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HomeMy WebLinkAboutAgenda - 05-01-2008-4fORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 1, 2008 Action Agenda Item No. `"~~ SUBJECT• Consolidated Housing Plan Annual Update/HOME Program DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolutions Tara L. Fikes, 245-2490 Annual Update Summary PURPOSE: To adopt resolutions approving the 2008 Consolidated Housing Plan Annual Update and the proposed HOME Program Activities for 2008-2009 and to authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. BACKGROUND: In 2005, 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 (Orange County HOME Consortium) and CDBG entitlement funds (Town of Chapel Hill). Each year, local communities are required to submit an Annual Update to the Consolidated Plan to the State HUD Office by May 15th. This Update includes the 2008-2009 Community Development Plan for the Town of Chapel Hill and the 2008-2009 HOME Program Action Plan for the Orange County HOME Consortium. Public hearings were held by the Chapel Hill Town Council on January 30 and March 26 and by the BOCC on February 5, 2008 to receive public comments regarding the Update prior to development and subsequent submission to HUD. The current Orange County HOME Consortium Agreement establishes a HOME Program Review Committee to provide general oversight of the program. Specifically, the Committee is authorized to provide policy oversight for planning, operations, and evaluation of OHC and the HOME Program. The Manager or his/her designee from each participating unit of local government and one (1) elected official from each jurisdiction shall be a member. The OHC Program Review Committee shall prepare a proposed HOME program design each year and consortium program application to HUD, in compliance with the Act, the Regulations, and the Federal Program Requirements, including reallocation of any funds from previous years not expended or any repayments or other program income consistent with this Section. Each year's proposed HOME program design and the consortium program application should be consistent with the Consolidated Plan. Each year's program design shall be subject to the approval of 2 each consortium member's elected board. The proposed HOME program design will define a strategy in sufficient detail to accommodate the collective and individual needs and priorities of the County and Towns. This year, as required by the Consortium Agreement, the HOME Program Review Committee reviewed applications for HOME Program funding and developed the proposed HOME Program Design for the 2008-2009 Program Year. A total of seven (7) applications were received from local non-profit organizations and other local governmental units requesting approximately $934,119. There is approximately $744,476 in HOME funds and HOME Program match funds available for Fiscal Year 2008-2009. The recommended program design is detailed in the attached resolution. A public comment period as required by HUD was established for April 11 -May 12, 2008 by notice in the Chapel Hill Herald. Copies of the Annual Update were made available at the Chapel Hill and Orange County Public Libraries. Further, in accordance with the Orange County HOME Consortium Agreement approved in June 2005, the HOME Program Design for each year must be approved by all jurisdictions prior to submission to HUD. The Program Design is scheduled for approval by Chapel Hill on April 23, by Carrboro on May 13, and by Hillsborough on May 12. FINANCIAL IMPACT: The Orange County HOME Consortium is scheduled to receive approximately $661,756 in federal housing program funding. The required total local government match is $148,895. Orange County's share of the match is $59,558 which will be allocated from Gounty's general fund. Therefore, the total amount of HOME funds available is $810,651. RECOMMENDATION (S): The Manager recommends that the Board adopt resolutions approving the 2008 Consolidated Housing Plan. Annual Update and the proposed HOME Program Activities for 2008-2009. Additionally, the Manager recommends that the BOCC authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. 3 RESOLUTION AUTHORIZING THE SUBMISSION OF THE 2008-2009 ANNUAL UPDATE OF FY 2005-2010 CONSOLIDATED HOUSING PLAN FOR ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, that the Commissioners authorizes the County Manager to submit the Orange County Consolidated Plan for Housing and Community Development Programs Annual Update 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 as the authorized representative of the County to act in connection with the submission of the Annual Update 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 2008. 