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HomeMy WebLinkAboutAgenda - 05-01-1995 - V-A 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No V—/t ACTION AGENDA ITEM ABSTRACT Meeting Date: May 1, 1995 SUBJECT: Orange Co. Consolidated Housing Plan/1995 HOME Program Design DEPARTMENT: Housing/Comm. Dev. PUBLIC HEARING YES NO x ATTACHMENT(S) : INFORMATION CONTACT Plan Summary Tara L. Fikes, x 2490 Resolution TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 PURPOSE: To adopt a resolution approving the Consolidated Plan for Housing and Community Development Programs in Orange County and approve the proposed HOME Program Activities for 1995-96. BACKGROUND: In 1991, a Comprehensive Housing Affordability Strategy (CHAS) for Orange County was developed and approved by the U.S. Department of Housing and Urban Development (HUD) . The CHAS was updated and approved in December 1993. The CHAS was a five year comprehensive planning document which outlines plans to address the overall affordable housing needs of the County. This year, HUD has replaced the CHAS with a document known as the Consolidated Plan. 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 (Plan) required for all communities receiving HOME funds and CDBG entitlement funds (Chapel Hill) . The Plan must be submitted to HUD by May 15, 1995. A public hearing was held by the Chapel Hill Town Council on January 29 and the BOCC on March 8, 1995 to receive citizen comments regarding the Plan prior to development. The Plan has now been developed and the established public comment period is April 10 - May 10, 1995. (In order to inform the general public of this opportunity and encourage participation, notices were placed in the Chapel Hill Herald and sent to local non-profit agencies. ) A summary of the plan is attached and the entire document is available for review in the Clerk's office. Included in the Plan is the Orange County HOME Consortium' s program design for the 1995-96 Fiscal Year. The Consortium was designated as a HOME Participating Jurisdiction by the U.S. Department of Housing and Urban Development (HUD) and anticipates the availability of approximately $562,500. In accordance with the our Consortium Agreement dated August 27, 1992 and amended September 29, 1993, the HOME Program design for each 2 year must be approved by all jurisdictions prior to submission to HUD. Chapel Hill and Hillsborough are scheduled to approve the Plan including the HOME Program design on May 8, 1995 and Carrboro is scheduled to vote on this matter on May 9, 1995. RECOMMENDATION: The Manager recommends: 1) adopting the resolution approving the Consolidated Plan for Housing and Community Development Programs in Orange County and 2) approving the proposed HOME Program Activities for 1995-96. 3 SUMMARY CONSOLIDATED PLAN FOR ORANGE COUNTY Including the Towns of Chapel Hill, Carrboro, and Hillsborough INTRODUCTION The important issues in Orange County have not changed. The high cost of homeownership has left many families out of the housing market or sent them to surrounding counties to buy homes and commute into Orange County for work. The rental market, inflated by the ability of UNC-CH students able to pay higher rents, is beyond the means of families with incomes below 50% of the area median. For families in need of three or more bedrooms, very little housing stock exists. The number of women and children staying at the homeless shelter continues to increase dramatically, and transition from the shelter into permanent housing in Orange County is nearly impossible since no transitional housing exists. Housing for special interest groups such as the elderly, persons that are developmentally disabled, and persons with alcohol or drug addiction, is limited in Orange County. Over the years. the affordable housing needs of Orange County have been studied from many points of view and reported in these documents: Orange County Low and Moderate Income Housing Task Force Report (September, 1987) , Public Private Partnership Affordable Housing Task Force (May, 1989) , Chapel Hill Comprehensive Plan (June, 1989) , and Carrboro Housing Report (May, 1990) . Additionally, the Public Private Partnership has sponsored two Housing Summits entitled "Why Housing Costs So Much" on October 29, 1992 and May 5, 1993 to challenge the community to participate in helping solve Orange County' s affordable housing needs. Further a 1994 Housing Bond Planning Group was convened to explore the development of a housing bond referendum in Chapel Hill. These reports, summit and planning group proceedings serve as the basis for this Consolidated Plan. In 1995, the Department of Housing and Urban Development (HUD) requires jurisdictions to submit a Consolidated Plan which is a comprehensive annual report for four (4) formula grant programs : Community Development Block Grants (CDBG) ; HOME Investment Partnership Program (HOME) ; Emergency Shelter Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) . The Town of Chapel Hill is an entitlement recipient of CDBG funds and the Orange County HOME Consortium is a participating jurisdiction for HOME funds . The following plan seeks to further the statutory goals of these two programs through a collaborative process whereby a community establishes a unified vision of community development actions to address identified needs. 