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HomeMy WebLinkAboutAgenda - 09-01-2015 - 6m ORANGE COUNTY 1 BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 1, 2015 Action Agenda Item No. 6-m SUBJECT: Approval of Revised Resolutions for the Orange County FY 2014-2015 HOME Program Design and Orange County FY 2015-2016 HOME Program Design for Habitat for Humanity Homeownership Assisted Projects DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): INFORMATION CONTACT: 1) May 2014 Approved Resolution Audrey Spencer-Horsley, Director Authorizing the Orange County FY (919) 245-2490 2014-2015 HOME Program Design 2) May 2015 Approved Resolution Authorizing the Orange County FY 2015-2016 HOME Program Design 3) September 2015 Mark-up Version of Amended Resolution Authorizing the Orange County FY 2014-2015 HOME Program Design 4) September 2015 Mark-up Version of Amended Resolution Authorizing the Orange County FY 2015-2016 HOME Program Design PURPOSE: To approve revised resolutions for the 2014-2015 and 2015-2016 HOME Program Designs approved by the Board in May 2014 and May 2015 as follows: 1) For the FY 2014-2015 Resolution Authorizing the Orange County FY 2014-2015 HOME Program Design, approve a revision authorizing Habitat for Humanity to provide deferred payment, zero interest second mortgages for nine (9) homes instead of ten (10) throughout Orange County as requested in Habitat's application for HOME funding; and 2) For both the FY 2014-2015 Resolution Authorizing the Orange County FY 2014-2015 HOME Program Design and the FY 2015-2016 Resolution Authorizing the Orange County FY 2015-2016 HOME Program Design, approve revisions for the use of HOME funds for the purchase of Habitat for Humanity homes by households with incomes that initially meet the 65% of Area Median Income (AMI) eligibility requirement, and subsequently have an increase in income during the construction period and prior to closing as long as the increase in income of the households do not exceed 80% of AMI as allowable under the HOME program. The maximum income amount allowable by the U.S. Department of Housing and Urban Development for HOME funded projects is 80% of AMI. BACKGROUND: The Resolution Authorizing the Orange County FY 2014-2015 HOME Program Design approved by the Board of County Commissioners on May 8, 2014 allocated funds to Orange County Habitat for Humanity to provide deferred payment, zero interest second mortgages for ten (10) homes throughout Orange County. The Board of County Commissioners is requested to approve a revision amending the May 2014 resolution to provide assistance to nine (9) homes consistent with Habitat's application. Secondly, the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, approved the submission of the FY 2014-2015 and FY 2015-2016 Consolidated Plan Annual Action Plan HOME Program Activities that included providing homeownership assistance to Habitat for Humanity to provide deferred payment, zero interest second mortgages. The targeted group for Habitat are first time homebuyers who earn at or below 65% of the AMI, live and/or work in Orange County for at least one year, and live in housing that is substandard, unsafe, unaffordable, or subsidized (Public Housing or Housing Choice Voucher programs). Habitat for Humanity approves the number of homebuyers that it projects the organization will build homes for in an 18 -24 month timeframe. The County has periodically received requests to approve second mortgage assistance from Habitat for Humanity to households with incomes exceeding 65% AMI, due to wage increases over the course of the 18-24 month construction process. The administrative change requested would as a general rule allow Habitat for Humanity with notification to the County to assist such households with incomes that initially meet the 65% of Area Median Income (AMI) eligibility requirement, and subsequently have an increase in income during the construction period and prior to closing as long as the increase in income of the households do not exceed 80% of AMI as allowable under the HOME program. This administrative change would prevent penalizing households who were initially eligible and met all the requirements of Habitat for Humanity's funded program, but over the construction process and prior to closing had an increase in income that did not exceed 80% AMI as allowable under the HOME program. These households with incomes up to 80% AMI would remain eligible to purchase Habitat for Humanity homes using funds from the HOME program. INCOME ELIGIBILITY Family # Annual Family Size % of AMI Income 1 $37,750 1 <80% 2 $43,150 2 <80% 3 $48,550 3 <80% 4 $53,900 4 <80% 5 $58,250 5 <80% 6 $62,550 6 <80% 7 $66,850 7 <80% 8 $71,150 8 <80% *Based on the 2015 HUD Area Median Income for Orange County(Durham-Chapel Hill Metro Area) FINANCIAL IMPACT: No financial impact. