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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Action Agenda <br />Item No . Y= 4i <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 21, 1991 <br />SUBJECT: Budget Amendment - Rencher Street CDBG Program <br />------------------------------- <br />DEPARTMENT _- Housing/Community -Dev. PUBLIC -HEARING <br />--- YES_---- yNO_ -x <br />ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes <br />Program Summary <br />TELEPHONE NUMBER - <br />Hillsborough - 732 -8181 <br />Chapel Hill - 968 -4501 <br />Mebane - 227 -2031 <br />Durham - 688 -7331 <br />PURPOSE: To authorize the transfer of $40,000 from the County <br />Section 8 Reserve Fund to the Rencher Street Community <br />Development Program. <br />BACKGROUND: Activities in the Rencher Street CDBG Program to date have <br />been very successful. In summary, all water and sewer mains <br />have been installed, Rencher Street has been paved and <br />twenty -one deteriorated dwellings have been rehabilitated. <br />Approximately $679,000 of the $685,000 Rencher Street CDBG <br />Program budget has been expended to complete these <br />activities. A summary of completed project activities and <br />expenditures is attached. However, in order to complete <br />this project, two activities remain to be completed. <br />Specifically, all families need to be connected to the <br />newly constructed water and sewer mains and two houses <br />remain to be rehabilitated. However, at this time there is <br />a budgetary shortfall which is prohibiting the Housing and <br />Community Development Department from completing all <br />activities as prescribed in the original grant application. <br />This shortfall is attributed to cost overruns in the <br />housing rehabilitation activity. Our original housing <br />rehabilitation cost estimates were prepared in early 1988 <br />and based on actual bids received from contractors in 1990. <br />the estimates were too conservative, thereby, causing <br />additional costs for this activity. <br />In order to complete the service connections approximately <br />$40,000 is needed. Funds to supplement the CDBG funds are <br />available in the Section 8 Reserve Fund. These funds are <br />generated by money earned from administering the Section 8 <br />Housing Assistance Payments Program. By federal regulations <br />these funds can only be used for housing and community <br />development purposes, therefore, this transfer would be an <br />eligible expenditure. The fund presently has a balance of <br />$87,000. <br />