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HomeMy WebLinkAboutAgenda - 11-10-2015 - 3 - Affordable Housing Plan Update and Affordable Housing Fund Criteria - Additional Discussion from October 6, 2015 Meeting 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 10, 2015 Action Agenda Item No. 3 SUBJECT: Affordable Housing Plan Update and Affordable Housing Fund Criteria - Additional Discussion from October 6, 2015 Meeting DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): INFORMATION CONTACT: A) Affordable Housing Fund Criteria - Audrey Spencer-Horsley, Housing, Action Agenda Item Number 7-b — Human Rights and Community October 6, 2015 BOCC Meeting Development Director, (919) 245-2492 B) Orange County Affordable Housing Plan Update - Tentative Timeline PURPOSE: To provide an update on the Affordable Housing Strategic Plan under development and continue discussion about establishing a process and criteria to fund affordable housing projects using the FY 2015-16 Affordable Housing appropriation in the budget. BACKGROUND: On October 6, 2015, during the regular Board of County Commissioners meeting, Audrey Spencer-Horsley, Housing, Human Rights and Community Housing Director presented an Action Agenda Item Number 7-b that provided a proposal to prioritize the use of the $1 million Affordable Housing FY 2015-16 appropriation. In addition to other information shared with the Board from the Consolidated Plan, Ms. Spencer-Horsley noted that the proposal took into consideration that, according to the Five Year Consolidated Plan and the FY 2015 Action Plan, the most significant housing need is affordable rental housing. After questions and discussion by the Board concerning the proposed use of funds for land banking and or other housing initiatives, a motion was made by Commissioner Jacobs, seconded by Commissioner Rich to table the item until the November 10, 2015 work session. FINANCIAL IMPACT: See Attachment A. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are 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. 2 The creation and preservation of affordable housing options helps to meet a basic need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. Affordable housing options allow individuals to reduce risks associated with being unhoused. • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. RECOMMENDATION(S): The Manager recommends that the Board discuss and provide direction to staff on whether to proceed with development of a process and criteria for use of the affordable housing funds appropriated. Attachment A 3 ORANGE COUNTY COPYBOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: Action Agenda Item No. 7-b SUBJECT: Affordable Housing Fund Criteria DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): INFORMATION CONTACT: Audrey Spencer-Horsley, Housing, Human Rights and Community Development Director, (919) 245-2492 PURPOSE: To establish a process and criteria to fund affordable housing projects using the FY 2015-16 Affordable Housing appropriation. BACKGROUND: The FY 2015-16 Budget includes $1 million to fund affordable housing alternatives. The Budget states that the purpose of this fund is to acquire aggregate parcels, improve existing County-owned properties for future residential development to address displaced manufactured homes, as well as affordable housing alternatives. According to the Five Year Consolidated Plan and FY 2015 Action Plan, the most significant housing need in Orange County is affordable rental housing. The Plan states that 28.4% of renter households contribute 50% or more of annual income to housing costs while 7.7% of owner households contribute the same proportion. If the percentage of income dedicated to housing costs is reduced to 30%, the proportion of renter households dedicating at least that amount to housing increases to 44.1%. The Plan further concluded through interviews and surveys that the lack of quality, affordable housing for rent is the largest unmet housing need in Orange County. To address this need, staff is proposing to prioritize the use of the $1 million affordable housing fund to increase or, at a minimum, maintain the supply of affordable rental properties in the community. Eighty percent (80%) of the fund would be used for rental property projects and up to twenty percent (20%) could be applied to homeownership activities. This effort would represent the first phase of an affordable housing plan that will address additional housing needs and identify other opportunities. Under this model, the County would solicit proposals through a competitive request for proposal (RFP) process to purchase rental properties. The RFP would not limit the type of property that could be purchased. Properties could range from multi-family apartment units to manufactured homes. The properties would then be dedicated to housing individuals or families with annual 4 incomes of fifty percent (50%) or less of the local median income for rental and up to 80% median income for homeownership. Funding priority would be given to rental projects. The proposals would allow the County to either fully fund or partially contribute to the purchase of affordable rental housing. However, the properties would be managed and maintained by another party under a lease agreement or other type of contract. A staff team would use the following grading criteria to evaluate proposals and recommend funding- 1. The property must include one or more rental or homeownership properties. 2. The properties must be available to individuals or families with annual incomes of 50% or less of the local median income for rental and up to 80% median income for homeownership. 3. Priority will be given to individuals or families referred by County agencies or recognized non-profit partners. 4. The proposal must address how the property will be managed and maintained. 5. The properties must pass an initial inspection for safety, quality, and feasibility and must be maintained to safety standards, subject to inspection by the County. 6. The properties should be located in an area with access to transportation resources, or the proposer must include a plan to address access to transportation. 7. Additional consideration will be given to proposals that include contributions from other public or private sources or that leverage additional resources for affordable housing. 8. Additional consideration will be given to the speed with which the properties can be made available to tenants. 9. Additional consideration will be given for proposals addressing special needs populations, e.g. seniors, persons with disabilities, etc. FINANCIAL IMPACT: The FY 2015-16 Budget includes $1 million to fund affordable housing projects. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are 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. The creation and preservation of affordable housing options helps to meet a basic need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. Affordable housing options allow individuals to reduce risks associated with being unhoused. • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY 5 The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. RECOMMENDATION(S): The Manager recommends that the Board approve the criteria as defined in this abstract and authorize staff to proceed with a Request for Proposal process and make funding recommendations to the Board following this process. 6 Attachment B Orange County Affordable Housing Plan Update - Tentative Timeline Tasks First Phase: Status Completion Date Development of the Five Year Consolidated Plan Completed May 2015 (Includes Housing Needs Assessment and Market Analysis)and Broad Community Outreach/Input Approval Towns of Chapel Hill, Hillsborough Completed April 2015 Approval Town of Carrboro Completed May 2015 Approval Orange County Completed May 2015 Orange County Housing Choice Voucher Five Year Plan Completed August 2015 Analysis of Impediments(Al)—Fair Housing Five Year Draft Completed and November 2015 Plan and Public Comment Under Review Submittal of Al for BOCC Approval -- December 2015 Tasks Second Phase: Supplemental Data Collection—Local Jurisdictions: In Progress January 2015 Programs and Services, Resources,Sustainability and Future Plans, Challenges and Opportunities County,Towns and Community Programs/Services In Progress December 2015 Profiles Mobile Home Parks Initial Research October 2015 Completed Public Owned Land County Owned Land November 2015 Completed; Requested from Towns Small (Tiny Homes) Initial Research October 2015 Completed Land Use,Transportation and Employment In Progress January 2015 State and Federal Programs/Resources In Progress January 2015 Private Resources/Opportunities In Progress January 2015 Tasks Third Phase: Orange County Affordable Housing Strategic Plan In Progress February 2015 Community Outreach/Input by Sections and Final -- January-March 2015 Document Submission Affordable Housing Strategic Plan for Board -- March/April 2015 Approval