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funds may also be used to supplement or match other state and federal funds On October 23, 2001, the Board of County Commissioners authorized Community Development Department staff to apply for a Housing Rehabilitation Community Development Block Grant (CDBG) for the east Gifford area. As part of the CDBG application, there is a need for a local contribution. According to applicable regulations, SHIP funds may be used as a CDBG program match and considered as a local contribution. ANALYSIS One of the goals of the county's local housing assistance plan is to maintain the county's existing affordable housing stock and to repair substandard housing units. A source of funds for those activities is the county's SHIP rehabilitation assistance program. Another source of funding is the CDBG program. The CDBG program however, involves a competitive application process. In order for the county to receive funding, the county must maximize its application points. Using up to $350,000 of the SHIP rehabilitation funds from FY 2002-03 and FY 2003-04 as a match for the Gifford. Housing CDBG application will provide the county's CDBG application with additional points. Currently, the county's SHIP rehabilitation loans are available to both very low and low income households. Although deferred, these loans must be paid back when the assisted unit is sold. SHIP Rehabilitation grants, however are currently available only to very low income households. A rehabilitation grant must be paid back if the assisted unit is sold less than 10 years from the date the grant is closed. After 10 years, the grant will be forgiven. At this time, staff proposes to change the county's LHAPIan to allow SHIP rehabilitation grants to be provided to low income households, but only when the SHIP rehabilitation grant is a match for another housing program such as CDBG. Staff feels that more Gifford residents will be willing to participate in the CDBG program if the SHIP assistance is in the foam of grants. Another proposed change to the LHAPlan is a minor clean-up amendment to the plan to make it clear that, consistent with state requirements, all rental assisted units must be monitored for 15 years to ensure rent affordability and income eligibility for households occupying their units. Revisions to the plan are shown on pages 29 and 30 of the plan (copy attached). Deletions are shown as etruck thru and additions are shown as underlined. ALTERNATIVES With respect to the revised Local Housing Assistance Plan, the Board of County Commissioners has three alternatives. These are: adopt the revised plan adopt the revised plan with changes reject the revised plan Staff supports the first alternative. APRIL 2, 2002 -2 - 4 it yyr-� tr, V Ll •