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Home My WebLink AboutItem #05 Continued Participation by the City of Ocoee with Orange County in the Federal Urban County Program Interlocal Agreement tie C of Good 4 AGENDA ITEM COVER SHEET Meeting Date: May 17, 2011 Item # 5 Reviewed By: Contact Name: Al Butler Dept. Director: C ' ,l✓1 Contact Number: 407 - 905 -3100, ext. 1543 City Manager: L / „ % /�P Subject: Continued participation by the City of Ocoee with Orange County in the federal Urban County Program interlocal agreement. (Citywide) Background Summary: Orange County is .a designated urban county for the purposes of receiving federal redevelopment funds through two U.S. Department of Housing and Urban Development (HUD) programs, the Community Development Block Grant (CDBG) initiative, which supports the construction and rehabilitation of public facilities, and the Home Investment Partnership fund (HOME), which provides support for affordable housing but is presently unfunded. With a population in excess of the statutory threshold, Orange County is an entitlement designee through the HUD Urban County Program. This means that Orange County receives funds based on an allocation formula and does not compete with others units of local government for CDBG and HOME program funding on a project basis. An interlocal agreement was established several years ago whereby the City of Ocoee is an active participant with Orange County in these two HUD programs. This agreement lets the City work with the County to target projects for funding critical projects within the city limits. The agreement is up for a three -year renewal, which would cover the 2012 -2014 federal fiscal years. Continued participation means that the City would receive its HUD funds through the County and would not be able to seek direct funding of projects through the competitively awarded State of Florida Small Cities Program, although it would be able to directly seek funds under the state's HOME program. The interlocal agreement has provided the City with almost $3 million in redevelopment funds since 2008 to rehabilitate the Pioneer Key subdivisions program. The CDBG funding for Pioneer Key II was $1.75 million, while the funding for Pioneer Key I, just now starting construction, is $1.2 million. The City of Ocoee is the only municipal funding partner to historically conduct infrastructure redevelopment projects in the county. Issue: Should the City Commission continue its present policy of cooperating with Orange County in the HUD Urban Area Program? Recommendations: The Engineering Department recommends that the City Commission endorse the continued cooperation of the City with Orange County by not terminating the existing interlocal agreement. In order to continue its participation, the City needs to take no action, as renewal is automatic. An explicit action by the City Commission is required only to terminate the agreement, which must be done by the end of May. 1 Attachments: Letter from Mitchell Glasser, Director, Orange County Housing and Community Development Division. Financial Impact: There is no immediate direct financial impact on the city by continuing to participate in the Urban County Program through an interlocal agreement with Orange County. Although the program has provided significant capital improvement funds to the city in recent years, continued funding is not guaranteed. Funding of HUD programs is controlled by the U.S. Congress, which has cut the allocation for these programs in the current and proposed fiscal year budgets. However, terminating the agreement would almost certainly end any realistic chance for the city to receive HUD funds in the future. Type of Item: (please mark with an "x") • Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion & Direction X Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by ( ) N/A 2 ii HOUSING AND COMMUNITY DEVELOPMENT DIVISION `S U MITCHELL L. G ► ;: „ L LASSER, Manager 525 East South Street • Orlando, Florida 32801 407 -836 -5150 • Fax: 407- 836 -5193 ' UN- TY www.OrangeCountyn.net GOVERNMENT F L O R I D A May 5, 2011 The Honorable Scott Vandergrift City of Ocoee 150 N. Lakeshore Dr. Ocoee, FL 32761 Dear Mayor Vandergrift: Orange County and the City of Ocoee are partners in an Interlocal Agreement that allows the City of Ocoee to participate in the Community Development Block Grant (CDBG) and Home Investment Partnership (HOME), as part of the U.S. Department of Housing and Urban Development (HUD) Urban County Program. The Housing and Community Development Act of 1974 allows the county to enter into cooperation agreements to undertake essential community development and housing activities within eligible participating municipalities. Orange County must now re- qualify for the next three -year urban county period for Fiscal Years 2012, 2013, and 2014. During this period, the county may not undertake essential community development and housing activities in units of local government in the county without the consent of the governing body of the locality. Your participation in the Urban County Program through a previously approved Interlocal Cooperation Agreement will be automatically renewed for Fiscal Years 2012, 2013, and 2014 unless the City of Ocoee indicates in writing its intention to terminate the agreement. Written notification of termination would have to be provided to federal HUD and Oranqe County by May 31, 2011. Should you elect to participate, no notification to the HUD office is required. The CDBG Program includes neighborhood revitalization activities such as capital improvement, housing rehabilitation, affordable housing development, and public services. In addition to CDBG activities, the Urban County Program includes HOME activities consisting of homeowner rehabilitation, rental rehabilitation, rental assistance and down payment assistance for low- income families. Also, participation in the Urban County Program will not preclude the city or the county from applying for funding under the State of Florida's HOME Program. Municipalities electing to participate in the Urban County Program will not be allowed to apply for the State of Florida's Small Cities Program administered by the State's Department of Community Affairs for Fiscal Year 2012, 2013, 2014. May 5, 2011 Letter to Municipalities Page Two Based on your municipality's understanding of the aforementioned requirements, the City of Ocoee may elect not to participate in the Urban County Program. Correspondence indicating the City of Ocoee's intention to terminate its participation should be addressed to: Mr. Gary Causey, CPD Director U.S. Dept. of HUD Community Planning and Development Division 400 West Bay Street, Suite 1015 Jacksonville, FL 32202 And Orange County, Housing and Community Development Division Attention: Mitchell Glasser, Manager 525 East South Street Orlando, FL 32801 For more information or if you have any questions relating to this correspondence, please contact Mr. Frantz Dutes at 407 - 836 -5170. Thank you. Sincerely, Mitchell L. c - sser, Manager Housing and Community Development Division MG /er cc: Teresa Jacobs, Orange County Mayor Melvin Pittman, Director, Community and Environmental Services Department Wanzo Galloway, Assistant County Attorney, County Attorney's Office Olga L. De La Rosa Andujar, CPD Representative, U.S. Dept. of HUD Frantz Dutes, Assistant Manager, Housing and Community Development Division