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Home My WebLink AboutAgenda - 11-01-2016 - 7-a - County Assisted Affordable Housing Income Targets and Project Scoring Criteria 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 1, 2016 Action Agenda Item No. 7-a SUBJECT: County Assisted Affordable Housing Income Targets and Project Scoring Criteria DEPARTMENT: Housing, Human Rights and Community Development ATTACHMENT(S): INFORMATION CONTACT: 1) Options 1 and 2 for Discussion of Audrey Spencer-Horsley, Director, Targets by Units and or Income Housing, Human Rights and Community 2) Revised Draft of Proposed Development, (919) 245-2492 Affordable Housing Program Evaluation: Scoring Criteria (Matrix) 3) 2001 Bond Funded Projects by Income Targets UNDER SEPARATE COVER To be Provided Prior to or at the Meeting 4) Affordable Housing Coalition Projects by Income Targets PURPOSE: To consider for approval the income targets and proposed scoring criteria for affordable housing projects as part of the Proposed Orange County FY 2016 - 2020 Affordable Housing Strategic Plan. BACKGROUND: The attached materials (Attachments 1-3) have been updated based on comments and requests from the Board's discussion at its October 4, 2016 meeting. There are two options (Attachment 1) included for the unit targets: Option 1 maintains the 250 unit cap for each population and Option 2 only imposes a cap on the units serving 50% to 80% of area median income (AMI). In addition, on Attachments 1 and 2, the words "Bond Funds" to "County Funds" were changed to broaden the application of the targets and criteria to any County funds used for affordable housing purposes. To incorporate the Board's comments on the project scoring matrix under Building Design criteria (Section C), accessibility, water and sewer, and transportation was re-weighted giving them an additional five points total. The Community Sponsorship/Support criteria (Section E) were reduced by five points as an offset. Finally, "financial model" wording was added to the Project Feasibility criteria (Section F). An advance copy of Attachments 1 and 2 were forwarded to the Board to allow additional time for consideration by each Board member prior to discussion at this regular meeting. Also 2 provided as requested by the Board is a matrix showing funded projects from the County's 2001 Bond by income targets (Attachment 3). A similar chart was requested by the Board for projects identified by the Orange County Affordable Housing Coalition and will be forwarded to the Board upon receipt (Attachment 4). Following discussion and direction by the Board, staff will prepare the final draft of the Plan incorporating Board guidance and community comments. The Plan is intended to be a living document and will need to be implemented in phases. Following the Board's approval of the Plan, staff will bring back to the Board detailed work plans and metrics in consultation and collaboration with community and municipal partners and county agencies. FINANCIAL IMPACT: There is no financial impact regarding the discussion of the Proposed 2016— 2020 Affordable Housing Strategic Plan income targets and project scoring criteria. 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 approve the County Assisted Affordable housing income targets and project scoring criteria for inclusion in the Proposed 2016— 2020 Affordable Housing Strategic Plan. 3 Option 1—implement Unit Targets for Each Population Served ORA! GE col I Nye k i i ( ,;A.RO LI.N A. DRAFT Attachment 1 County Funds to Help the County Reach a Countywide Shared Goal of 1,000 Affordable Housing Units in Five Years: 2016 —2020 OPTION: TARGETING INCOME and SPECIAL NEEDS by#UNITS and TYPE Household Income Range Target Units Percent of Examples of Population Units Served 0 to <30% 250 (all new rental) 25% Minimum Wage Earners, Childcare Providers, Restaurant Service Workers and Artists >30%to<50%Area Median 250 (all new rental) 25% Maintenance Workers, Income Nursing Assistants and Health Aides,Teacher Assistants and Construction Helpers > 50%to<80%of Area Median 250 (rental and 25% Workforce