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HomeMy WebLinkAboutAgenda - 03-04-1998 - 7aORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. `1 - a ACTION AGENDA ITEM ABSTRACT Meeting Date: March 4, 1998 SUBJECT: Orange County Consolidated Housing Plan Update DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/N) Y. ~`~ BUDGET AMENDMENT: (Y/N) ATTACHMENT(S): INFORMATION CONTACT: Executive Summary Tara L. Fikes TELEPHONE NUMBERS: - -eat. 2490 Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To receive comments from the public regarding the housing and non-housing needs to be included in the 1998-99 Annual Update of the Consolidated Housing Plan for Housing and Community Development Programs in Orange County and proposed uses of 1998-99 HOME funds. BACKGROUND: In 1995, 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 and CDBG entitleme~ funds (Chapel Hill). Each year, local communities are required to reassess the needs of the community. This public hearing provides an opportunity for citizens, public agencies and other interested parties to provide input intA the.Plau.- In addition, the public is asked to comment on proposed uses of approximately $403,000 in >aQ~~-99 HOME funds. Eligible HOME Program activities include: acquisition; new construction; Ing rehabilitation; and. rental assistance. In order to inform the general public of this opportunity and encourage participation, notices have been placed in the Chapel Hill Herald and sent to local non-profit agencies. RECOMMENDATION(S): The Manager recommends receiving comments as prescribed above. U.S. Department of Housing and Urban Development Office of Community Planning and Development Orange County, NC Consolidated Plan for 1995-2000 Executive Summary CITIZEN'S SUMMARY Located in North Carolina, Orange County includes not only the towns of Carrboro and Hillsborough, but also Chapel Hill, the home of the largest campus of the State university. The presence of university students, more a„~`luent and transient than other county residents, has created an imbalance in terms of housing and community development needy. Orange County must, therefore, concentrate its efforts on serving a strong urban community and rural areas as well. Action Plan The Consolidated Plan for Orange County has a total budget of neazly $834,000, of which $455,000 comes from Community Development Block Grant (CDBG) funds and $379,000 from HOME Investment Partnership Program (HOME) funds for the 1997-98 yeaz. Citizen Participation Development of the Consolidated Plan for Orange County was undertaken by a staff working group that included a representative from each municipaUcounty jurisdiction throughout the region, Having developed a draft plan, the working group presented it to the public for comment. Copies of the draft were available at the following locations- Chapel Hill Town Hall, Chapel Hill Public Library, Carrboro Town flail, Orange County Department of Housing and Community Developmenrt, Orange County Library, and Hillsborough Town Hall. In addition to an advertisement describing the plan published in the Chapel Hi11f Heralaj notices were mailed to members of all human service agencies, housing non-profit board'members, and the Chapel Hill Housing Advisory Committee members, informing them of the availability of this document for comment. The Chapel Hill Town Council held two public hearings to elicit citizen comments, and the Orange County Boazd of Commissioners held one public hearing. COMMUNITY PROFILE In 1990 the population of Orange County was 92,572. Of that number, 81 percent were white, 16 percent were African American, and 4 percent were other minority groups. Although the Asian-American and Pacific Islander population constituted less than one percent of the total population, approximately 71 percent of the county's new Asian-American population resided in Chapel Hill. According to the 1990 census, -9,932 of all households in Orange County were considered very row income, with incomes between 0-50 percent of median family income (MFn. With the exception of whites, a disproportionate percentage among all other racial groups was very low income, ranging from 37 percent of the Native-American population to 44 percent of the Afiican-American population. HOUSING AND COMMUNITY DEVELOPMENT NEEDS Conditions The high cost of homeownership has forced many families to purchase housing in other counties and commute into Orange County for work. The inflation of the rental market by University of North Carolina-Chapel Hill (iJNC-CH) studerns has caused hardships for families with incomes below 50 percent of MFI. Larger rental units are particularly scarce. Market Conditions Although the median value of a new home was $147,577 in 1990, among the highest in the State, the median income for a family of four was $46,800. Because of this imbalance, the majority of residents cannot afford to buy a home within the county limits. The availability of basic rental units was also a major concern, especially in the Chapel Hill/Carrlwro area. Many UNC-CH studeirts have the financial means to compete with very low- and low-income residents for the least expensive housing. The scarcity of throe- bedroom or more units has made it difficult for large families to find adequate housinS: Affordable Hbasntg:Needs According to the 1990 census, Orange County had the highest percentage of very low- income households with housing problems in North Carolina; 77 percent of residents in this category cite cost burden and overcrowding as major issues. The county had 12,0121ow- income households, of which 5,189 were located in Chapel Hill. According to a 1989 report from the North Carolina Rural Economic Development Center, 1,052 units is Orange County lacked indoor plumbing. The lack of affordable housing has forced renters to live in substandard units. Housing problems were reported in 86 percent of very low-income households, and 97 percent of large families were forced to live .