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HomeMy WebLinkAboutResolutions - 2002.07.18 - 26818July 18, 2002 MISCELLANEOUS RESOLUTION #02161 BY: PLANNING AND BUILDING COMMITTEE, CHARLES PALMER, CHAIRPERSON IN RE: DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT — COMMUNITY AND HOME IMPROVEMENT DIVISION — 2002 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR CDBG, HOME AND ESG PROGRAMS AND 2001-2002 ANNUAL ACTION PLAN AMENDMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Oakland County Board of Commissioners authorized submittal of the Oakland County 2002 Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the 2002 Annual Action Plan contains a consolidated Federal grant application for activities designed to accomplish the goals and objectives for the Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program and the Emergency Shelter Grant (ESG) Program; and WHEREAS, HUD by letter dated November 29, 2001 transmitted to the Community and Home Improvement Division a Program Year 2002 consolidated allocation of $6,436,000 including $4,810,000 for CDBG, $1,484,000 for HOME and $142.000 for ESG, for the period of May 1, 2002 through April 30, 2003; and WHEREAS this is the 28th year of grant acceptance for these programs; and WHEREAS total program revenue for the 2002-2003 CDBG Program will be $6,412,090 including $4,810,000 grant allocation, $1,600,000 in estimated CDBG Revolving Loan Funds and $2,090 in Community Program Income; and WHEREAS, total program revenue for the 2002-2003 HOME Program will be $2,292,900 including $1,484,000 grant allocation, S333,900 grant match and $475,000 in estimated HOME Revolving Loan Funds; and WHEREAS, funding for the HOME program match is appropriated in the Oakland County 2002 Adopted Budget; and WHEREAS, total program revenue for the 2002-2003 ESG Program will be the grant allocation of $142,000; 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 2002-2003 CDBG, HOME and ESG programs appear in attachments A, B, C and D; and WHEREAS, the CDBG, HOME and ESG grant agreements have been reviewed by County Executive Departments through the County grant process (MR. #01320); and WHEREAS, acceptance of these grants does not obligate Oakland County to any future commitment; and WHEREAS, program budget amendments for 2002 CDBG and HOME Revolving Loan Fund actuals will be requested by resolution in 2003 after compilation of additional information and fiscal year closing; and WHEREAS, in the 2001 Annual Action Plan and Consolidated Grant Acceptance for CDBG, HOME and ESG (M.R. #01170), it was estimated that $1,400,000 would be generated from the Home Improvement Program Revolving Loan Fund and $450,000 would be generated from the Home Investment Partnership Act Revolving Loan Fund; and WHEREAS, $1,198,278.36 was actually generated in the Honie Improvement Revolving Loan Fund and $467,188 was actually generated in the Home Investment Partnership Act Revolving Loan Fund for Program Year 2001. Planning & Building Committee Vote: Motion carried on unanimous roll call vote. 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 $6,436,000, $1,600,000 in estimated 1-tome Improvement Revolving Loan Funds, $2,090 in Community Program Income, $475,000 in estimated HOME Revolving Loan Funds and HOME County match of $333,900 for a consolidated 2002 program year grant package totaling $8,846,990; and BE IT FURTHER RESOLVED that the 2001 Annual Action Plan and Consolidated Grant Acceptance be amended to reflect that the Home Improvement Revolving Loan Fund generated an actual amount of $1,198,278.36 and the 2001 Home Investment Partnership Act Revolving Loan Fund generated an actual amount of $467,188 in the program year period of May 1,2001 through April 30, 2002. BE IT FURTHER RESOLVED that the future level of service, including personnel, will be contingent upon the level of Federal funding available for these programs; and BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes