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Item P1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: March 19,2003 Division: Monroe County Housing Authority Bulk Item: Yes No X Department: Special Programs Office AGENDA ITEM WORDING: DISSUSSION OF COMMUNITY DEVELOPMENT BLOCK GRANT ($750,000) FOR 2002 CYCLE VS. 2003 CYCLE ITEM BACKGROUND: Monroe County applied and was not funded for a 2002 CDBG grant ($750,000) for the purposes of sewer connection and housing rehabilitation. The County has applied and is initially ranked in the funding range for a 2003 CDBG grant ($750,000) for sewer connection. Due to a shift in funding the County is now eligible to secure the 2002 grant immediately and must or continue to compete for the 2003. Local governments may have only one outstanding CDBG grant at any time. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: NONE. STAFF RECOMMENDATION: ACCEPTANCE OF THE 2002 CDBG GRANT AND CONSIDERATION OF RECCOMMENDATIONS AS NOTED IN THE ATTACHED DISCUSSION MEMORANDUM. TOTAL COST: COST TO COUNTY: $-0- $-0- BUDGETED: Yes No SOURCE OF FUNDS: N/A REVENUE PRODUCING: Yes No X AMOUNT PER: Month Year APPROVED BY: mg_ Risk Management_ DIVISION DIRECTOR APPROVAL: an el Castillo, Director, Special Programs Office onroe County Housing Authority DOCUMENTATION: Included X To Follow Not Required - t ~ AGENDA ITEM r DISPOSITION: Rev. 01/03 1tlM .. SPECIAL PROGRAMS OFFICE c/o Monroe County Housing Authority 1403 12th Street Key West, Florida 33040 (305) 292-1221 FAX (305) 292-1162 March 2, 2003 TO: County Commissioners FR: Monroe County Housing Authority CC: James Roberts, County Administrator CDBG Citizens Advisory Task Force RE: BOCC Discussion Item - COMMUNITY DEVLOPMENT BLOCK GRANT Monroe County applied and was not funded for a 2002 CDBG grant ($750,000) for the purposes of sewer connection and housing rehabilitation. The County has applied and is initially ranked in the funding range for a 2003 CDBG grant ($750,000) for sewer connection. Due to a shift in funding the County is now eligible to secure the 2002 grant immediately and must or continue to compete for the 2003. Local governments may have only one outstanding CDBG grant at any time. At the request of the Department of Community Affairs, staff is requesting direction on accepting a 2002 CDBG Grant or continue to pursue the 2003 CDBG contract. The proposed activities, amounts and commitments of each grant is below Contract Date Contract Expires Required Match Funds FKAA - Unmet Needs $8,295,167 (KL) Monroe County - Local Unmet Needs Match Monroe County (FKAA) Stock Island/Big Coppitt FKAA - Unmet Needs FKAA - Unmet Needs Activities Sewer Connection Housing Rehabilitation Administration Eligible Project/Areas (Sewers) 2002 CDBG 2003 CDBG $487,500 (65%) $150,000 (20%) $112,500 (15%) Stock Island Key Largo Bay Point Conch Key April '03 April '05 $637,500 (85%) $ 0 ( 0%) $112,500 (15%) Stock Island Key Largo Oct. '03 Oct. '03 $822,434 (MCLA - KL) $914,285 (KL) $356,000 (KL) $3,000,000 (SI Infrastructure)$4,606,000 (SI Contract) $731,787 (Conch Key) $1,569,902 (Bay Point) "dedicated to the quality of life through housing and community initiatives" The greatest challenge in accepting either CDBG agreement is coordinating the expenditure of CDBG funds with the construction of wastewater treatment facilities within the CDBG contract deadlines and the coordination of the required match expenditures within the service areas in which CDBG funds may be used. Monroe County could accept the 2002 grant agreement and amend the initial application to request that funds designated to housing rehabilitation ($150,000) be reallocated for additional sewer connections. Initial conversation with DCA has indicated that sufficient cause may exist for approval of such an amendment. CDBG funds are eligible for very low and low-income homeowners occupying the property as a primary residence. Please be aware that sewer connection activities under the CDBG program include payments for the cost of the sewer lateral connection/existing system abandonment and that portion of the connectionlhookup fee, which has been determined to represent the actual cost of collection system construction for each eligible DroDerty. It is the recommendation by the Special Programs Office that Monroe County consider the following: . Acceptance of the 2002 CDBG grant agreement. . Consider requesting reallocation of all housing rehabilitation funds ($150,000) moved for additional wastewater connections. . Designate the expanded Stock Island Service Area as the initial service area for CDBG assistance. . Designate additional services areas for sewer connection with remaining CDBG funds, upon execution of a construction contract for construction AND sufficient eligible match funds available.