HomeMy WebLinkAboutAgenda - 02-03-2009 - 5a ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 3, 2009
Action Agenda
Item No. 5-q
SUBJECT: Orange County Consolidated Housing Plan Update
DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (YIN) Yes
ATTACHMENT(S):
Executive Summary INFORMATION CONTACT:
Application Form Tara L. Fikes, 245-2490
PURPOSE: To receive comments from the public regarding the housing and non-housing needs
to be included in the Annual Update of the 2005-2009 Consolidated Housing Plan for Housing
and Community Development Programs in Orange County and proposed uses of 2008-2009
HOME funds.
BACKGROUND: In May 2005, a Consolidated Plan for Housing and Community Development
Programs in Orange County was developed and approved by the U.S. Department of Housing
and Urban Development (HUD). This document details the housing needs of very low-income,
low-income and moderate-income families and special population groups in addition to outlining
the strategies and plans for addressing those needs.
Each year local communities are required to reassess the needs of the community. This public
hearing provides an opportunity for citizens, public agencies and other interested parties to
provide input into the Annual Update. In addition the public is asked to comment on proposed
uses of an estimated $661,756 in 2009-2010 HOME funds. Information regarding actual
Congressional allocation is not available at this time. Eligible HOME Program activities
include: acquisition; new construction; housing rehabilitation; and rental assistance. An
application form has been designed for agencies interested in accessing HOME funds for local
housing projects. A copy of the application is attached to this abstract for information. The
deadline for completing this application form is February 27, 2009. The HOME Program Review
Committee will then review the applications received and make recommendations regarding
funding for consideration by the local elected officials in late April 2009.
In order to inform the general public of this opportunity and encourage participation, notices have
been placed in the Chapel Hill Herald and sent to local non-profit agencies.
FINANCIAL IMPACT: The Orange County HOME Consortium expects to receive an allocation
of$661,756 in HOME Program funds for FY 2009-2010.
RECOMMENDATION(S): The Manager recommends the Board receive comments from the
public as additional information and close the public hearing.
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ORANGE COUNTY CONSOLIDATED HOUSING PLAN
2005-2009
EXECUTIVE SUMMARY
Orange County is well known for its rich history, outstanding educational and employment
opportunities, and diverse and friendly citizens. Nestled in the hills of the North Carolina
Piedmont, Orange County is located strategically between the Research Triangle Park and the
Triad cities of Greensboro, Winston-Salem and High Point. With more than 100,000 citizens,
Orange County includes historic Hillsborough, the County seat, Chapel Hill, home of the
University of North Carolina, and Carrboro, a former railroad and mill town. When Orange
County was founded in 1752, five Native American tribes lived in this area. The Town of
Hillsborough was the center of North Carolina politics in the colonial era and hosted the state's
Constitutional Convention in 1778, where North Carolina delegates demanded that a Bill of
Rights be added before they would ratify the U.S. Constitution.
Orange County lies on the western edge of the Research Triangle area, which is anchored on
three sides by UNC-Chapel Hill, North Carolina State University and Duke University. Research
Triangle Park is home to leading technological companies and institutions. Orange County is
part of the Raleigh-Durham-Chapel Hill, North Carolina Metropolitan Statistical Area (MSA)
which comprises six Counties in the Research Triangle Area.
Housing Market Analysis
General Market Conditions
Orange County's population has increased by more than 25% between 1990 and 2000 (rising
from 93,662 to 118,227). The County is expected to experience continued growth through 2010,
with the population increasing to a projected 140,750. The North Carolina Office of State
Planning estimates that the population in the County in 2003 is 120,881. While most of the
County's population is centered in Chapel Hill (46,798 in 2000), the areas experiencing the most
rapid growth are Carrboro and Hillsborough. It is estimated that almost one-third (32%) of
Chapel Hill's population are students enrolled at the University of North Carolina. Over 40% of
the County's population lives in Chapel Hill. Less than 20% of the population lives in other
municipalities with the remaining 39.4% living in the remainder of Orange County. The number
of households in Orange County, according to the 2000 Census, was 45,863, which represents
a 27% increase in households since 1990.
The racial composition of Orange County is changing. As a percentage of the total population,
whites make up 78 % of the County and the Town of Chapel Hill. Blacks comprise 13.8 % of
Orange County (11 % of Chapel Hill). The most dramatic increase in racial groups is in the
Hispanic community, where the population grew from 1,279 in 1990 to 5,273 by 2000,
representing a 312.3% increase and 4.5% of the total population in Orange County. The Asian
population grew 105.2% during this same period and now makes up 4.1% of the total
population.
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The unemployment rates for Orange County have been 2% or more below the statewide
unemployment rates and about 3% to 4% below the national unemployment rates for the past
10 years. In Orange County, unemployment has ranged from a low of only 1.1% in 1999 to a
high of 3.2% in 2002.
Median household income is likewise much higher than state and national averages. In 2004,
the median household income for Orange County was $69,800. This represents a 49% increase
in median income over the past 10 years. The median income in Orange County is about 20%
higher than the median family income for North Carolina and 21% higher than the national
average. The estimated median family income in Chapel Hill is over $86,000. In terms of per
capita income, Orange County ranks fourth among all Counties in North Carolina and third
among Counties located in the Triangle region of North Carolina, according to data obtained
from the U.S. Bureau of Economic Analysis.