~ in overcrowded, substandard units. The majority of the 3,919 homeowners in this category were cost burdened, paying between 31-50 percent of their income on housing. The 7,070 other low-income residents, who earned 51 - 80 percent of MFI, experienced fewer housing problems. Approximately 36 percent of the low-income renters in Orange County and 43 percent of those in Chapel Hill had housing problems. Homeless Needs The numbers of•homeless•persons in Orange County have increased dramatically. From January 1 through December 1, 1994, the IuterFaith Council Community House reported serving 879 individuals, of whom 2 out of 3 were males. Of this number, 536 were African American, 272 were white, and 62 were Hispanic. An additional 12,000 families, mostly female headed, were threatened with homelessness. The greatest increase in the homeless population in Orange County was among women, children, and families, frequeirtly victims of domestic violence. Between 1991 and 1992, the number of homeless women increased by 10 percent and the number of homeless children increased by 35 percent. Since the Battered Women's Shelter for Orange County and Durham County is located in Durham, women who wanted to maintain their children's attendance in the Chapel Hill-Carrboro Schools had no other option but the homeless shelter. However, the InterFaith Council Community House, the only shelter that serves the needs of Orange County's homeless population, was not designed to accommodate families with children. "there were no public or private single-room occupancy facilities in Orange County to provide transition for shelter residents. Substance abuse treatment was provided at only one halfway house for women, and no comparable facilities existed for men. Public and Assisted Housing Needs Orange County's only public housing consisted of the 336 units located in Chapel Hill. As of May 1, 1995, 22 of these units were vacant; 16 of them were located in the South Estes Drive development, which was scheduled for renovation. The majority of Chapel Hill's public housing units were two- and three-bedroom units. The county's Section 8 program, administered by the Orange County Housing and Community Development Department, included 403 certificates, 101 vouchers, and 97 moderate rehabilitation units. The other 269 units of assisted housing included the following-, 68 from Section 8 new construction, 81 from the Fanners Home S l5 program, 94 from Section 236, and 26 from the U.S. Department of Housing and Urban Develc~ment Loan Management Program. Barriers to Affordable Housing The Consolidated Plan for Orange County identified the following barriers to affordable housing: • High cost of public improvements. In southern Orange County, where vacant land served by public utilities is very limited, the price of land with water and sewer service is too high for the development of affordable housing. In unincorporated Orange County, although land accessible to urban services is available, many existing residences lack adequate plumbing facilities. An estimated 10-20 percent of county septic systems fail at any given moment. • Lack of adequate transportation. While the public transportation system in the Chapel Hill-Carrboro urban area is comprehensive, access to jobs and facilities outside the urban area is limited by a lack of transportation- Fair Housing: Orange County will consult with the local Human Rights and Relations Department to determine a method for conducting an analysis of impediments to fair housing choice. Lead-Based Paint According to the 1990 census, 22,653 very low- and low-income housing units in Orange County buih between 1960 and 1979 were contaminated with lead-based paint. Of this number, 10,236 were rental units and 12,417 were owner occupied. According to the Orange County Health Department, one case of lead-based paint poisoning has been reported in the county since 1993. In that case an investigation of the home was conducted, and abatement of the lead hazard was completed by the property owner. In addition, 492 children were screened in Orange County; 59 had elevated blood-lead levels. All children who receive medical treatment from the Well Child Clinic are tested for exposure to lead-based paint each year. Evaluations of the prevalence of lead-based paint in housing units will be conducted through Orange County, and lead abatement will be prescribed for all dwellings targeted for rehabilitation. In addition, all assisted-housing tenants will be informed of the hazards of lead-based paurt. Departmern provides ongoing consultation to local housing staff. Other Issues Among special populations the 12-bed Freedom House was the only facility for women recovering from substance abuse: Although the AIDS Service Agency of Orange County identified 82 HN-infected Orange County residents in 1989, the only adequate emergency medical facility for persons with HN/AIDS in the county is University of North Carolina Hospital. Asix-bed domiciliary care home was opened in 1995 by the AIDS Service Agency of Orange. Community Development Needs Orange