both the Board of Commissioners Chairperson and the County Executive to execute the grant agreements and to approve amendments and extensions up to fifteen (15) percent variance from the award, consistent with the agreement as originally approved; and Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. Copy of attachments A, B, C and D on file in County Clerk's office. .1),INING AND BUILD' ATTACHMENT A OAKLAND COUNTY COMMUNITY AND HOME IMPROVEMENT DIVISION 2002 CONSOLIDATED ANNUAL ACTION PLAN U.S. Department of Housing and Urban Development COMPARISON OF GRANT APPLICATION WITH GRANTAWARDS Community Development Block Grant (CDBG), HOME Investment Partnerships Grant (HOME) and Emergency Shelter Grant (ESG) GRANT APPLICATION AWARD VARIANCE INCREASE FY 2002 ALLOCATION FY 2002 ALLOCAITON (DECREASE) CDBG $4,810,000 $4,810,000 $0 (0.0%) HOME $1,484,000 $1,484,000 $0 (0.0%) ESG $142,000 $142,000 $0 (0.0%) _ TOTAL $6,436,000 $6,436,000 $0 (0.0%) ATTACHMENT B COUNTY OF OAKLAND, MICHIGAN 2002 PROGRAM DESCRIPTION COMMUNITY DEVELOPMENT BLOCK GRANT INTRODUCTION In 1974, the Housing and Community Development Act reported that the nation's cities, towns and smaller urban communities faced critical social, economic and environmental problems. Nearly three decades later population growth and inadequate public/private investment in housing and other physical activities remain critical issues in many urban areas. The Housing and Community Development Act of 1974 has three national objectives: 1. Address the needs of low and moderate income people including senior citizens and the disabled 2. Eliminate slum and blight conditions; and 3. Meet urgent community needs where existing conditions pose a serious and immediate threat to the health or welfare of a community where other financial resources are not available to meet such needs. Each year the Community and Home Improvement Division submits an application for Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). This document represents the twenty-eighth submittal for funds. Since 1973, more than 131 million dollars has been available for eligible projects. This 2002 CDBG application has been complied to reflect receiving $4,810,000.00 in HUD funds and an estimated 1.6 million in Revolving Loan Funds for a total of more than 6.4 million dollars. The 2002 grant reflects a .03% decrease from funds received for the 2001 program year. It is anticipated that HUD will release CDBG funds during the latter part of May or early June 2002. Upon notification that HUD has released the funds, our fifty participating communities will receive notice that they may spend their allocations. COUNTY OF OAKLAND, MICHIGAN COMMUNITY DEVELOPMENT BLOCK GRANT 2002 REVENUES AND ALLOCATION REVENUES $4,810,000.00 $1,600,000.00 $2,090.00 Federal CDBG Allocation to Oakland County County Revolving Loan Fund (estimated) Community Program Income (Auburn Hills) Total CDBG Funding $6,412,090.00 ALLOCATIONS $925,000.00 $97,000.00 $2,690,200.00 $2,697,800.00 $2,090.00 County Administration County Housing Counselor Home Improvement Program Community Allocation Community Program Income (Auburn Hills) Total Allocation $6,412,090.00 COUNTY OF OAKLAND, MICHIGAN COMMUNITY DEVELOPMENT BLOCK GRANT 2002 BENEFIT DISTRIBUTION Category Benefit to Low- and Moderate-Income Persons Total Percent $4,974,015.00 77 Prevention/Elimination of Slums/Blight $277,635.00 4.3 Meeting an Urgent Community Need $0 0 Administration $1,022,003.00 16 Planning $138,437.00 2.2 Total $6,412,090.00 100 COUNTY OF OAKLAND, MICHIGAN COMMUNITY DEVELOPMENT BLOCK GRANT 2002 CATEGORICAL DISTRIBUTION Project Classification Communities County Total % 2408 Beautification $3,000.00 $3,000.00 .05 ' 2409 Beautification R.O.T. $500.00 $500.00 .01 2529 Code Enforcement R.O.T. $10,487.00 , $10,847.00 .17 2692 Downtown Improvements i $27,906.00 $27,906.00 .44 2696 Drainage Improvements $161,668.00 $161,668.00 2.5 2840 Fire Facility and Equip. $55,140.00 $55,140.00 .86 2908 Historic Preservation $31,672.00 $31,672.00 .49 3436 Recreation Facility/Equip. $41,586.00 $41,586.00 . .65 3552 Senior Citizen Center $114,939.00 $114,939.00 1.8 3560 Senior Citizen Vehicle $46,420.00 $46,420.00 .72 3580 Sidewalk Improvements $36,901.00 $36,901.00 .58 3616 Special Assessments $32,000.00 $32,000.00 3664 Street Improvements $193,398.00 $193,398.00 3 Rel-i6bilititiiiiilpfigrekritt6ii. -,,;.