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HomeMy WebLinkAboutAgenda - 12-15-1998 - 9a 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 1998 SUBJECT: Housing Bond Program Policy DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/1) BUDGET AMENDMENT: (Y/1) ATTACHMENT(S): INFORMATION CONTACT: Proposed Policy Tara L. Fikes Implementation Schedule TELEPHONE NUMBERS: --ext. 2490 Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To approve the Housing Bond Program Policy. BACKGROUND: In November 1997, Orange County voters approved a$1.8 million dollar housing bond issue. Funds are to be used for affordable housing initiatives in three areas: land acquisition, housing development, and homeownership programs. This is the first housing bond issue approved in the County. Since the program is new,the first step towards program implementation was the development of program policies that would govern the expenditure of bond funds. On April 7, 1998,the Board of County Commissioners appointed a Housing Bond Policy Task Force with membership from a representative of the seventeen(17) local non-profit housing organizations and associations. The Task Force developed a proposed Housing Bond Policy which was presented to the Board on October 20, 1998. At that time,the Board asked that the task force consider the following comments. The task force response is noted in the italics after each item. 1. Expansion of the Project Review Committee to include architects, engineers,and other building related professionals. The Task Force does not endorse expansion of the Review Committee primarily because it is not anticipated that proposals will be so detailed that private professionals would be needed to review the proposal. Further, there may be a potential conflict of interest problem since most development project proposals would require the services of at least one of these professionals in order to develop a sound proposal. 2. The BOCC requested a copy of the NCHFA Energy Efficiency Standards referenced in the Policy. A copy of the NCHFA Standards is included as an Attachment to the Policy. 2 3. Income Targeting criteria should insure that the lowest income group possible benefits . from the program. The Task Force does not recommend changing the current Income Targeting criteria. Projects designed for the lowest income group may require more bond financing, thus, while the project will earn points in the Income Targeting criteria area, it may not earn a great deal of points in the Leveraging Section. 4. Guarantee of Long-Term Affordability perhaps with the use of Deed Restrictions. The Task Force recommends insuring long-term affordability with the use of deed restrictions similar to those used to secure impact fee reimbursements. 5. The Project Feasibility section of Evaluation Criteria provides a bonus for an applicant that has obtained contractor commitments and necessary building permits. This prompted the question regarding the"longevity" of a Building Permit. According to the Orange County Building Inspections Office, after a building permit has been issued, the first inspection must occur within six months. Thereafter, there must be at least one inspection per year in order for the permit to remain valid. In addition to discussing these items the bond committee added language to the policy which requires all existing housing projects to be completed within three years of funding award and all new construction projects to begin within three years of funding award. Lastly, for information purposes, and in consideration of the date of completion of the Housing Bond Policy,the Implementation Schedule presented at the October 20, 1998 meeting has been adjusted accordingly and is included with this abstract. RECOMMENDATION(S): The Manager recommends approval of the Housing Bond Program Policy. 3 Orange County Housing Bond Policy Established September 1998 This document outlines the policies governing the expenditure of 1997 Affordable Housing Bond funds. Only non-profit entities will be eligible to apply for funding under the County's bond program. Non-profits may partner with for-profit entities to develop projects, however, in those cases, the non-profit must have the controlling majority in the project (more than 50% interest). A. Loan Program Types Developers and projects would be selected on a Request for Proposal basis subject to established evaluation criteria and targeting goals. The following programs would be implemented using funds from the voter-approved housing bonds and other available resources. Examples of other available resources include: the Community Development Block Grant (CDBG) Program, HOME Investment Partnerships Program, NC Housing Finance Agency Programs, as well as local general fund contributions. 