employees, Income homeowner; new teachers, small business and existing units) owners and first responders Special Needs Populations 250 (all new rental) 25% Residents with disabilities, older adults/seniors, residents experiencing or at risk of homelessness, and victims/survivors of domestic violence Total 1,000 U.S. Department of Housing and Urban Development(HUD) Income Limits as of April 13,2016: Area median income for Orange County is$74,900(family of four) 30%-$21,200 50%-$35,350 60%-$42,420 80%-$56,550 4 Option 2—implement Unit Targets Only for 50%to 80%of Area Median income ORAI GE col I Nye k i i ( ,;A.RO LI.N A. DRAFT Attachment 1 County Funds to Help the County Reach a Countywide Shared Goal of 1,000 Affordable Housing Units in Five Years: 2016 —2020 OPTION: TARGETING INCOME and SPECIAL NEEDS by#UNITS and TYPE Household Income Range Target Units Percent of Examples of Population Units Served 0 to <30% ^* ° Minimum Wage Earners, No Cap No Cap Childcare Providers, Restaurant Service Workers and Artists >30%to<50%Area Median 244 Maintenance Workers, Income No Cap No Cap Nursing Assistants and Health Aides,Teacher Assistants and Construction Helpers > 50%to<80%of Area Median 250 (rental and 25% Workforce employees, Income homeowner; new teachers, small business and existing units) owners and first responders Special Needs Populations *- Residents with disabilities, No Cap No Cap older adults/seniors, residents experiencing or at risk of homelessness, and victims/survivors of domestic violence Total 1,000 U.S. Department of Housing and Urban Development(HUD) Income Limits as of April 13,2016: Area median income for Orange County is$74,900(family of four) 30%-$21,200 50%-$35,350 60%-$42,420 80%-$56,550 5 rNr i " J " )1. Attachment 2 County Funds to Help the County Reach a Countywide Shared Goal of 1,000 Affordable Housing Units in Five Years: 2017— 2020 DRAFT PROPOSED AFFORDABLE HOUSING PROGRAM EVALUATION: SCORING CRITERIA A. Income Targeting and Special Needs(45 points) Household Income Range Points to be Awarded 0 to <30% 25 <30%to<50% of Area Median Income 15 >50%to <80%of Area Median Income 10 Special Needs Populations 20 B. Leveraging(55 points) Percent Funded by Bonds and Other County Funding Points to be Awarded 60—80% 3 40—59% 6 20—39% 9 10—19% 15 <10% 20 Other Criteria Points to be Awarded 1. The project pays property taxes 2 2a.The project repays the bond funds—principal only. 3 2b.The project repays the bond funds—both principal and interest. 10 3. The Project is a Mixed Income Project: The project serves more than 10 one income category and minimizes the concentration of affordable housing projects in a particular geographic area. 4.The Project is a Mixed Use Project: The project includes uses in 10 addition to residential uses that offer access to employment opportunities and other daily needs. 6 C. Building Design (24-25 points) Scoring Criteria Maximum Points to Be Awarded 1.The project meets or exceeds the NC Housing Finance Agency Energy 3 Efficiency Criteria. 2.The project is accessible to needed services for the target population 4 such as healthcare, schools, and or grocery shopping. 3.The project provides for handicap accessibility and/or utilizes the principles of Universal Design in the building design. 4.Additional points may be awarded for meeting 2 aspects associated with functionality and maintenance. I5.The project is connected to water and sewer service or will connect to 45 existing service. I6. Public transportation and related facilities and improvements are 46 available where applicable, e.g., bus shelter, accessible stops, etc. D. Community Design (10 points) Scoring Criteria Maximum Points to be Awarded 7.The project contributes to a mix of housing within an existing 3 neighborhood. 