COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Thomas Jefferson HOME Consortium

 

 

SUBJECT/PROPOSAL/REQUEST:

Allocation of HOME funds – FY2005

 

 

STAFF CONTACT(S):

Mr. Tucker, Ms. White, Mr. Davis, Mr. White

 

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

June 1, 2005

 

ACTION:                                  INFORMATION:   

 

CONSENT AGENDA:

  ACTION:     X                        INFORMATION: 

 

 

ATTACHMENTS:       No

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

The U.S. Department of Housing and Urban Development (HUD) annually provides funding under the HOME Investment Partnership Program to units of state and local government through formula allocations.  While larger jurisdictions individually receive funding under established formulas, those that do not may form a consortium in order to receive an allocation of HOME funds.

 

Albemarle County has participated as a member of the Thomas Jefferson HOME Consortium (six jurisdictions of the Planning District) since 1992 sharing in over $10 million in HOME funds to support affordable housing initiatives in the region.   HUD requires that an Action Plan be developed annually prior to receipt of HOME funds to provide a summary of current year activities and a proposal on how funds will be used for the coming year.  A detailed annual performance plan is prepared for HUD after the end of the fiscal year.  This report is provided to each jurisdiction represented in the Consortium. 

 

 

STRATEGIC PLAN:

Goal 3.2:  Promote a variety of safe, sanitary and affordable housing types.

 

 

DISCUSSION:

Each locality receives an equal annual appropriation estimated this year at $121,114.  In addition, HUD has established an additional set-aside for the American Dream Downpayment Assistance Initiative (ADDI) that will bring Albemarle County $6,753 to assist first-time homebuyers.  HOME will also provide $5,652 in administrative funds.

 

In prior years, the Albemarle Housing Improvement Program (AHIP) has been designated the subrecipient for the County with the funding allocated for rehabilitation of owner-occupied homes.  In 2004-05, AHIP used approximately $117,000 in HOME funds to rehab 7 homes, which AHIP matched with $160,000 from other sources to complete these jobs.  Also in 2004-05, Albemarle County allocated $50,000 in HOME funds for homebuyer assistance.  These funds were included in an administrative agreement executed with PHA in April 2005 to be administered as part of the County’s Homebuyer Assistance Program. Although there have been no loans closed using these funds since the agreement was executed,  these funds will be carried over into FY’06, since HUD allows us 3 years to expend the funds

 

For FY06, the proposed allocation of HOME funds to PHA should provide assistance to 12 – 15 first-time homebuyers with incomes below 60% of the area median income. Along with Albemarle’s annual contribution of $250,000 to the Affordable Housing Fund, this $30,000 in HOME funds to PHA will provide a total of $280,000 to address affordable housing needs with a down payment assistance program administered by PHA.

 

RECOMMENDATIONS:

Staff recommends designating AHIP and PHA as subrecipients for the administration of HOME funds with allocations as follows.  The rehab allocation is based on past performance by AHIP and available funding.  The homebuyer assistance allocation is based on expected activity and available matching funds from the County :

 

AHIP (Rehab of 6 Owner-occupied homes – matching funds approx. $150,000)

            Housing Rehab              $97,867

            Admin                           $ 4,352

 

PHA (Downpayment assistance to 8 – 10 families – County match $250,000 leveraging approx. $1.5 million in mortgages)

            Homebuyer Assistance              $30,000

            Admin                                       $  1,300

 

 

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