4 PLAN OUTLINE I. Summary of Plan Development and Citizen Participation Process II. Housing and Homeless Needs Assessment A. Housing Needs B. Homeless Needs C. Other Special Needs D. Lead-Based Paint III. Housing Market Analysis A. Housing and race B. Public and Assisted Housing C. Homeless Facilities D. Special Needs Facilities E. Barriers to Affordable Housing IV. Strategic Plan A. Affordable Housing Priority LA: Provide rehabilitation assistance for very low and low income homeowners and rental housing serving very low and low income tenants. Priority 1B: To reduce the number of owner-occupied and rental housing units without indoor plumbing. Priority 1C: Provide assistance to households at less than 80% of median income to connect to existing public water/sewer systems. Priority 1D: Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 80% of the area median. Projects that provide homeownership opportunities for families below 60% of the area median income. Priority 1E: Facilitate the construction of up to 50 new units of rental housing affordable to very low and low income families. The Chapel Hill Comprehensive Plan states a goal of 35 new rental units each year affordable to very low and low income families. Priority will be given to projects with projected rents at or below those established for the Low Income Housing Tax Program, affordable to families with incomes below 60% of the area median, with at least three bedrooms. 5 B. Homeless Needs Priority 2A: Create transitional housing units for shelter residents who can live independently. C. Other Special Needs Priority 2B: To assist local nonprofit human service agencies to provide a continuum of housing options for special populations, including older adults, disabled, mentally ill, and persons with AIDS. D. Community Development Needs Priority 1A: Provide economic development opportunities to low- and moderate-income citizens of Chapel Hill. Priority 1B: To revitalize the business areas serving low-income neighborhoods of Chapel Hill. E. Removing barriers to affordable housing F. Lead-based paint hazards G. Anti-Poverty Strategy H. Institutional Structure I . Coordination J. PHA Resident Initiatives V. Annual Action Plan VI . Tables VII . Certifications 6 ANNUAL PLAN, July 1, 1995 through June 30, 1996 For HOME Investment Partnerships Program A. Affordable Housing Priority LA: Provide rehabilitation assistance for very low and low income homeowners and rental housing serving very low and low income tenants. Priority 1B: To reduce the number of owner-occupied and rental housing units without indoor plumbing. Investment Plan 1 . Funds will provide deferred loans to rehabilitate low-income owner-occupied and rental housing units . Homeowners with less than 60% of the median income would be eligible for these loans. 2 . Fund the Elliott Woods/Chase Park site improvement request from the Inter-Church Council Housing Corporation. Funds Available: $350,000 Source of Funds: HOME Investment Partnership Programs Priority 1D: Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below SO% of the area median. Projects that provide homeownership opportunities for families below 60% of the area median income. Investment Plan Providing funding for the acquisition of eight units in the Carr Court neighborhood in Carrboro. These units would then be rehabilitated using . funds from several sources including local banks and sold to low income households. Funds Available: $162,500 Source of Funds: HOME Investment Partnership Programs B. Homeless Needs Priority 2A: Create transitional housing units for shelter residents who can live independently. Investment Plan Assist the Inter-Faith Council with the construction of their transitional housing project - Project Home Start. Project Home 7 Start will be built on Homestead Road in Chapel Hill through a long-term lease arrangement with Orange County. Funds Available: $50,000 Source of Funds: HOME Investment Partnership Programs Program Administration: $50,000 8 For the Chapel Hill CDBG Entitlement Program A. Affordable Housing Priority LA: Provide rehabilitation assistance for very low and low income homeowners and rental housing serving very low and low income tenants. Priority 1B: To reduce the number of owner-occupied and rental housing units without indoor plumbing. Investment Plan Funds will be used to renovate the South Estes Drive and the Craig/Gomains public housing communities . Funds would be used for improvements identified in the Five-Year Comprehensive Grant Plan. Funds Available: $300,000 Source of Funds: CDBG Entitlement Funds Priority 1D: Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 80% of the area median. Projects that provide homeownership opportunities for families below 60% of the area median income. Investment Plan The Pine Community Center/Knolls Development Association (KNDA) has a goal to develop twenty homeownership opportunities in the Pine Knolls neighborhood. Toward this effort, CDBG funds will be used to assist the KNDA with acquisition of vacant property in their community. Funds Available: $60,000 Source of Funds: CDBG Entitlement Funds D. Community Development Needs Priority LA: Provide economic development opportunities to low- and moderate-income citizens of Chapel Hill. Priority 1B: To revitalize the business areas serving low-income neighborhoods of Chapel Hill . 9 Investment Plan Expand the existing Economic Development Component of the Community Development Block Grant program to increase economic opportunities for low-income Chapel Hill residents. The 1995-96 Economic Development component will focus on the revitalization of low- income business areas and the revolving loan fund. Funds Available: $40,000 Source of Funds: CDBG Entitlement Program 10 RESOLUTION AUTHORIZING THE SUBMISSION OF THE ORANGE COUNTY CONSOLIDATED STRATEGY AND PLAN FOR HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS BE IT RESOLVED, by the Orange County Board of Commissioners, that the Commissioners authorizes the County Manager to submit the Orange County Consolidated Strategy and Plan for Housing and Community Development Programs 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 g Y g as the authorized representative of the County to act in connection with the submission of the Consolidated Plan and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This the 1st day of May 1995.