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HomeMy WebLinkAbout93-001RESOLUTION APPROVING A PROGRAM INCOME REUSE PLAN FOR THE CDBG HOUSING REHABILITATION PROGRAM WHEREAS, Butte County is the recipient of loan repayments {Program Income) generated from open and closed CDBG Housing Rehabilitation grants; and WHEREAS, these funds are recycled as part of the County's ongoing effort to address the housing needs of lower-income households throughout the County; and WHEREAS, the California State Department of Housing and Community Development requires that all jurisdictions who wish to keep and use program income at the local level have an adopted and approved Program Income Reuse Plan; and WHEREAS, the County desires to keep and use all Program Income at the local level; and WHEREAS, the County desires to adapt a Program Income Reuse Plan, as shown in Exhibit A attached to this resolution. NOW, THEREFORE, BE IT RESOLVED THAT the Board of Supervisors of the County of Butte hereby approves the Program Income Reuse Plan, as shown in Exhibit A; FURTHER BE IT RESOLVED THAT the Board of Supervisors request the California Department of Housing and Community Development to approve the Program Income Reuse Plan shown in Exhibit A. PASSED AND ADOPTED by the Board of Supervisors of the County of Butte, State of California, at the regular meeting thereof on the 12th day of :7anuary 1993, by the following vote: AYES:~upervisors Meyer, Dolan, McLaughlin, Thomas and Chair Houx NOES: None ABSENT: None NOT VOTING: None Chair, oard of Supervisors County of Butte, State of California ATTEST: John S. Blacklock, Chief Administrative Officer and Cler of the B d By: ~ C1erklDeputy ,: couNTY of BUTTE HOUSING REHABILITATION INCOME REUSE PROGRAM I. PURPOSE These guidelines establish policies and procedures for the administration and use of income received from activities funded under the State Community Development Block Grant program. The use of program income will achieve the following national objectives of the CDBG program: a. To benefit targeted-income group households (households earning less than 80% of the Butte County median income}. b. To prevent or eliminate slums and blight, or c. To meet urgent community development needs. At least 70% of the households benefitted from the expenditure of funds under this program income reuse plan will betargeted-income group households. Program income is defined as gross income received by the County and which has been directly generated from the use of CDBG funds. Examples of such income are payments of principal and interest on rehabilitation loans and interest received on the revolving loan fund created under this plan. For those activities partially assisted with CDBG funds, any income generated from such activities will be prorated to reflect the actual percentage of the activity financed from CDBG funds. The use of program income will comply with all state and federal requirements under the Community Development BIock Grant Program. iI. ; ~ 1tiT Program income will contribute to a "pool" of funds, referred to as a "revolving loan fund," that will he. expended in the following manner to meet national Community Development Block Grant Program (CDBG} objectives. Not more than 15% of the monies deposited into this fund will be used for general administrative activities, including, but ,not limited to, general administration of the fund, financial record keeping and reporting to the California Department of Housing and Community Development, the marketing of program activities financed by the fund, the preparation of CDBG applications, compliance with environmental and other state and federal laws prior to the use of funds, loan foreclosure, and similar administrative activities. EXHIBIT A A. HouL~~ng Rehabilitation T_.oans The Fund will be used to make loans to rehabilitate dwelling units. Loans will be limited to units occupied by households meeting the eligibility standards of the CDBG Program, known as "targeted income group" households. Properties receiving loans must be within the County unincorporated area, but need not be located within a specific target area, unless returned funds are part of program income pledged to a specific open grant to which target area requirements apply. Available funds will be used for correcting health and safety hazards, and emphasis will be placed on loans to very low-income households (households earning Tess than 54% of Butte County median income). Loan conditions wilt be consistent with the Housing Rehabilitation Guidelines adopted by the County. No more than l5% of the funds used to make housing rehabilitation loans may be expended for program administration. Program administrative costs include, but are not limited to, application intake and processing, initial inspections and work write- ups, contractor selection, loan set-up, construction monitoring, final inspection, and loan management. B. Housing Rehabilitat~~n Grants The County may use program income to make grants for eligible housing repairs under the Housing Rehabilitation Guidelines. No more than 15% of the available Funds will be used to make grants. Grants will be limited to very law-income owner- occupants only, and only when the County determines that it is financially infeasible for the owner to make loan payments and for the County to provide a deferred loan. III. AUTHORITY The authority to take the actions outlined in this plan are assigned tr, the Butte Count; Public Works Director.