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HomeMy WebLinkAboutAgenda - 12-15-2015 - 5b - Orange County Consolidated Plan - Annual Action Plan Needs Hearing 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 2015 Action Agenda Item No. 5-b SUBJECT: Orange County Consolidated Plan - Annual Action Plan Needs Hearing DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) YES Community Development ATTACHMENT(S): INFORMATION CONTACT: 1) Consolidated Plan Summary Audrey Spencer-Horsley, Housing, 2) HOME Annual Action Plan Timeline Human Rights and Community Development Director, (919) 245-2492 PURPOSE: To receive comments from the public regarding the housing and non-housing needs to be included in the Annual Action Plan Update of the 2016-2017 Consolidated Housing Plan for Housing and Community Development Programs in Orange County. BACKGROUND: In May 2015 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. Each year, local communities are required to reassess the needs of the community. This public hearing provides an opportunity for the public, public agencies and other interested parties to provide input into the Annual Action Plan Update. In addition, the public may comment on proposed uses of an estimated $311,832 in 2016-2017 funds. Information regarding the actual Congressional allocation is not available at this time. Eligible HOME Program activities include: acquisition; new construction; housing rehabilitation; and rental assistance. The Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, approved $450,317 in HOME Program funds for FY 2014 — 2015. All program funds have been allocated to projects and 51% has been expended to-date. The Board of Commissioners approved $412,638 in HOME Program Funds for FY 2015 - 2016. This year's allocation of HOME funds are pending environmental assessments/reviews and subsequent contractual agreements. The HOME compliance deadlines are a two (2) year commitment reservation of funds and a five (5) year expenditure requirement. 2 An application form has been designed for agencies interested in accessing HOME funds for local housing projects. HOME funding will be awarded through a joint application process. The deadline for completing the application form is January 25, 2016. The Home Program Review Committee will then review the applications received and make recommendations regarding funding for consideration by the local elected officials in April 2016. The 2016 Annual Action Plan will be submitted to HUD on or before May 13, 2016. In order to inform the general public of this opportunity and encourage participation, notices have been placed in The Chapel Hill News, News of Orange, and The Herald-Sun, and also sent to local non-profit agencies and placed on local websites. FINANCIAL IMPACT: The Orange County HOME Consortium expects to receive an allocation of$311,832 in HOME Program funds for 2016-2017, the same level as last fiscal year. 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 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 open the Public Hearing to receive comments from the public as additional information to consider and close the Public Hearing. 3 ATTACHMENT 1 Consolidated Plan Orange County HOME Consortium, NC Annual Action Plan Update FY 2016-2017 The Orange County, North Carolina, HOME Consortium is an entitlement community under the U.S. Department of Housing & Urban Development's (HUD) HOME Investment Partnerships Program (HOME). Under the HOME Program, local governments are able to join together to form a consortium in order to receive HOME funding for affordable housing.The Orange County HOME Consortium is made up of four members: Orange County, the Town of Carrboro, the Town of Chapel Hill, and the Town of Hillsborough.The Town of Chapel Hill also receives federal Community Development Block Grant (CDBG)funding each year. Orange County is the Participating Jurisdiction (PJ)for the HOME Consortium. The primary purpose of the HOME Program is to increase the supply of affordable housing. Participating jurisdictions have the opportunity to identify and choose the housing activities that best meet local housing needs.To ensure HOME assisted housing increases the supply of affordable housing, an affordability period on assisted properties and income limits are required for eligible households. The Federal Fiscal Year begins October 1st and ends September 30th of each year.The Orange County Fiscal Year begins July 1st and ends June 30th of each year. The Five Year Consolidated Plan is FFY 2015-2020 as required by HUD to receive HOME funding. Orange County is also the lead entity in the preparation and submission of the Five Year Consolidated Plan and Annual Action Plans for each of the five years, a federal HOME and CDBG requirement to receive funding under the Programs.The Orange County HOME Consortium is receiving $311,832 from HOME funds for the FFY 2015program year.This is a reduction from $351,540 in FFY 2014 and a substantial reduction from$728,277 in FFY 2010, the start of the previous five year planning period. 