= 2528 Code Enforcement $223,559.00 ) $223,559.00 3.5 2332 Administration/Rehab. $16,500.00 ' $16,500.00 .26 2552 Clearance/Demolition $11,557.00 $11,557.00 .18 2720 Emergency Rehab Program $15,457.00 $15,457.00 .24 2928 Housing Rehabilitation $1,090,200.00 $1,090,200.00 17 3188 Minor Home Repair $313,552.00 $313,552.00 5 $1,600,000.00 $1,600,000.00 2933 Revolving Loan Fund 25 (est) (est) ' Barrie FErei P:eii6h12406 ' $212,000.00 $212,000.00 3.3 P,UMid Sir.VIC76"00384). ' , $916,208.00 $97,000.00 I $1,012,758.00 16 :PrarinCrif(3304)‘ , $138,437.00 $138,437.00 , 2.2 A'iliiiintiti-akih: (2328 - $97,003.00 $925,000.00 $1,022,003.00 16 Subtotal $2,697,890.00 $3,712,200.00 $6,410,000.00 Age;r* iiK 1 . 6 40 : ...A4:ci. i N' $2,090.00 Total $6,412,090.00 100 1 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COMPARISON OF 2002 APPLICATION WITH 2002 AWARD MAY 1, 2002 -APRIL 30, 2003 COMMUNITIES APPLICATION AWARD VARIANCE 2002 2002 INCREASE ALLOCATION ALLOCATION (DECREASE) CITIES Auburn Hills - $88,672.00 - $88,672.00 $0.00 Berkley 71,546.00 71,546.00 0.00 Birmingham 45.429.00 45,429.00 0.00 Clarkston 8.000.00 8,000.00 0.00 Clawson 59,491.00 59.491.00 0.00 Farmington 83,529.00 33,529.00 0.00 Ferndale 159,229.00 159,229.00 0.00 Hazel Pan< 148,024.00 148,024.00 0.00 Huntington Woods 12,390.00 12,390.00 0.00 Keego Harbor 17,705.00 17,705.00 0.00 Lathrup Village 9,537.00 9,537.00 0.00 Madison Heights 192,883.00 192.883.00 0.00 Northville 8,000.00 8,000.00 0.00 Novi 109,749.00 109,749.00 0.00 Oak Park 206,560.00 206,560.00 0.00 Orchard Lake Village 8,000.00 8,000.00 0.00 Pleasant Ridge 8,000.00 8,000.00 0.00 Rochester 29.620.00 29,620.00 0.00 Rochester Hills 174,110.00 174,110.00 0.00 South Lyon 27,906.00 27,906.00 0.00 Sylvan Lake 8,000.00 8,000.00 0.00 Troy 213,290.00 213,290.00 0.00 Walled Lake 32,394.00 32,394.00 0.00 Wixom 43,094.00 43,094.00 0,00 TOTAL CITIES 1,715,158.00 1,715,158.00 0.00 TOWNSHIPS Addison 19,924.00 19,924.00 0.00 Brandon 47,577.00 47,577.00 0.00 Commerce 72,491.00 72,491.00 0.00 Groveland 18,840.00 18,840.00 0.00 Highland 76,913.00 75,913.00 0.00 Holly 12,087.00 12,087.00 0.00 Independence 65,337.00 65,337.00 0.00 Lyon 37,188.00 37,188.00 0.00 Milford 19,301.00 19,301.00 0.00 Oakland 20,694.00 20,694.00 0.00 Orion 77,111.00 77,111.00 0.00 Oxford 35,093.00 35,093.00 0.00 Rose 21,972.00 21,972.00 0.00 Royal Oak 52,868.00 52,568.00 0.00 Springfield 38,919.00 38,919.00 0.00 West Bloomfield 131,710.00 131,710.00 0.00 White Lake 93,147.00 93,147.00 0.00 TOTAL TOWNSHIPS 841,172.00 841,172.00 0.00 VILLAGES Beverly Hills 19,545.00 19.545.00 0.00 Franklin 8,000.00 8,000.00 0.00 Holly 33,923.00 33,923.00 0.00 Lake Orion 13,942.00 13.942.00 0.00 Leonard 8,000.00 8.000.00 0.00 Milford 21,583.00 21.583.00 0.00 Ortonville 8,000.00 8,000.00 3.00 Oxford 13,802.00 13,802.00 0.00 Wolverine Lake 16,765.00 16.765.00 0.00 TOTAL VILLAGES 143,560.00 143,560.00 0.00 TOTAL COMMUNITIES 2,699,890.00 2,699,890.00 0.00 OAKLAND COUNTY Housing Rehabilitation (Grant) 90,355.00 90,355.00 0.00 Housing Rehabilitation (Revolving Loan. Est.) 1,600,000.00 1,600,000.00 Housing Rehab Administration 999,845.00 999,845.00 CDBG Administration 925,000.00 925,000.00 0.00 Housing Counselor 97,000.00 97,000.00 0.00 TOTAL COUNTY 3,712,200.00 3,712,200.00 0.00 TOTAL GRANT $6,412,090.00 $6,412,090.00 $0.00 ** includes $2,09C.00 in Program Income earned in prior year. ATTACHEMENT C COUNTY OF OAKLAND, MICHIGAN 2002 PROGRAM DESCRIPTION HOME INVESTMENT PARTNERSHIPS PROGRAM INTRODUCTION