Department of Finance
Reference: Memorandum of Understanding for the Minor Home Repair Program
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Maria Ostrom, Director of Finance
Prepared By: Nicole Samson, Senior Management Analyst
Date Prepared: February 19, 2021
PURPOSE
To present a Memorandum of Understanding (MOU) between the City of Brighton and Adams County for the administration of the Minor Home Repair program, to answer questions regarding this agreement, and to request Council allow staff to bring the MOU to the next Council meeting as a Consent item. The Minor Home Repair program is a program funded with Community Development Block Grant (CDBG).
BACKGROUND
Adams County administers a Minor Home Repair program (MHR Program) to assist low- to moderate-income homeowners in Adams County with necessary repairs to their home in order to ensure residents are living in safe, decent and sanitary conditions. The City of Brighton (City) and other cities in the Urban County Consortium can assign CDBG funds to the MHR Program in order to serve the residents in their community through this program. Only residents of Brighton are served with the City’s CDBG funds. The City has previously chosen to fund the MHR Program with the City’s 2016, 2017 and 2018 CDBG funds. In order to participate in the MHR Program, the City enters into an MOU with the County that outlines the responsibilities between Adams County and the City of Brighton for the program.
The City would like to use the MHR Program as a contingency or supplemental project that can accept funds that are remaining once a primary project is complete. For example, the 2019 CDBG-funded project in Brighton is complete and there is $13,013 left of funds that could be reassigned to the MHR Program. This amount could be used to serve one to three Brighton households with minor repairs to their home.
The average MHR Program grant amount is approximately $6,250 per home. Residents do not have to re-pay these funds since it is a grant. Common repairs completed through this program include repairs to the roof, plumbing, electrical system, hot water heater or furnace. Also, energy efficiency and ADA improvements can be made to the home. Emphasis is placed on providing repairs for health and safety and to improve living conditions. Remodeling projects are not eligible.
To qualify for the MHR Program, homeowners must live in Brighton, own and live in their single-family home, and be current on their mortgage payments. Also, they must meet income guidelines established by the U.S. Department of Housing and Urban Development for CDBG-funded programs. Residents can contact the Adams County program staff to find out if they meet the general eligibility criteria. If so, residents complete an application for the program. Once an application is accepted and it is determined that the house and household is eligible, a representative of Adams County Community Development will conduct an on-site visit to determine essential repairs needed. Adams County staff take care of hiring a qualified and licensed local contractor and ensuring the work is completed at the home.
FINANCIAL IMPACT
This proposed MOU has a lower activity delivery cost amount than the existing MOU for the MHR Program. The activity delivery cost is the expense for the County to administer the program for Brighton residents. The existing MOU charges 20% of the CDBG funds assigned to the MHR Program to activity delivery costs. This proposed MOU charges 10% of the CDBG funds assigned to the MHR Program in years in which funds are committed to this program.
ATTACHMENTS
Memorandum of Understanding