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~+8 <br />Orange County <br />Housing and Community Development <br />Date: June 23, 2000 <br />To: Paul Thames, PE, County Engineer <br />From: Tara L. Fikes, Director <br />Subject: CDBG Funding <br />Pursuant to your request, I have evaluated the eligibility of a wastewater <br />collection system consisting of on•site septic and pump tanks (STEP systems) <br />with force mains installed in roadway rights-of-way for CDBG infrastructure grant <br />funding. I have determined that no utility improvements located an individual <br />lots, with the exception of water or sewer service line stub-outs which generally <br />terminate at or near the roadway right-of-way line, are eligible for CDBG <br />infrastructure grant funding. Therefore, the cost associated with the individual <br />septic and pump tanks of the STEP systems staff has recommended for use at <br />the Richmond Hills project is not an eligible CDBG expense. Conversely, all of the <br />publicly owned gravity sewer lines and the central pumping station (located <br />within public rights-of-way, easements, etc.), as in the wastewater <br />collection/central pumping system proposed by Habitat for Humanity, would be <br />eligible for CDBG infrastructure grant funding. <br />With the approval ofi the BOCC, Orange County will apply for $250,000 in CDBG <br />funding far the Richmond Hills project. Habitat estimates that total infrastructure <br />costs are approximately $600,000 ($250,000 for roads, $100,000 for water <br />utilities, and $261,490 for the gravity sewer system or $291,860 for the STEP <br />system). Eligible CDBG infrastructure activities include the cost of roads, water <br />utilities, and sewer systems. Thus, since grant funding can be used for any of <br />these activities, the ineligibility of the STEP system wastewater collection system <br />for CDBG funding does not affect the use of grant funds for infrastructure costs in <br />Richmond Hills. Total infrastructure costs of $600,000 exceed the $250,000 <br />maximum available in CDBG funds, therefore, funds not eligible for use for sewer <br />improvements can be used for road or water improvements. <br />If you need additional information, please advise. <br />