HomeMy WebLinkAboutResolutions - 1999.08.19 - 25616G AND BUIEDM COMMITTEE
August 19, 1999
MISCELLANEOUS RESOLUTION #99 209
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDS RECAPTURE POLICY AMENDMENT
To the Oakland County Board of Commissioners
Chairperson, Ladies, and Gentlemen:
WHEREAS, the Oakland County Board of Commissioners authorized the recapture and reallocation of
undisbursed CDBG funds effective December 31, 1991 and each December 31 thereafter per
Miscellaneous Resolutions # 90233 and #90234 to help ensure that Oakland County and its fifty
participating communities would comply with the U.S. Depat talent of Housing and Urban
Development's (HUD) regulation 24 CFR 570.902 (A)(1)(I) dated September 1988 mandating that
CDBG funds undisbursed sixty days prior to the end of each program year, April 30th, can not exceed
1.5 times the current program year allocation; and
WHEREAS, HUD's annual grantee performance reviews question slow moving activities and the
amount of undisbursed funds; and
WHEREAS, several communities have undisbursed funds dating back to 1993; and
WHEREAS, the lack of timely use of grant funds can result in the loss of purchasing power of
those funds; and
WHEREAS, there continues to be a significant need to fund and expedite projects that benefit
low and moderate income families and address deteriorating neighborhood conditions in Oakland
County; and
WHEREAS, the Oakland County Community Development Division in order to continue
compliance with HUD's spending performance regulation recommends that participating communities be
allowed to retain undisbursed funds from the two rather than three most recent program year
allocations as permitted in the current Recapture Policy; and
WHEREAS, funds from previous years not contractually obligated will be recaptured as of
December 31 and each year thereafter; and
WHEREAS, the recapture of undisbursed funds from previous years may be waived for a period
of one year by the Community Development Division with justification and a legislative resolution from
the requesting participating community; and
WHEREAS. if a waiver is denie-d by the Community Development Division, the applicant may
appeal the denial by seeking review and relief from the Citizens Advisory Council; and
WHEREAS. the Oakland County Community Development Citizens Advisory Council has
approved the recapture procedure by a majority voice vote; and
WHEREAS, these procedures have been reviewed and approved as to legal sufficiency by the
Office of Corporation Counsel.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
allow participating communities to retain undisbursed funds from the two most recent program year
allocations. The Oakland County Community Development Division is authorized to recapture
unobligated funds from previous years under this procedure as of December 31, 2000 and each year
thereafter. The recapture of undisbursed funds from previous years may be waived for a period of one
year by the Community Development Division with justification and a legislative resolution from the
requesting participating community. If a waiver is denied by the Community Development Division, the
applicant may appeal the denial by seeking review and relief from the Citizens Advisory Council.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE VOTAri
Motion carried on a roll call vote with Melton voting No.
RECAPTURE AND REALLOCATION OF CDBG FUNDS POLICY
Oakland County Board of Commissioners Resolution #90233 and # 90234, 9/27/90
(Current Policy)
RECAPTURE OF CDBG FUNDS
The Board of Commissioners Recapture Policy authorizes the annual recapture of undisbursed
CDBG funds effective December 31. Communities may automatically retain =disbursed funds
from the three most recent program year allocations. Funds at risk include all funds that are not
contractually obligated from years previous to those protected under the policy as of December
31.
PROPOSED CHANGE: Communities may automatically retain undisbursed funds
from the Jaa most recent program year allocations.
WAIVER
The recapture of =disbursed and unobligated funds from previous years may be waived for a
period of one year by the Community Development Division with justification and a legislative
resolution from the requesting community. If a waiver is denied by the Community
Development Division, the community may appeal the denial by seeking review and relief from
the Citizens Advisory Council.
ALLOCATION OF RECAPTURED CDBG FUNDS
Recaptured funds will be allocated annually on a pro rata basis to communities that do not have
recaptured funds in the current annual recapture process and have undisbursed funds not to
exceed 1.5 times the current program year allocation as of December 31. Recaptured funds will
be allocated to qualifying communities using the CDBG allocation formula criteria adopted by
the Board of Commissioners in Miscellaneous Resolution No. 84289. The formula is
P+2(L/M)+0C where P is the community's percentage of CDBG communities total population,
L/M is the community's percentage of CDBG communities total low and moderate income
people and OC is the community's percentage of CDBG communities total overcrowded
households.
Resolution #99209 August 19, 1999
Moved by Palmer supported by Galloway the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Jensen, Law, McCulloch, McPherson, Millard, Moffitt, Obrecht,
Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos, Causey-Mitchell, Colasanti,
Devine, Dingeldey, Douglas, Galloway, Garfield. (21)
NAYS: Gregory, Melton, Coleman. (3)
A sufficient majority having voted therefor, the resolution was adopted.
HEREBY_
op?
son, County Executive Oats
THP PrIor"""'"A" ar• ION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 19, 1999 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 19th davof August, 1999.
Gf William Caddell, County Clerk