4 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2008-2009 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approve the following activities for the 2008-2009 HOME Program. Homebuyer Assistance Funds would be allocated to the Orange Community Housing and Land Trust to assist first time homebuyers earning less than 80 percent of the area median income to purchase homes county-wide Funds would be provided as a grant to the Land Trust. (Requested amount: $150,000) $100,000 Funds would be allocated to Orange County Habitat for Humanity to provide deferred payment zero- interest second mortgages for six homes throughout Orange County. Homes would be sold to households earning between 30 percent and 80 percent of the area median income. (Requested amount: $300, 000) $120,000 Housing Rehabilitation Funds would be allocated to Community Alternatives for Supportive Abodes (CASA) for the repair of five duplexes on Pritchard Avenue Extension in Chapel Hill that will be leased to individuals that are, disabled andlor chronically homeless. (Requested amount: $232,619) $435,225 Operational Support Funds would be allocated to Orange Community Housing and Land Trust as a Community Housing Development Organization for administrative expenses. (Requested amount: $SS, 000) $ 33,000 New Construction Funds would be allocated to Town of Hillsborough for infrastructure development in the Highland Woods subdivision in the Northern Fairview community. (Requested amount: $100,000) $ 56,250 Program Administration TOTAL FY 2008-2009 HOME PROGRAM FUNDS $ 66,176 $810,651 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of this 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 2008. Barry Jacobs, Chair SEAL DRAFT J it a ~~rth ~aL°~~fi J I r I ~ I I ,1 J _ I ~ ~ J ~ ~ ~~ J ~~ Orange County (Lead Entity) 200 South Cameron Street Post Office Box 8181 Hillsborough, North Carolina 27278 (919) 245-2490 (919) 644-3056 Fax www.co.orange.nc.us May 15, 2008 EXECUTIVE SUMMARY Orange County is well known for its rich history, outstanding educational and employment opportunities, and diverse and friendly citizens. Nestled in the hills of the North Carolina Piedmont, Orange County is located strategically between the Research Triangle Park and the Triad cities of Greensboro, Winston-Salem and High Point. With more than 100,000 citizens, Orange County includes historic Hillsborough, the County seat, Chapel Hill, home of the University of North Carolina, and Carrboro, a former railroad and mill town. When Orange County was founded in 1752, five Native American tribes lived in this area. The Town of Hillsborough was the center of North Carolina politics in the colonial era and hosted the state's Constitutional Convention in 1778, where North Carolina delegates demanded that a Bill of Rights be added before they would ratify the U.S. Constitution. Orange County lies on the western edge of the Research Triangle area, which is anchored on three sides by UNC-Chapel Hill, North Carolina State University and Duke University. Research Triangle Park is home to leading technological companies and institutions. Orange County is part of the Raleigh-Durham-Chapel Hill, North Carolina Metropolitan Statistical Area (MSA) which comprises six Counties in the Research Triangle Area. Fi®useng Market Analysis General Market Conditions Orange County's population has increased by more than 25% between 1990 and 2000 (rising from 93,662 to 118,227). The County is expected to experience continued growth through 2010, with the population increasing to a projected 140,750. The North Carolina Office of State Planning estimates that the population in the County in 2003 is 120,881. While most of the County's population is centered in Chapel Hill (46,798 in 2000), the areas experiencing the most rapid growth are Carrboro and Hillsborough. It is estimated that almost one-third (32%) of Chapel Hill's population are students enrolled at the University of North Carolina. Over 40% of the County's population lives in Chapel Hill. Less than 20% of the population lives in other municipalities with the remaining 39.4% living in the remainder of Orange County. The number of households in Orange County, according to the 2000 Census, was 45,863, which represents a 27% increase in households since 1990. The racial composition of Orange County is changing. As a percentage of the total population, whites make up 78 % of the County and the Town of Chapel Hill. Blacks comprise 13.8 % of Orange County (11 % of Chapel Hill). The most dramatic increase in racial groups is in the Hispanic community, where the population grew from 1,279 in 1990 to 5,273 by 2000, representing a 312.3% increase and 4.5% of the total population in Orange County. The Asian population grew 105.2% during this same period and now makes up 4.1 % of the total population. The unemployment rates for Orange County have been 2% or more below the statewide unemployment rates and about 3% to 4% below the national unemployment rates for the past 10 years. In Orange County, unemployment has ranged from a low of only 1.1 % in 1999 to a high of 3.2% in 2002. [2~ .7 Median household income is likewise much higher than state and national averages. In 2004, the median household income for Orange County was $69,800. This represents a 49% increase in median income over the past 10 years. The median income in Orange County is about 20% higher than the median family income for North Carolina and 21 % higher than the national average. The estimated median family income in Chapel Hill is over $86,000. In terms of per capita income, Orange County ranks fourth among all Counties in North Carolina and third among Counties located in the Triangle region of North Carolina, according to data obtained from the U.S. Bureau of Economic Analysis. Housing Market Conditions In 1990, the total number of housing units in Orange County was 38,683. During the period 1990 to 2000, the total number of housing units increased by 27.4% to 49,289 units. Also during this period, the number of owner-occupied units increased by 32.4% and represented over one- half of all housing