Housing Market Conditions
In 1990, the total number of housing units in Orange County was 38,683. During the period
1990 to 2000, the total number of housing units increased by 27.4% to 49,289 units. Also during
this period, the number of owner-occupied units increased by 32.4% and represented over one-
half of all housing units in Orange County. In 2000, owner-occupied housing in Chapel Hill
represented 43% of all occupied units. In renter-occupied housing, structures with five or more
units continue to be the majority of the housing stock at 52.9% in 2000.
Average and median sales prices of both new and existing homes in Orange County for 2004
exceed $100,000. The lowest prices are reflected in the sales of condominiums and
townhouses. Sales prices for new detached homes exceed $250,000 for both new and existing
homes. The average sales price for unincorporated Orange County in 2004 was $296,890. In
2004, 20% of homes sold for less than $160,000 down from 24% in 2003 and 29% in 2002.
Almost two-thirds of single-family homes sold in 2004 had a sales price of $200,000 or more
with almost one half of those having a sales price over $350,000. Housing in the Chapel Hill
area is currently among the most expensive in the Research Triangle region. In 2003, the
average purchase price of a home in Orange County rose from about $261,895 to $280,592. In
Chapel Hill, the average purchase price was $320,913. Since 2000, the average purchase price
has increased 22.4% in Chapel Hill.
Rental housing in Orange County is dominated by larger apartment developments—those with
five or more units—which represent 52.9% of the renter-occupied housing in the County. The
median gross rent (rent plus utility expenses) for 2000 was $684. The 2005 fair market rents
(FMR)for a two-bedroom apartment in Orange County is$779.
Public Housing Programs
The Orange County Department of Housing and Community Development is responsible for the
administration of the Section 8 Housing Choice Voucher Program. The Department does not
operate public housing developments. Currently, the Department administers approximately 623
units of Section 8 assistance with approximately 1,278 people remaining on a waiting list as of
February 2006.
The Town of Chapel Hill Department of Housing administers 336 units of low-rent housing
located at 13 sites (12 in Chapel Hill and one in Carrboro). The department's goal is to refurbish
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all 336 units of public housing over a five-year cycle using Community Development Block Grant
funds to pay for refurbishing work. The Department does not administer Section 8 tenant-based
rental assistance. According to its most recent PHA plan, there is a waiting list of 220 persons
for housing assistance from the Town of Chapel Hill's Department of Housing.
Housing Needs Assessment
Renter Households
One-half of all renter households experience a housing problem, which represents a 0.8%
reduction since 1990. The percentage of extremely low-income renters who experience housing
problems has increased overall since 1990. However, among extremely low- income, very low-
income and low-income renters, there has been an overall reduction in the number of housing
problems.
Owner Households
Over 20% of all owner households experience a housing problem, which represents a 0.3%
increase since 1990. The percentage of extremely low-income owners who experience a cost
burden over 50% increased since 1990 to 49.3%. During this same period, however, extremely
low income owners experienced a slight decrease in any housing problems and in cost burdens
of more than 30%. Among very low-income and low-income owners, there has been an overall
increase in the number of housing problems.
Disproportionate Needs
Among renters, Hispanic households experience a disproportionately higher percentage of
housing problems' in Orange County. Among homeowners, African Americans, Hispanics and
Asian Americans experience a disproportionately higher percentage of housing problems. When
looking at all households (renters and owners), Hispanic and Asian American households
experience a disproportionately higher percentage of housing problems. Very low-income
households (those earning less than half of the area's median income) and extremely low-
income households (those earning less than 30% of the area median income) have the greatest
number of housing problems, whether renters or homeowners.
Supportive Housing for Non-Homeless Persons with Special Needs
In examining supportive housing for persons with special needs, Orange County has considered
the needs of the elderly, persons with disabilities (including mental, physical and
developmental), alcohol and substance abusers and persons with HIV/AIDS.
People with supportive housing needs have special housing and care needs, largely because
they are out of the workforce and/or have substantial medical and care requirements. The types
of housing for the elderly(and all those with supportive housing needs)vary depending on the
services needed to meet the requirements of the residents. In general, those who provide
1 Households with housing problems are those households occupying units without a complete kitchen or
bathroom,that contain more than one person per room and/or that pay more than 30%of their income to
cover housing expenses.
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special housing needs offer an array of services. Efforts are made to ensure maximum
independence in the least restrictive setting, but onsite support of those with special needs is
often required.
Service providers for people with special needs face substantial challenges. In 2000, there were
7,164 elderly households in Orange County, of which, 61.2 % were low-income.
Developmentally disabled and mentally ill in the County both need case management, support
services, and outpatient treatment services for monitoring and treatment. Alcohol and substance
abusers have access to outpatient services in Orange County, but are required to go out of the
County for residential treatment.
Orange County had 16 reported cases of HIV disease and eight cases of AIDS in 2004. This
represents a marked increase in the number of AIDS and HIV cases. While prevention, medical
and support services are available to people with HIV/AIDS, there is also a greater need for
permanent supportive housing.
Lead-Based Paint Hazards
Lead poisoning is one of the worst environmental threats to children in the United States. While
anyone exposed to high concentrations of lead can become poisoned, the effects are most
pronounced among young children.
There are as many as 12,058 occupied housing units in Orange County that contain lead-based
paint. Of these units with lead-based paint, 6,001 are owner-occupied and 6,057 are occupied
by renters. Up to 5,276 houses may have deteriorated lead-based paint. According to the 2000
Census, there are 16,540 households with annual incomes below $30,000. Applying the
assumption that as much as 35% of these low-income households contain lead-based paint
hazards results in an estimated 5,789 low-income households with lead-based paint hazards in
Orange County.
