the grant for administration, planning,
implementation, reimbursement, and reporting.
Source of Funds - The substantial amendment must be prepared and submitted in accordance with
the Oakland County citizen participation plan and the requirements of 24 CFR part 91, as amended
by the Interim Rule. The County will follow the outline provided by HUD as a checklist to ensure an
accurate and complete submission in accordance with the details of the Notice.
Table 12: PY 2012 Emeraencv Solutions Grant (ESG) Budget
PROJECT CLASSIFICATION AMOUNT
Administration (7.5%) $22,759
Homeless Management Information System (HMIS) (7.5%) $22,759
Emergency Shelter (60%) $182,076
Rapid Re-Housing Rent Assistance $37,000
Rapid Re-Housing Housing Stabilization $38.867 ;
Total $303,461
Page 12 of 12
FISCAL NOTE (MISC. #12199) August 1, 2012
BY: FINANCE COMMITTEE, rom MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY &
HOME IMPROVEMENT DIVISION - 2012 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT
ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER/EMERGENCY SOLUTIONS
GRANT (ESG) PROGRAMS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule 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
2012 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 $6,350,320.
2. The award includes $4,950,191 for the Community Development Block Grant, $1,096,668
for the HOME Investment Partnership Grant and $303,461 for the Emergency Shelter Grant.
3. The award also includes $500,000 in estimated Home Improvement Revolving Loan Funds,
$250,000 in estimated HOME Program Income, and requires a HOME County match of
$246,751 for a consolidated 2012 program grant total of $7,347,071.
4. The Federal grant award of $7,347,071 is $930,762 more than the 2011 program year
award of $6,416,309,
5. Local County match of $246,751 (25%) is required for grant funding allocated to housing
rehabilitation and/or new construction activities for the HOME Investment Partnership Grant,
a decrease of $91,454 over the PY 2011 County Match of $ 338,205. The 25% match
percentage requirement is the same as the match requirement in the 2011 HOME
Investment Partnership Grant.
6. County Match of $246,751 is available in the Non-Departmental Grant Match line item of the
FY 2012 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 grant currently funds 22 Special Revenue (SR) positions in the Economic Development
& Community Affairs/Community & Home Improvement Division (1090611) including
17.25% of one (1) Com & Home Imp Specialist (#10998, GF/GP BOC 82.75% Sunset
9/30/13); and 40% of one (1) GF/GP Environmental Prog Coord position (1090207-09809) in
Planning & Economic Development Division for an Emergency Shelter/Emergency Solutions
Grant (ESG) Coordinator; and 50% of one (1) GF/GP Accountant III position (1020615-
02558) in the Management & Budget/Fiscal Services Division for grant accounting services.
9. The grant funds will cover the following positions in the Community & Improvement Division
listed below as follows:
1 Com & Home Imp Asst. - 05413
4 Corn & Home Imp Coord-01279/03231/03430/06098
2 Corn & Home Improvement Tech - 03230/01768
2 Corn & Home Imp Specialist 03567/10806
2 Corn & Home Imp Field Tech - 01457/09578
1 Senior Corn & Home Imp Spec - 00730
2 Sr Corn & Home Imp Field Tech - 02426/09522
1 Grant Compliance & Program Coord - 01370
1 Supv-Com & Home Imp Admin Serv -01371
2 Supv-Corn & Home Imp - 00999/03182
1 Hous Counselor Homeless Sv Supv - 03354
1 Student - 05341
1 Chief - Corn & Home Imp -01708
1 Manager - Corn & Home Imp — 00993
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Long and Quarles absent.
10. The resolution amends the 2012 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, 2012 through April 30, 2013.
11. The FY 2012 Budget is amended as follows:
GENERAL FUND #10100
Expenditures
9090101-196030-730800
1090659-196030-788001-29711
FY 2012
Non-Dept. Grant Match ($246,751)
Transfer Out 246,751
Total Expenditure -0-
Home Investment Partnership Fund #29711
Revenues
1090659-132240-695500-10100 Transfer In from GF $205,625
1090659-132260-695500-10100 Transfer In from GF 41,126
Total Revenues $ 246,751
Expenditures
1090659-132240-730884 Housing Rehab Match $205,625
1090659-132260-730261 CHDO Match 41,126
Total Expenditures $_246.751
FINANCE COMMITTEE
Resolution #12199 August 1, 2012
Moved by Weipert supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson,
Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, River, Runestad, Scott, Taub, Weipert,
Woodward, Zack, Bosnic. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
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 1,
2012, 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 1 st day of August, 2012.
Bill Bullard Jr., Oakland County