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this agenda item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. This initiative assists in providing affordable housing units to low-to-moderate income households. RECOMMENDATION(S): The Manager recommends the Board- 1) approve a revision authorizing Habitat for Humanity to provide deferred payment, zero interest second mortgages for nine (9) homes instead of ten (10) throughout Orange County as requested in Habitat's application for HOME funding for the FY 2014-2015 HOME Program Design; 2) approve, for both the FY 2014-2015 HOME Program Design and the FY 2015-2016 HOME Program Design, revisions for the use of HOME funds for the purchase of Habitat for Humanity homes by households with incomes that initially meet the 65% of Area Median Income (AMI) eligibility requirement, and subsequently have an increase in income during the construction period and prior to closing as long as the increase in income of the households do not exceed 80% of AMI as allowable under the HOME program. The maximum income amount allowable by the U.S. Department of Housing and Urban Development for HOME funded projects is 80% of AMI; 3) approve the attached markup versions of the two September 2015 revised resolutions and authorize the Chair to sign clean versions of the revised resolutions for the 2014- 2015 and 2015-2016 HOME Program Designs. Attachmen t 1 RES-2014-030 4 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2014-2015 HOME PROGRAM DESIGN BE IT RESOLVED,by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the following activities for the 2014—2015 HOME Program. Homeownership Assistance Funds would be allocated to the Community Home 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 Community Home Trust. (Requested amount: $50,000) $52,731 Funds would be allocated to the Community Home Trust for new construction costs for townhomes to be built to assist first time homebuyers earning less than 80 percent of the area median income to purchase homes in the Waterstone Development. (Requested amount: $100,000) $64,481 Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment zero interest second mortgages for ten(10)homes throughout Orange County. Homes will be sold to households earning between 30 percent and 65 percent of the area median income. (Requested amount: $250,000) $250,000 Operational Support Funds would be allocated to the Community Home Trust as a Community Housing Development Organization for administrative expenses. (Requested amount: $20,000) $11,777 Funds would be allocated to the Community Alternatives for Supportive Abodes for administrative expenses. (Requested amount: $25,000) $ 5,800 HousinS Rehabilitation Funds would be allocated to Weaver Community Housing Association for repairs to replace siding for six (6)units in Cedar Rock Apartments. (Requested amount: $30,374) $30,374 Program Administration $35,154 TOTAL FY 2014-2015 HOME PROGRAM FUNDS $450,317 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 day of May 2014 •y t B acob ai SEAL RES-tots-o26 Attach ment 2 D- ORANGE COUNTY BOARD OF COMMISSIONERS �► 5 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2015-2016 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the submission of the FY 2015-2016 Consolidate Plan Annual Action Plan HOME Program activities. Homeownership Assistance Funds would be allocated t e rangotty Habitat for Humanity to provide deferred payment zero interest second mortgages forniq11) homes throughout Orange County. Homes will be sold to households earning between 30 percent and 65 percent of the area median income. (Requested amount: $270,000) $100,455 New Construction Funds would be allocated to the Downtown Housing Improvement Corporation, Inc. (DHIC)to support the new construction of 80 apartment homes for households at less than 60%AMI on Legion Road in Chapel Hill. Greenfield Place will have a mix of one, two and three bedroom units along with a community building and other amenities. (Requested amount: $300,000) $154,500 Acquisition Funds would be allocated to EmPOWERment, Inc., for the acquisition of a single family property for lease to households earning 80% or less AMI. (Requested amount: $60,000) $30,000 Housing Rehabilitation Funds would be allocated to EmPOWERment, Inc., for rehabilitation of a single family property for lease to veteran households earning 80% or less AMI. (Requested amount: $46,500) $46,500 Tenant Based Rental Assistance Funds would be provided