In accordance with the federal HOME Investment Partnerships Act, Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990 (P.L. 101-625), the County of Oakland will administer a HOME program designed to expand the supply of decent, safe, sanitary and affordable housing for low-income persons through strengthened public-private partnerships. ESTIMATED USE OF HOME FUNDS & MATCHING CONTRIBUTIONS The Consolidated Plan indicates that Oakland County's housing stock is overwhelmingly single-family owner-occupied. The HOME Program's goal of "expanding the supply of decent, safe, sanitary, and affordable housing" for low-income persons (s.92.1 ) is met 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 paragraphs detail the county's plan for the use of 2002 HOME funds. A. Reservation of HOME Funds for County Operated Programs Moderate Rehabilitation: Oakland County plans to undertake moderate rehabilitation of single-family owner-occupied housing for low-income families. Specifically, the program will rehabilitate the principal residence of an owner whose family qualifies as very low income (i.e. income not exceeding 50 percent of the area median income) at the time HOME funds are committed to the housing (s.92.254(b)). Participants will reside in one of the 50 communities participating in the Oakland County HOME Program. (See attached participating communities) 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 $156,750 (56FR36985). These figures may vary as HUD publishes new limits in the Federal Register. Housing that is assisted with HOME funds will minimally meet HUD's Section 8 Housing Quality Standards (HQS). 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, and barrier-free access. The total property-related indebtedness after improvement, shall not exceed the property value. This value is determined by a market analysis 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 deferred home improvement loan. Income eligibility will be determined for each household based on gross household income and family size in accordance with HUD Section 8 Lower Income Limits. Eligible homeowners will receive a zero percent deferred loan. Loans will be limited to $18,000 plus a $2000 contingency for a total possible loan amount of $20,000 (maximum loan amounts are subject to periodic updates.) As mandated by Congress, all housing rehabilitation projects funded with FY 2002 HOME funds will be subject to matching funds requirements. Oakland County will ensure that rehabilitation projects are funded at a ratio of one dollar matching funds per every four dollars of HOME monies expended, in accordance with federal guidelines (s.92.218). County Program Administration: Ten percent of the County's 2002 HOME grant allocation will be reserved for administrative and planning costs in accordance with s.92.207. B. Reservation of HOME Funds for Community Housing Development Organizations (CHD0s) As required by HOME program regulations at s92.300, 15 percent of HOME funds received will be distributed to CHDOs. Oakland County will continue to provide technical assistance to the three certified Oakland County CHDOs under contract with Oakland County to ensure continued successes with HOME funding. In keeping with the goals of the County's Consolidated Plan, CHDOs may be granted funds to implement Home Buyer Assistance through acquisition with rehabilitation and /or new construction. Home Buyer Assistance: CHDOs may use HOME funds to acquire and rehabilitate existing single family homes for sale to qualified low income home buyers or acquire vacant property and construct new or emplace modular homes for sale to qualified low income homebuyers. The maximum amount of HOME funds a CHDO may invest in a home is established by HUD based on the number of bedrooms per unit. HOME MAXIMUM PER-UNIT SUBSIDY FOR OAKLAND COUNTY 0-Bedroom 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom $68,676 $78,723 $95,727 $123,838 $135,926 