1. Existing Housing Programs — Target Funding: 33% or$594,000 All Existing Housing Program activities should be completed within three years of funding award. Bond fund recipients will be required to submit a status report to the County each year during project implementation. Any requests for time extensions will be granted at the discretion of the Board of County Commissioners and must be submitted at least six months prior to the deadline date. a. Affordable Housing Loan Program The focus of this homeownership program would be direct assistance to eligible borrowers. An eligible homeowner is one that has not owned a home in the past three (3) years. Income-eligible borrowers would be pre- qualified for first and second mortgages by a local housing non-profit agency with the cooperation of local lenders. All prospective homebuyers would have to complete a county-approved homebuyer education program prior to receiving approval to participate in the program. The County would provide a "pre-commitment" letter to the borrower, who could then purchase a standard home available on the market that they could afford and that sold for less than the FHA maximum sales price for this area. The eligible borrower must provide a minimum of$750 cash contribution to this transaction. b. Rehabilitation of Substandard Housing — Second Mortgage This program would provide direct assistance to eligible homeowners and 501(c)(3) non-profit organizations which own rental property for rehabilitation of units with code violations. 12/01/98 C. Community Revitalization Loan Program 4 , This program would provide assistance with the purchase and rehabilitation of existing property by first-time homebuyers. The guidelines governing this program will be in accordance with the existing County and Town of Chapel Hill Programs with the same name. d. Acquisition for Low Income Rental Housing Funds would be used to assist local 501(c)(3) organizations purchase and, if necessary, renovate available property for lease to low income Orange County residents. e. Urgent Repair Program The program would be used to provide funds for home repairs that eliminate potential life or safety threats to low-income homeowners and/or enable the elderly and disabled to remain in their homes by providing essential accessibility modifications. 2. New Construction Programs — Target Funding: 67% or$1,206,000 All New Construction program activities should begin within three years of funding award. Bond fund recipients will be required to submit a status report to the County each year during project implementation. Any requests for time extensions will be granted at the discretion of the Board of County Commissioners and must be submitted at least six months prior to the deadline date. a. New Construction —Second Mortgage Assistance may be provided to non-profit housing developers of new construction projects for first-time homebuyers and/or renters. A Builder Participation Agreement would set aside a funding allocation for second mortgages to developers/homebuyers in a specific project. For rental projects, the use of federal income tax credits and Section 8 certificates and vouchers must be utilized if available. b. Land Acquisition This program would enable a local 501(c)(3) non-profit organization to acquire and hold available land suitable for affordable housing development. The land would subsequently by developed by any non- profit organization with a sound, site-specific, development proposal within eighteen months. Actual construction must begin within three (3) years of the original application date. The bond money investment for land purchase would remain with the land as a second mortgage with deed restrictions. 12/01/98 5 B. Income Targeting The recommended income categories include: a. Families with incomes below 25% of area median income; b. Families with incomes below 26-50% of area median income; C. Families with incomes below 51-80% of area median income; C. Evaluation Criteria The evaluation criteria below will be used in reviewing and ranking housing bond fund proposals. Additional guidelines may need to be added to these in the actual solicitation package depending upon the location and nature of the project. I. Affordability (30 points) The degree to which the proposed project would serve those with incomes below the maximum and the period of time over which the project would remain affordable to that income group. a. Income targeting - 20 points ➢ If the project is designed to serve households earning less than 50% of the area median income, the full 20 points will be awarded. ➢ If the project serves household earning less than 60% of the area median income, 15 points will be awarded. ➢ If the project serves household earning less than 70% of the area median income, 10 points will be awarded. ➢ If the project serves household earning less than 80% of the area median income, 5 points will be awarded. ➢ (BONUS) If 100% of the units in a project serves households earning less than 25% of the area median income, 5 points will be awarded. 12/01/98 6 b. Affordability - 10 points ➢ If the project is designed to remain affordable for over 40 years, the full 10 points will be awarded. The period of affordability will be reinforced by deed restrictions. ➢ If a project is designed to remain affordable for 31 - 40 years, five points will be awarded. The period of affordability will be reinforced by deed restrictions. 