Barriers to Affordable Housing
As with other types of development, Orange County's supply of affordable housing is dictated by
a variety of factors, the most significant being project affordability, availability of land and
infrastructure, developer preference for building high-end housing, and government regulation.
To address the Educational Impact Fee, the Orange County Board of Commissioners adopted
an impact fee reimbursement policy, which provides funds to nonprofit housing developers
constructing rental and owner-occupied housing to enable them to pay the fee without passing
the cost to the prospective renters or homebuyers. With this reimbursement, the Board works to
alleviate barriers to affordable housing.
Impediments to Fair Housing
Based on the County's analysis of impediments affecting the furtherance of fair housing,
appropriate strategies have been designed and implemented to eliminate or reduce the impact
of those barriers. The following recommendations included in the "Fair Housing Plan" promote
fair housing within Orange County:
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• Increase the educational opportunities and provide training relating to Fair Housing through
workshops, forums and presentations
• Target specific protected groups for fair housing information
• Continue to consult with local lending institutions regarding their Community Reinvestment
Act activities.
• Provide training to housing providers and consumers about their obligations and rights.
Homeless Assessment
Based on a point-in-time count conducted on January 25, 2006, the total number of homeless
people in Orange County was 237, Eighty-three (83) homeless persons in were in families,
including 51 children. Additionally, 39 chronically homeless persons were documented. These
numbers, however, do not include people who are doubled up, that are without a legal
residence of their own and temporarily staying with another person. The Orange County
Continuum of Care, with the Orange Person Chatham (OPC) Area Program serving as the lead
agency, coordinates the resources and services to support the homeless in Orange County.
There are prevention, outreach and supportive services available to Orange County homeless
to help alleviate their needs.
There is also an Orange County Partnership to End Homelessness which has formed following
the National Alliance to End Homelessness plan, "How to End Homelessness in Ten Years." In
March 2005, the governing bodies of Orange County committed funds to the Initiative and
authorized the creation of a workgroup to begin the process. The workgroup identified
community stakeholders and formed a formal Steering Committee with representatives from the
County and Town governing bodies and management; law enforcement agencies; school
systems; United Way; County and Town Chambers of Commerce; Economic Development
Corporation; business community; health care agencies; lending institutions; and the Builders
Association. Following the National Alliance to End Homelessness plan, the workgroup has
gathered research and data on homelessness and begun the process of creating a ten-year
plan to end homelessness for Orange County.
The Orange County Continuum of Care, with the Orange Person Chatham (OPC)Area Program
serving as the lead agency, coordinates the resources and services to support the homeless in •
Orange County. There are prevention, outreach and supportive services available to Orange
County homeless to help alleviate their needs. There is also a vision to create a.10 year plan to
end chronic homelessness through the support of the Triangle Alliance to Resolve Chronic
Homeless (TARCH).
Non-Housing Community Development
Orange County and the Town of Chapel Hill believe that true community revitalization requires a
comprehensive set of strategies to ensure success. Rehabilitating or constructing residential
structures without improving the physical, social and economic environment in which they are
located does not automatically revitalize neighborhoods.
The public spaces and infrastructure used to support community development includes public
facilities, including neighborhood facilities, parks and numerous health facilities for specialized
care and medical research. The area's infrastructure includes water and wastewater treatment
facilities that provide sufficient server capacity to all townships. Streets include two major
interstates as well as hundreds of miles of primary and secondary highways. Public services
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include support to handicapped and substance abuse services, employment training, health
services, and transportation for a wide variety of needs.
Anti-crime measures and youth programs work in and out of the school system to provide
awareness for students and increase public safety. There are three senior centers that provide
classes, wellness programs, trips, and lunches for area seniors. Orange County and its Towns
also provide small business owners with a variety of information and assistance to promote area
economic development. The Orange County and Town of Chapel Hill Planning and Inspections
Department implements land use and environmental policies, zoning, building construction and
standards through a system of regulations to promote stable and quality development.
Annual Strategic Plan
As a growing community, the Orange County and the Town of Chapel Hill must successfully
balance a diverse array of housing and community development issues. Given the range of
competing needs, the community must invest its scarce public resources wisely. Therefore, as a
general principle, the Town will attempt to expend public funds in a way that leverages the
commitment of private sector support whenever possible.
The following presentation utilizes this performance-centered approach to outline the County
and Town's approach to housing and community development in the upcoming year. This
approach includes identifying goals, objectives and strategies; determining what resources are
necessary to achieve these goals; analyzing and evaluating performance data; and using that
data to drive improvements in organization. All objectives and performance indicators are based
on a one year time frame.
Goal 1—Decent and Affordable Housing for Lower-Income Households
Priority 1.2—Low income renters(<60%AM!)that live in substandard housing
Strategies: - Continue to fund the rehabilitation of existing rental housing units
- Monitor and enforce rent and property standards for completed projects
- Leverage existing Town and County resources by utilizing the federal low income tax credit,HUD
Section 202 and 811,and other programs to construct new rental housing
- Provide educational opportunities related to fair housing,tenant rights,etc.
