Title
Adopt City Council Resolution Amending the FY 2016-17 Budget to Use De-Federalized CDBG Funds Not to Exceed $5,000 to Complete Final HOME Owner-Occupied Rehabilitation Project (Budget Amendment No. 2017-24, Account No. 131-5010-0630)
Summary
The City was awarded a Home Investments Partnership (HOME) grant in late 2013 to implement an Owner Occupied Rehabilitation Program. The grant awarded $487,500 for pre-loan and loan/grant funding and $12,500 for general administration tasks. Funding is for health and safety repairs for owner-occupied residences of income-qualified residents of Fort Bragg. All loans are zero interest, 30-year, deferred payment loans that must be repaid if homeowners refinance, transfer ownership, or leave their homes. Grants are allowed in conjunction with loans only for necessary homeowner relocation costs during construction and/or for lead-based paint evaluation and remediation. Loans may only be provided to income-qualified homeowners who must also meet a range of other requirements including documented need for health and safety home improvements and after-rehabilitation values that fall within modest limits. The funding allows up to 24% of loan/grant amounts for “Activity Delivery” tasks including applicant eligibility certification, termite inspections, lead-based paint inspections, project bids, loan underwriting, and direct project supervision and management. The City procured Michael Baker International (MBI) as Program Operator responsible for all aspects of pre-loan qualifying, loan development, loan closing, and construction management. Per contract terms, MBI can charge up to 75% of Activity Delivery allowances and up to 38% of General Administrative funds. The City retains up to 25% of Activity Delivery allowances and up to 62% of General Administration funding.
Remaining grant funding is adequate for one final rehabilitation project that involves demolition and reconstruction of a rear housing unit located at 125 So...
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