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HomeMy WebLinkAboutAgenda - 05-05-2009 - 4kORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 2009 1 Action Agenda Item No. ~{--~ SUBJECT: Consolidated Housing Plan Annual Update/HOME Pro ram DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolutions Tara L. Fikes, 245-2490 Annual Update Summary PURPOSE: 1) To adopt a Resolution approving the 2009 Consolidated Housing Plan Annual Update; 2) To adopt a Resolution approving the proposed HOME Program Activities for 2009- 2010; and 3) To authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. BACKGROUND: Consolidated Housing Plan Annual Update In 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. The Consolidated Plan is required for all communities receiving HOME funds (Orange County HOME Consortium) and CDBG entitlement funds (Town of Chapel Hill). Each year, local communities are required to submit an Annual Update to the Consolidated Plan to the State HUD Office by May 15th. This Update includes th.e 2009-2010 Community Development Plan for the Town of Chapel Hill and the 2009-2010 HOME Program Action Plan or the Orange County HOME Consortium. Public hearings were held by the Chapel Hill Town Council on February 1 and March 23 and by the BOCC on February 3, 2009 to receive citizen comments regarding the Update prior to development and subsequent submission to HUD. Public comments received at the hearings are summarized in the Annual Update document. A public comment period as required by HUD was established for April 9 -May 12, 2009 by notice in the Chapel Hill Herald. Copies of the Annual Update were made available at the Orange County Housing and Community Development Offices. 2009-2010 HOME Program Activities 2 The current Orange County HOME Consortium Agreement establishes a HOME Program Review Committee to provide general oversight of the program. Participants in the HOME Consortium are Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough. The Committee is authorized to provide policy oversight for planning, operations, and evaluation of OHC and the HOME Program. The Manager or his/her designee from each participating unit of local government and one (1) elected official from each jurisdiction shall be a member. For Orange County, Commissioner Valerie Foushee serves on this Committee. Every year, the HOME Program Review Committee prepares a proposed HOME program design and consortium program application to HUD in compliance with the Act, the Regulations, and the Federal Program Requirements, including reallocation of any funds from previous years not expended or any repayments or other program income consistent with this Section. The proposed HOME program design defines a strategy in sufficient detail to accommodate the collective and individual. needs and priorities of the County and Towns. Each year's proposed HOME program design and the consortium program application should be consistent with the Consolidated Plan and is subject to the approval of each consortium member's elected board. This year, as required by the Consortium Agreement, the HOME Program Review Committee reviewed applications for HOME Program funding and developed the proposed HOME Program Design for the 2009-2010 Program Year. A total of seven (7) applications were received from local non-profit organizations and other local governmental units requesting approximately $990,000. There is approximately $795,534 in HOME funds and HOME Program match funds available for Fiscal Year 2009-2010. The recommended program design is detailed in the attached resolution. In accordance with the Orange County HOME Consortium Agreement approved in June 2005 the HOME Program Design for each year must be approved by all jurisdictions prior to submission to HUD. The Program Design is scheduled for approval by Chapel Hill on May 4, by Carrboro on May 5, and by Hillsborough on May 11th. The Orange County Board of Commissioners is therefore asked to consider approval of the attached HOME Program Resolution. HOME Program Implementation After approval of the 2009-2010 HOME Program design by all consortium participants, authorization is also requested to allow the Orange County Manager to execute agreements with partnering non-profit organizations as necessary to implement the approved HOME Program design. All agreements will receive the review and approval the County Attorney's office. FINANCIAL IMPACT: The Orange County HOME Consortium is scheduled to receive approximately $661,756 in federal housing program funding. The required total local government match is $148,895. Orange County's share of the match is $59,558 which will be allocated from County's general fund. The County has also received program income in the amount of $51,058 during the current fiscal year that is available for re-programming. Most of this revenue comes from the repayment of second mortgages. Therefore, the total amount of HOME funds available for the coming fiscal year is $795,534. RECOMMENDATION (S): The Manager recommends the Board: 1) Adopt a Resolution approving the 2009 Consolidated Housing Plan Annual Update; 2) Adopt a Resolution approving the proposed HOME Program Activities for 2009-2010; and 3) Authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. RESOLUTION AUTHORIZING THE SUBMISSION OF THE 2009-2010 ANNUAL UPDATE OF FY 2005-2010 CONSOLIDATED HOUSING PLAN FOR ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, that the Commissioners authorizes the County Manager to submit the Orange County Consolidated Plan for Housing and Community Development Programs Annual Update to the U.S. Department of Housing and Urban Development, including all understandings, assurances, and certifications required therein. BE IT FURTHER RESOLVED, that the Manager is hereby designated as the authorized representative of the County to act in connection with the submission of the Annual Update and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This the 5th day of May 2009. RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2009-2010 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approve the following activities for the 2009-2010 HOME Program. Homebuyer Assistance Funds would be allocated to the Orange Community Housing and Land Trust to assist first time homebuyers earning less than 80 percent of the area median income to purchase homes county-wide Funds would be provided as a grant to the Land Trust. (Requested amount: $100, 000) $100,000 Funds would be allocated to Orange County Habitat for Humanity to provide deferred payment zero- interest second mortgages for six homes throughout Orange County. Homes would be sold to households earning between 30 percent and 80 percent of the area median income. (Requested amount: $60, 000) $ 60,000 Housing Rehabilitation Funds would be allocated to the Orange Person Chatham Mental Agency on behalf of the Chrsyalis Foundation and Community Alternatives for Supportive Abodes (CASA) for the repair of 23 properties owned by the Chrysalis Foundation. These units are currently leased to individuals that are disabled and/or chronically homeless. (Requested amount: 200, 000) $162,000 Operational Support Funds would be allocated to Orange Community Housing and Land Trust as a Community Housing Development Organization for administrative expenses. (Requested amount: $30, 000) $ 30,000 New Construction Funds would be allocated to Inter-Faith Council for pre-development costs associated with the construction of Project Community House a new men's residential facility for homeless men in the community. (Requested amount: $400, 000) $185,000 Funds would be allocated to Habitat for Humanity to provide funding for infrastructure development in the Phoenix Place project located on Purefoy Road in Chapel Hill. Habitat plans to build at least 50 dwelling units for sale to first-time homebuyers earning less than 60% of the area median income. (Requestedamount.• $250,000) $208,534 Rental Assistance Funds would be provided for rental assistance for approximately 25 low-income families leasing standard property in Orange County. The program will operate in a similar manner to the Section 8 Program and provide rental subsidies for a period of two years to families at or below 50% of the area median income. This is an extension of the Homeless Outreach work of Housing for New Hope. (Requested amount: $S0, 000) $50,000 Program Administration TOTAL FY 2009-2010 HOME PROGRAM FUNDS $ 66,176 $861,710 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of this plan and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This the 5th day of May 2009. Valerie P. Foushee, Chair SEAL DRAFT Annual Update 2009 County of Orange, North Carolina Town of Carrboro, North Carolina Town of Chapel Hill, North Carolina Town of Hillsborough, North Carolina Orange County (Lead Entity) 200 South Cameron Street Post Office Box 8181 Hillsborough, North Carolina 27278 {919) 245-2490 (919) 644-3056 Fax www.co.orange.nc.us t 17 52 a c~t~ QEaT°~~~ May 15, 2009 8 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 #o 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. 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. Ill I 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 atwo-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 1,300 people remaining on a waiting list as of March 2009. 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 all 336 units of public housing over afive-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. [3] (c7 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 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. ' 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. [4] 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: 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. [5] -a • Provide training to housing providers and consumers about their obligations and rights. Homeless Assessment Based on a point-in-time count conducted on January 29, 2009, the total number of homeless people in Orange County was 156, Forty-six (46) homeless persons were in families, including 27 children. Additionally, 42 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 aten-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 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 [6] 13 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 8conomic 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 Priont 1.1-Low income < 80%AMI homeowners