11. Leveraging (20 points) The degree to which the proposed project includes funding from other sources and minimizes County Bond funds required, given the income groups served. All outside funding sources must be committed within six (6) months of the date of the project proposal. ➢ If 90% of total project cost is financed by outside sources and 10% is financed by bond funds, the full 20 points will be awarded. ➢ If 80% of total project cost is financed by outside sources and 20% is financed by bond funds, 18 points will be awarded. ➢ If 70% of total project cost is financed by outside sources and 30% is financed by bond funds, 16 points will be awarded. ➢ If 60% of total project cost is financed by outside sources and 40% is financed by bond funds, 14 points will be awarded. ➢ If 50% of total project cost is financed by outside sources and 50% is financed by bond funds, 12 points will be awarded. ➢ If 40% of total project cost is financed by outside sources and 60% is financed by bond funds, 10 points will be awarded. ➢ If 30% of total project cost is financed by outside sources and 70% is financed by bond funds, 8 points will be awarded. ➢ If 20% of total project cost is financed by outside sources and 80% is financed by bond funds, 6 points will be awarded. ➢ If 10% of total project cost is financed by outside sources and 90% is financed by bond funds, 4 points will be awarded. ➢ If a project is funded 100% with bond funds, 0 points will be awarded. 12/01/98 7 ►, III. Design (10 points) The quality of the design of the site plan and housing units, with respect to attractive appearance, functionality, and compatibility with the surrounding area. ➢ If the project is designed to be energy efficient according to the NC Housing Finance Agency Energy Efficiency Criteria, 5 points will be awarded. (See Attachment I for NCHFA Energy Standards) ➢ If the project fits well into the surrounding area in terms of building style, design, and materials, 5 points will be awarded. ➢ (BONUS) If the project meets the accessibility needs of persons with disabilities, 5 points will be awarded. IV. Community Sponsorship / Support (10 points) The degree to which the sponsoring organization demonstrates plans for strong community participation throughout the development of a project. ➢ If the applicant coordinated its application with other organizations to compliment and/or support the proposed project, 4 points will be awarded. ➢ If the applicant involved the intended beneficiaries of the project in the development of the application, 2 points will be awarded. ➢ If the applicant demonstrates that it has been actively involved, or if not currently active, the steps it will take to become actively involved in the Community's Consolidated Planning process to identify and address a housing need / problem that is related in whole or part, directly or indirectly to the proposed project, 2 points will be awarded. ➢ If the applicant developed or plans to develop linkages with other activities, programs or projects related to the proposed project (i.e. support services) to coordinate its activities so solutions are holistic and comprehensive, 2 points will be awarded. ➢ (BONUS) If the applicant will involve persons with disabilities in the development and operation of the project, 2 points will be awarded. V. Project Feasibility (15 points) The degree to which the project has the following characteristics: cohesiveness; timeliness with regard to construction scheduling; zoning 12/01/98 8 requirements; innovation; and completeness of the proposal submitted for review. ` ➢ Minimum requirements include site control and a complete application. ➢ If everything is in place (commitment letter, proper zoning, site control, complete project proposal, the full 15 points will be awarded. ➢ If all funding is in place, 10 points will be awarded. ➢ If proper zoning is in place, 5 points will be awarded. ➢ (BONUS) If the applicant has contractor commitments and necessary building permits, 5 bonus points, will be awarded. VI. Developer Experience (15 points) The scope, extent and quality of the Sponsor's experience in housing or related services to those proposed to be served by the project and the scope of the proposed project (i.e. number of units, services, relocation costs, development, and operation) in relationship to the Sponsor's demonstrated development and management capacity, as well as its financial management capability. This includes the Sponsor's utilization of minority and women-owned businesses, and other allied small businesses in the planning and development of the project. Partnerships by local organizations will be encouraged. The amount of experience of the project sponsor and the proposed development team in carrying out similar projects in a successful fashion, particularly with respect to reasonably meeting project budgets and timetables on such projects. This would include review of the organization's track record in handling projects which used town or county local funds and/or funds awarded to the local governments in Orange County by the federal or state government. In the case of rental projects, the amount of experience the project sponsor and management company have in managing low income housing including an adequate management plan for dealing with special population needs and special community needs. The minimum acceptable number of points is 60 with points awarded from five of the six evaluation categories. 