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HomeMy WebLinkAbout93-040WHEREAS, 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 Housing Rehabilitation Income Reuse Program; and WHEREAS, the County desires to keep and use all Program Income at the local level; and WHEREAS, the County desires to adopt a Housing Rehabilitation Income Reuse Program, as shown in Exhibit A attached to this resolution. NOW, THEREFORE, BE IT RESOLVED THAT the Board of Supervisors request the California Department of Housing and Community Development to approve the Housing Rehabilitation Income Reuse Program 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 13th day of April 1993, by the following vote: AYES: Supervisors Meyer, Dolan, McLaughlin, Thomas and Chair Houx NOES: None ABSENT: None NOT VOTING: None Chair, B d of Supervisors County of Butte, State of California ATTEST: 7olan S. Blacklo ,Chief Administrative Officer and C rk o the Board By C1erk/Dep ty RESOLUTION APPROVING A HOUSING REHABILITATION INCOME REUSE PROGRAM FOR THE CDBG HOUSING REHABILITATION PROGRAM 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 $Q% 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 be targeted-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 Block Grant Program. II. RETURNED FUNDS--ESTABLISHMENT OF REVOLVING LOAN FUND Program income will contribute to a "gaol" of funds, referred to as a "revolving loan fund", that will be expended in the following manner to meet national Community Development Black Grant Program {CDBG) objectives. Not more than 18% of the monies expended from 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, the preparation of state or federal housing and community development applications, and similar administrative activities. EXHIBIT "A" A. Housins Rehabilitation Loans The fund will be used to make Ioans 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 less than 50% of Butte County median income). Loan conditions will be consistent with the Housing Rehabilitation Guidelines adapted by the County. The County will ensure that program activity delivery costs, in conjunction with general administrative and grant application costs, do not exceed the maximum amount allowed by HCD. Program activity delivery 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. Housin Rehabilitation Grants The County may use program income to make grants for eligible housing repairs under the Housing Rehabilitation Guidelines. The amount of program income used for grant applications shall not, in conjunction with general adminstrative and program activity delivery costs, exceed the percentage of program income allowed by HCD. Grants will be limited to very Iow-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 Ioan. YII. Authori The authority to take the actions outlined in this plan are assigned to the Butte County Public Works Director.