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HomeMy WebLinkAboutAgenda - 06-05-2018 7-a - Update on the Manufactured Home Park InitiativeORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 5, 2018 Action Agenda Item No. 7-a SUBJECT: Update on the Manufactured Home Park Initiative DEPARTMENT: Department of Housing and Community Development ATTACHMENT(S): Draft Displacement Mitigation Assistance Program (D-MAP) Guidelines INFORMATION CONTACT: Sherrill Hampton, Director, Housing and Community Development, (919) 245-2490 PURPOSE: To provide an update on the activities undertaken to date, as well as those that are upcoming, as it relates to the County’s Manufactured Home Park Initiative. BACKGROUND: The last update provided to the Board occurred on March 20, 2018. At that time, there were two (2) manufactured home parks in threat of closure – Lakeview in Chapel Hill and Homestead located on NC 86 South. Residents in the Homestead Mobile Home Park were given until March 31, 2018 to relocate. The County is leading the effort to provide relocation options for these residents. Since that time, the County staff worked with the park owner to secure an extension until June 30, 2018 as it relates to the deadline for residents to relocate. During the March 20th regular BOCC meeting, the Board approved the parameters for a contract with EmPOWERment to provide relocation coordination services for the Homestead Mobile Home Park residents. The listing below details the efforts undertaken by staff since mid- March 2018. RECENT AND UPCOMING ACTIVITIES:  On March 17, 2018 - County staff met with the residents of Homestead Mobile Home Park to discuss and evaluate potential options for relocation. Residents did not select the option of securing units in a multi-family complex owned by a local nonprofit in Chapel Hill. All families selected the option of an alternative manufactured home park. County staff continues efforts to identify housing options based on the families’ selection preference.  March 21 – March 23, 2018 – County staff refined required features of the proposed new manufactured units, especially those that add to the sustainability of the units, including energy efficiency and durability. Several manufactured home dealers were identified and 1 County and EmPOWERment staff began contacting these dealers to secure written quotes. Staff from EmPOWERment began identifying other perspective manufactured home parks in an effort to assist the County given the BOCC’s approval of the contract parameters and the time-sensitivity of the proposed relocation.  March 25, 2018 – County staff received an email from the Homestead Mobile Home Park owner as it relates to agreeing to extend the deadline for relocation to June 30, 2018. County staff, on March 26th, notified the park residents, County Manager, EmPOWERment and BOCC about the deadline extension. County staff also checked with the residents to ensure they received the formal extension letter from the park owner.  March 30, 2018 – County staff and an EmPOWERment representative visited manufactured home dealers to view several models.  March 31, 2018 – County and EmPOWERment staff facilitated a site visit for two (2) of the three (3) families to be relocated. The site visit was at the Quick Silver Mobile Home Park on Highway 70 East. This manufactured home park could only accommodate 2- bedroom units at the time. EmPOWERment staff was having difficulty identifying alternative parks with available lots for rent.  April 10, 2018 – Applicable Homestead Mobile Park residents returned their “Acceptance/Rejection” Forms. The applicable families rejected the Quick Silver location.  April 18, 2018 – Affordable Housing Land Banking/Manufactured Home Park Work Group Meeting. County staff provided an update on activities undertaken to date and received comment and input. Chapel Hill-Carrboro City Schools District staff was in attendance. Orange County Schools District staff could not attend due to a scheduling conflict. Staff from the Town of Chapel Hill also provided an update to the group.  April 18, 2018 -- The County hosted a meeting with manufactured home park owners. Approximately forty-five (45) owners attended. The conversation was rich and a call was given to identify park owners who had vacant lots and would agree to participate in the County’s new draft Displacement Mitigation Assistance Program (D-MAP). Four (4) interested park owners were identified and follow-up began the next day with these park owners. In addition, County staff unveiled the new Manufactured Home Park Revolving Loan Program. Other County departments participating in the meeting included Planning and Solid Waste, along with the County Manager’s Office, EmPOWERment, as well as the Rapid Response Team and Affordable Housing Land Banking/Manufactured Home Park Work Group. In addition, representatives from the Towns of Carrboro and Chapel Hill were on the agenda. Based on the April 18th meeting with manufactured home park owners, County staff learned of two (2) other potential park closings. In regard to one park, Eastbrook Mobile Home Park, the County’s Planning Department shared the notice of the proposed redevelopment. County staff has been in contact with the park owner. The other potential park closure is under a sales contract but the park owner has not finalized the closing date. The new owner may continue to operate the property as a manufactured home park. 2  Throughout the period when there have been no scheduled meetings, County staff and EmPOWERment continued to engage with the Homestead Mobile Home Park residents through assistance from the assigned Family Success Alliance Navigator. This was done in an effort to stay engaged and provide updates, as applicable.  May 5, 2018 – County staff held a meeting with Homestead Mobile Home Park residents in order to share information on the newly identified alternative sites, review the draft D- MAP Guidelines and answer questions, as well as gather their input. EmPOWERment representatives were in attendance. After the meeting, site visits to the three (3) newly identified manufactured home parks (Highwoods, Hillsborough Estates and Carolantic) were conducted.  