Agenda - 03-19-2002 - 7c - Laserfiche WebLink

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REVISED 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 19„2002 Action Agenda Item No. SUBJECT: FY 2002 CDBG Program— IDA Program DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes, ext. 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public regarding the development of a FY 2002 Community Development Block Grant (CDBG) Application for funds for an Individual Development Account (IDA) Program. BACKGROUND: The N.C. Department of Commerce announced the availability of approximately $500,000 in Small Cities Community Development Block Grant Program (CDBG) funds for the purpose of establishing Individual Development Account (IDA) Programs for first- time homebuyers with incomes below 80% of the area median income. Specifically, the 80% income limits are as follows: One-person household - $38,100; two-person household - $43,500; three-person household - $48,950; and a four-person household - $54,400. IDAs are dedicated savings accounts, similar in structure to Individual Retirement Accounts (IRAs) that can only be used for purchasing a first home. They are managed by community organizations and accounts are held at local financial institutions. Contributions for lower income participants are matched using both private and public sources. For example, if a participant saves $1,000 toward the down payment on a home, their savings are matched with $1,000 in CDBG funding and $1,000 in local funding. Additionally, all participants receive economic literacy training that shows them how to clean up their credit, set up a budgeting and savings schedule, and teaches them the basics of money management. Currently, a component of the County's TANF Housing Program provides a IDA Program for approximately twenty (20) families preparing for homeownership through a partnership with the Women's Center. The families participating in that program are meeting their savings requirements with some having already purchased a home and others poised to do so in the coming year. This has been a successful program that can be continued after the expiration of the TANF Housing Program in June 2002 if we are able to develop a successful funding application.