12/01/98 9 D. Project Review and Selection A County Committee will evaluate project proposals and make funding recommendations to the County Manager. The County Committee would include the: Assistant County Manager (Human Services); County Engineer; Finance Director; Housing and Community Development Director; and the Planning Director. In addition, local planning department personnel from the planned project's jurisdiction will be invited to review proposals, as well as a member of the Orange County Housing Coalition who is unassociated with any existing housing non-profit organization. All housing bond projects must be approved by the Board of County Commissioners. Project proposals recommended for funding by the staff committee, with the concurrence of the County Manager, will be placed on a regular Board of County Commissioners meeting agenda for their consideration. E. Program Monitoring and Reporting ABODE, the Coalition for Housing Diversity in Orange County will review the bond program at least semi-annually to monitor the housing bond program, raise policy issues with staff, and receive information. At the end of each year of program implementation, an Annual Report will be prepared detailing a review of the past year's bond program activities. The review of past activities will be conducted by local staff and members of the Orange County Housing Coalition Steering Committee. The annual report will include a review of past year activities, a current market analysis and recommended program priorities for the coming year. This information would be made available to all County residents and formally presented to the Orange County Board of Commissioners during a regularly scheduled meeting. 12/01/98 10 ATTACHMENT I NCHFA ENERGY STANDARDS 12/01/98 it NORTH CAROLINA HOUSLNG FINANCE AGENCY HOUSING REHABILITATION PROGRAMS Energy Standards (For the rehabilitation of housing in buildings of one to four dwelling units) (Effective May 1, 1996) Introduction. ' There is no doubt about the need to reduce household energy use. Houses account for over one-sixth of our national energy consumption. We have been exposed to countless facts and figures illustrating the need for and possibility of cutting this fraction in half. We have heard how many thousands of tons of polluting chemicals and particulates cpuld be avoided, how many dozens of nuclear power plants we would not have to build, how many millions of barrels of foreign oil we would not have to import if all our homes were as energy-efficient as we know how to make them. And, there is no doubt that our housing rehabilitation programs' targeted beneficiaries are among the hardest hit by home energy costs. Nationally, the poorest 20% of households spend almost 15% of their income for home energy, while the next 40% of Americans spend about 6% of income for home energy. To those with incomes below half the state's median, to the elderly and disabled on low, fixed incomes, and to single-parent families struggling to break the cycle of poverty, a saving of even $30 or $40 per month in energy costs is very sisnificant. There is no doubt about that. However, what is not so clear-cut is which specific measures should be taken on a given dwelling unit to improve its energy-efficiency. Every house we work on is unique, and many of them were "homemade" to no set standards. Plus, the burgeoning field of building science gives us new diagnostic techniques, new sets of priorities and new energy-saving products at such a pace that few can keep up. What follows, then, is an attempt to guide qualified and experienced rehabilitation specialists in providing the most appropriate measures with available funding to save money for low- and moderate-income clientele, and to save energy resources for posterity. Background. The first edition of these standards was developed in 1990 to govern rehabilitation funded by the North Carolina Housing Trust Fund's Rehabilitation Incentive Program. A set of standards developed by the North Carolina Alternative Energy Corporation (AEC) was used as a guide, as were documents from low-income housing rehabilitation programs in other states. The first edition was reviewed by AEC, the Energy Division (of the North Carolina Department of Commerce) and the North Carolina Solar Center. Their comments lead to several important improvements. In developing two subsequent editions feedback from many others, including rehabilitation specialists representing Rehabilitation Incentive Program recipient organizations, was responsible for additional improvements. NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards This, the fourth edition, was reviewed in draft by many interested parties, including the membership of the North Carolina Residential Energy Forum. Comments were received'from representatives of AEC, the Energy Division, Duke Power, Carolina Electric Cooperatives, and the Solar Center, as well as from Harry J. Boody of the firm Energy Innovations by Harry Boody. Collectively, their feedback was invaluable and greatly appreciated. Users of this edition are encouraged to comment on their experiences and/or recommend further improvements. General Guidelines. When determining the feasibility of rehabilitation for a given dwelling unit and the prioritization of optional rehabilitation work items, recipients should be guided by these general principles: 1) Do not "throw good money after bad." That is, if a unit cannot be made standard (decent, safe, sanitary and affordable) with the funds available for the purpose, do not treat the unit. A unit rehabilitated with Program assistance should be capable, with reasonable maintenance, of providing standard housing for at least 30 more years. 