units in Orange County. In 2000, owner-occupied housing in Chapel Hill represented 43% of all occupied units. In renter-occupied housing, structures with five or more units continue to be the majority of the housing stock at 52.9% in 2000. Average and median sales prices of both new and existing homes in Orange County for 2004 exceed $100,000. The lowest prices are reflected in the sales of condominiums and townhouses. Sales prices for new detached homes exceed $250,000 for both new and existing homes. The average sales price for unincorporated Orange County in 2004 was $296,890. In 2004, 20% of homes sold for less than $160,000 down from 24% in 2003 and 29% in 2002. Almost two-thirds of single-family homes sold in 2004 had a sales price of $200,000 or more with almost one half of those having a sales price over $350,000. Housing in the Chapel Hill area is currently among the most expensive in the Research Triangle region. In 2003, the average purchase price of a home in Orange County rose from about $261,895 to $280,592. In Chapel Hill, the average purchase price was $320,913. Since 2000, the average purchase price has increased 22.4% in Chapel Hill. Rental housing in Orange County is dominated by larger apartment developments-those with five or more units- which represent 52.9% of the renter-occupied housing in the County. The median gross rent (rent plus utility expenses) for 2000 was $684. The 2005 fair market rents (FMR) for atwo-bedroom apartment.in Orange Gounty is $779. Public Housing Programs The Orange County Department of Housing and Community Development is responsible for the administration of the Section 8 Housing Choice Voucher Program. The Department does not operate public housing developments. Currently, the Department administers approximately 623 units of Section 8 assistance with approximately 1,278 people remaining on a waiting list as of February 2006. The Town of Chapel Hill Department of Housing administers 336 units of low-rent housing located at 13 sites (12 in Chapel Hill and one in Carrboro). The department's goal is to refurbish all 336 units of public housing over afive-year cycle using Community Development Block Grant funds to pay for refurbishing work. The Department does not administer Section 8 tenant-based rental assistance. According to its most recent PHA plan, there is a waiting list of 220 persons for housing assistance from the Town of Chapel Hill's Department of Housing. L3] S Housing Needs Assessment Renter Households One-half of all renter households experience a housing problem, which represents a 0.8% reduction since 1990. The percentage of extremely low-income renters who experience housing problems has increased overall since 1990. However, among extremely low- income, very low- income and low-income renters, there has been an overall reduction in the number of housing problems. Owner Households Over 20% of all owner households experience a housing problem, which represents a 0.3% increase since 1990. The percentage of extremely low-income owners who experience a cost burden over 50% increased since 1990 to 49.3%. During this same period, however, extremely low income owners experienced a slight.decrease in any housing problems and in cost burdens of more than ~30%. Among very low-income and low-income owners, there has been an overall increase in the number of housing problems. Disproportionate Needs Among renters, Hispanic households experience a disproportionately higher percentage of housing problems' in Orange County. Among homeowners, African Americans, Hispanics and Asian Americans experience a disproportionately higher percentage of housing problems. When looking at all households (renters and owners), Hispanic and Asian American households experience a disproportionately higher percentage of housing problems. Very low-income households (those earning less than half of the area's median income) and extremely low- income households (those earning less than 30% of the area median income) have the greatest number of housing problems, whether renters or homeowners. Supportive Housing for Non-Homeless Persons with Special Needs In examining supportive housing for persons with special needs, Orange County has considered the needs of the elderly, persons with disabilities (including mental, physical and developmental), alcohol and substance abusers and persons with HIV/AIDS. People with supportive housing needs have special housing and care needs, largely because they are out of the workforce and/or have substantial medical and care requirements. The types of housing for the elderly (and all those with supportive housing needs) vary depending on the services needed to meet the requirements of the residents. In general, those who provide special housing needs offer an array of services. Efforts are made to ensure maximum independence in the least restrictive setting, but onsite support of those with special needs is often required. Households with housing problems are those households occupying units without a complete kitchen or bathroom, that contain more than one person per room and/or that pay more than 30% of their income to cover housing expenses. L4l Service providers for people with special needs face substantial challenges. In 2000, there were 7,164 elderly households in Orange County, of which, 61.2 % were low-income. Developmentally disabled and mentally ill in the County both need case