- Continue to dialogue with the University of North Carolina—Chapel Hill on issues that affect
affordable rental opportunities in the area
Output Indicators: - 32 additional affordable rental units(Orange County/Chapel Hill)
- 20 low income renters receive HOME funded rental assistance.(Orange County)
- 51 units of renovated public housing(Chapel Hill)
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Priority 1.4—Low-income renters(<80%AM!)that are potential homebuyers
Strategies: - Provide down-payment and closing cost assistance to qualified homebuyers
- Provide homebuyer education and counseling with an emphasis on credit
- Provide acquisition,infrastructure,predevelopment and/or construction funding to eligible non-
profits and for-profits to develop affordable housing opportunities
- Establish homeownership program to assist existing Section 8 recipients
Output Indicators: - Provide water/sewer service for a subdivision assisting 20 additional lower income homebuyers
(Orange County/Chapel Hill)
Priority 1.5—Eliminate barriers to affordable housing
Strategies: - Challenge and encourage non-profit and for-profit affordable housing providers to share resources
and collaborate
- Seek legislation that would require all local governments to require new residential and commercial
developers in the County and Towns seeking zoning approval and/or permits to contain at least
15%affordable units in residential projects
- Utilize equity sharing and community land trust concepts to limit the dramatic escalation of housing
costs
Output Indicators: - 11 units of new affordable housing in mixed income developments(Orange County/Chapel Hill)
- Increased awareness of barriers to affordable housing(Orange County/Chapel Hill)
Goal 2—Provide Housing and Services for Populations with Special Needs
Priority 2.2—Continuum of services for special populations including older adults,disabled,mentally ill,persons with AIDS and
at-risk youth
Strategies: - Promote and make public service funds available to agencies that serve identified special
populations
- Partner with other funding agencies to encourage the development of transitional housing(SRO's,
group homes)that is service-enriched
- Continue to strengthen partnership with local service providers
- Support applications for federal supportive housing funds
- Provide property acquisition funding to eligible non-profits and for-profits to develop permanent
housing for those with special needs
Output Indicators: - 5 additional permanent housing units for those with special needs(Orange County)
- Provide community services to 61 area youth(Chapel Hill)
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Goal 3—Promote Neighborhood and Economic Development
Priority 3.1—Promote revitalization in selected Chapel Hill neighborhoods and economic development in general throughout the
County
Strategies: - Strengthen partnerships with neighborhood associations(community pride,education,family
services,etc.)
- Work with neighborhoods to design and implement specific beautification strategies,including
neighborhood cleanups
- Promote recreational opportunities for area youth
- Prioritize one to two neighborhoods located in Chapel Hill and develop revitalization plans
accordingly
- Concentrate Town funding in selected neighborhoods to create maximum impact. Programs may
include redevelopment activities,CHDO Development-Infill and various rehabilitation programs.
- Build community capacity and better coordinate neighborhood services through the regular
dissemination of information. Examples may include Community Development Day workshops,
self-help workshops,activity updates,etc.
- Continue to work with area Chambers of Commerce and others to promote the economic
development of the community
- Coordinate effort of various Town departments to concentrate resources into selected
neighborhoods
Output Indicators: - Development of a small area plan for the Rogers Road Neighborhood and a Neighborhood
Conservation District for the Pine Knolls neighborhood (Chapel Hill)
- Promote county wide partnerships that are dedicated to the economic development of the County
Anti-Poverty Strategy
The 2000 Census reported that 15,318 people in Orange County (14.1%) had incomes below
the poverty level—an increase of 3,576 people since 1990. In addition to their housing
problems, they often have other social service needs. They face a variety of problems that
prevent them from improving their economic situation, escaping poverty and obtaining adequate
and affordable housing.
Orange County and the Town of Chapel Hill have targeted significant CDBG and HOME
resources within core low-income areas to execute its anti-poverty strategies. These resources
will act as catalysts to invite additional public and private investment of capital and services;
increase the quantity and quality of affordable housing; and help low to moderate-income
residents acquire needed information, knowledge and skills to improve their employment
opportunities.
The anti-poverty strategy is the unifying thread that ties the housing, homeless, public housing
and non-housing community development strategies together as one comprehensive plan for
reducing the number of families that fall below the poverty level. The strategic plan, goals and
objectives noted throughout this part promote self-sufficiency and empowerment.
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Town of Chapel Hill
Community Development Block Grant Program
and
Orange County HOME Consortium
HOME Program
2009-2010
Application for funding for
CONSTRUCTION PROJECTS
For grant year starting July 1, 2009
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GENERAL APPLICATION INSTRUCTIONS
This form is to apply for federal Co. .. oG Grant. r:
pp y Community Development Block ran (CDBG) or HOME funds for
construction projects. There is a separate application for non-construction projects. Construction
projects include:
• New housing construction
• Housing rehabilitation
• Commercial construction or rehabilitation
• Construction or improvement of public facilities
• Infrastructure development/site improvements
• Predevelopment costs
• Property acquisition
There is some overlap of the programs—here are a few guidelines:
• CDBG assistance is limited to projects within the Town of Chapel Hill "Extra-Territorial
Jurisdiction"(ETJ);
• HOME funds may be used anywhere in Orange County (Chapel Hill, Carrboro,
Hillsborough or Orange County);
• Non-Housing projects–CDBG only;
• New housing construction – HOME only (except for designated Community Based
Development Organizations which may use CDBG funds for new housing construction in
Chapel Hill).
Please see Attachment 1 for more information about the Community Development Block Grant and
HOME Programs. If in doubt,please contact Town of Chapel Hill or Orange County staff.
CDBG applicants must be:
• Non-profit agencies with a primary purpose of providing housing, human services, or
economic development services;or
• Local government.
HOME applicants must be:
• Non-profit agencies or for-profit corporations applying through a member government; or
• Consortium member governments.
"Non-profit" means having a 501c(3) tax exemption notice from the IRS. All applicants must
demonstrate a track record of continuous,active,and relevant operation for at least two years.