2) Do not leave "bad apples." Whenever possible avoid leaving dilapidated units in close proximity of treated units. Such structures contribute to neighborhood disinvestment and can ultimately undermine the work you have done. 3) When in doubt about the appropriateness of an optional energy-related rehabilitation work item, consider whether the proposed improvement will pay for itself over its expected useful life. If it will not, it may be best not to do it. 4) Remember that home energy conservation is a year-round process. In addition to winter heat-loss, attention should be paid to summer heat-gain, ventilating, shading, drainage, etc. 5) Where local utility companies offer discount rates to homes meeting certain energy standards, every effort should be made to qualify each dwelling unit for the discount. 6) The use of a blower door to diagnose air sealing needs is recommended. By depressurizing or pressurizing a dwelling unit with a blower door, a trained operator can pinpoint leaks that might be quite significant, though not immediately obvious. Potential sources of indoor air pollution can also be revealed by the blower door. In addition, it can be used to ensure that minimum ventilation standards are met (per ASHRAE standard 62-1989). Many public utilities can refer you to a blower door contractor, or you may contract 2 �3 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards with the local Community Action Agency or other entity funded under the DOE Weatherization Assistance Program. (In some locations, the Cooperative Extension Service may be able to help.) The actual cost of blower door diagnostics up to $100 per test or $200 per unit is an eligible program improvement or "hard cost" expenditure. 1.0 General Requirements. 1.1 All rehabilitation work funded by the Program must meet or exceed N.C. State Building Code standards, and meet all local permitting and inspections requirements. 1.2 No unit rehabilitated with Program funds shall retain imminent threats to the health or safety of the occupants or to the structural integrity of the unit. 1.3 All treated units must meet the more stringent of HUD's Housing Quality Standards or local minimum housing code standards. 1.4 It is imperative that close attention be paid to manufacturers' installation instructions and the workmanship applied to energy-related rehabilitation items. 1.5 It is the recipient organization's responsibility to advise clients of proper care and maintenance of equipment and materials installed with Program funds. Examples include when and how to change HVAC filters, how to set thermostats, when and how to use bath and kitchen exhaust fans, when and how to clean and/or replace range hood filters, how to test and reset GFCI breakers or outlets, when to have HVAC equipment cleaned and tuned, etc. 2.0 Insulation 2.1 Insulation of Ceilings. All ceilings (attic floors) over conditioned space shall be insulated to the maximum extent feasible up to R-31. 2.2 Insulation of Walls. 2.2.1 New exterior walls constructed as part of the Program-funded rehabilitation project shall be insulated to R-18 rating (including R-13 in cavities and R-3 exterior sheathing) with continuous 6-mil poly vapor retarder (or alternative vapor retarder material with perm rating no greater than one) installed between the studs and the wall board. 2.2.2 New interior walls separating unconditioned space from conditioned space (e.g., garage, etc.) shall be insulated to R-13 with continuous 6-mil poly 3 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards vapor retarder. 2.2.3 If interior surfaces of exterior walls, or interior walls separating unconditioned space from conditioned space, are to be replaced, cavities shall be insulated with R-13 unfaced Batts and continuous 6-mil poly vapor retarder. 2.2.4 If exterior siding is to be removed and replaced, cavities shall be insulated to R-13 with kraft- or foil-faced Batts and sheathed with R-3 (minimum) rigid foam board. If exterior siding is to be covered with new siding, cavities shall be insulated with blown-in dense-pack cellulose or approved alternative. 2.2.5 Uninsulated masonry block exterior walls should be treated by installing pressure-treated one-by (minimum) nailing strips vertically, no more than 24" o.c., on interior block surfaces, with 3/4" foam board insulation between nailers. If space and funds permit, it is preferable to construct a stud wall inside the existing exterior block wall and insulate with R-13 batts.) A continuous polyethylene moisture barrier must be stapled to the nailers prior to installation of finished wall material (sheetrock or paneling). 2.3 Insulation of FIoors. Kraft- or foil-faced R-19 insulation or approved alternative shall be installed between floor joists (with facing up) of all conditioned areas over basements, cantilevers or crawlspaces with 18" clearance or more. To include mudsill/band areas and through cross bridaina. 2.4 Insulation of Windows and Doors. 2.4.1 When windows or exterior doors are to be installed in new locations, 1/2"-1" rigid foam insulation board should be sandwiched between two-bys of headers. 2.4.2 When window casings are to be removed and/or replaced for any reason, all voids shall be filled with non-expanding insulating foam sealant or an approved alternative and a continuous 6-mil poly vapor retarder installed between framing and jambs. 2.5. Insulation of Ducts. 2.5.1 After sealing (see 2.5.3, below), all accessible heating and air conditioning ductwork shall be insulated to R-8 in unconditioned space or R-6 in conditioned space. Vertical clearance of (18" or more shall be deemed "accessible" in attics or crawlspaces. 