County Jas ice} the need for increased economic development opportunities for low- and moderate-incon9i~ citize~os a~ revitalization of businesses serving low-income neighborhoods in Chapel Hill. -~ __ 6 HOUSING AND COMMUNITY DEVELOPMENT STRATEGY Housing Priorities The Consokdated~ Plan for Orange :Cou~y idenrtified the following housing priorities for 1995-2000: ~ Provide rehabilitation assistance for very low- and low-income homeowners and renters. ~ Reduce the number of owner-occupied and rental housing units without indoor plumbing. ~ Provide assistance to households at less than 80 percent of MFI to connect to existing public water and sewer systems. ~ Facilitate the construction of up to 50 new units of rental housing that is affordable to very low and low-income families, ~ Create transitional housing units for homeless individuals. ~ Assist local non-profit human services agencies to provide a continuum of housing options for special populations, including older adults, the disabled, the mentally ill, and persons with AIDS. Non-housing Community Development Priorities The Consolidated Plan for Orange County identified the following community development priorities. • Provide economic development opportunities to low- and moderate-income citizens in Chapel Hill. • Revitalize the business areas serving low-income neighborhoods of Chapel Hill. Anti-Poverty Strategy The Joint Orange Chatham Community Action Agency designed the county's anti-poverty strategy. This strategy seeks to establish and coordinate linkages between governmental and other social service programs to facilitate the e~odve delivery of services to low- income individuals. The strategy includes the right of lower income re~d~ts to do the following: Secure and retain meaningful employment. • Attain an adequate education. • Make better use of available income. • Obtain and maintain adequate housing and a suitable living environment. • Obtain emergency assistance to meet immediate and urgent family needs. • Remove obstacles that block the achievement ofself-sufficiency. • Achieve greater participation in the affairs of the community. Coordination of the Strategic Plan Orange County, Chapel Hill, Carrboro, and Hillsborough work in collaboration to implement the plan, as follows: • The Chapel Hill Planning Department administers the CDBG program. • The Orange County Housing and Community Development Department administers the Section 8 program and serves as the lead'agencyfor the Orange Courny HOME Consortium,-which includes Orange County, Carrboro, Chapel Hill, and Hillsborough. • The Chapel Hill Department of Housing operates public housing in Chapel Hill and Carrboro. • The Town of Carrboro administers the Carrboro CDBG Small Cities program. • The Hillsborough Planning Department is responsible for planning and policy development for the town, including the recently adopted 2010 plan. 8 Description of Kev Proiects The 1995-2000 Consolidated Plan for Orange County; the 1996-97 Annual Action Plan; and the 1997-98 Annual Action Plan identified the following key projects: ~ Land acquisition, rehabilitation, and public services for children in the Pine Knolls neighborhood ($180,000). ~ Infrastructure, including the upgrading of parking lots, sidewalks, landscaping, open areas, street furniture, streetlights; signage, and traffic signals ($50,000). ~ Rehabilitation of public housing in the South Estes Drive and Craig Domains neighborhoods ($903,000). ~ Housing rehabilitation deferred loans to low income owner and renter households ($481,000). ~ Acquisition of eight units in the Carr Court neighborhood in Carrboro for rehabilitation and sale to low income households ($162,500). ~ Construction of the InterFaith Council Project HomeStart transitional housing development on Homestead Road in Chapel Hill ($50,000). ~ Site Improvements at the Culbreth Park and Efland Estates subdivisions to facilitate new housing construction by Habitat for Humanity ($66,000) ~ Site improvements for a small housing demonstration project on Scarlett Drive and Legion Road to be developed by the Orange Community Housing Corporation ($73,770) ~ Construction of transitional housing units for formerly homeless substance abusers to be built by Freedom House in partnership with InterFaith Council ($337,000) ~ Acquisition and rehabilitation of two (2) rental units by the Orange Person Chatham Mental Health Agency for a severe, persistently mentally ill county residents ($80,000) ~ Support continued operation. of the InterFaith Council Employment Project, a job training and substance abuse counseling porgram for shelter residents ($35,000) ~ Assist EmPOWERment, Incorporated purchase Merritt Mill Square property with release of funds for this purpose conditional on staff review of responses to the nine issues raised by the HOME Consortium ($70,000) ~ Assist Habitat for Humanity with site improvement work in the Culbreth Park and Efland Estates subdivisions. ($60,000) ~ CapitaUl~ a Neighborhood Revitalization Loan Fund to purchase and rehabilitate housing in the Chapel Hill/Cattboro-.area for resale to very low to low income families. ($60,000) ~ Site planning expenses for the Park Road site in the Pine Knolls neighborhood. ($40,000) ~ Construction of a parking lot on the corner of Rosemary Street and Sunset Drive to revitalize a business area serving low income neighborhoods in Chapel Hill. ($10,000) ~ Provide funding to GOOD WORK, a local non-profit organization to create a small business development program in Chapel Hill. ($38,000)