In general, all projects must benefit persons with househ old income below 80% of area median income
adjusted for family size. Please see Attachment 2 for current income limits.
2009. Costs incurred before that date and
The funding period starts July 1, before a
Performance/Development Agreement has been executed cannot be reimbursed.
MijIMEIt 1 amp. � � ,
Construction projects must comply with federal rules for: environmental review; "Davis Bacon" wage
rates; real property acquisition; contract procurement; equal employment opportunity; lead-based paint;
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fair housing; conflict of interest; and (for large projects) HUD Section 3 economic opportunity. Please
also note that the intention to use federal funds for a project triggers federal acquisition and relocation
regulations affecting real estate purchase.
Recipients of CDBG and HOME funds are required to submit written progress reports to the funding
agency on a monthly or quarterly basis, depending on the nature and phase of the project. Required
information may include: progress toward achieving performance goals; description of
activities/challenges; revisions of timelines/budgets; and other relevant information. Information may
also be required about marketing activities, program income, and the home buyers and/or tenants of
assisted projects.
Funded projects will be monitored for progress and performance, financial and administrative
management, and compliance with the terms of Performance/Development Agreements. Monitoring may
involve site and/or office visit(s).
Applications may be rejected without evaluation. Reasons may include:
1) Program not clearly eligible according to CDBG/HOME regulations;
2) Applicant has demonstrated poor past performance in carrying out government-funded
programs,or complying with federal regulations;
3) Applicant fails to provide financial audit or other required information;.
4) Incomplete applications—e.g.incomplete or missing sections.
CDBG applications will be reviewed by Town of Chapel Hill staff and the recommendation for funding
will be approved by the Chapel Hill Town Council. HOME applications will be reviewed by the HOME
Program Review Committee consisting of an elected official and staff person from each participating
jurisdiction, and approved by the governing bodies of Orange County, Chapel Hill, Carrboro, and
Hillsborough. Applications for both programs will be evaluated based on how well the proposed projects
fulfill the priorities in the 5-Year Consolidated Plan(see Attachment 3),whether they meet one or more
of the three National Objectives(CDBG only),the quality of the proposal,and the capacity of the agency.
In addition,the Town and County will seek citizen input through public hearings. See Attachment 4 for
a tentative schedule for development of the Community Development and HOME Program plans.
Applicants should understand that this is a competitive application process for limited funding.
There may be applications for projects that satisfy many of the evaluation criteria but are not
funded. Successful applications may be funded for less than the amount requested.
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DETAILED APPLICATION INSTRUCTIONS
• Submit original and one copy of the full application by 5:00 PM on Friday,February 27,2009.
• CDBG Applications may be submitted by hand at the Chapel Hill Planning Department,Chapel
Hill Town Hall,Third Floor,or by mail to:
Loryn Clark,Housing and Neighborhood Services Coordinator
Town of Chapel Hill
405 Martin Luther King Jr.Blvd.
Chapel Hill,NC 27514
• HOME Applications may be submitted by hand at the Housing and Community Development
Office,Orange County Richard L.Whiffed Human Services Center,First Floor,or by mail to:
Tara Fikes,Director
Orange County Housing and Community Development
P.O.Box 8181
300 West Tryon Street
Hillsborough,NC,27278
• Electronic submission is not acceptable—please do not email or fax applications.
• Complete each question directly on the application form. Attachments should only be used to
provide supplemental information. The application form can be downloaded from the Town of
Chapel Hill or Orange County websites: (http://www.townofchapelhill.org/index.asp?nid=344;
http://www.co.orange.nc.us/housing/index.asp).
• Please clasp or clip application sheets together;do not use binders,covers or staples.
• Please read all questions and instructions carefully. The care that goes into accurately and
informatively completing this application is evidence of your agency's ability to manage the
complexities of CDBG and HOME program requirements.
If you have questions about the eligibility of an activity or about the application please contact:
o For CDBG,Ms.Clark at 968-2728,lclark(.itownofchapelhill.org
o For HOME,Ms.Fikes at 245-2490,tfikes(a.co.orange.nc.us
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CHECKLIST OF DOCUMENTATION REQUIRED
WITH THIS APPLICATION
You must provide an ORIGINAL plus ONE Copy of the application,which consists of the
following sections:
❑ Section I: Applicant Information
❑ Section H: Project Description(including location and site maps)
❑ Section III: Project Budget and Pro-forma
❑ Section IV: Agency Description
❑ Section V: Disclosure of Potential Conflicts of Interest
Please provide one copy of each of the following documents:
❑ Current list of Board of Directors. Include addresses,phone numbers,terms, and
relevant affiliations
❑ Minutes of Board of Directors meeting authorizing the submittal of this
application
Please provide one copy of each of the following documents unless they are already on file
with the Town or County(please check Town/County staff to ensure documents are on file):
❑ Current Bylaws and Articles of Incorporation
❑ IRS tax determination letter(501(C)(3)
❑ Most recent independent audit(including management letter if issued)
Before signing Performance/Development Agreements with the Town/County,the funded
agency must provide the following documents unless they are already on file with the Town or
County(please check Town/County staff to ensure documents are on file):
❑ Personnel policies
❑ Financial management procedures
❑ Procurement policy
❑ Conflict of interest policy
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Construction
Town of Chapel Hill CDBG Program
Orange County HOME Program
Application for Funding for a
CONSTRUCTION PROJECT
This is an application for: ❑CDBG ❑HOME ❑ Both
Project Name:
Total Funds Requested:
Proposed Use of Funds Requested:
Total Project Cost:
SECTION 1: APPLICANT INFORMATION
Applicant's Legal Name:
Agency Address:
City/State/Zip:
Telephone Number:
Contact Person:
Title:
Telephone Number: E-mail:
'Fax Number:
To the best of my knowledge and belief all information and data in this application are true and
current. The document has been duly authorized by the governing board of the applicant.
