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HomeMy WebLinkAboutResolutions - 1999.05.27 - 25810May 27, 1999 MISCELLANEOUS RESOLUTION # 99 1 2 2 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: COMMUNITY DEVELOPMENT DIVISION - HOME IMPROVEMENT PROGRAM GUIDELINE CHANGES TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS the Community Development Division has administered the Home Improvement Program since 1976 to rehabilitate single family owner occupied housing for low and moderate income persons and improve our residential neighborhoods; and WHEREAS in Miscellaneous Resolutions #81237, #82233, #90201,#94082 and #96151 the Oakland County Board of Commissioners approved guidelines and amendments for administering the Home Improvement Program; and WHEREAS annual rates of inflation and rising construction costs have reduced the purchasing power of the $12,000 (plus 10% contingency) maximum home improvement loan amount approved in 1996 and have eroded the Program's capacity to bring a house to a decent, safe and sanitary condition as required by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS the Community Development Division recommends that the current maximum loan amount of $12,000 (plus 10% contingency) be increased to $14,000 (plus $1,000 contingency) as a means to offset economic influences that have eroded the program's housing rehabilitation capacity; and WHEREAS the current Home Improvement Program loan limitation guidelines mandate that total property related indebtedness after improvement shall not exceed a market value analysis or the State Equalized Value (SEV) multiplied by a factor determined annually by the Oakland County Equalization Division. The factor is based on annual median sales and assessed values computed for each community; and WHEREAS the Community Development Division recommends that this be changed to indicate that the total property related indebtedness after improvement shall not exceed a market value analysis provided by the homeowner or market value as identified by the Oakland County Mortgage Application Acceleration Program (MAAP); WHEREAS U.S. Department of Housing and Urban Development modified the way Adjusted Household Income (AHI) is calculated by deducting $480 for each dependent, other than head of household or spouse, who is under 18, handicapped or disabled, or full time student. Four hundred dollar deductions are allowed for households whose head of household or spouse is 62 years of age or older, or disabled. In addition, reasonable child care expenses for children 12 and under that enable a family member to work or go to school; and, expenses for the care of a handicapped or disabled family member, including attendant care, equipment and apparatus, in excess of 3% of annual gross income that enable that person or another person to work are deductible; and WHEREAS the Community Development Division recommends that the Adjusted Household Income methodology be changed to reflect these new HUD guidelines; and WHEREAS the Oakland County Community Development Citizens Advisory Council has unanimously approved the Home Improvement Program Guideline changes that increase the maximum home improvement loan amount to $14,000 (plus $1,000 contingency), changes the current Adjusted Household Income methodology by deducting $480 for each dependent, other than head of household or spouse, who is under 18, handicapped or disabled, or full time student. Four hundred dollar deductions are allowed for households whose head of household or spouse is 62 years of age or older, or disabled. Reasonable child care expenses for children 12 and under that enable a family member to work or go to school; and, expenses for the care of a handicapped or disabled family member, including attendant care, equipment and apparatus, in excess of 3% of annual gross income that enable that person or another person to work are deductible. In addition, property indebtedness shall not exceed a market value analysis provided by the homeowner or market value as determined by the Oakland County Mortgage Application Acceleration Program (MAAP). NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approve the Home Improvement Program Guideline changes that increase the maximum home improvement loan amount to $14,000 (plus $1,000 contingency), changes the current Adjusted Household Income methodology by deducting $480 for each dependent ,other than head of household or spouse, who is under 18, handicapped or disabled, or full time student. Four hundred dollar deductions are allowed for households whose head of household or spouse is 62 years of age or older, or disabled. In addition, reasonable child care expenses for children 12 and under that enable a family member to work or go to school; and, expenses for the care of a handicapped or disabled family member, including attendant care, equipment and apparatus, in excess of 3% of annual gross income that enable that person or another person to work are deductible. It is also agreed that property indebtedness shall not exceed a market value analysis provided by the homeowner or market value as determined by the Oakland County Mortgage Application Acceleration Program (MAAP). CHAIRPERSON, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. Planning & Building Committee Vote: Motion carried on uanimous roll call vote with Schmid absent. Resolution #99122 May 27, 1999 Moved by Moffitt supported by Millard the resolution be adopted. AYES: Appel, Causey-Mitchell, Colasanti, Coleman, Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. I HEREBPPROYEIYE FOREGOING RESOLUTION L Brooks Patteyron. County Executive Date 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 May 27, 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 2Xa day/Of May, 1999. G. William Caddell, County Clerk