HomeMy WebLinkAboutAgenda 04-20-1999 - 5bORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. ~j
ACTION AGENDA ITEM ABSTRACT
Meeting Date: Apri120, 1999
SUBJECT: Resolution of Support -Senate Bi11708
DEPARTMENT: Housing/Community Development
PUBLIC HEARING: (Y/1~
ATTACHMENT(S):
Resolution
Senate Bi11708.
Affordable Housing Initiatives
INFORMATION CONTACT:
Tara L. Fikes
TELEPHONE NUMBERS: - -ext. 2490
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE:
To adopt a Resolution of Support for Senate Bi11708 entitled "Affordable Housing".
BACKGROUND:
Senator Fountain Odom has introduced Senate Bill 708 which will extend legislative authority to
enable counties with populations in excess of 500,000 to use general revenue dollars to support
affordable housing. More specifically, the bill amends current statutes to allow counties to engage
in, appropriate, and expend funds for new residential housing construction. These powers are
granted to cities, redevelopment commissions, and housing authorities, but not counties directly.
However, the statutes provide that any Board of County Commissioners may exercise directly those
powers granted by law to county redevelopment commissions and those powers granted to county
housing authorities. There is an Orange County Housing Authority; thus, most housing activities in
the County are undertaken according to the powers granted to housing authorities. A copy of the
bill is attached to this agenda abstract.
At the April 6, 1999 meeting, Myles Presler asked the Orange County Board of Commissioners to
approve the inclusion of Orange County in this legislation.
Staff conducted a critical analysis of the three main components of the proposed bill. The following
information is provided for the board's further deliberation regarding the proposed resolution:
I. Add a section to Article 18 of Chapter 153A which would authorize the County to engage in and
appropriate and expend funds for residential construction, new or rehabilitated; acquire real
property; convey property by private sale to any public or private entity that provides affordable
housing to persons of low or moderate income.
Staff Response: This power is already granted to the County under Chapter 157 (Housing
Authorities} of the General Statutes.
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II. Add a section to G.S. 153A-48(c) which would allow property taxes to be used to undertake
housing programs for low and moderate income persons.
Staff Response: G.S. 153A-48 (c) outlines the authorized uses of property tax revenue and does not
include housing as an authorized use. However, it does not prohibit the use of other county revenue
for housing purposes.
III.. Revise G.S. 159-48 (c) to give counties the authority to issue bonds for housing purposes
Staff Response: This power is akeady granted to the County under Chapter 157 (Housing
Authorities) of the General Statues.
As additional information, attached is a summary of past affordable housing initiatives in the
County for the time period 1988-1998. These efforts represent approximately $37 million dollars
invested in affordable housing. Of this total, approximately 61 percent has come from federal and
state funds; 34 percent from private investment, and five (5) percent from local dollars.
Further, it should also be noted that the County Zoning Ordinance is also available as a tool for
promoting housing affordability. A density bonus enacted in 1990 allows up to a 50% increase in
density for .developments that aze affordable to low and moderate income households. In addition,
manufactured housing and modulaz housing,. which is a ongoing source of affordable housing, is
allowable in all residentially zoned areas in the County.
FINANCIAL IMPACT:
Should the Boazd pass this resolution and the legislation is passed by the General Assembly, future
financial impact would be determined by future budgetary actions by the Board of County
Commissioners.
RECOMMENDATION(S):
The Manager has not found compelling reasons to adopt a Resolution of Support for Senate Bill
708; however, if the Board wishes to proceed with adoption, a resolution is attached.
i~
Resolution of Support
Senate Bill 708
WHEREAS, the Orange County Boazd of Commissioners has long recognized the need
for affordable housing for its citizens; and
WHEREAS, the Orange County Board of Commissioners promotes a collaborative,
county-wide approach to addressing the affordable housing problem in the County; and
WHEREAS, Senator Fountain Odom has introduced Senate Bill 708 during this 1999
General Assembly Session; and
WHEREAS, this bill would allow counties having a population in excess of 500,000 to
provide affordable housing for persons of low and moderate income; and
WHEREAS, designating that population size would exclude Orange County from
benefiting from the authority granted by this Bill; and; thus;
WHEREAS, the Orange County Boazd of Commissioners is interested in Orange County
receiving the same legislative authority as counties with populations greater than 500,000;
NOW, THEREFORE, BE IT RESOLVED by the Orange County Boazd of Commissioners
that Boazd asks the Orange County legislative delegation to request the inclusion of Orange
County in Senate Bi11708 -Affordable Housing.