Signature:
Board Chairperson/Department Head Date
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1C
Construction
SECTION II: PROJECT DESCRIPTION
ILA. Project Name:
LLB. Project Location:
II.C. Type of Activity:
❑ Acquisition(for rental or homeownership) ❑ Owner-occupied rehabilitation
❑ Predevelopment costs ❑ Rental rehabilitation
❑ Infrastructure/site improvements ❑ Emergency shelter
❑ New construction for homeownership(HOME only) ❑ Transitional housing
❑ New construction for rental(HOME only) ❑ Supportive housing
❑ Public facility or improvement(CDBG only)
❑ Commercial property construction/rehabilitation(CDBG only)
❑ Other(specify):
II.D. Project Description. Provide a general overview of your project,including what you are planning to
produce,your target client group,and how you plan to carry out the project.
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Construction
II.E Project Details. Please provide the information requested below(feel free to add additional lines where
necessary). Where the question is not applicable or no information is available,insert N/A.
Site
1. Please attach the following:
❑ Site map showing lot boundaries,location of structure(s),and other site features
❑ General location map(at least Y2 mile radius)
2. Size of development site: acres
Property Acquisition
1. Has agency acquired real property in order to carry out the project,or is property acquisition planned?
2. Has property owner been informed of your intention to use federal funds for this project? If so,
attach letter(sample property acquisition letters are available from staff).
3. Is the property currently occupied? If so,attach a description of your plan to relocate tenants in
accordance with the Uniform Relocation Act(contact appropriate staff if you have questions about the
URA).
Construction Detail
1. How many units will be newly constructed? Rehabilitated?
2. What is the square footage of each unit? Number of bedrooms/baths?
3. Will project participate in an energy efficiency program(e.g.Energy Star)? If yes,please provide
details:
4. How many units will have full ADA accessibility? Please provide details:
5. Please attach the following:
❑ Floor plan(s)
❑ Elevation(s)
6. For rehabilitation projects,describe your lead-based paint abatement plan for property built before 1978:
7. How many households will have direct access to improved infrastructure? Please describe:
8. Is the proposed project located in a designated Neighborhood Conservation District(Neighborhood
Conservation District—Chapel Hill projects only)? If yes, is applicant fully informed of the NCD
guidelines?
Affordability.Marketing.&Supportive Services
1. Describe any methods to ensure long-term affordability of housing units, including subsidy recapture,
equity sharing,deed restrictions,etc.:
2. What are the proposed rents(include utility costs)or sales prices for completed units?
3. Explain your process for marketing to ensure an adequate pool of income-eligible renters or buyers:
4. If supportive services will be coordinated with the project,please describe:
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H.F. Timetable.
Attach a detailed and realistic timetable showing when each work task will be completed(e.g.,
planning,obtaining financing commitments,design,environmental review,bidding,loan closing,key
milestones in construction,marketing,fmal inspection,occupancy,etc.).
CDBG-funded projects:
• For large-scale projects receiving funding for infrastructure/site improvements,your timetable should
reflect an expectation of completing construction by December 2010;
• For other types of projects,construction should be completed by December 2009.
HOME-funded projects: the project must be completed by June 2012.
H.G. Project Staff. Please provide names of staff that will be involved in project and describe their
responsibilities in the project(optional:attach resumes and/or job descriptions)
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LLG. Client Demographics. Please complete the following tables to the best of your ability. Show actual or
estimated numbers of beneficiaries,not percentages, in each category. In general you should count households as
the beneficiaries for housing programs and persons for non-housing programs. Please see Attachment 2 for the
current income limits for the Chatham-Durham-Orange MSA.
Income Group Number of Beneficiaries
<30%of area median income(AMI)
31-50%of AMI
51-80%of AMI
>80%of AMI*
TOTAL
Special Needs Beneficiaries(if applicable)
Category Number of Beneficiaries
Elderly(over 60)
Disabled(not elderly)
Homeless
People with HIV/AIDS
CDBG Area Benefit Activities only(Infrastructure,Public Facilities)*
Street Census Block Group Total #LMI
Tract Persons Persons
* If assistance is needed,please contact CD or HOME staff
Note: Activites may benefit individuals and/or geographic areas. You may fill out one or more of these
tables,as appropriate.
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SECTION III: PROJECT BUDGET AND FUNDING
IILA. Project Budget.
❑ Attach a detailed project budget showing all sources and uses of funds. Attach funding
commitment letters where available or copies of funding applications you have submitted.
IILB. Terms of Project Funding. Specify the requested terms of your funding request:
CDBG: ❑ Grant ❑Loan
HOME: ❑Grant ❑Loan
Provide any details about the nature of your funding request:
IILC. Pro-Forma(rental property only)
❑ If you are developing property for rent,attach a 20-year pro-forma showing estimated income,
expenses,net operating income,debt service,and cash flow.
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SECTION IV: AGENCY DESCRIPTION
If you have not received CDBG or HOME funding in the past three(3)years,please provide the following
information. Agencies that have been funded in the past three(3)years and member governments carrying out
projects entirely with their own staff may omit this section.
