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HomeMy WebLinkAboutAgenda - 03-16-1999 - 9eORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. G~-e ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 1999 SUBJECT: Urgent Repair Program Funding Alternatives DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/1~ BUDGET AMENDMENT: (Y/1~ ATTACHMENT(S): Urgent Repair Program Progress Report 2/24/99 INFORMATION CONTACT: Tara L. Fikes TELEPHONE NUMBERS: - -ext. 2490 Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To provide short-term and long-term funding alternatives for the Urgent Repair Program of Orange County. BACKGROUND: At their March 3, 1999 meeting, the Board of County Commissioners requested County staff to prepare a statement of possible funding options for the 1lrgent Repair Program of Orange County. That information is contained in the following paragraphs. Further, the Boazd asked for a report regarding the future administrative plan for the Urgent Repair Program as well as report on the County's current Single Family Rehab Program for the viay 4, 1999 meeting. In 1997, several organizations including Orange Community Housing Corporation (OCHC), Habitat for Humanity, Orange County HOME- Consortium, and the Orange County Department on Aging established the Urgent Repair Program of Orange ~'uunty. Administration of the program was undertaken by Orange Community Housing Corporation. Initial funding was provided by the N.C. Housing Finance Agency, the Orange County HOME Program, and the Triangle Community Foundation. A detailed description of the program accomplishments is included with this abstract. At this time, OCHC is nearing completion of the second round of funding from the N.C. Housing Finance Agency. The availability of additional State funding is not anticipated until the yeaz 2000. No alternative funding source has been identified for the remainder of this fiscal year nor the coming 1999-2000 fiscal year. Thus, in the interest of continuing this program, the following funding alternatives are proposed for the remainder of the current fiscal year (short-term) and the upcoming fiscal year (1999-2000) which are considered long-term options. Short-Term Alternatives -Fiscal Year 1998-99 A special funding request can be presented to the Carrboro Board of Alderman; the Chapel Hill Town. Council; the Hillsborough Town Boazd; and the Orange County Board of Commissioners to provide funds for housing repairs and administrative costs. 2. The County receives Community and Home Block Grant funding from the State each yeaz in order to provide services to elderly citizens that will enable them to remain in their homes. (Seventy-five (75%) percent of the program beneficiaries to date have been elderly.) Joint Orange Chatham Community Action (JOCCA); the Department on Aging; and the Department of Social .Services presently utilize these funds for program eligible expenditures. There may be a possibility of available unspent funds during this fiscal yeaz which could be used for this program. 3. In prior years, some funding from this program has come from the Orange County HOME Program -approximately $58,000. In order to reprogram existing funding for this purpose, the HOME Consortium (all local governments) would have to agree to the reallocation of funds. It should be noted that federal housing funds aze difficult to use for this type of program due to the regulatory requirement of repairing housing to meet local housing code standazds. 4. Request the Department of Social Services to investigate the availability of Work First funding for families participating in the WorkFirst program. A meeting has been scheduled between local housing and social service organizations to discuss the program's future including funding challenges. Long-Term Alternatives -Fiscal Year 1999-2000 A special funding request can be presented to the Carrboro Board of Alderman; the Chapel Hill Town Council; the Hillsborough Town Boazd; and the Orange County Board of Commissioners to provide funds for housing repairs and administrative costs. 2. Ask the Orange County legislative delegation to support the N.C. Housing Trust Fund bill which provides funding to the N.C. Housing Finance Agency for various housing programs including the Urgent Repair Program. 3. Ask the Orange County legislative delegation to pursue discretionary funding in the amount of $60,000 for this program. 4. Some funding may be available during the 1999-2000 fiscal yeaz through the Orange County Bond Program. The Bond Policy approved by the Commissioners in December 1998 targets 33% of the funding or $594,000 for existing housing programs including such programs as the Urgent Repair Program. 