management, support services, and outpatient treatment services for monitoring and treatment. Alcohol and substance abusers have access to outpatient services in Orange County, but are required to go out of the County for residential treatment. Orange County had 16 reported cases of HIV disease and eight cases of AIDS in 2004. This represents a marked increase in the number of AIDS and HIV cases. While prevention, medical and support services are available to people with HIV/AIDS, there is also a greater need for permanent supportive housing. Lead-Based Paint Hazards Lead poisoning is one of the worst environmental threats to children in the United States. While anyone exposed to high concentrations of lead can become poisoned, the effects are most pronounced among young children. There are as many as 12,058 occupied housing units in Orange County that contain lead-based paint. Of these units with lead-based paint, 6,001 are owner-occupied and 6,057 are occupied by renters. Up to 5,276 houses may have deteriorated lead-based paint. According to the 2000 Census, there are 16,540 households with annual incomes below $30,000. Applying the assumption that as much as 35% of these low-income households contain lead-based paint hazards results in an estimated 5,789 low-income households with lead-based paint hazards in Orange County. Barriers to Affordable Housing As with other types of development, Orange County's supply of affordable housing is dictated by a variety of factors, the most significant being project affordability, availability of land and infrastructure, developer preference for building high-end housing, and government regulation. To address the Educational Impact Fee, the Orange County Board of Commissioners adopted an impact fee reimbursement policy, which provides funds to nonprofit housing developers constructing rental and owner-occupied housing to enable them to pay the fee without passing the cost to the prospective renters or homebuyers. With this reimbursement, the Board works to alleviate barriers to affordable housing. Impediments to Fair Housing Based on the County's analysis of impediments affecting the furtherance of fair housing, appropriate strategies have been designed and implemented to eliminate or reduce the impact of those barriers. The following recommendations included in the "Fair Housing Plan" promote fair housing within Orange County: ® Increase the educational opportunities and provide training relating to Fair Housing through workshops, forums and presentations • Target specific protected groups for fair housing information • Continue to consult with local lending institutions regarding their Community Reinvestment Act activities. [5] ~® ® Provide training to housing providers and consumers about their obligations and rights. Homeless Assessment Based on a point-in-time count conducted on January 25, 2007, the total number of homeless people in Orange County was 237, Eighty-three (83) homeless persons in were in families, including 51 children. Additionally, 39 chronically homeless persons were documented. These numbers, however, do not include people who are doubled up, that are without a legal residence of their own and temporarily staying with another person. The Orange County Continuum of Care, with the Orange Person Chatham (OPC) Area Program serving as the lead agency, coordinates the resources and services to support the homeless in Orange County. There are prevention, outreach and supportive services available to Orange County homeless to help alleviate their needs. There is also an Orange County Partnership to End Homelessness wf~ich has formed following the National Alliance to End Homelessness plan, "How to End Homelessness in Ten Years." In March 2005, the governing bodies of Orange County committed funds to the Initiative and authorized the creation of a workgroup to begin the process. The workgroup identified community stakeholders and formed a formal Steering Committee with representatives from the County and Town governing bodies and management; law enforcement agencies; school systems; United Way; County and Town Chambers of Commerce; Economic Development Corporation; business community; health care agencies; lending institutions; and the Builders Association. Following the National Alliance to End Homelessness plan, the workgroup has gathered research and data on homelessness and begun the process of creating aten-year plan to end homelessness for Orange County. The Orange County Continuum of Care, with the Orange Person Chatham (OPC) Area Program serving as the lead agency, coordinates the resources and services to support the homeless in Orange County. There are prevention, outreach and supportive services available to Orange County homeless to help alleviate their needs. There is also a vision to create a 10 year plan to end chronic homelessness through the support of the Triangle Alliance to Resolve Chronic Homeless (TARCH). Non-Housing/Community Development Orange County and the Town of Chapel Hill believe that true community revitalization requires a comprehensive set of strategies to ensure success. Rehabilitating or constructing residential structures without improving the physical, social and economic environment in which they are located does not automatically revitalize neighborhoods. The public spaces and infrastructure used to support community development includes public