Agenda - 04-16-2002 - 7c - Laserfiche WebLink

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i a 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 16, 2002 Action Agenda Item No. 7 : SUBJECT: FY 2002 CDBG Program— IDA Program DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (YIN) Yes ATTACHMENT(S): INFORMATION CONTACT: Resolution Tara L. Fikes, ext. 2490 Application Summary TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public regarding 1 the development of a FY 2002 Community Development Block Grant (CDBG) Application for funds for an Individual Development Account (IDA) Program; 2) approve a resolution authorizing the submission of the formal application document on or about April 17, 2002 and authorize and Chair to sign the application document on behalf of the Board; and 3) approve the allocation of$40,000 in match funding from the County's Housing Trust Fund. 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 equating to a 2:1 match of local savings. 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. The Women's Center, a 501(c)(3) organization located in Chapel Hill, presently operates an IDA for TANF and TANF eligible participants and expressed their interest in continuing to administer this program with funding from Community Development Block Grant funds at a public hearing held on March 19. Since that time, staff has been working with developing a sound application for submission to the State in mid-April 2002.