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10 <br /> At the March 26 public hearing, a representative of Habitat requested the Town's support <br /> for development of the Rusch Road subdivision. <br /> Comment: The acquisition of property is an eligible Community Development program <br /> activity, and this project would meet the objectives of the Consolidated Plan to provide <br /> homeownership opportunities for low-income households. In 2001-2002 the Council <br /> budgeted $50,000 of Community Development funds and $50,000 from the Housing Loan <br /> Trust Fund for this project. <br /> We propose to budget$17,000 of Community Development funds to acquire the additional <br /> property. Because of the schedule of the development approval process, we do not expect <br /> that Habitat will be able to begin construction until April 2003 and therefore would not <br /> spend all of the requested funding in the 2002-2003 program year. We recommend that <br /> the Council consider reserving $83,000 of 2003-2004 Community Development funds for <br /> this activity for the balance of the requested funds. Because of the new federal guidelines <br /> involving possible sanctions of our grant if funds are not spent, we do not recommend <br /> budgeting all the requested funds in one year. <br /> 3. Residential Services <br /> Residential Services requested $75,000 to purchase a home in an existing neighborhood <br /> in Chapel Hill would be available to four adults with autism, each earning below 30% of <br /> area median income. Each resident would have his or her own room and would share the <br /> kitchen, dining, and living areas with other residents. The agency has also requested <br /> $75,000 of HOME Program funds for this project. <br /> Comment: If the home is located in one of the community development focus areas of <br /> Pine Knolls or Northside neighborhoods, we could consider either partially or fully funding <br /> the project with Community Development funds set aside for Neighborhood Revitalization. <br /> However, we suggest that priority for use of these funds be for neighborhood <br /> improvements in the Sykes Street strategy area. We note that the HOME Program <br /> Review Committee recommends budgeting $75,000 of 2002-2003 HOME Program funds <br /> for this activity. <br /> 4. First Baptist and Manley Estates <br /> First Baptist and Manley Estates requested $36,960 for the following purposes: $33,000 <br /> to construct an additional 20 parking spaces to serve residents' needs; and $3,960 for an <br /> adult computer/learning lab. <br /> Comment. We have reviewed the Community Development regulations and conferred with <br /> our HUD representative and determined that purchasing computer equipment for a <br /> computer lab is not an eligible use of Community Development program funds. We <br /> informed the Managing Agent of the facility that Community Development funds could be <br /> used purchase computer equipment if a specific program were developed to support these <br />