that live in substandard housin 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: - 23 substantially rehabilitated units (Orange County/Chapel Hill) Priorif 1.2 -Low income renters <60% AMl that live in substandard housin 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 o ortunities in the area Output Indicators: - 23 additional affordable rental units (Orange County/Chapel Hill) - 16 units of renovated public housing (Chapel Hill) [~] i¢ Priorit 1.4 -Low-income renters <80% AMI that are otential homebu ers 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 homeownershi ro ram to assist existin Section 8 reci Tents Output Indicators: - Provide downpayment assistance to service for 8 additional lower income homebuyers. (Orange Coun /Cha el Hill Priorit 1.5 -Eliminate barriers to affordable housin 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: - Ten (10) units of new affordable housing in mixed income developments (Orange Co./Chapel Hill) - Increased awareness of barriers to affordable housin Oran a Coun /Cha el Hill Goal 2 -Provide Housing and Services for Populations with Soerial Needs Prio ~ 2.1-Service-enriched transitironal housin .for homeless ersons with s ecial 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 housin Output Indicators: - Provide financial assistance to support the construction of a residential center for homeless men Oran a Coun /Cha el Hill Priority 2.2 -Continuum of services for special populations including older adults, disabled, mentally ill, persons with AIDS and at-risk outh 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 isservice-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 housin for those with s ecial needs Ou ut Indicators: - Provide communi services to 55 area outh Cha el Hill [8] 15 Goal 3 -Promote Neighborhood and Economir. nevainnmant Priority 3.1-Promote revitalization in selected Chapel Hill neighborhoods and economic development in general throughout the Count 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 nei hborhoods 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 coun wide artnershi s that are dedicated to the economic develo ment of the Coun 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. [9l l (v Annual Action Plan The following tables show the proposed sources and uses of funding available to Orange County for the fiscal year 2009-2010 from the U.S. Department of Housing and Urban Development. More detailed descriptions are provided in the Annual Plan portion of this document. Fiscal Year 2009-2010 Fundin Source of Funds Amount Community Development Block Grant $574,840 Community Development Block Grant Reallocation $ 42,338 HOME Investment Partnership Program $661,756 HOME Matching Funds $148,895 HOME Program Income $51,058 Total $1,478,887 Fiscal Year 2009-2010 Fundin Uses of Funds Amount HOME Program Pre-Development Costs-Interfaith Council $185,000 Housing Rehabilitation-OPC/Chrysalis $162,000 Infrastructure Costs-Habitat for Humanity $208,534 Homeownership Assistance-OCHLT $100,000 Second Mortgage Assistance-Habitat for Humanity $ 60,000 Rental Assistance-Housing for New Hope $ 50,000 Operations Support-OCHLT $ 30,000 Administration $66,176 Community Development Block Grant Infrastructure Development-Habitat for Humanity $193,304 Public Housing Modernization-Town of Chapel Hill $150,000 Predevelopment Costs-Inter-Faith Council $ 75,000 Homeownership Assistance-OCHLT $ 25,000 Public Service Activities $ 60,000 Program Administration $114,000 Total $1,478,887 [10] i~ Proposed Activities and.Proposed Projects 2009 - 2010 HOME Program Activities and Projects 1. Housing Rehabilitation: $162,000 $162,000 will be used for renovations and repair on 23 properties currently owned by the Chrysalis Foundation for Mental Health, Inc. A portion of this funding will be applied as a cash match for the HUD Supportive Housing operating dollars that are received by eight of the 23 units. 2. Homeownership Assistance: $100,000 $100,000 will be allocated to Orange Community Housing and Land Trust to assist first time homebuyers earning less than 80% of the area median income to purchase Land Trust homes throughout Orange County. The majority of homes would be located in the Chapel Hill/Carrboro area. 3. Second Mortgage Assistance: $ 60,000 $60,000 will be allocated to Habitat for Humanity to provide deferred payment zero-interest second mortgages on three homes throughout Orange County. The homes would be built in 2009 and 2010 and would be sold to households earning between 30% and 80% of the area median income. 4. Infrastructure Costs: $208,534 $208,534 will be allocated to Habitat for Humanity for a portion of the infrastructure costs for a subdivision of 50 affordable, green, single family homes on approximately 19.4 acres on Purefoy Drive in the Rogers Road Community. The site is owned by Habitat for Humanity, Orange County, NC, Inc. 5. Operational Support: $ 30,000 $30,000 will be allocated to the Orange Community Housing and Land Trust for administrative expenses related to implementing its HOME Program funded projects. As a designated Community Housing Development Organization for the HOME Program, the Land Trust is eligible to receive funds for administration of a housing program. 