W.A. Organization
1. What is your organization mission statement?
2. Incorporation date(Month and Year)?
3. Estimated Total Agency Budget for FY 2009: $
4. Total number of agency staff(full time equivalents)
IV.B. Agency Track Record
Please describe your agency's experience and ability to carry out the proposed project (this may include your past
achievements in carrying out similar projects,experience of key staff,collaborative relationships with other
agencies,or any other features relating to agency capacity that you consider relevant):
IV.C. Board of Directors
1. How many board members should you have according to your by-laws?
2. How many do you actually have at this date?
3. How often does your board meet?
4. What was the actual attendance at each of the last three regular Board meetings?
5. Have you failed to reach a quorum at any Board meetings in the last 12 months?
6. What efforts do you make to ensure that your board represents the community it serves?
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SECTION V: DISCLOSURE OF POTENTIAL
CONFLICTS OF INTEREST
Are any of the Board Members or employees of the agency which will be carrying out this project,or members of
their immediate families,or their business associates:
a) Employees of or closely related to employees of the Town of Chapel Hill,Orange County,Carrboro or
Hillsborough YES❑ NO❑
b) Members of or closely related to members of the governing bodies of Chapel Hill,Carrboro,Hillsborough
or Orange County? YES❑ NO❑
c) Current or future beneficiaries of the project for which funds are requested: YES❑ NO❑
d) Paid providers of goods or services to the project or having other financial interest in the project:
YES❑ NO❑
If you have answered YES to any question,please attach a full explanation. The existence of a potential conflict
of interest does not necessarily make the project ineligible for funding,but the existence of an undisclosed conflict
may result in the termination of any grant awarded.
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Attachment 1
National Objectives of Community Development Legislation
(Community Development Block Grant Program)
The primary objective of the Community Development Block Grant (CDBG) Program is the "...development of
viable urban communities, including decent housing and a suitable living environment and expanding economic
opportunity,principally for persons of low and moderate-income." (Housing and Community Development Act of
1974)
Chapel Hill must certify that its overall program carries out this primary objective. In addition, each Community
Development Block Grant activity must:
1. Benefit low-or moderate-income persons(80%of median income and below);
2. Aid in the prevention or elimination of slums and blight;or
3. Treat urgent needs posing an immediate threat to public health and welfare.
Eligible activities for Community Development Block Grant funding include:
• acquisition of property
• disposition of property
• public facilities and improvements
• clearance,demolition and removal of buildings
• site improvements
• some public services(subject to a cap)
• relocation
• housing rehabilitation,preservation and code enforcement
• economic development activities
• planning and administrative costs(subject to a cap)
Activities that are generally not eligible include:
• buildings used for the general conduct of government
• new housing construction(allowed in special circumstances)
• general government expense
• political activities
• purchase of equipment and personal property
• operating and maintenance expenses
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Attachment 1
The HOME Program
In 1990, Congress enacted the HOME Investment Partnerships Act, better known as the HOME
Program, in an effort to provide a new approach to housing assistance at the federal level. This
federal housing block grant would afford state and local governments the flexibility to find a wide
range of housing activities through creative and unique housing partnerships among states and
localities, private industry, and nonprofit organizations.
Each housing activity must fall in line with the following goals of the HOME Program:
1. To expand the supply of decent, safe,sanitary and affordable housing,with emphasis on rental housing,for
very low-and low-income citizens;
2. To strengthen the abilities of state and local governments to design and implement strategies for achieving
adequate supplies of decent affordable housing;and
3. To encourage public,private and nonprofit partnerships in addressing housing needs.
Eligible activities for HOME Program funding include:
• Acquisition of property(including assistance to homebuyers);
• New construction;
• Reconstruction;
• Conversions;
• Moderate rehabilitation of non-luxury housing with suitable amenities;
• Tenant-based rental assistance;
• Relocation of displaced persons,families,businesses,or organizations;
• Site improvements,acquisition of vacant land and demolition(under special conditions);
• Project soft costs;
• Administration/planning(for qualified Community Housing Development Organizations);and
• Operating expenses for community housing development organizations.
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Attachment 2
Durham Metropolitan Statistical Area
Durham, Oran•e, and Chatham Counties
st of
s,
1 $39,950 $24,950 $15,000
• _ � sw % a.. n•. .aea'r.. ... ' 8 *3 sF 8a'src4 'ss•'�
3
$51 ,350 $32,100 $19,250
5 $61 ,600 $38,500 $23,100
7 $70,750 $44,200 $26,550
^^ "'
ffi - s a
Source: U.S. Department of Housing and Urban Development (HUD)
Website: http://www.huduser.org/datasets/il/i107/index.html
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Attachment 3
Summary of Goals,Priorities and Output Indicators from Housing and Community
Development Plan for 2005-2010 for Orange County,Carrboro,Chapel Hill and
Hillsborough
Goal 1—Decent and Affordable Housing for Lower-Income Households
Priority 1.1 Low income(<80%AMI))homeowners:that live in substandard housing
Strategies: - Continue to fund urgent repairs for qualified units
- Continue to fund substantial rehabilitation for qualified units
- Continue to incorporate handicap,weatherization and lead-based paint improvements into
• all substantial rehabilitations.
Output Indicators: - 25 substantially rehabilitated units(Orange County/Chapel Hill)
- 50 units with urgent repairs(Orange County)
Priority 1.2—Low income renters(<60%AMI)that live in substandard housing
Strategies: - Continue to fund the rehabilitation of existing rental housing units
- Monitor and enforce rent and property standards for completed projects
- Leverage existing Town and County resources by utilizing the federal low income tax
credit,HUD Section 202 and 811,and other programs to construct new rental housing
- Provide educational opportunities related to fair housing,tenant rights,etc.