facilities, including neighborhood facilities, parks and numerous health facilities for specialized care and medical research. The area's infrastructure includes water and wastewater treatment facilities that provide sufficient server capacity to all townships. Streets include two major interstates as well as hundreds of miles of primary and secondary highways. Public services include support to handicapped and substance abuse services, employment training, health services, and transportation for a wide variety of needs. . Anti-crime measures and youth programs work in and out of the school system to provide awareness for students and increase public safety. There are three senior centers that provide [6] 1! classes, wellness programs, trips, and lunches for area seniors. Orange County and its Towns also provide small business owners with a variety of information and assistance to promote area economic development: The Orange County and Town of Chapel Hill Planning and Inspections Department implements land use and environmental policies, zoning, building construction and standards through a system of regulations to promote stable and quality development. __----- --.__ -__----_.._-_.. -._._T_.._.,~ _ - - - - Anlnua9 Strategic Plan As a growing community, the Orange County and the Town of Chapel Hill must successfully balance a diverse array of housing and community development issues. Given the range of competing needs, the community must invest its scarce public resources wisely. Therefore, as a general principle, the Town will attempt to expend public funds in a way that leverages the commitment of private sector support whenever possible. The following presentation utilizes this performance-centered approach to outline the County and Town's approach to housing and community development in the upcoming year. This approach includes identifying goals, objectives and strategies; determining what resources are necessary to achieve these goals; analyzing and evaluating performance data; and using that data to drive improvements in organization. All objectives and performance indicators are based on a one year time frame. Goal 1-Decent and Affordable Housin fog rLower-Income Households Priorrfv 1.2 =Low income renters (<60% AMI)..fhat live.'h substandard hous~~g Strategies: - Continue to fund the rehabilitation of existing rental housing units - Monitor and enforce rent and property standards for completed projects - Leverage existing Town and County resources by utilizing the federal low income tax credit, HUD Section 202 and 811, and other programs to construct new rental housing - Provide educational opportunities related to fair housing, tenant rights, etc. - Continue to dialogue with the University of North Carolina -Chapel Hill on issues that affect affordable rental o ortunities in the area Output Indicators: - 32 additional affordable rental units (Orange County/Chapel Hill) - 49 units of renovated public housing (Chapel Hill) [~] ~a Strategies: Output Indicators: ~~ renters (<80% AMI) That are potanfial fiornebuyers - Provide down-payment and closing cost assistance to qualified homebuyers - Provide homebuyer education and counseling with an emphasis on credit - Provide acquisition, infrastructure, predevelopment and/or construction funding to eligible non- profits and for-profits to develop affordable housing opportunities - Establish homeownership program to assist existing Secfion 8 recipients - Provide downpayment assistance to service for 10 additional lower income homebuyers. (Orange Prority 1.5 -Eliminate barriers fo affordable housing ~' - -- Strategies: - Challenge and encourage non-profit and for-profit affordable housing providers to share resources and collaborate - Seek legislation that would require all local governments to require new residential and commercial developers in the County and Towns seeking zoning approval andlor permits to contain at least 15% affordable units in residential projects - Utilize equity sharing and community land trust concepts to limit the dramatic escalation of housing costs Output Indicators: - Five (5) units of new affordable housing in mixed income developments (Orange Co.IChapel Hill) - Increased awareness of barriers to affordable housing (Orange CountylChapel Hill) Goal 2 -Provide Housin and Services for Populations with .Special Needs Priority 2.2 'Continuum of sen~rc~s fir special'populations including older adults,' disabled, menfaffy ill, per~ou.~ with AIDS and of risk youth Strategies: - Promote and make public service funds available to agencies that serve identified special populations - Partner with other funding agencies to encourage the development of transitional housing (SRO's, group homes) that is service-enriched - Continue to strengthen partnership with local service providers - Support applications for federal supportive housing funds - Provide property acquisition funding to eligible non-profits and for-profits to develop permanent housing for those with special needs Output Indicators: - Four (4) additional permanent housing units for those with special needs (Orange County) - Provide community services to 55 area youth (Chapel Hill) [$] 1 ~ Goa13 -Promote Neighborhood and Economic Development Pnonty 3.1-Promote revitalization in selected Chapel Hill neighborhoods and economic development in general fhroughou( the County Strategies: - Strengthen partr~erships with neighborhood associations (community pride, education, family services, etc.) - Work with neighborhoods to design and implement specific beautification strategies, including neighborhood cleanups - Promote recreational opportunities for area youth - Prioritize one to two neighborhoods located in Chapel Hill and develop revitalization plans accordingly - Concentrate Town funding in selected neighborhoods to create maximum impact. Programs may include redevelopment activities, CHDO Development-Infill and various rehabilitation programs. - Build community capacity and better coordinate neighborhood services through the regular dissemination of information. Examples may include Community Development Day workshops, self-help workshops, activity updates, etc. - Continue to work with area Chambers of Commerce and others to promote the economic development of the community - Coordinate effort of various Town departments to concentrate resources into selected Output Indicators: - Development of a small area plan for the Rogers Road Neighborhood and a Neighborhood Conservation District for the Pine Knolls neighborhood (Chapel Hill) - Promote county wide partnerships that are dedicated to the economic development of the County Anti-Poverty Strategy The 2000 Census reported that 15,318 people in Orange County (14.1%) had incomes below the poverty level-an increase of 3,576 people since 1990. In addition to their housing problems, they often have other social service needs. They face a variety of problems that prevent them from improving their economic situation, escaping poverty and obtaining adequate and affordable housing. Orange County and the Town of Chapel Hill have targeted significant CDBG and HOME resources within core low-income areas to execute its anti-poverty strategies. These resources will act as catalysts to invite additional public and private investment of capital and services; increase the quantity and quality of affordable housing; and help low to moderate-income residents acquire needed information, knowledge and skills to improve their employment opportunities. The anti-poverty strategy is the unifying thread that ties the housing, homeless, public housing and non-housing community development strategies together as one comprehensive plan for reducing the number of families that fall below the poverty level. The strategic plan, goals and objectives noted throughout this part promote self-sufficiency and empowerment. ~9~ f~ Annual Action Plan The following tables show the proposed sources and uses of funding available to Orange County for the fiscal year 2008-2009 from the U.S. Department of Housing and Urban Development. More detailed descriptions are provided in the Annual Plan portion of this document. Fiscal Year 2008-2009 Funding Source'of Funds Amoun C©mniunity Deve~~opmcnt Block Grant ! Sg74,840 Community Development Block Grant Reallocation I x;20;000 HOrviE Investment Partnership Program 5601;750 H,.,OPv1E ~41atching Funds 5148,895 Total _ - - i ,` $"1,405,491 Fiscal Year 2007-2008 Funding UsesofFunds' _ I Amount HOME Program Homeo~~dnership Assistance - OCHLT ~ 140.000'. Homeovdnership Ass~sta"ce -Habitat for Humanity ~~ 120,G00 'Housing Rchai~ilitation - C~'~,SA '~ 'z~ 435,?25 t~levd Construction -Highland ;~'Voods '~ S 56,250 Operational Support- OCHLT S 33,000 Administration S 66,176 Community De~~e!opm~nt Block Grant fvloderni~ation of Public Housing S 200,000 Hom~~o~.vnership Assistance: Orange Community Trust ' ~ 100,000 ' Comprehensive P,ehabilita`ion Program $' 50,000 I,~~ighborhood Revitalizafion $' 40,667 ~:::, Rehab - CAS,A $ 3u;uuu= Community Services $ 59,466 Program Administration I S 114,000 Total $ 1,405,$,85., [10] %~ Proposed Ac~ivt~e~ and Proposed _Projects 2008 - 2009 HOME Program Activities and Projects 1. ,Homeownership Assistance: $220, 000 Funds will be allocated to the following agencies for second mortgage assistance: $120,000 to Habitat for Humanity to provide second mortgages to six first-time homebuyers earning less than 80% of the area median income. • $100,000 to the Orange Community Housing and Land Trust for homebuyer assistance to two first time homebuyers earning less than 80% of median income. 2. New Construction -Highland Woods: $ 56,250 Funds will be allocated to the Town of Hillsborough to assist with infrastructure development costs in the Highland Woods subdivision under development by Habitat for Humanity. Units would be available for purchase by first-time homebuyers earning less than 60% of the area median income. 3. Housing Rehabilitation: $ 435, 226 Funds will be allocated to Community Alternatives for Supportive Adobes (CASA) for the renovation of ten one-bedroom apartments on Pritchard Avenue Extension in Chapel Hill. The units will be available to individuals who are disabled and/or homeless. 4. Operational Support: $ 33,000 Funds will be allocated to Orange Community Housing and Land Trust for administrative expenses related to its HOME Program funded projects. As a designated Community Housing Development Organization for the HOME Program, the Land Trust is eligible to receive funds for administration of a housing program. 