6. Rental Assistance: $ 50,000 $50,000 will be allocated to Housing for New Hope, Inc for tenant-based rental assistance for homeless individuals and families. 7. Pre-Development and Infrastructure Costs: $185,000 $185,000 will be allocated to Inter-Faith Council for Social Service (IFC) for pre-development and construction costs for new men's residential shelter on UNC property. [11] i~ 8. Administration: $ 66,176 The remaining $66,176 will be allocated to the Orange County Housing and Community Development Department for administration of the HOME program. Community Develoament Block Grant Activities and Projects 1. Infrastructure Development: $193,304 Habitat for Humanity will receive $193,304 for a portion of the infrastructure costs for the Phoenix Place subdivision located in the Rogers Road neighborhood. Habitat intends to build fifty single-family homes for households earning less than 80% of the area median income on this site. The preliminary HOME Program Plan includes $157,476 for this request. 2. Modernization of Public Housinp: $150,000 Approximately $150,000 will be budgeted to perform comprehensive renovations at the South Roberson Street Public Housing Community. Renovation work would include installation of new furnaces including air conditioners and water heaters, replacement of interior and exterior doors, replacement of wall and base cabinets and countertops to include new range hoods and sinks, installation of new washer and dryer hookups, upgrade of electrical services, and replacement of water and sewer lines. 3. Pre-development Costs: $ 75,000 Inter-Faith Council for Social Services will receive $75,000 for infrastructure and predevelopment costs related to the development of a 50 plus bed transitional housing facility for homeless men. The facility would be located on a1.66-acre of property located on Martin Luther King, Jr. Boulevard and would also include staff offices, meeting areas and a medical clinic for homeless residents. The preliminary HOME Program plan includes $185,000 for this request. 4. Homebuver Assistance Proaram: $25,000 Orange Community Housing and Land Trust will receive $25,000 for its Homebuyer Assistance Program to assist low-income buyers to purchase Land Trust homes in Chapel Hill. The Land Trust intends to combine Community Development funds with HOME Program funds and funds from the Town's Affordable Housing Fund to subsidize the purchase price of Land Trust homes. The Land Trust would also be able to use funds from the Town's Affordable Housing Fund and Housing Loan Trust Fund for this purpose. The preliminary HOME Program plan includes $100,000 for this request. [12] i~ 5. Community Services: $60,000 Funds will be provided for four community service programs that meet the Community Development regulations. Chapel Hill Police Department Youth Summer Work Program: $ 25,000 The Youth Employment Program provides job skills training, employment experience, and economic opportunities to youth aged 14-18 living in the Pine Knolls, Northside and public housing communities whose families earn less than 80% of area median income. During the summer, approximately thirty-five youth would work up to twenty hours per week for seven weeks in various Town Departments and local non-profit organizations. The youth would also participate in training on financial education and job interviewing skills. Work-site supervisors and the youth employees will fill out evaluations at the end of the program to help determine the success of the program. Chapel Hill Training Outreach Project (CHTOP) After School Enrichment Program: $10,000 The After School Enrichment Program operates at the Family Resource Center in the South Estes public housing community, serving approximately fourteen elementary school-aged children. Chapel Hill Carrboro YMCA After School Outreach Program: $10,000 The After School Outreach Program operates at the Chapel Hill/Carrboro YMCA, serving children living in the Pine Knolls neighborhood and the South Estes Drive and Airport Gardens public housing communities. Funds would be used to provide scholarships to eligible children. Housing for New Hope: The Homeless Outreach and Housing Support Program homeless to improve their lives through obtaining and supportive services. Funding would be used to pay a Outreach worker. 6. Program Administration: $ 15,000 assist the homeless and chronically maintaining permanent housing and portion of the salary for a Homeless $114,900 We recommend that the Council allocate $114,000 for administration of the Housing and Neighborhood Services division of the Planning Department. Funds would be used for oversight of the Community Development program and related affordable housing programs, as well as coordination with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations. We propose to continue to use funds for a portion of the salaries of the Housing and Neighborhood Services Manager, the Housing and Neighborhood Services Planner, and 100% of the salary for the part-time Community Development Program Monitor. In addition to salaries, funds would be used for overhead costs such as advertising expenses, business meetings and training, supplies and professional services. [13]