The appraised value of the property after rehabilitation may not exceed the single family mortgage limits established by HUD ($156,750 for a single family unit). The sale price of the home may not exceed the appraised value limit. Resale Provisions: Housing that is for purchase and qualifies as affordable housing is subject to resale and/or recapture provisions [24CFR 92.254(a)(4)] for minimum periods of 5 years where the per unit amount of HOME funds provided is less than $15,000; 10 years where the per unit amount of HOME funds provided is $15,000 to $40,000; and 15 years where the per unit amount of HOME funds provided is greater than $40,000. Under the county's recapture provisions, the HOME investment that is subject to recapture is the HOME assistance that enables the homebuyer to buy the dwelling unit. This assistance will be a home buyer subsidy ( $1,000.00 minimum) that makes the home affordable to a low income home buyer. The home buyer assistance will be a deferred payment loan with 0% interest, payable upon the conversion of the property use and /or ownership and will be secured by an Oakland County Community and Home Improvement mortgage and note. The recaptured funds must be used to carry out HOME- eligible activities. At the time of purchase, housing that is newly constructed or rehabilitated using HOME funds must meet certain property standards including Housing Quality Standards, local code standards, and rehabilitation standards. As mandated by Congress, all housing rehabilitation and/or new construction projects funded with FY 2002 HOME funds will be subject to matching funds requirements. Oakland County will ensure that rehabilitation projects are funded at a ratio of one dollar matching funds per every four dollars of HOME monies expended, in accordance with federal guidelines (s.92.218). A contract must be executed by a CHDO prior to disbursement of any funds under the HOME program. This grant agreement will identify the grant amount, grant terms and the programmatic responsibilities of the CHDO. A monitoring plan for the HOME program will be followed by the county and CHDO. The plan includes providing on-going technical assistance to CHDOs, conducting annual program audits and required single audits, monitoring audits for identified deficiencies, assessing spending performance through monthly reviews of financial documents, conducting on-site property inspections to authorize project progress payments and reviewing payment requests and project files for compliance with program requirements and necessary documentation. Letters of deficiencies will be provided to CHDOs and corrective actions taken. HOME TENANT- BASED RENTAL ASSISTANCE Although tenant based rental assistance is identified as a need in Oakland County, single family housing rehabilitation has been identified as the priority need in fulfilling Oakland County's HOME Program goal of "expanding the supply of decent, safe, sanitary, and affordable housing" 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 As indicated in 24 CFR 92.205(b) Oakland County will not invest HOME funds in a loan guarantee account. AFFIRMATIVE MARKETING In accordance with 24 CFR 92.351(a), Oakland County will carry out the following affirmative marketing procedures for all HOME assisted home buyer projects of five or more units. Affirmative marketing will consist of actions to provide information to attract eligible persons in the housing market area to the available housing without regard to race, color, national origin, sex, religion, familial status or disability. A. An advertising campaign will be developed within the market area to provide information concerning the Federal fair housing laws and the County's Affirmative Marketing Plan. All promotional materials will include the use of the Equal Housing Opportunity logotype or slogan in press releases and solicitations. B. Each Community Housing Development Organization (CHDO) under