4 To focus the approach to affordable housing a Consolidated Plan is required by HUD.The Consolidated Plan describes community needs identified, available resources, housing priorities, and proposed activities. In the Consolidated Plan,the Consortium must address the housing needs and goals for the entire geographic area it covers.The Consortium allows local jurisdictions to take a regional and collaborative approach to addressing critical affordable housing needs. Since the Town of Chapel Hill is a member of the Orange County HOME Consortium, HUD has determined that the County is permitted to submit one Regional Consolidated Plan that details the needs of the entire County, including Chapel Hill. As a CDBG entitlement recipient, the Town of Chapel Hill will submit a separate Annual Action Plan as required by HUD for the town's CDBG Funds.The Orange County HOME Consortium has prepared this IFFY 2015-2020 Five Year Consolidated Plan for the period of July 1, 2015 through June 30, 2020.This Consolidated Plan is a strategic plan for the implementation of the Orange County HOME Consortium's federally funded program for affordable housing within Orange County,the Town of Carrboro,the Town of Chapel Hill, and the Town of Hillsborough and for housing, community development, and economic development for the Town of Chapel Hill. The Five Year Consolidated Plan establishes the Consortium's goals for the next five (5)year period and outlines the specific initiatives the Consortium and its member jurisdictions will undertake to address their needs and objectives by promoting the rehabilitation and construction of decent, safe, sanitary, and affordable housing, creating a suitable living environment, removing slums and blighting conditions, affirmatively furthering fair housing, improving public services, expanding economic opportunities, and other activities principally benefitting low-and moderate-income persons. This Five Year Consolidated Plan is a collaborative effort of the Consortium members, the community at large, social service agencies, County and Town officials, housing providers, community development agencies and economic development groups.The planning process was 2 5 accomplished through a series of public meetings, stakeholder interviews, resident surveys, statistical data, and review of previous community development plans. This planning process also involves an analysis of HUD Comprehensive Housing Affordability Strategy(CHAS) data, which provides statistical data on housing needs, to prepare its estimates and projections, 2007-2011 American Community Survey Estimates, and the 2010 U.S. Census. This data is the most current information available to assess housing needs, homeless needs, special needs, social service needs, economic development needs, and other related needs. In HUD's assessment of Consortia across the county, those who truly meet the HOME program goals to address the most pressing affordable housing needs look less at geographic boundaries in their operations.Those Consortia allocate funding according to local needs, capacity to use the funds and a regional strategy that addresses the broader housing needs of the Consortium as a whole—for the success and betterment of the whole—for a better quality of life and economic vitality for all the communities individually and collectively. The Orange County HOME Consortium is receiving$311,832 from HOME funds for the IFFY 2015 program year.This is a reduction from $351,540 in IFFY 2014 and a substantial reduction from $728,277 in IFFY 2010, the start of the previous five year planning period. Greatest Needs The elderly population of Orange County (age 62 and above) is 15,979 persons which represents 12.1%of the total County's population. However, there are 200 assisted rental housing units for the elderly out of a total of 20,234 renter-occupied housing units which is 1.0%of the renter occupied units. As the County's population ages in place, there will be less available elderly units and a higher demand for those units. It is estimated that at least 450 new affordable housing units for the elderly are needed. As part of the Master Aging Plan, Orange County aims to offer an array of housing options that reflects the diverse preferences and abilities our older adult population portrays. Orange County 3 6 needs to conceptualize a continuum of housing types to accommodate rapid growth in its senior population and then, invest in development of preferred housing models. The condition of the owner occupied housing stock is fairly sound. However, rental housing units range from fair to poor. Many of the higher quality rental housing units are located in the urban centers and close to the universities.The lower quality rental housing units are located in the rural areas. Improved code enforcement is needed to address these housing deficiencies. There is also a lack of"accessible" housing units in the County to address the needs of the physically disabled. Not including elderly housing units, it appears that there is a need for at least 150 new housing units that are accessible to persons with physical disabilities. Presently, there are 84 accessible housing units for the disabled in LIHTC Projects. There is a continuing need for"affordable" and "accessible" housing in Orange County.The existing housing is sound and there appears to be an adequate supply of market-rate housing.The County has a growing population, and new construction and rehabilitation work is increasing again as evidenced by the number of building and renovation permits issued throughout the County. Real estate values continue rise which benefits property owners and most homeowners. However, these rising real estate values negatively impact very low-, low-, and moderate-income