4 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards 2.5.2 Duct insulation shall include a vapor barrier on the outside surface, have a flame-spread rating not greater than 25, and have a smoke density not greater than 50. Do not use batt insulation (commonly used for walls, ceilings and floors) as duct insulation. 2.5.3 Staples used to secure duct insulation shall be minimum 1/2 inch outward-clinching heavy duty staples. Prior to insulating, duct system seams and joints shall be sealed with vapor-barrier mastic or approved equally-durable alternative. 2.6 Insulation of Water Supply Pipes. All water supply pipes in unconditioned spaces shall be insulated with 1/2 inch (minimum) preformed foam insulation or equivalent insulation material labeled for use on pipes and meeting minimum requirements as in Federal Standards ASTM C592-80 and ASTM 184. Insulation shall be installed such that no gaps exist and be securely fastened. 2.7 Insulation of Water Heaters. Electric water heaters in accessible unconditioned spaces shall be insulated to R-6 (minimum) using commercial kits or. foil- or vinyl-faced batts (with facing outside). Access plates to heating elements and thermostat controls shall not be covered with insulation; nor shall junction boxes, - cover plates, or pressure-relief or drain valves be covered. Do not insulate below tank level if the water heater has a dry element. Stop blankets one inch above floor level. 2.8 Insulation Certification. An insulation certification card shall be furnished by the contractor and posted at a conspicuous location within the structure. This certification shall indicate the R-Value, minimum thickness, maximum coverage and minimum weight per square foot of the insulation installed for the walls, ceiling and floor. Preferred locations for the certification card are the inside surface of a crawlspace access door or stapled to a roof truss or stiffknee within 5 feet of an attic access door. 3.0 Windows 3.1 Existing prime windows shall be sealed against infiltration to the maximum practicable extent. Cracked, loose and/or brittle putty shall be replaced with new glazing compound. All cracks, holes and gaps around interior and exterior casing and jambs shall be caulked. Operable sash shall be weatherstripped as appropriate to the type of sash. Do not use felt strip or open-cell foam types of weatherstripping. Do not paint weatherstripping. 3.2 If existing prime windows are deemed dilapidated (beyond cost-effective rehabilitation), they shall be replaced with new double-glazed units (whether or not 5 1 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards stormwindows are to be installed). Replacement windows should have a maximum infiltration of .37 cfm per linear foot of edge of operable sash (See manufacturer's specifications for compliance.) Double weatherstripping is recommended. 3.3 When windows are proposed for new locations they should conform to sections 2.4 and 3.2, above. Where feasible, new windows should be minimized on east and west sides. South-facing windows should be shaded in summer by overhangs, awnings, etc. 3.4 Stormwindows with screens shall be installed if existing single-glazed prune windows are sound and weatherized per 3.1, above. (Stormwindows over double- glazed prime windows are eligible, but optional.) 4.0 Doors. 4.1 All exterior doors and openings between conditioned and unconditioned spaces shall be treated as appropriate to achieve minimal air infiltration and are to include thresholds, weatherstripping and storm doors, as practicable. Where new doors or replacement doors are indicated, R-7 (minimum) insulated doors with double silicone weatherstripping and energy-efficient thresholds are preferred. All lights (windows in doors) shall be double-glazed. 4.2 All exterior doors shall have thresholds if feasible. Defective thresholds shall be repaired, if practicable, or replaced. New/replacement thresholds shall be either of the following types: 1) A metal body with a vinyl insert that contacts the bottom of the door for the entire length of the threshold or width of the door; or, 2) A metal saddle with a door shoe on the bottom of the door. (The second option is preferred.) Seal base and edges of threshold with caulk or foam. 4.3 Door shoes shall be used on exterior doors if threshold installation is not practicable or when a threshold alone will not stop air infiltration. Door shoes and thresholds shall be installed on interior door.; separating conditioned space from unconditioned areas. 4.4 To promote warm-weather ventilation as well as cold weather comfort and economy, combination storm/screen doors should be installed at most exterior doors, regardless of the R-value and tightness of the prime door. 4.5 All holes, cracks and gaps around exterior door jambs, casings and sills, both inside and outside, shall be caulked. Siliconized acrylic/latex caulk is preferred. 6 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards 5.0 HVAC Systems. 