contract with Oakland County must certify that they will affirmatively market projects of five or more housing units in accordance with the County's Affirmative Marketing Plan. In addition, each CHDO must provide written procedures indicating their plan to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach. C. The County will maintain records to document each CHDOs affirmative marketing efforts for HOME projects and assess the results of each. D. Annually, Oakland County will meet with each certified Oakland County CHDO to assess the success of their affirmative marketing actions and discuss corrective actions that will be taken where affirmative marketing requirements were not met. WOMEN AND MINORITY BUSINESS ENTERPRISE (W/MBE) OUTREACH Oakland County's strategy to achieve W/MBE participation in the HOME Program focuses on enhancing and overseeing the existing W/MBE outreach program designed for the single family owner-occupied housing rehabilitation program administered by Oakland County. The county will maintain a list of licensed and insured contractors/residential builders for both the CDBG and HOME financed home improvement programs. Contractors on the contractors list are currently invited to bid on home improvement jobs on an alternating basis. The county will make every effort to ensure that at least one W/MBE will be invited to bid every home improvement job under the HOME and CDBG funded home improvement programs. To expand the program's W/MBE opportunities, the county will contact the Michigan Department of Commerce and area contractor associations for updated W/MBE resource directories. Letters of introduction and invitation to the contractor's list will be mailed to the women and minority businesses. Also, the county will track and attend W/MBE seminars throughout southeast Michigan in order to promote the Home Improvement Program to potential contractors. Oakland County will facilitate small W/MBE in securing bank loans for working capital through assignments of accounts receivable by issuing two-party checks. REFINANCING Oakland County does not intend to refinance existing debt secured by multifamily housing rehabilitated with HOME funds. TOTAL $2,292,900 COUNTY OF OAKLAND 2002 HOME PROGRAM FUND SCHEDULE 2002 REVENUES 2002 HOME GRANT $1,484,000 MATCH OBLIGATION 333,900 REVOLVING LOAN FUNDS 475,000 2002 DISTRIBUTION HOME 25% MATCHING TOTAL FUNDS REQUIREMENT REVOLVING LOAN FUND HOUSING REHABILITATION ACTIVITIES $1,113,000 $278,250 475 000 $1,866,250 , Oakland County Home Improvement Program CHDO ACTIVITIES $222,600 $55,650 $278,250 Community Housing Development Organizations (CHDO's) (15% of HOME Allocation) ADMINISTRATION $148,400 Not Applicable $148,400 Oakland County (10% of HOME Allocation) TOTAL $1,484,000 $333,900 475,000 $2,292,900 The HOME program requires a 25% match of funds allocated for housing rehabilitation activities and/or new construction activities. The 2002 HOME program estimates Revolving Loan Funds in the amount of $475,000 for housing rehabilitation activities. No county match is required for these funds. APPLICATON AWARD VARIANCE 0 0 HOME INVESTMENT PARTNERSHIP PROGRAM COMPARISON OF 2002 APPLICATION WITH 2002 AWARD MAY 1, 2002 APRIL 30, 2003 HOME FUNDS $1,113,000 $222,600 HOME GRANT HSG. REHAB CHDO ACTIVITIES 15% OF HOME FUNDS 25% MATCH REQ. HOME FUNDS 25% MATCH REQ. HOME FUNDS 25% MATCH REQ. $278,250 $1,113,000 $278,250 $55,650 $222,600 $55,650 0 0 ADMINISTRATION $148,400 NOT APPLICABLE $148,400 NOT APPLICABLE 0 0 10% OF HOME FUNDS TOTAL $1,484,000 $333,900 $1,484,000 $333,900 0 0 2002 MATCH 2002 BUDGETED VARIANCE OBLIGATION HOME MATCH $333,900 $335,250 $1,350 ESTIMATED 2002 HOME REVOLVING LOAN FUND HOUSING REHAB 475,000.00 GRANT $1,484,000.00 MATCH 333,900.00 REVOLVING LOAN FUND 475,000.00 TOTAL $2,292,900.00 ATTACHEMENT D COUNTY OF OAKLAND, MICHIGAN 2002 PROGRAM DESCRIPTION EMERGENCY SHELTER GRANT (ESG) PROGRAM STATEMENT OF NEED Assessment of the