This, the 20~' day of April, 1999.
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GENERAL ASSEMBLY OF NORTH CAROLIIVA
sESSioN 1999 FILED - S~1~i~lTE
s S 7 0 g MAR 31199!
• SENATE DRS1633-LM120(3.19~NCIPAL CLERK
Short Title: Affordable Housing. (Public)
. Sponsors: Senator Odom.
Referred to:
1 A BILL TO SE ENTITLED
• 2 AN ACT ALLOWING COUNTIES HAVING A POPULATION IN EXCESS OF
3 500,000 TO PROVIDE AFFORDABLE HOUSING FOR PERSONS OF LOW
4 AND MODERATE II~ICOME.
S The General Assembly of North Camiina enacts:
• 6 Section 1. The General Assembly finds and declares that the purpose of
7 this act is to provide authority for larger urban counties in North Carolina to provide
8 funds for residential housing construction, new or rehabilitated, and to provide for
• 9 the sale or rental of housing to persons and families of low and moderate income.
10 The C3eneral Assembly finds and declares that there exists in larger urban counties,
' •11 including rural areas of such counties, a serious shortage of decent, safe, and sanitary
• 12 residential housing available at low prices or rentals to persons and families of low
13 and moderate inconse. This shortage is inimical to the health, safety, welfare, and
14 prosperiry of all residents of the State and to the sound growth of North Carolina
iS communities.
16 Section 2. Part S of Article 18 of Chapter 153A of the Gtaeral Statutes is
• 17 amended by addinS a new section to read:
18 '' f _1S3 -375. Low- and ~ aincome h
19 - -
20 co is authorized to excise the following ~;
2I ~ T~~nQao~! in and ce ao'^Drt~t4„ and a:Wend thnds for residential
22 h4y;;r~ nstruction_ new or rehabilitated. for sale or rental to
23 _rsnnx and milies of low and mod to income. Any board of
. 2d ,...,~,~a~+~~w~ may contract with •a_nY ~.rson_ asSeCiarien_ er
• 23 corooradon implement the ~visiona of phis subdiyLon.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1999
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(,~ ?'quire real nr~Qem- by voltntarv purc~ hi fr2~ the oA~ner~ to
12~_develoned by the. co~~y or to be used by,~g co y to Qrovide
.. affordable housing to persons of low and moderatr *w~n.++'
' ' ~ IJndei procedures a-rd standards established hY ~s _,_tv+ ~
. convey nr_ oo~rrv by Private ~e to any public or private entity t -t
.. -,-. r-- -.~.-.... __~.
' ~ nrovJdes affordable housin¢ to eersens of i w or mod rgt~ incnm
'The county eyha~l inclt±de ere na_rr of any,~ch convevaaca covenant_c
or conditions that assure the Qro~rty will bed 1nM~t~ v_
en[iri for ale or le~Re to persons of low or m erat~ inenrn~
~ Under prnCed +~r~ and standards established hi the cpunEj- to
convey residential j~~y by private sale to persons of low or
moderate income in accordance with G.S. 160A-267 and any terms
ewer f./1w.~ti~iww- ,l.e• 1{.. 1.we-a ws ....rw ww.wn.w~....- ~. ~.. ~~.~~-__~ N
read:
Section 3. G.S. iS3A-149(c) is amended by adding a now subdivision to
"fig. - To undertake hostsinQ oroarams ~ low- and
m~~rate-income j~rsone as arovided in G.S.1S3A-378_"
Section 4. G.S. 159-48(c) reads as rewritten:
"(c) Each county is authorized to borrow money and issue its bonds under this
Article in evidence of the debt for the purpose of, in the case of subdivisions (1)
through (4a) of this subsection, paying any capital costs of any one or more of the
purposes and, in the case of ~bdi+~ese-{~S} sut~divisions tSl and (61 o;E this subsection,
to finance the cost of the purpose:
(1} Providing community college facilities, including without limitation
buildings, plants, nerd other facilities, physical and vocational
educational buildings and facilities, including in connection
therewith classrooms, laboratories, libraries, auditoriums,
administrative otBces, student unions, dormitories, gymnasiums,
athletic fields. cafeterias, utility ghats. and garages.
