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CONTRACT NO. K-1213-193: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND NORMAN AFFORDABLE HOUSING CORPORATION, IN THE AMOUNT OF $55,263 ACTING AS A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) AS AGREED UPON UNDER THE 39TH YEAR CDBG PROGRAM AND THE HOME INVESTMENT PARTNERSHIPS PROGRAM.
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BACKGROUND: As a part of the Consolidated Planning process which provides funding from the U.S. Department of Housing & Urban Development for the Community Development Block Grant and HOME Investment Partnership Programs, federal regulations require that fifteen percent (15%) of the HOME funds be set aside for activities by Community Housing Development Organizations (CHDO). The CHDO must have the provision in the organization’s charter, articles of incorporation, by-laws, or resolutions to provide decent housing that is affordable to low and moderate income persons. Additionally the organization must have a tax exemption ruling form the Internal Revenue Service (IRS) under Section 501(c) of the Internal Revenue Code of 1986, evidenced by a 501(c) certificate form the IRS. On October 23, 2001, City Council approved Resolution No. R-0102-45 that designated Norman Affordable Housing Corporation (NAHC) as the approved CHDO in Norman.
DISCUSSION: A total of $55,263 was included in the FYE 2013 budget of the HOME grant for CHDO activities that was approved by the City Council in April of 2012. NAHC has requested the funds to use in the development of affordable housing. Due to changes in federal regulations in regard to the structure of CHDOs, staff has been working with the U.S. Department of Housing & Urban Development and the Norman Affordable Housing Corporation to insure that NAHC meets the standards in the new regulations to continue as a CHDO. That determination was made on May 1, 2013 by HUD, thereby allowing the City to pursue the contract and obligate the funds to NAHC.
RECOMMENDATION: Staff recommends approval of contract K-1213-193 with Norman Affordable Housing Corporation in the amount of $55,263. Funds for this project are available in CHDO Activity (account 021-4076-463.47-98).