5. Some funding may be available from the Orange County HOME Program with the consent of the Consortium members - Cazrboro, Chapel Hill, Hillsborough, and Orange County. It should be noted that federal housing funds aze difficult to use for this type of program due to the regulatory requirement of repairing housing to meet local housing code standards. 6. Some funding may be available from the Chapel Hill CDBG Program upon the approval of the Chapel Hill Town Council. It should be noted that federal housing funds aze difficult to use for this type of program due to the regulatory requirement of repairing housing to meet local housing code standards. RECOMMENDATON(S): The Manager recommends concentrating on items 2, 3, and 4 of the short-term alternatives to identify funding for the Urgent Repair Program for the remainder of this fiscal year. Further, County staff will continue to explore long-term funding alternatives and provide a status report of those efforts to the BOCC on May 4, 1999. 4 Urgent Repair Prcigram of Orange County February 24, 1999 Progress Report The Urgent Repair Program of Orange County (URP) was established in the fall of 1997 by several organizations including Orange Community Housing Corporation, Habitat for Humanity, Orange County HOME Consortium, and the Orange County Department on Aging. The Orange HOME Consortium contributed approximately $58,000 to the program and the North Carolina Housing Finance Agency (NCHFA) has contributed $128,100. The Triangle Community Foundation contributed $9,600 for program set-up and administration costs. The purpose of the program is to make urgent repairs and accessibility modifications to the homes oflow-income people with special needs so that they can remain in their homes. Applicants are referred to the program by a variety of government, nonprofit, and social service agencies. To . qualify, applicants must meet the following criteria: • Own and occupy a home in Orange County; • Have total household income equal to or less than 50% of azea median income (AMI), or $29,750 for a family of four in 1999 (with priority given to households with incomes below 30% of AMI); • Have special needs, including the elderly, disabled, single parents, and/or large families (5 or more people); and • The house must have repair needs that pose a threat to the life, safety, or health of the occupants, or need accessibility modifications for a disabled occupant. Examples of eligible repairs include: • Furnace repair/replacement; • Roof repair/replacement; • Electrical system repair/upgrade; • Plumbing repair; • Septic system repair/replacement; •` Hot water heater replacement; • • Structural system repair, • Wheelchair ramp wnstruction, grab bar installation, doorway widening and other accessibility modifications. Over the past 16 months the Urgent Repair Program has accomplished the following: • Completed urgent repairs to 40 homes in Orange County; • Have begun repairs to 7 additional homes; • Have spent approximately 78% of our budget; • Approximately 14% of total costs are for program administration; • Approximately 86% of total costs aze for "hazd costs" of repairs; • Total costs of repairs (including admin costs) average approximately $3,800 per house; • Approximately 75% of the households served are owned by elderly persons; • Disabled persons occupy 17 out of the 40 repaired homes. ~n Urgent Repsir Program of Orange County Progress Report February 24, 1999 Grant Total # Homes R aired # Northern a # Southern Or a # Town of Chapel Hill # Town of Carrboro Total Hard Costs Total Admin Costs Total Amount S nt Average Cost Per House 1997-98 NCHFA 18 7 6 5 0 $46,556 $7,050 $53,606 $2,978 1997-99 HOME * 11 3 2 3 3 $46,466 $4,647 $51,113 $4,647 1998-99 NCHFA * 11 6 2 3 0 $33,601 $4,750 $38,351 $3,486 T ' le Cmt Fndn $ 2,600 $6,000 $ 8,600 $ 215 TOTAL 40 16 10 11 3 $130,223 $21,447 $151,670 $3,792 Grant # HH Below 30% A]VII # HH Below 50% AMI Average Income # Elderly HH ** # Disabled HH # Large Families # Single Pazent HH # African American HH # Caucasian HH 1997-98 NCHFA 15 3 $9,482 14 5 3 4 16 ? 1997-98 HOME * 7 4 $11,045 10 5 0 1 10 1 1998-99 NCHFA * 8 3 $10,547 8 8 0 2 8 3 TOTAL 30 10 $10,205 32 18 3 7 34 6 ~` l:n addition to the home repairs that have been completed, 1 additional HOME project and 6 NCHFA projects have begun !construction. ** Some households fall into more than one category, e.g. elderly AND disabled, etc.