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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 1, 2005 <br />Action Agenda <br />Item No. g~tl <br />SUBJECT: FY 2005 CDBG Program -IDA Program <br />DEPARTMENT: Housing/Comm, Development <br />PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Tara L. Fikes, ext. 2490 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-: <br />PURPOSE: To receive comments trom the public regarding the development of a f Y 'LUUb <br />Community Development Block Grant (CDBG) Application for finds for an Individual <br />Development Account (IDA) Program. <br />BACKGROUND: The N.C. Department of Commerce announced the availability of <br />approximately $70,000 in Small Cities Community Development Block Grant Program (CDBG) <br />funds for the purpose of funding an Individual Development Account (IDA) Program in Orange <br />County for first-time homebuyers with incomes below 80% of the area median income. <br />Specifically, the 80% income limits are as follows: One-person household - $39,950; two-person <br />household - $45,650; three-person household - $51,350; and afour-person household - <br />$57,050. <br />IDAs are dedicated savings accounts, similar in strtacture to Individual Retirement Accounts <br />(IRAs), that can only be used for purchasing a first home, They are managed by community <br />organizations and accounts are held at local financial institutions. Contributions for lower <br />income participants are matched using both private and public sources, For example, if a <br />participant saves $1,000 toward the down payment an a home, their savings are matched with <br />$1,000 in CDBG funding and $1,000 in local funding. Additionally, all participants receive <br />economic literacy training that shows them how to clean up their credit, set up a budgeting and <br />savings schedule, and teaches them the basics of money management, <br />The County just completed a FY 2001 IDA Program with 11 families fully participating in the <br />program and purchasing homes, The Women's Center served as program administrator. <br />This public hearing has been advertised in the Chapel Hill Herald, Comments received will be <br />used to develop a sound CDBG application. <br />FINANCIAL IMPACT: This grant provides the opportunity to apply for up to $70,000 in CDBG <br />funding for housing purposes. There is a $1 for $1 match requirement that the County should <br />