five shelters that participated in the 2000 Oakland County Emergency Shelter Grant (ESG) program reveals 1,975 men, women, and children used these facilities from June 2000 - May 2001. Homelessness continues to be a countywide problem. INVENTORY OF FACILITIES AND ASSISTANCE SERVING THE HOMELESS The five shelters that received 2001 ESG program funds are the South Oakland Shelter (SOS), HAVEN (Help Against Violent Encounters Now), New Bethel Outreach Ministry, ,Lighthouse PATH, and the Common Ground Sanctuary (A Step Forward). Each participating shelter provides services for residents from all parts of Oakland County. HAVEN and New Bethel Outreach Ministry are located in the City of Pontiac. Lighthouse PATH is located in Pontiac and provides added services in the City of Oak Park. The Common Ground Sanctuary is located in the City of Royal Oak. All of the shelters except the South Oakland Shelter are permanently sited. SOS rotates its site each week throughout many of the County's CDBG participating jurisdictions. The South Oakland Shelter (SOS) is a consortium of approximately 50 sites designed to provide a weekly "rotating" emergency shelter program. The SOS network primarily consists of churches and synagogues, each with the capacity to house and provide services to approximately 30 homeless individuals at any one time. SOS provides overnight lodging; morning and evening meals; box lunches for those seeking employment; professional counseling; personal care packages; laundry service; transportation; and referrals for clothing, housing, employment, social service and social security assistance; medical concerns; veteran matters and substance abuse issues. HAVEN (Help Against Violent Encounters Now) is a private, nonprofit agency that serves all of Oakland County as an emergency shelter for women and children left homeless due to physical, sexual, and/or emotional abuse. HAVEN's shelter in Pontiac has a capacity of 65 beds, but often exceeds this number. This facility provides food, shelter, clothing, and supportive counseling services. New Bethel Outreach Ministry, operated by the New Bethel Baptist Outreach Ministry is a faith-based organization located in Pontiac. It has 24 beds for women and children. Lighthouse PATH, (a division of Lighthouse of Oakland County) is a Pontiac-based nonprofit agency providing transitional housing and shelter for women and their young children. PATH operates 18 private apartments and six adjacent residences in Pontiac within a two-block radius. Supportive services include shelter, counseling, training, mentoring, and daycare. Another 10 family units are located in Oak Park with the same supports. PATH has a shelter capacity of 84 beds. The Common Ground Sanctuary's "A Step Forward" is a transitional living program for homeless or at- risk youth ages 16-20. The program promotes self-sufficiency through residential and non-residential services. They provide a 24-hour crisis line, information and referrals; skills building training; meals; individual, family, group, and aftercare counseling; peer counseling; mentoring; substance abuse education and assessment; family preservation; and support groups for youth, parents, and families. The CGS, ASF program has 7 beds with an additional 4 for the graduated program. These shelters are responding to the immediate needs of Oakland County's homeless population. Emergency Shelter Grant funds will enable these providers to target services to the homeless to foster the development of economic autonomy, self-sufficiency, and functional family units. The County views the Emergency Shelter Program as an essential component of its plan to assist the homeless. The homeless do not fit into a traditional social service system. Many lack jobs, the basic means to take care of themselves, and social support networks. The homeless may also be confronted with other issues including substance abuse; physical, emotional and/or mental health