- Continue to dialogue with the University of North Carolina—Chapel Hill on issues that
affect affordable rental opportunities in the area
Output Indicators: - 50 additional affordable rental units(Orange County/Chapel Hill)
- 20 low income renters receive HOME funded rental assistance for up to 2 years each
(Orange County)
- 100 units of renovated public housing(Chapel Hill)
- 150 units of refurbished public housing(Chapel Hill)
Priority 1.3—Law income(<80%AM)homeowners that do not have indoor plumbing or adequate connections to
existing public water and sewer systems
Strategies: - Continue to fund the connection of lower income homeowners to existing water and sewer
facilities.
- Continue to fund the construction of complete indoor plumbing facilities
Output Indicators: - 100%of all County residents have adequate indoor plumbing(Orange County/Chapel
Hill)
Priority 1.4 Low-income renters(<80%AM!)that are potential homebuyers
Strategies: - Provide down-payment and closing cost assistance to qualified homebuyers
- Provide homebuyer education and counseling with an emphasis on credit
- Provide acquisition,infrastructure,predevelopment and/or construction funding to eligible
non-profits and for-profits to develop affordable housing opportunities
- Establish homeownership program to assist existing Section 8 recipients
Output Indicators: - 75 additional lower income homebuyers(Orange County/Chapel Hill)
Priority 1.5 Eliminate barriers to affordable housing
Strategies: - Challenge and encourage non-profit and for-profit affordable housing providers to share
resources and collaborate
- Seek legislation that would require all local governments to require new residential and
commercial developers in the County and Towns seeking zoning approval and/or permits
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to contain at least 15%affordable units in residential projects
- Declare 2006"The Year of Affordable Housing"and implement a public education that
defines affordable housing
- Utilize equity sharing and community land trust concepts to limit the dramatic escalation
of housing costs
Output Indicators: - 100 units of new affordable housing in mixed income developments(Orange
County/Chapel Hill)
- Increased awareness of barriers to affordable housing(Orange County/Chapel Hill)
Goal 2—Provide Housing and Services for Populations with Special Needs
Priority 2.1—Service-enriched transitional housing for homeless persons with special needs
Strategies: - Promote and make public service funds available to homeless agencies that operate
emergency shelters
- Partner with other funding agencies to encourage the development of transitional housing
(SRO's,group homes)that is service-enriched
- Continue to strengthen partnership with the local Continuum of Care
- Provide property acquisition funding to eligible non-profits and for-profits to develop
transitional housing
Output Indicators: - Provide financial assistance to support the construction of a residential center for homeless
men(Orange County/Chapel Hill)
Priority 2.2—Continuum of services for special populations including;older adults,disabled, mentally ill,persons
with AIDS and at-risk youth
Strategies: - Promote and make public service funds available to agencies that serve identified special
populations
- Partner with other funding agencies to encourage the development of transitional housing
(SRO's,group homes)that is service-enriched
- Continue to strengthen partnership with local service providers
- Support applications for federal supportive housing funds
- Provide property acquisition funding to eligible non-profits and for-profits to develop
permanent housing for those with special needs
Output Indicators: - 20 additional permanent housing units for those with special needs(Orange County)
- Provide community services to 100 area youth(Chapel Hill)
Goal 3—Promote Neighborhood and Economic Development
Priority 3.1—Promote'revitalization in selected Chapel Hill neighborhoods and economic development in general
throughout the County!
Strategies: - Strengthen partnerships with neighborhood associations(community pride,education,
family services,etc.)
- Work with neighborhoods to design and implement specific beautification strategies,
including neighborhood cleanups
- Promote recreational opportunities for area youth
- Prioritize one to two neighborhoods located in Chapel Hill and develop revitalization
plans accordingly
- Concentrate Town funding in selected neighborhoods to create maximum impact.
Programs may include redevelopment activities,CHDO Development-Will and various
rehabilitation programs.
- Build community capacity and better coordinate neighborhood services through the
regular dissemination of information. Examples may include Community Development
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Day workshops,self-help workshops,activity updates,etc.
- Continue to work with area Chambers of Commerce and others to promote the economic
development of the community
- Coordinate effort of various Town departments to concentrate resources into selected
neighborhoods
Output Indicators: - Development of a small area plan for the Rogers Road Neighborhood and a Neighborhood
Conservation District for the Pine Knolls neighborhood (Chapel Hill)
- Promote county wide partnerships that are dedicated to the economic development of the
County
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Attachment 4
Tentative Schedule for Development of the 2009-2010
CDBG & HOME Program Plans
February 3,2009 Orange County Affordable Housing Needs
Public Hearing
February 4,2009 Town of Chapel Hill Public Forum
February 27,2009 Deadline for submission of applications
March 23,2009 Second Town of Chapel Hill Public Forum
Preliminary Community Development and
HOME Program Plans
April 27. 2009 Chapel Hill Town Council Consideration of
Community Development and HOME
Program Plans and a Consolidated Plan
Annual Update;
May 5 Orange County Board of Commissioners and
Carrboro Board of Aldermen Consideration
of a HOME Program and Consolidated Plan
Annual Update
May 11, 2009 Hillsborough Board of Commissioners
Consideration of a HOME Program Plan and
Consolidated Plan Update
May 15, 2009 Deadline for submitting Plan to HUD
This schedule is subject to change. Please visit the Town or County website for updates.
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