5.1 If installation of a new heating and/or cooling system is indicated, the choice of a system must be based on efficiency of the system and its appropriateness to the dwelling unit. The keys to efficiency are ratings of systems (HSPF, AFUE, SEER, etc.), proper sizing (number of BTUs per hour, etc.) and the quality of installation. New central heating systems must be sized in accordance with ACCA Manual J specifications and must never exceed the Manual J calculated size. A copy of the sizing calculations shall be retained in client's case file. 5.2 All central heating units installed with Program funds must have Annual Fuel Utilization Efficiency (AFUE) ratings meeting the minimum efficiency levels set by the National Appliance Energy Conservation Act of 1987. These include: 1. Ducted Central Heating Equipment . . . . . . . . . . . . . . . . . . . . 789/o AFUE 2. Mobile-Home Furnaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75% AFUE 3. Wall Furnaces, < 42,000 Btu/hr input . . . . . . . . . . . . . . . . . . 7357o AFUE 4. Wall Furnaces, > 42,000 Btu/hr input . . . . . . . . . . . . . . . . . . 74% AFUE 5. Room Heaters, < 18,000 Btu/hr input . . . . . . . . . . . . . . . . . . 57% AFUE 6. Room Heaters, 18,000-20,000 Btu/hr input . . . . . . . . . . . . . . . 58% AFUE 7. Room Heaters, 20,000-27,000 Btu/hr input . . . . . . . . . . . . . . . 63% AFUE 8. Room Heaters, 27,000-46,000 Btu/hr input . . . . . . . . . . . . . . . 64% AFUE 9. Room Heaters, > 46,000 Btu/hr input . . . . . . . . . . . . . . . . . . 65% AFUE All new space/room heaters should be of the direct vented type. 5.3 Central air conditioners installed with Program funds must have a minimum SEER (rating) of 9.7 for single package systems or 10.0 for split systems. 5.4 Heat pumps installed with Program funds must have a minimum HSPF of 6.8 from Raleigh east or 8.0 west of Raleigh and minimum SEER of 9.7 for single package systems or 10.0 for split systems. 5.5 New heat pumps and outside cooling units should be located in areas not subject to direct sunlight or heat buildup. 5.6 The delivery system ductwork should be designed in accordance with ACCA Manual D standards to: 1) avoid "spider system" design by use of a supply trunk/plenum; 2) size the return air duct for minimum noise; 3) locate intake centrally, near front door if possible; 4) strap all ductwork as needed to eliminate crimping or sharp bends in ducts; 5) locate registers at perimeter portions of house; 6) use radius elbows or turning vanes in all supply trunks with 90 degree turns and not diminish the 7 1 8 ' NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards cross-sectional area or throat; and, 7) allow for insulating supply and return ductwork per Section 2.5, above. Metal ductwork with exterior insulation is preferred. A-copy of the duct design calculations and drawings shall be retained in the clients case file. In no case should the building envelop or framing be used as part of the duct system. 5.7 No dwelling rehabilitated with Program assistance shall retain any unvented combustion appliance after rehabilitation. 5.8 Any existing wood-burning space heater should be replaced unless it is: 1) certified by the U.S. Environmental Protection Agency (EPA) to meet 1990 emissions regulations; or, 2) air-tight and equipped with a thermostatically-controlled damper/air intake (e.g., Rite-way, Ashley, etc); or, 3) air-tight and equipped with a secondary combustion chamber and/or a catalytic combustor (e.g., 3otul, Country Comfort, etc.). 5.9 If it is the owner's preference that an existing space heater be replaced with a wood-burning space heater, the new unit must be certified by EPA. The Recipient must retain a copy of the EPA label in the client's case file. Any installation of a wood-burning heater should include direct piping of combustion air into the stove, essentially decoupling the combustion air/combustion products from the air inside the house. 6.0 Ventilation Systems. 6.1 All units rehabilitated with Program funds must be ventilated per ITC State Residential Building Code, at a minimum. Each unit should be evaluated individually to determine potential need for additional ventilating. A minimum of one square foot (SF) of free vent area per 150 SF attic floor area is recommended. Where new roof covers are indicated, continuous ridge-and-soffet vent systems should be considered. Powered attic ventilation systems should be installed only as a last resort. When the installation of foundation vents is indicated, thermostatically-controlled "automatic" foundation vents are preferred. 6.2 Units being "wrapped" in vinyl or aluminum siding as part of their rehabilitation may need increased soffit/attic ventilation to compensate for the increased tightness of the unit's envelope. Use continuous perforated siding under all soffits. 6.3 Where practicable, all bathrooms and kitchens in units rehabilitated with Program funds shall be fitted with exhaust fans which are vented to the exterior and equipped with backdraft dampers. Four-inch insulated vent ducts are recommended for bath exhaust fans. Kitchen vent ducts should also be insulated. Combustion appliances in conditioned space should be tested for carbon monoxide 8 19 NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards leakagefbackdrafting during operation of kitchen and bath exhaust fans. 7.0 Appliances and Fixtures 7.1' Where installation of new or replacement water heaters with Program funds is indicated, the following minimum Energy Factors (EF) are required (by tank size and fuel type): Tank Energy Factor (EF) Size Gas Oil Electric 30 gallons 0.56 0.53 0.91 40 gallons 0.54 0.53 0.90 50 gallons 0.53 0.50 0.88 60 gallons