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HomeMy WebLinkAboutResolutions - 1994.05.26 - 24221May .26, 1994 MISCELLANEOUS RESOLUTION 194152 BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: COMMUNITY DEVELOPMENT DIVISION - HOME INVESTMENT PARTNERSHIP ACT GRANT ACCEPTANCE - FISCAL YEAR 1994 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS the United States Congress enacted the HOME Investment Partnership Act, Title II of the Cranston-Gonzalez National Affordable Housing Act (P. L. 101-625) in 1990; and WHEREAS the County of Oakland, being designated as a participating jurisdiction by the U.S. Department of Housing and Urban Development, has been awarded a fiscal year 1994 HOME grant in the amount of $ 1,143,000; and WHEREAS the County intends to use $840,105 of the HOME allocation for rehabilitation of homes owned by low-income persons and allocate $171,450 for non-profit Community Housing Development Organizations (CHDO's) to rehabilitate homes for low- income persons; and WHEREAS the County intends to reserve $114,300 (10% of the 1994 HOME allocation) to administer the program and $17,145 (an amount equal to 10% of the CHDO allocation) for CHDO administration; and WHEREAS a federally mandated county match of $267,067 has been included in the 1994-1995 Adopted Budget for the program; and WHEREAS a detailed fund schedule and 1994 Fiscal Year program description of the County's plans for the HOME grant has been prepared and included per federal regulation purposes (Attachment A); and WHEREAS the Oakland County Community Development Citizens Advisory Council has unanimously recommended approval of the HOME grant and program description; and WHEREAS this grant has been reviewed and approved by the County Executive's Contract Review Process. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the 1994 Fiscal Year HOME grant program in the amount of $1,143,000. BE IT FURTHER RESOLVED that the future level of service, including personnel, will be contingent upon the level of Federal funding available. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to execute the grant agreement and to approve amendments and extensions up to a fifteen percent (15%) variance from the award, consistent with the agreement as originally approved. Mr. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE OAKLAND COUNTY HOME INVESTMENT PARTNERSHIPS PROGRAM 1994-1995 The HOME Investment Partnerships (HOME) Program is a third year housing program authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990 (NAHA). The HOME Program is intended to expand the supply of decent, safe, sanitary, and affordable housing for low-income persons. Oakland County has been allocated $1,143,000 in HOME funds for program year (FY) 1994. The Act gives preference to rehabilitation of substandard housing and new construction as the most effective ways to meet the need to expand the supply of affordable housing. The County's proposed HOME program is designed with one housing rehabilitation component, one new construction component and two administrative components. I. HOUSING REHABILITATION A. County-Operated Housing Rehabilitation Seventy-three percent of FY 1994 HOME funds ($840,105) plus the 25% statutorily required county match for rehabilitation activities of $210,026 are allocated to rehabilitate single-family homes owned by "low-income" persons (i.e. incomes not exceeding 80 percent of area median income). Only homeowners living in one of the 50 Oakland County Community Development Block Grant (CDBG) Program participating communities will be eligible for HOME-funded rehabilitation. This program component is identical to the Community Development Block Grant administered Home Improvement Program. B. Community Housing Development Organizations (CHDO's) Oakland County is statutorily required to set-aside fifteen percent ($171,450) of the FY 1994 grant for Community Housing Development Organizations to carry out HOME-assisted activities. The 15 percent set-aside of 5171,450 plus the 30% federally mandated county match of $51,435 for new construction activities provide a total of $222,885 for CHDO administered housing activities for FY 1994. CHDO's must be nonprofit organizations in existence for at least one year, with boards of directors comprised of at least one-third low-income persons, residents of low-income neighborhoods, or elected representatives of low-income organizations. CHDO's must have a "demonstrated capacity" to implement HOME-assisted activities. CHDO's may rehabilitate existing single-family homes for sale to low-income, first-time homebuyers, or acquire vacant property to emplace modular houses for sale to low-income, first-time homebuyers. II. PROGRAM ADMINISTRATION A. County Program Administration HOME regulations provide ten percent of the FY 1994 HOME grant ($114.300) for administration of the county HOME Program. B. CHDO Administration An amount equal to ten percent of the Community Housing Development Organizations 1994 allocation ($17,145) is reserved for CHDO administration of HOME funded activities; HIPP9495(2)bms 2/17/94 1993 $ 934,000 $ 206,648 $1,140,648 1994 $1,143,000 $ 267,067 $1,410,067 VARIANCE Increase (Decrease) REVENUES HOME GRANT AWARD COUNTY MATCH TOTAL AVAILABLE $ 209,000 22.38% 1993 1994 $ 114,300 $ 17,145 $1,143,000 Funds Obligated as of 1/31/94 (Includes Match) Funds Uncommitted (Includes Match) TOTAL OBLIGATIONS 1993 HOME Grant plus match $ 670,913 $ 469,735 $1,140,648 COMMUNITY DEVEI ENT DIVISION 1993 and 1994 HOME PROGRAM FUND SCHEDULE DISTRIBUTION Total 25% Matching HOME FUnds Requirement Matching HOME Funds Requirements Total HOUSING REHABILITATION ACTIVITIES Oakland County Home Improvement Program Community Housing Organizations (CHDO's) (15% of HOME Allocation) Contingency ADMINSTRATION Oakland County (10% of HOME Allocation CHDO's (10% of CHDO Allocation) $ 686,490 $ 140,100 -0- $ 93,400 $ 14,010 $ 934,000 $ 171,623 $ 858,113 35,025 $ 175,125 -0- Not Applicable $ 93,400 Not Applicable $ 14,010 $ 206,648 $1,140,648 (25% match for housing rehabilitation) $ 210,026 $1,050,131 (30% match for new construction) $ 171,450 $ 51,435 $ 222,885 -0- $ 5,606 5,606 Not Applicable $ 114,300 Not Applicable $ 17,145 $ 267,067 $1,410,067 -0-- $ 840,105 Ol nAWMriCrglig11,mc ,/1 14/QA Resolution #94152 May 26, 1994 Moved by McCulloch supported by Huntoon the resolution be adopted. AYES: Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Miltner, Moffitt, Obrecht, Palmer, Pernick, Powers, Schmid, Taub, Wolf, Aaron, Crake, Dingeldey. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. f HER z A 1‘214 ‘/1/9/7 L. Brooks Pafte Executive Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, 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 May 26, 1994 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and ifixed the seal ot ,?the County of Oakland at Pontiac, Michigan this 26th day ot —nay 4). D. Allen, County Clerk PROV FOREGm. c"ISOLL)flor4