(2) Prodding courthouses, including without limitation offices, m~ceting
rooms, curt facilities and rooms, and detention facilities.
(3) Providing county homes for the indigent and infirm.
(4) Providing school facilities, including without limitation
schoolhouses, buildings, plants and other facilities, physical and
vosatiaual ec~.na-nonal buildings and facilities, including in
connection therewith classrooms, laboratories, libraries,
auditoriums, administrative offices, gymnasiums, athletic fields,
lunchrooms, utility plants, garages, and school buses and ocher
' necessary vehicles.
(4a) Providing improvements to subdivision and residential sweets
pursuant to G.S. 1S3A 205. .
(S) Providing for the octennial revaluation of real property for
taxation.
Page 2 Senate DRS 1633
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GENERAL ASSEMBLY 4F NORTH CAROLINA SESSION 1999
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of 500,000.
No r nt snbsidv acv bjt naid frog band erg d_"
Section 5. This act applies only to counties having a population in excess
Section 6. This act is effective when it becomes law.
Senate DRS1633
Page 3
Affordable Housing Initiatives in Orange County
A Summary
1988-1998
....,r.,,,..,,~-.:. .,
:;:::::.~::„n..:~::~..:.
..... ~ •.::.: ., . Zh ~ ::,.
:. ..t.
,..
..:
Carolina Springs Carrboro Rental $ 7,734,779 $ 4,033,068 $ 3,329,711 $ 372
000 123
Clark Rd. Apts Chapel Hill Rental $ 954,600 $ 954,600 , 14
Covenant Place Carrboro Homeownership $ 3,015,300 $ 2,895,313 $ 120
000 40
Culbreth Park Chapel Hill Homeownership $ 2,628,000 $ 2,250,000 ,
$ 378
000 27
Dobbins Hill Chapel Hill Rental $ 3,600,000 $ 2,650,000 $ 950
000 , 55
Habitat for Humanity County-wide Homeownership $ 3,164,334 $ 627,334 ,
$ 2,426,000 $ 111
000 50
Magnolia Place Hillsborough Homeownership $ 4,180,085 $ 450,277 $ 3,529,808 , 42
Project HomeStart Chapel Hill Transitional $ 1,019,698 $ 587,500 $ 354,698 $ 77
500 15
Rainbow Heights Chapel Hill Rental $ 1,663,645 $ 1,663,645 , 23
Tandler Chapel Hill Homeownership $ 316,170 $ 316
170 35
Whitted Forest Hillsborough Rental $ 2,033,767 $ 1,179,229 $ 854,538 , 35
Carr Court Carrboro Homeownership $ 513,000 $ 121,125 $ 351,500 $ 40
375 6
Rencher Street Orange County Community Revitalization $ 685,000 $ 600,000 ,
$ 85
000 20
Rehab County-wide Housing Rehabilitation $ 5,412,367 $ 4,450,124 $ 800,000 ,
$ 162
243 264
IFC Community House Chapel Hill Homeless Shelter $ 553,000 $ 500,000 ,
$ 53,000 77
TOTALS
$ 37,157,575 $23,278,385 $12,598,255 $1,715,288 ~ 826
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7/8/98