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HomeMy WebLinkAboutMINUTES - 10222002 - C82 -l`O: REDEVELOPMENT AGENCY Contra FROM: John Sweeten, Costa Executive Director '' f �-s ,f DATE: October 22, 2002 - -- County .*Ovto SUBJECT: Youthbuild Program Cash Flow Loan, North Richmond Redevelopment Project SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE and AUTHORIZE the Deputy Director-Redevelopment to execute a contract, in an amount not to exceed $50,000, with the Community Housing Development Corporation of North Richmond for management and oversight of the Youthbuild Program, North Richmond Redevelopment Project Area. FISCAL IMPACT No impact on the General Fund. The contract amount will not exceed $50,000 and will be included in the Agency's Fiscal Year 2002-03 budget. The Department of Housing and Urban Development is providing $400,000 and additional funding will be provided by a combination of other federal, state, and local funding sources. BACKGROUND: On May 21, 2001, the Redevelopment Agency authorized a submittal for a $400,000 federal HUD Youthbuild grant. The Agency was successful in securing that grant. The program includes a large array of education, service, housing, and economic development partners. Youthbuild will address several community issues and needs in the North Richmond community. The Youthbuild project, called the North Richmond Construction Crew ('NRCC), will provide comprehensive training and supportive services to eligible at-risk youth and young adults, aged 16 - 24, from North, with a special focus on engaging youth offenders and parolees. The program provides a blend of educational and vocational training to participants. The participants will receive both educational and on-the-job construction training. The Housing Authority will provide three scattered site units within North Richmpnd as tl ming ground. CONTINUE© ON ATTACHMENT- X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECO�MMF)4DATIOIN F BOARD COMMITTEE ­----APPROVE OTHER ` ACTION OF B6 ON a=M. 22; 2 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A TRUE AND X UNANIMOUS{ABSENT-- I CORRECT COPY OF AN ACTION TAKEN AND AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD OF ABSENT: ABSTAIN: SUPERVISORS ON THE DATE SHOWN Contact: Beth Lee 335-1256 ATTESTED OCIDEM 22: 2002 cc: CAO County Counsel JOHN SWEETEN, CLERK OF THE BOARD OF Housing Authority SUPERVISORS AND COUNTY ADMININISTRATOR CHDC vie Redevelopment _ f BY > Y ' 17FPUTY hese units will be rehabilitated and then sold as affordable first-time homebuyer opportunities. The requested CDBG funds will be used for the Dousing component; architecture, rehabilitation, and silent second mortgage assistance. The Youthbuild Program is fully staffed and began operations in August 2002. There are twenty participants; most are from the target of unincorporated North Richmond. Additional program targeting of ex-offenders and women have also been successful. During the development of the North Richmond Youthbuild Program, it became increasingly clear that the Redevelopment Agency was not the best party to provide the program implementation role. Further, it was the desire of the Agency and North Richmond community to transition the Youthbuild Program from a government to a community-based operation. Community leaders and providers identified CHDC as the preferred organization to oversight the Youthbuild Program. On June 18, 2002, the Redevelopment Agency authorized a $400,000 contract with the Community Housing Development Corporation (CHDC) of North Richmond to act as the implementing agency for the Youthbuild program. As the implementing agency, CHDC has hired the Youthbuild personnel and placed them on their staff; and is providing oversight of Youthbuild staff and program operations. CHDC also ensures the necessary federal, state and local funding report information is compiled. The HUD Youthbuild funds are used to pay program staff, facility, utilities, furniture, equipment and other program costs. As fiscal agent, the Agency is the recipient of the HUD funds and has entered into a contract to provide reimbursement to CHDC for applicable Youthbuild program expenses. Unfortunately, the reimbursement by HUD for eligible expenses is a slow process. As a result, CHDC has had to extend their credit line to cover these expenses which has increased overhead costs to the organization that were unanticipated and not easily covered by other revenue sources. CHDC requested the Agency provide a cash flow loan for the Youthbuild Program administrative expenses whereby the Agency would advance the necessary payment and then be reimbursed by HUD. The North Richmond Municipal Advisory Council reviewed and unanimously supported their request.