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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Action Agenda <br />Item No. V lei -- -CL <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 21, 1992 <br />SUBJECT: Efland CDBG Application - Financial Contribution <br />DEPARTMENT: Housing /Community Dev. PUBLIC HEARING YES: NO: x <br />ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes <br />TELEPHONE NUMBER <br />Hillsborough - 732 -8181 <br />Chapel Hill - 968 -4501 <br />Mebane - 227 -2031 <br />Durham - 688 -7331 <br />PURPOSE: To authorize a financial commitment of an amount not to <br />exceed $130,000 to the Efland CDBG Project and authorize <br />the Chair to sign a letter of commitment to the N.C. <br />Department of Economic and Community Development on behalf <br />of the Board. <br />BACKGROUND: The N.C. Department of Economic and Community Development <br />requires all applicants for CDBG funding under the <br />Community Revitalization category to contribute local funds <br />to the proposed project. This contribution must be in the <br />form of cash and must come from the County general fund. No <br />in -kind contributions are recognized under this <br />requirement. <br />As you may recall, the Board of County Commissioners <br />approved a total of $125,000 in local funds for the Rencher <br />Street CDBG project awarded in 1988. Activities in this <br />project included housing rehabilitation, relocation of <br />families from dilapidated property, water /sewer <br />improvements and street improvement. <br />County staff has investigated the level of financial <br />contributions of other County applicants in the state in <br />past years. Based on this research and other knowledge of <br />the State's ranking system, Orange County should contribute <br />an amount equal to roughly 13 percent of the total amount <br />of CDBG funds requested. The maximum amount of CDBG funds <br />available is $1,000,000. Should the County request the <br />maximum, 13 percent would be equivalent to $130,000. <br />These funds must be pledged at the time of application by a <br />letter of commitment but would not have to be budgeted <br />until the project is funded. Therefore, if the CDBG <br />application is successful, these funds could be budgeted in <br />the subsequent budget years. <br />No community in the State of North Carolina has <br />received CDBG funding without making a local financial <br />contribution. Therefore, a financial commitment from the <br />County is essential in designing a competitive application. <br />County matching funds would not be required until FY 93 -94. <br />