households who are increasingly cost-overburdened in their homes by 30 to 50 percent or greater or who cannot find affordable housing and are having to increasingly seek housing outside of the County or live in substandard conditions not by choice, but necessity. Housing values (both rental and real estate values) have increased with the increase of households to the area.This increase has been especially burdensome on low-and moderate income renter households. A decrease in the quality and the quantity of affordable rental housing has placed many of the very low-income households at imminent risk of becoming homeless. It is estimated that there are approximately 1,600 owner and renter occupied housing units that are suitable for rehabilitation work in Orange County. However, the cost of rehabilitation exceeds 4 7 the income and assets of many low-and moderate-income persons.Therefore, many of these housing units will remain vacant and or in substandard, deteriorating conditions since the financial resources are not available to rehabilitate the housing units.There is a need for increased local, state federal and private funds to provide financial assistance to lower income families to rehabilitate properties for more affordable housing. There is a dire lack of affordable housing for the very-low income in Orange County. Unfortunately, there are no new funding sources for permanent housing that replaces Public Housing to meet the housing needs of the very-low income.The County should encourage and support private and non-profit development entities to build more LIHTC high quality affordable housing developments throughout the County, especially in the urban areas (though in urban areas cost and the lack of available land makes this almost prohibitive).Therefore, opportunities for infill development and acquisition and or rehabilitation in these areas should be encouraged to meet affordable housing needs and opportunities for access to transportation, services and employment. The areas impacted with cost overburdened households are located in and around the urban areas of the County.These areas contain the largest concentration of employment opportunities and public and private amenities but lack affordable housing. The urban areas of the County have the most public and community facilities.These areas also contain the majority of available public transportation.The urban neighborhoods contain many of the County's employment opportunities and existing housing stock. However,these areas are cost prohibitive for low-and moderate-income persons. 2. Summary of the objectives and outcomes identified in the Plan The following six(6) priorities and subsequent goals/strategies have been identified for the Orange County HOME Consortium for the period of FY 2015 through FY 2020 for the HOME 5 8 Investment Partnerships (HOME) Program, and the Town of Chapel Hill's Community Development Block Grant (CDBG) Program. The priority ranking of needs for housing, homelessness, other special needs, community development, economic development, and anti-poverty are as follows: ❑High Priority Activities are assigned a high priority if the County or Chapel Hill expects to fund them during the Five Year Consolidated Plan period. ❑Low Priority Activities are assigned a low priority if the activity may not be funded by the County or Chapel Hill during the Five Year Consolidated Plan period.The County or Chapel Hill may support applications for other funding if those activities are consistent with the needs identified in the Five Year Consolidated Plan. Housing Priority(High Priority) There is a need to improve the quality of the housing stock in the County by increasing the amount of decent, safe, sound, and accessible housing for homeowners, renters, and homebuyers that is affordable to low-and moderate-income persons and families. Goals/Strategies: HS-1 Housing Rehabilitation -Continue to provide financial assistance to low-and moderate income homeowners to rehabilitate their existing owner-occupied housing. HS-2 Housing Construction- Increase the supply of decent, safe, sound, and accessible housing that is affordable to low-and moderate-income owners and renters in the County through rehabilitation of vacant buildings and new construction including mixed design and mixed income developments that incorporate affordable housing options. HS-3 Fair Housing- Promote fair housing choice through education and outreach in the community and through encouraging compliance with fair housing laws and affordable housing choices throughout the County. HS-4 Home Ownership-Assist low-and moderate-income households to become 6 9 homeowners by providing down payment assistance, closing cost assistance, and housing counseling training including Section 8 Housing Choice Voucher holders. HS-5 Public Housing-Support the Town of Chapel Hill's improvements and maintenance of existing public housing units including the provision of broadband internet access for all residents, and promote self-sufficiency through the use of Section 8 Vouchers for home purchase, transitional housing, and supportive services to residents to transition out of public housing to private rental and homeownership opportunities. HS-6 Permanent Housing-Support the development of permanent affordable housing options for young adults and other single individuals starting careers and families with members in modest paying professional