8. Additional points may be awarded for criteria associated with building 3 appearance, quality of construction,compatibility with surrounding housing, ability to foster a sense of a secure community, and contributes to neighborhood revitalization and or affordable housing preservation. (Details must be provided by applicant) 9. Environmental impacts are identified with plans included to adequately 4 address minimizing impact on environment, e.g. reuse of building materials recycling, storm water management and water conservation. E. Community Sponsorship/Support ( 20 points) Scoring Criteria Maximum Points to be Awarded I1.The applicant can submit explicit evidence that they coordinated the 46 application with other organizations to complement and/or support the proposed project. I2.The applicant involved the intended beneficiaries of the project in the .76 planning process and describes outreach and marketing plan to be inclusive. I3.The applicant can demonstrate that it has been actively involved, or .54 describes the steps it will take to become actively involved in the Community's Consolidated Planning process to identify and address a housing need or problem that is related in whole or part to the proposed project. I4.The applicant has developed, or describes plans to develop linkages with 4 other community activities so solutions are holistic and comprehensive. 7 F. Project Feasibility(30 points) Scoring Criteria Maximum Points to be Awarded 1.The applicant can demonstrate site control, zoning, compliance, and a 10 timely construction schedule that is feasible. 2. Funding (other than bond or other County funding) is in place at the 10 time of application. 3.The applicant's proposal is complete and presents a proposed project 10 Ibudget and financial model that is sustainable and rcasonablc and if; based on reasonable assumptions. G. Developer Experience(25 points) Scoring Criteria Maximum Points to be Awarded 1. Experience of the applicant in carrying out projects of comparable 10 scope and nature (e.g., new construction, rental housing, rehabilitation, etc.)to that proposed, and has met regulatory compliance for prior projects. 2.Applicant has proposed a team with demonstrated development, 5 managerial and financial management capabilities in prior projects. 3.Applicant has successful record of meeting proposed budgets and 10 timetables. TOTAL POTENTIAL POINTS: 210 ADDITIONAL COMMENTS: 8 DRAFT Attachment 3 2001 Orange County Bonds for Affordable Housing Project Name Sponsor Units Commitment 0 to< >30%to >50%to Special Amount 30% <50% <80% Needs Area Area Population** Median Median Income Income Rental Property Chrysalis 2 Duplexes $260,000 2 Acquisition Foundation Orange County, NC Rental Property Weaver Comm. 6 Rental $220,000 6 Acquisition Housing Assoc. Units Carrboro, NC New Habitat for 1 Duplex $170,000 1 Construction Humanity Rusch Hollow Chapel Hill, NC Property OCHLT 1 Single $100,000 1 Acquisition- Family Unit Milton Avenue Chapel Hill, NC Property CASA, Inc 5 Duplexes $632,300 5 Homeless Acquisition— Pritchard Avenue and Disabled Rental Apartments Chapel Hill, NC New EmPOWERment, Inc 3 Single $90,000 3 Construction - Family Sykes Street Units Project Chapel Hill, NC New Habitat for 50 Single $450,000 50 Construction— Humanity Family Purefoy Drive Houses Chapel Hill, NC Rental Property Affordable Rentals 4 Units $273,462 4 Acquisition Orange County, NC New Chrysalis 1 Duplex $130,000 1 Construction - Foundation 9 DRAFT Rental Chapel Hill, NC Second Habitat for 7 Single $180,000 7 Mortgage Humanity Family Assistance- N. Rusch Hollow Units Fairview Hillsborough, NC New Banks Law Firm 90 Rental $1,000,000 19 71 Seniors Construction— Eno Haven Units Rental Hillsborough, NC Second Community Home Six Units $200,000 6 Mortgage Trust and Install Assistance HVAC Orange County, Systems NC Property EmPOWERment 2 Single $129,930 2 Acquisition Inc. Family Chapel Hill, NC Units Property Habitat for 12 Single $205,000 17 Acquisition Humanity Family Chapel Hill, NC Units&5 rental units Property Habitat for 10 single $116,250 10 Acquisition Humanity family Hillsborough, NC homes Property Habitat for 15 single $182,000 15 Acquisition- N. Humanity family Fairview homes Hillsborough, NC Total $4,338,942* Commitments Total Units Bond Funds Total 2001 Housing 219 units 19 11 189 Available Bonds *Unallocated 1997 S 338,942* Housing Bonds(est.) **Known Targeted Special Needs Population