5. Administration: $ 66,176 The remaining $66,176 would be allocated to the Orange County Housing and Community Development Department for administration of the HOME program. Community Development Block Grant Activities and Projects 1. Modernization of Public Housing: $200,000 $200,000 will be allocated to modernize nine public housing apartments (to conform and comply with Section 504 and the Uniform Federal Accessibility Standards (UFAS) as mandated by HUD), the 5-year Refurbishing Program, and the replacement of appliances. The modernization project could use Community Development funds along with Public Housing Capital Fund Program (CFP) grant funds to modify bathrooms to have roll-in showers or bathtubs with grab [11] /G bars and in-tub seats, lower medicine cabinets, handicap accessible commodes, shower spray units and bathroom fixtures; to modify kitchens to have handicap accessible appliances, sinks, range hoods and cabinets; to install visual alarm systems; to widen doorways and corridors to minimum handicap clearance; and to lower thermostat controls, electrical switches, clothes rods and shelves and mirrors. We also recommend that $15,000 of this amount be used to pay a portion of the Contracting Officer's salary for oversight of the modernization project. 2. Orange Community Housing and Land Trust - Homebuyer Assistance Program: $100,000 $100,000 will be allocated for the Orange Community Housing and Land Trust for its Homebuyer Assistance Program to assist low-income buyers to purchase Land Trust homes in Chapel Hill. The Land Trust intends to combine Community Development funds with HOME Program funds and funds from the Town's Affordable Housing Fund to subsidize the purchase price of Land Trust homes. 3. Comprehensive Housing Rehabilitation Program: $50,000 $50,000 will be allocated for the Comprehensive Housing Rehabilitation Program to renovate owner-occupied housing in the Northside and Pine Knolls neighborhoods. The Council has previously allocated a total of $320,000 to this program. To date, four homes have been renovated. 4. Neighborhood Revitalization: $32,940 $32,940 will be allocated to continue neighborhood revitalization activities throughout the Town and public housing communities. Activities must serve households earning less than 80% of the HUD published area median income. Funds could be used for the following activities: property acquisition, demolition, renovation; public and neighborhood improvements such as sidewalks, curb and gutter improvements or parks and recreation facilities; second mortgage assistance; or community service activities. We also recommend that the Council continue to authorize the Manager to approve converting Neighborhood Revitalization funds into grants to non-profit organizations for housing projects that achieve long-term affordability. 5. Community Alternatives for Supportive Abodes (CASH): $30,000 $30,000 will be allocated for the renovation of five duplexes located at 701-719 Pritchard Avenue Extension. These units will provide ten apartments to house persons who earn 30% or below of the Area Median Income and who have a disabling condition or have been homeless. CASA will partner with local service agencies for referrals and on-going tenant support service plans. Each tenant will have his/her own support service plan and receive appropriate services that match his/her needs, including mental health, substance addiction, healthcare, veteran's services, vocational and employment, budgeting, independent living skills, emergency assistance funds and case management. [12] /7 6. Community Services: $59,466 • Chapel Hill Police Department Youth Employment Program: $29,466 The Youth Employment Program provides job skills training, employment experience, and economic opportunities to youth aged 14-18 living in the Pine Knolls, Northside and public housing communities whose families earn less than 80% of area median income. During the summer, approximately thirty-five youth would work up to twenty hours per week for seven weeks in various Town Departments and local non-profit organizations. The youth would also participate in training on financial education and job interviewing skills. Work-site supervisors and the youth employees will fill out evaluations at the end of the program to help determine the success of the program. • Chapel Hill Training Outreach Project (CHTOP) After School Enrichment Program: $15,000 The After School Enrichment Program operates at the Family Resource Center in the South Estes public housing community, serving approximately fourteen elementary school-aged children. • Chapel Hill Carrboro YMCA After School Outreach Program: $15,000 The After School Outreach Program operates at the Chapel Hill/Carrboro YMCA, serving children living in the Pine Knolls neighborhood and the South Estes Drive and Airport Gardens public housing communities. Funds would be used to provide scholarships to eligible children. 7. Program Administration: $114,900 $114,900 will be allocated for administration of the Housing and Neighborhood Services division of the Planning Department. Funds would be used for oversight of the Community Development program and related affordable housing programs, as well as coordination with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations. Funds are used to fund for a portion of the salaries of the Housing and Neighborhood Services Coordinator and the Housing and Neighborhood Services Planner, and the salary for the .part- time Community Development Program Monitor. In addition to salaries, funds would be used for overhead costs such as advertising expenses, business meetings and training, supplies and professional services. [13]