concerns; and vocational needs. HAVEN, New Bethel Outreach Ministry, and SOS have taken the first step in attempting to address a very complex issue by simply offering a safe place to sleep, a warm meal, and a listening ear. Lighthouse PATH and Common Ground Sanctuary offer housing and independent living options. Oakland County plans to allocate ESG monies based upon the program's goal to expand and improve the quality of existing emergency shelters. Local non-profit organizations would receive funding to support certain operating expenses such as maintenance, insurance, utilities, and furnishings as well as essential social service expenses and organizational support (shelter administration) costs as provided by ESG regulations. Funds will be allocated on a competitive basis. The following elements will be considered: the ratio of beds utilized at 100% capacity (utilization), the ratio of clients whose last know address was a community that participates in the Oakland County CDBG program weighted twice (residency), and the number of available beds (capacity). The County will ensure that a reasonable division of the funds can be reached. The budget is based on the premise that Oakland County will not take its five percent allowance for administration, and that each of the participating shelters will take the maximum allowable for essential services (30 percent) and organizational support (shelter administration 10 percent). Donations of time, material, and labor satisfy match requirements. ANTICIPATED BUDGET Operations and Maintenance Expenses Essential Services Expenses Organizational Support (Shelter Administration) Total $ 85,200.00 $ 42,600.00 $ 14,200.00 $142,000.00 FINANCE COMMITTEE July 18, 2002 FISCAL NOTE (MISC. 102161) BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT - COMMUNITY AND HOME IMPROVEMENT DIVISION - 2002 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR CDIESG, HOME AND ESG PROGRAMS AND 2001-2002 ANNUAL ACTION PLAN AMENDMENT 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. The resolution authorizes acceptance of grant funding from the U.S. Department of 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 $6,436,000. 2. The award includes $4,810,000 for the Community Development Block Grant, $1,484,000 for the HOME Investment Partnership Grant, and $142,000 for the Emergency Shelter Grant. 3. The award also includes $1,600,000 in estimated Home Improvement Revolving Loan Funds, $2,090 in Community Program Income, $475,000 in estimated HOME Revolving Loan Funds, and requires a HOME County match of $333,900 for a consolidated 2002 program year grant total of $8,846,990. 4. The grant award is the same amount as the application. 5. Local County match of $333,900 is required for the HOME Investment Partnership Grant and is available in the Grant Match line item of the Community and Home Improvement Division's FY 2002 General Fund Budget. No additional appropriation is required. 6. The funding period is for the program year May 1, 2002 through April 30, 2003. 7. The resolution also amends the 2001 Annual Action Plan and Consolidated Grant Acceptance to reflect actual funding generated by the Home Improvement Revolving Loan Fund and the 2001 Home Investment Partnership Act Revolving Loan Fund in the program year period of May 1, 2001 through April 30, 2002. Finance Committee Vote: Motion carried on unanimous roll call vote with Causey-Mitchell absent Resolution #02161 July 18, 2002 Moved by Dingeldey supported by Webster the resolutions on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton, Middleton, Moffitt, Moss, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda, were adopted (with accompanying reports being accepted). HE FOREGOING7S017UTION Dato k.)r son, County Executive 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 July 18, 2002, 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 18th day of July, 2002. G. William Caddell, County Clerk