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HomeMy WebLinkAboutAgenda - 04-04-2017 - 8-i - Approval of Revised Resolutions for the Orange County FY 2015-2016 and FY 2016-2017 HOME Program Design for Habitat for Humanity Homeownership Assisted Projects 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 4, 2017 Action Agenda Item No. 8-i SUBJECT: Approval of Revised Resolutions for the Orange County FY 2015-2016 and FY 2016-2017 HOME Program Design for Habitat for Humanity Homeownership Assisted Projects DEPARTMENT: Housing, Human Rights and Community Development ATTACHMENT(S): INFORMATION CONTACT: 1. Letter from Habitat for Humanity Annette Moore, Interim Housing, Human 2. Revised Resolution Authorizing the Rights and Community Development Orange County FY 2015-16 HOME Director, (919) 245-2492 Program Design 3. Revised Resolution Authorizing FY 2016-17 HOME Program Design PURPOSE: To approve a revision to the HOME Program Design Resolutions for FY 2015-16 and 2016-17: BACKGROUND: On May 5, 2015 the Board of County Commissioners ("BOCC") adopted a Resolution for the FY 2015-2016 HOME Program Design which allocated funds to Orange County Habitat for Humanity ("Habitat") for homeownership down payment assistance for ten (10) homes throughout Orange County. On September 1, 2016 the BOCC revised the Program design to allow Habitat to provide down payment assistance for eleven (11) homes throughout the County. Habitat is requesting the BOCC revise the HOME program Design for FY 2015-16 to authorize Habitat to provide down payment assistance to four (4) homes instead of eleven (11) homes because in the 2015-16 application Habitat requested $270,000 and was only allocated $100,455. On May 5, 2016, the BOCC approved the HOME Program Design for FY 2016-17 which allocated funds to Orange County Habitat for Humanity to provide homeownership down payment assistance for twelve (12) homes in the Fairview Community in Hillsborough and Tinnin Woods Subdivision in Efland-Township. Habitat is requesting that it be authorized to use the funds in the Northside Community in Chapel Hill as well as the other two communities. Staff has reviewed Habitat's request and recommend that both Resolutions be revised accordingly. (See Attachments 2 and 3) FINANCIAL IMPACT: No financial impact. 2 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 and authorize the Chair to sign: 1. The resolution to revise the FY 2015-16 HOME Program Design to change the number of homes from eleven (11) to four (4); and 2. The resolution to revise the FY 2016-2017 HOME Program Design to add the Northside Community in Chapel Hill. 3 Attachment 1 � 001110,1 1 us 88 Vilcom Center Drive,Suite L110 0 0 habitat Chapel Hill,NC 27514 P(919)932-7077,F (919)932-7079 11 for an www.orangehabitat.org Orange Cuuny, NC, info @orangehabitat.org January 06, 2017 Dear Audrey and Renee, I am writing to request that Habitat be able to use a portion of our FY16-17 HOME funding for second mortgages for 8 homes in Northside that will close between April and September 2017. In Habitat's application for FY16-17 HOME funding, we requested second mortgage assistance for a total of 12 homes, 11 of them in Tinnin Woods in Efland, and 1 in Fairview. At the time of application for HOME funding last year,we were not sure about the number and location of homes we would be building in Northside this fiscal year, since we were still in the process of acquiring lots. Therefore, we decided to request funding for homes that would be built in the following fiscal year, since those lots were already secured. We also requested and received second mortgage assistance for some of the Northside lots through the Town of Chapel Hill's Affordable Housing Reserve Fund. However, because of the higher cost of land in Northside, and therefore higher sales price, we are in need of additional subsidy to make these homes affordable to our buyers. Attached are the addresses of the homes in Northside for which we would like to use FY 2016-17 HOME funding, and the approximate amount of funding for each. If this request is approved, we would use the balance of the FY 2016-17 HOME funding for two homes in the Fairview community in Hillsborough (one on 150 Faucette Mill Road, and the other on 535 Locust Road) and for two homes in Tinnin Woods that will be built in FY 2017-18. That would bring the total number of homes funded by the FY 16-17 HOME funds to twelve, which is the number of homes in the original application. I am also sending a corrected list of the homes that have closed or will close this fiscal year that will use the balance of our FY15-16 HOME funds,which totaled $100,455. As you know,the buyer of the property at 150 Faucette Mill Road in Hillsborough decided not to purchase the home just prior to closing, so we are currently marketing the home to find another qualified buyer. Since we are not sure when that home will sell, we will replace this home with one of the duplex units on Whitaker Street in Northside,which was one of the properties included in the original application for those funds. Assuming that you approve the change requested above,we will apply for second mortgage funding for the remaining 9 homes in Tinnin Woods, plus another home in Fairview, in this current round of HOME funding applications.These homes were included in our FY16-17 HOME application. Thus, if possible, I would need to know if this request can be approved in time to complete the application for HOME funding that is due at the end of this month. Thank you so much for considering this request. Please let me know if you have questions, or need additional information, as I am sure this is somewhat confusing. I look forward to hearing from you at your earliest convenience Sincerely, 4 RES-2017-021 Attachment 2 REVISED 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 four(4)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, 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 April 2017 Mark Dorosin, Chair Orange County Board of Commissioners SEAL 5 RES-2017-022 Attachment 3 REVISED ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2016-2017 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 2016-2017 HOME Program. Homeownership Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment zero interest second mortgages for twelve (12) homes in the Fairview community in Hillsborough, the Northside Community in Chapel Hill and the Tinnin Woods subdivision in Efland-Cheeks Township. Homes will be sold to households earning between 30 percent and 65 percent of the area median income. (Requested Amount: $285,000) $285,000 Housing Rehabilitation Funds would be allocated to Rebuilding Together of the Triangle to provide critical repairs, accessibility modifications, and home performance upgrades to low-income homeowners throughout Orange County earning less than 80% of the area median income. (Requested amount: $50,000) $50,000 Funds will be allocated to the Orange County Housing, Human Rights and Community Development Department for housing rehabilitation. This program will provide rehabilitation to owner-occupied homeowners throughout Orange County earning less than 80% of the area median income. (Requested amount: $114,655) $114,655 Program Administration $30,854 TOTAL FY 2016-2017 HOME PROGRAM FUNDS $480,509 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 the Consolidated Plan Annual Action 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 April 2017 Mark Dorosin, Chair Orange County Board of Commissioners SEAL