to Housing for New Hope to support homeless outreach and increase housing support that assist the homeless of Orange County acquire permanent housing. (Requested amount: $50,000) $50,000 Program Administration $ 31,183 TOTAL FY 2015-2016 HOME PROGRAM FUNDS $412,638 BE IT FURTHER RESOLVED, tha ° t Manager is hereby designated as the authorized representative of the County to act ' ° � the submission of this plan and to provide such additional information as may be re ui * artment of Housing and Urban Development This the 5th day of May 2015. Lz sz —6—_ Q _nil= ILu Earl McKee, Chair OI'tb eLar°�� Orange County Board of Commissioners SEAL RES-2015-043 Mark-Up Version Attachment 3 6 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2014-2015 HOME PROGRAM DESIGN BE IT RESOLVED,by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the following activities for the 2014—2015 HOME Program. Homeownership Assistance Funds would be allocated to the Community Home 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 Community Home Trust. (Requested amount: $50,000) $52,731 Funds would be allocated to the Community Home Trust for new construction costs for townhomes to be built to assist first time homebuyers earning less than 80 percent of the area median income to purchase homes in the Waterstone Development. (Requested amount: $100,000) $64,481 Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment zero interest second mortgages for 0)nine (9)homes throughout Orange County. Homes will be sold to households earning between 30 percent and 65 percent of the area median income,which is the "initial eligibility requirement". Homes may be sold to households earning up to 80 percent of the area median income when household income exceeds 65% of the area median income due to a wage increase during the construction period and prior to closing on the property. (Requested amount: $250,000) $250,000 Operational Support Funds would be allocated to the Community Home Trust as a Community Housing Development Organization for administrative expenses. (Requested amount: $20,000) $11,777 Funds would be allocated to the Community Alternatives for Supportive Abodes for administrative expenses. (Requested amount: $25,000) $ 5,800 Housine Rehabilitation Funds would be allocated to Weaver Community Housing Association for repairs to replace siding for six (6)units in Cedar Rock Apartments. (Requested amount: $30,374) $30,374 Program Administration $ 35,154 TOTAL FY 2014-2015 HOME PROGRAM FUNDS $450,317 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 day of September 2015. Earl McKee, Chair SEAL RES-2015-045 Mark-up Version Attachment 4 7 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2015-2016 HOME PROGRAM DESIGN BE IT RESOLVED,by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the following activities for the 2015—2016 HOME Program. Homeownership Assistance Funds would be allocated to Orange County Habitat for Humanity to provide deferred payment zero interest second mortgages for eleven (11)homes throughout Orange County. Homes will be sold to households earning between 30 percent and 65 percent of the area median income,which is the "initial eligibility requirement". Homes may be sold to households earning up to 80 percent of the area median income when household income exceeds 65% of the area median income due to a wage increase during the construction period and prior to closing on the property. (Requested amount: $270,000) $100,455 New Construction Funds would be allocated to the Downtown Housing Improvement Corporation, Inc. (DHIC) to support the new construction of 80 apartment homes for households at less than 60% AMI on Legion Road in Chapel Hill. Greenfield Place will have a mix of one,two and three bedroom units along with a community building and other amenities. (Requested amount: $300,000) $154,500 Acquisition Funds would be allocated to EmPOWERment, Inc., for the acquisition of a single family property for lease to households earning 80% or less AMI. (Requested amount: $60,000) $30,000 Housine Rehabilitation Funds would be allocated to EmPOWERment, Inc., for rehabilitation of a single family property for lease to veteran households earning 80% or less AMI. (Requested amount: $46,500) $46,500 Tenant Based Rental Assistance Funds would be provided to Housing for New Hope to support homeless outreach and increase housing support that assist the homeless of Orange County acquire permanent housing. (Requested amount: $50,000) $50,000 Proeram Administration $ 31,183 TOTAL FY 2015-2016 HOME PROGRAM FUNDS $412,638 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 day of September 2015 Earl McKee, Chair SEAL