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HomeMy WebLinkAboutResolutions - 2024.11.21 - 41738 AGENDA ITEM: Memorandum of Understanding between the Oakland County Board of Commissioners and the Oakland County Neighborhood and Housing Development Division to Manage Unobligated American Rescue Plan Act Funds for the Housing Trust Fund Project DEPARTMENT: Health & Human Services - Neighborhood and Housing Development MEETING: Board of Commissioners DATE: Thursday, November 21, 2024 1:46 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4647 Motion to authorize the execution of a Memorandum of Understanding between the Oakland County Board of Commissioners and the Neighborhood and Housing Development Division within Oakland County for the Neighborhood and Housing Development Division to manage the $18,000,000 unobligated American Rescue Plan Act dollars appropriated to the Oakland County Housing Trust Fund project; further, effectuate the transfer of American Rescue Plan Act dollars to Oakland County Housing Trust Fund project applicants for the creation and preservation of affordable or attainable housing units; further, authorize the Chair of the Board to execute the agreement. ITEM CATEGORY SPONSORED BY Contract Penny Luebs INTRODUCTION AND BACKGROUND Pursuant to the Local Fiscal Recovery Funds program, the United States Department of Treasury’s Final Rules, and the March 29, 2024 Guidelines and Frequently Asked Questions, the Board of Commissioners seeks to enter into a Memorandum of Understanding with the Oakland County Neighborhood and Housing Development Division to manage the Housing Trust Fund Project. The Oakland County Board of Commissioners (BOC) via Miscellaneous Resolution (MR) #22135, #23165, and # 23166, authorized a total appropriation of $18,000,000 in American Rescue Plan Act Local Fiscal Recovery Funds to the Oakland County Housing Trust Fund project to increase available or attainable rental and homeowner occupied housing in Oakland County. BUDGET AMENDMENT REQUIRED: No Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Kyle Hines, Housing Trust Fund Manager ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 11/21/2024 AGENDA DEADLINE: 11/21/2024 9:30 AM ATTACHMENTS 1. HTF SLFRF MOU Resolution - Clean 2. Interdepartmental MOU v2 - HTF - Clean csa 10.24.24 3. ARPA MOU Memo COMMITTEE TRACKING 2024-11-12 Public Health & Safety - Recommend to Board 2024-11-21 Full Board - Adopt Motioned by: None Seconded by: None Yes: None (0) No: None (0) Abstain: None (0) Absent: (0) Memorandum of Understanding between the Oakland County Board of Commissioners and the Neighborhood and Housing Development Division with Oakland County WHEREAS the United States Treasury allocated Oakland County $244,270,949 of Local Fiscal Recovery Funds (LFRF) established under the American Rescue Plan Act (ARPA) of 2021; and WHERAS On April 14, 2022, via Miscellaneous Resolution (MR) #22135, the Oakland County Board of Commissioners (BOC) authorized the creation of the Oakland County Housing Trust Fund project and a one-time appropriation in the amount of $5,000,000 in ARPA LFRF (#21285) to the Oakland County Housing Trust Fund project; and WHERAS On December 7, 2023, via Miscellaneous Resolution (MR) #23165, the BOC authorized a one-time appropriation in the amount of $5,000,000 in ARPA LFRF (#21285) to the Oakland County Housing Trust Fund project; and WHERAS On December 7, 2023, via Miscellaneous Resolution (MR) #231656, the BOC authorized a one-time appropriation in the amount of $8,000,000 in ARPA LFRF (#21285) to the Oakland County Housing Trust Fund project; and WHEREAS the BOC seeks to enter into a Memorandum of Understanding (MOU) with the Neighborhood and Housing Development Division (NHD) within Oakland County for NHD to manage the $18,000,000 ARPA LFRF appropriated to the Oakland County Housing Trust Fund project and effectuate the transfer of ARPA LFRF to Oakland County Housing Trust Fund project applicants for the creation and preservation of affordable or attainable housing unitsl; and WHEREAS BOC and NHD understand the MOU is required pursuant to the LFRF program, the United States Department of Treasury’s Final Rules, and the March 29, 2024 Guidelines and Frequently Asked Questions. NOW THEREFORE BE IT RESOLVED that in accordance with the above, the Oakland County Board of Commissioners authorizes the execution of a Memorandum of Understanding between the BOC and the Neighborhood and Housing Development Division (NHD) within Oakland County for NHD to manage the $18,000,000 ARPA LFRF appropriated to the Oakland County Housing Trust Fund project and effectuate the transfer of ARPA LFRF to Oakland County Housing Trust Fund project applicants for the creation and preservation of affordable or attainable housing units, said MOU is subject to review by Corporation Counsel. OAKLAND COUNTY MEMORANDUM OF UNDERSTANDING BETWEEN OAKLAND COUNTY BOARD OF COMMISSIONERS AND the NEIGHBORHOOD & HOUSING DEVELOPMENT Division of the HEALTH AND HUMAN SERVICES Department within Oakland County This Memorandum of Understanding (“MOU”) is made and entered into between the Oakland County Board of Commissioners, (“BOC”), a Michigan Constitutional and Municipal Corporation, a political subdivision of the state of Michigan, whose address is 1200 North Telegraph, Pontiac, Michigan 48341 and Oakland County Neighborhood & Housing Development Division (“NHD”). County and NHD may be referred to individually as a “Party” and jointly as "Parties". The Parties agree as follows: 1. PURPOSE OF MOU. In accordance with MR 22-135, MR 23-165, and MR 23-166, the BOC appropriated the