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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 23, 2005 <br />Action Agenda <br />Item No. ~j'G _ <br />SUBJECT: FY 2005 CDBG Program -IDA Program <br />DEPARTMENT: Housing/Comm, Development PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): <br />Resolution <br />Application Summary <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 336-227-2031 <br />PURPOSE: To 1) receive comments from the public regarding the development of a FY 2005 <br />Community Development Block Grant (CDBG) Application for funds for an Individual <br />Development Account (IDA) Program; and 2) Approve a resolution authorizing the submission <br />of the formal application document on or about .July 15, 2005 and authorize and Chair to sign <br />the application document on behalf of the Board, <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 fianding an Individual Development Account (IDA) Program in Orange <br />County for first-time hamebuyers 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 structure to Individual Retirement Accounts <br />(IRAs), that can only be used far 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 on a home, their savings are matched with <br />$1,000 in CDBG funding and $1,000 in local funding equating to a 2:1 match of local savings. <br />Additionally, all participants receive homebuyer education and counseling, economic literacy <br />training to include credit counseling, budgeting, and money management, <br />The Women's Center, a 501(c)(3) organization located in Chapel Hill, administered the County's <br />first IDA Program funded by CDBG funds from 2002 - 2004, The Center is very Interested in <br />continuing to administer this program with future CDBG funds. <br />The application specifically requests $50,000 in CDBG funds, Of this amount, a total of <br />$20,000 will be used to match participants' savings, $20,000 will be available for housing <br />