careers (such as teachers, service workers and medical assistants), including creative and non-traditional affordable housing options in design (amenities, size and cost). HS-7 Permanent Housing- Identify and pursue local, state, federal and private resources including university communities to leverage available resources (that include publicly owned land and surplus facilities and financial support) for development of permanent affordable housing at a level that is "key" to meeting the basic need of decent safe and sound affordable housing for a broad cross section (age and income) of the residents of Orange County. HS-8 Housing Preservation - Preserve and monitor the affordable housing stock that exists by developing strategies, tools and partnerships that allow the County to retain the supply of decent, safe, sound, and accessible housing that is affordable to low-and moderate-income owners and renters. Goal/Strategy: AM-1 Overall Coordination- Provide program management and oversight for the successful administration and leveraging of federal, state, and local funded programs, including support 7 10 of collaborative initiatives, research and planning services for special studies, environmental clearance, fair housing, and compliance with all federal, state, and local laws and regulations. 3. Evaluation of past performance Orange County has a good performance record with HUD.The County regularly meets the performance standards established by HUD. Each year the County prepares its Consolidated Annual Performance Evaluation Report (CAPER).This report is submitted within ninety (90) days after the start of the new program year. Copies of the CAPER are available for review at Orange County Housing, Human Rights, and Community Development Department, 300 W.Tryon Street, Hillsborough, NC. Orange County includes the Town of Chapel Hill's performance under its CDBG Program in the County's CAPER. The FY 2013 CAPER,which was the fourth CAPER for the FY 2010-2014 Five Year Consolidated Plan,was approved by HUD. In the FY 2013 CAPER, the Town of Chapel Hill expended 100%of its CDBG funds to benefit low-and moderate-income persons.The Town expended 14.35%of its funds during the FY 2013 CAPER period on public service, which is below the statutory maximum of 15%.The Town expended 18.89%of its funds during this CAPER period on Planning and Administration, which is below the statutory maximum of 20%.The Town is in compliance with the required 1.5 maximum drawdown ratio. The HOME program is being administered in a timely manner and in accordance with applicable activity limitations and match requirements.The Orange County HOME Consortium has also met the 15%Community Housing Development Organization (CHDO) requirement. Summary The main goals of the Five Year Consolidated Plan are to improve the living conditions of all residents in Orange County, create a suitable and sustainable living environment, and to address the housing and community development needs of the residents. The Five Year Consolidated Planning process requires the County to state in a single document its 8 11 strategy to pursue goals for all housing, community development, and planning programs.The Orange County HOME Consortium and Town of Chapel Hill will use the Consolidated Plan's goals and objectives to allocate the next five (5)years of CDBG and HOME funds and to provide direction to other partners addressing the housing and community development needs of the low-and moderate-income population of Orange County and the Town of Chapel Hill. HUD will evaluate the Orange County HOME Consortium's and Town's performance under the Five Year Consolidated Plan against these goals. HUD is permitting the Orange County HOME Consortium and Chapel Hill to submit one regional Consolidated Plan, however, the Town of Chapel Hill is submitting a separate Annual Action Plan linked to the Five Year Consolidated Plan for its CDBG Program as required by HUD, unlike in previous years where the Annual Action Plan was a joint submission. Excerpt from the FFY 2015-2020 Five Year Consolidated Plan Orange County HOME Consortium, NC OMB Control No:2506-0117(exp. 0713112015) 9 12 ATTACHMENT 2 ��ri Crei�r Orange County FY 2016-2017 ANNUAL ACTION PLAN TIMELINE for the Development of the HOME Program Design DATE MEETING PURPOSE/DEADLINE LOCATION Tuesday, December 15, 2015 Board of County FY 2016-2017 Annual Southern Human Commissioners (BOCC) Action Plan—HOME Services, 2501 Regular Meeting Needs Assessment Homestead Road, Public Hearing Chapel Hill 7:00 p.m. Wednesday,January 20,2016 Orange County HOME Staff Planning Meeting Housing, Human Rights Consortium Staff and CD Conference Room, 300 W.Tryon Street, Hillsborough 10:30 a.m. or Conference Call Wednesday, February 10,2016* Orange County HOME Orange County HOME Housing, Human Rights *Tentative: pending Consortium Consortium Meeting for and CD Conference appointment of Elected Officials the discussion of HOME Room, 300 W.Tryon Program applications Street, Hillsborough 10:00 a.m. Tuesday,April 5,2016 BOCC Regular Meeting Proposed Annual Action Whitted Building— Plan** 300 W.Tryon Street, April 2016 TBD BOCC Approval Hillsborough Other Consortium Member 7:00 p.m. Jurisdictions approve the Proposed Annual Action Plan Friday, May 13,2016 Deadline for submitting the FY 2016-2017 Annual Action Plan to HUD **Thirty(30)day required Public comment period: March 1,2015-April 4,2015.