o.51 0.48 0.87 Recipients must retain in case files documentation of the brand, model number and Energy Factor for each water heater installed in a Program-assisted dwelling unit. Unless otherwise indicated, water heater thermostats should be set at 120°F. 7.2 If any of the following appliances are installed in conjunction with Program- funded rehabilitation, only energy-efficient models should be selected: refrigerator, dishwasher, range, washer and dryer. Energy-efficient appliances are defined as those listed in The Most Energy-Efficient Appliances, published by the American Council for an Energy Efficient Economy ($3.00 each, plus $2.00 shipping fee, from: ACEEE, 2140 Shattuck Ave., Suite 202, Berkeley, CA 94704.), or those models with predicted annual energy costs, as shown on their yellow EnergyGuide labels, falling below the level determined by the formula: COST <l= LOW + ((HIGH - LOW) X 0.34), Where, COST = the yearly energy cost for the model under consideration, LOW = the cost for the model with the lowest annual energy cost, and HIGH = the cost for the model with the highest annual energy cost as shown on the EnergyGuide label. 7.3 Condenser coils on existing refrigerators and freezers should be inspected and vacuumed as necessary to remove accumulated dust. 7.4 If the scope of work includes the installation of a new bathroom or replacement of existing bathroom fixtures, all fixtures must meet or exceed the water usage standards given at Volume VII, section P-2413 of the N.C. State Building Code. 9 PUV NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards 8.0 Miscellaneous Requirements 8.1 To the maximum practicable extent, excessive moisture in crawlspaces or basements shall be eliminated. Remedial measures may include foundation/footing drainage systems, sealing plumbing penetrations, water-proofing foundations below grade, gutter systems, and/or sump pumps. All accessible crawlspace area must have continuous 6-10 mil poly ground cover, wall to wall. 8.2 If exterior pole lighting installation is indicated (as in the case of multi-unit rental projects) metal halide, mercury vapor or low- or high-pressure sodium lighting should be used. (Note: This is not a Program-eligible expenditure.) 8.3 Where accessible, all electrical, mechanical and plumbing penetrations through floors, ceilings, exterior walls and plates shall be sealed with siliconized acrylic/latex caulk, polyurethane foam sealant or approved alternative. Electrical outlets and switches should be sealed with foam gaskets under the cover plates or rubber inserts inside the box. Gaps around power lines where they enter boxes should be caulked. 8.4 All attic stairs, attic access scuttles and other access openings to unconditioned space shall be treated as needed to minimize radiant and infiltration heat-loss. Attic doors should be framed such that R-30 insulation can be blown up to and around the hole. Doors should be weatherstripped and insulated as practicable. A styrofoam "box" over folding stair frames is recommended. A latch may be necessary to hold folding stair door snugly against the weatherstripping (closed cell foam weatherstripping is recommended.) 8.5 If the scope of rehabilitation work includes installation of new interior lighting fixtures, compact fluorescent bulbs should be used in lieu of incandescent bulbs if feasible. enecgystd%lunc 15.1993 10 21 ORANGE COUNTY HOUSING BOND PROGRAM PROPOSED IMPLEMENTATION SCHEDULE This implementation schedule is based on a Request for Proposal process for identifying housing bond projects. This is the process used by other local jurisdictions in the state with housing bond programs. I. BOND POLICY COMMITTEE This committee establish policies governing the expenditure of bond funds for housing programs. Issues to be addressed include: Eligible Program Types; Income Targeting; Long-Term Affordability; and Project Evaluation Criteria including Maximum Leveraging. April 7, 1998 BOCC appoints Committee July,August, September 1998 Committee Work October 1998 Committee present$policy recommendations to BOCC. December 1998 BOCC approves Housing Bond Policy H. REQUEST FOR PROPOSALS Interested persons, including non-profit organizations and private developers, interested in utilizing bond funding for specific housing projects will be invited to submit a funding proposal to the County for review and approval. January, February,March 1999 Request for Proposal Guidelines will be developed by County staff. April, May, June 1999 Request for Proposal Invitation Period/Submission IIL COUNTY REVIEW OF PROPOSALS A County staff committee will evaluate project proposals and make funding recommendations to the County Manager. The Staff committee would include the: Assistant County Manager(Human Services); County Engineer;Finance Director; Housing and Community Development Director; and the Planning Director. It may also be necessary to consult with local planning department personnel in other county jurisdictions depending on the location of the proposed project. IV. FINAL APPROVAL All housing bond projects must be approved by the Board of County Commissioners. Project proposals recommended for funding by the staff committee, with the concurrence of the County Manager, will be placed on a regular Board of County Commissioners meeting agenda for their consideration. Begin program implementation in late Summer 1999. 12/1/98