amounts of $5,000,000, $5,000,000, and $8,000,000, respectively, for a total of $18,000,000 for the project as described by this MOU. Further, BOC and NHD understand this MOU is required pursuant to the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program, the United States Department of Treasury Final Rules, and March 29, 2024 guidelines and FAQ. 2. SLFRF CONDITIONS. A.State the conditions on the use of funds by the division, department, or part of government receiving funds to carry out the project: BOC authorized the Oakland County Housing Trust Fund Project (“HTF”) via MR 22- 135 to fund the creation of affordable or attainable housing units or other uses that support the creation of affordable or attainable housing, including, but not limited to, acquisition, predevelopment, and rehabilitation of residential properties for single family or multifamily developments. MR 22-135 authorizes NHD to execute the contract documents required to effectuate the transfer of HTF monies to HTF applicants for the creation of affordable or attainable housing units, subject to review by Risk Management and Corporation Counsel after a proposal is approved accordingly by the HTF Board or BOC. HTF funds shall be invested in affordable and workforce housing developments that are in conformance with MR 22-135, the HTF application and bylaws, and the SLFRF program, the United States Department of Treasury Final Rules, and March 29, 2024 guidelines and FAQ. In general, all SLFRF funds shall support units for households earning less than 120% of the area median income (AMI) as set forth by the SLFRF program, the United States Department of Treasury Final Rules, and March 29, 2024 guidelines and FAQ B.Describe how the provision of the funds from one agency, department, or part of government to another to carries out an eligible use of SLFRF funds: or C.Describe how the use of funds governs the procurement of goods or services by one division, department, or part of the County from another: 3. SCOPE. Designate a project manager and describe the specific requirements of the project (the scope of work to be performed, all project deliverables, period of performance, and any other information regarding the project): Kyle Hines, Housing Trust Fund Manager, shall serve as the project manager for the HTF. Through the investment of HTF funds, it is anticipated that over 600 units of affordable and attainable housing spread over 9 different housing developments will be created or preserved throughout the County. All $18,000,000 in HTF funds have been approved and recommended by the HTF Board of Directors for approval by the BOC. NHD will enter into contract with HTF applicants, and all funds shall be allocated to eligible affordable or attainable housing developments by September 30, 2026. Per SLFRF program rules, all developments receiving SLFRF funds from the HTF shall remain affordable for a period of not less than 20 years that will be enforced by the recordation of a declaration of restrictive covenants on all properties. NEIGHBORHOOD & HOUSING DEVELOPMENT Division of the HEALTH AND HUMAN SERVICES Department BY: DATE: Leigh-Anne Stafford Director, Oakland County Health and Human Services THE COUNTY OF OAKLAND BY: DATE: David T. Woodward Chairperson, Oakland County Board of Commissioners MEMO To: Chief Deputy County Executive Subject: SLFRF Obligation FAQs Date: November 7, 2024 Executive Summary 1. Key Takeaway: The introduction of interagency MOUs as an obligation vehicle provides the County a tool to obligate dollars more efficiently and allows more time to continue refining its reallocation decisions. This memo summarizes preliminary takeaways from the updated FAQ released earlier this year. Interpretation of this guidance may evolve as additional information is released. Summary of FAQ Significant Changes The updated SLFRF FAQs provide funding recipients with more pathways to obligate funds before the December 31, 2024 and more flexibility to adjust obligations after December 31, 2024 in response to changing program needs. Key Language from Treasury: “Treasury considers an interagency agreement, including an agreement in the form of a memorandum of understanding (MOU), to constitute a “transaction requiring payment” similar to a contract or subaward and therefore an obligation for purposes of the SLFRF rule, if the agreement satisfies one of the following conditions: •it imposes conditions on the use of funds by the agency, department, or part of government receiving funds to carry out the program; •it governs the provision of funds from one agency, department, or part of government to another to carry out an eligible use of SLFRF funds; or •it governs the procurement of goods or services by one agency, department, or part of government from another, and the agreement also satisfies each of the following conditions: •it sets forth specific requirements, such as a scope of work and project deliverables; •it is signed by the parties to the agreement, or otherwise evidences that each party has assented to the agreement; and •it does not disclaim any binding effect or state that it does not create rights or obligations.” Considerations: Interagency MOUs may be easier and faster to execute than contracts, grant agreements or other legal vehicles and may serve as an “umbrella obligation” for other types of costs, allowing recipients to more broadly obligate funds within a discrete program in advance of the expenditure deadline. In addition, the new FAQs appear to indicate that personnel costs for positions that remain unfilled as of 12/31/24 may be obligated through an MOU.