May 9, 2018 – Homestead Mobile Home Park residents returned their “Acceptance/Rejection” Forms. Two (2) families accepted lots in the Highwood Mobile Home Park on Highway 70A East. One (1) family rejected all three (3) of the sites shown. The D-MAP Guidelines required that the County show up to 4 alternative locations, based on availability. Therefore, no additional sites will be shown the family that rejected all sites. However, the family will be eligible for assistance payable to the applicable vendors, i.e. utility and landlord, for security and utility deposits, as well as a small amount of direct assistance.  May 16, 2018 – County staff and EmPOWERment representatives met with Homestead Mobile Home Park residents to finalize their specific lot selections and share information on the features of the new manufactured units, as well as have them begin to complete the required documents, i.e. rental applications, submittal of household income documentation, etc.  May 25, 2018 – As the County Attorney’s Office finalizes the agreement between the County and EmPOWERment, the Housing and Community Development Department will work with the Finance & Administrative Services Department to facilitate the purchase of the two (2) new units currently needed. The total cost of the two (2) new units is $89,584.46. To date, no funds have been expended. However, the contract amount to EmPOWERment may be adjusted to reflect the County’s purchase of the units. In addition, the BOCC would need to take action in order to transfer ownership of the new units to EmPOWERment, Inc. Upcoming Activities:  County staff and EmPOWERment will facilitate a meeting with Goodwill, the Salvation Army and Habitat Restore, as well as the Furniture Project, in the coming weeks in order to provide families with a coordinated approach to securing needed household goods.  County staff and EmPOWERment will hold another meeting with Homestead Mobile Park residents on or about June 9, 2018.  County staff is finalizing the due diligence on the Millhouse Road site and will provide a report to the BOCC on June 5, 2018. 3 As staff identifies additional options and strategies, the Board will continue to receive updates. FINANCIAL IMPACT: No negative financial impact is associated with providing this information to the BOCC. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this agenda item: • 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. • 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 help 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 un- housed. RECOMMENDATION(S): The Manager recommends that the Board receive the update on the Manufactured Home Park Initiative and provide comments and questions as necessary. No action is required at this time. 4 1 Department of Housing and Community Development DISPLACEMENT MITIGATION ASSISTANCE PROGRAM (D-MAP) General Information and Program Guidelines For several years the Orange County Board of County Commissioners (BOCC) had a keen interest in addressing a growing community challenge relating to the closure and/or redevelopment of manufactured home parks. Orange County and a number of its community partners began working to create an action plan for helping to resolve the growing community issue. As a result of recent announcements about several park closures, the BOCC approved a plan to assist impacted residents. While Orange County may not be able to alleviate manufactured home parks closing, the following assistance program will help mitigate some of the relocation challenges for the County’s more vulnerable residents. To assist residents impacted by a manufactured home park closure, Orange County has created the Displacement Mitigation Assistance Program (D-MAP) and contracted the services of a local nonprofit experienced in property management and community organizing to serve as the Relocation Services Coordinator. This nonprofit, EmPOWERment, Inc., working with the County’s Housing and Community Development Department, will be responsible for leading the new resident assistance program. Eligible Applicants:  Orange County residents only.  Low and/or moderate income. Income must be verified by submittal of required documentation.  Impacted by a manufactured home park closure. Types of Available Assistance: Assistance may be any of the items or combination of items below and will be provided upon an approved application and eligibility determination:  Assistance with identifying new housing options either in available single-family rental, multifamily rental complexes or another manufactured home park will be provided to impacted residents. 5 2 o Approved applicants will be shown up to four (4) housing options for their acceptance or rejection. Housing options identified will be based on availability and the results of the family surveys. Approved applicants will get to visit each of the identified options under the housing category they selected in the family survey. o After each site visit, approved applicants will have up to seven (7) days to return the acceptance or rejection form. Based on the situation, the time-frame for returning the acceptance or rejection forms may be shortened to three to four (3-4) days. The forms must be returned to EmPOWERment, Inc., or Orange County’s Department of Housing and Community Development. o All identified housing options will be according to household size, as well as available manufactured home lot size. o Upon selection of a housing option, approved applicants must complete EmPOWERment’s rental application and provide written acceptance of EmPOWERment’s, as well as the manufactured home park’s guidelines for residents. o Approved applicants are responsible for moving their personal household items. The Relocation Coordinator, EmPOWERment, Inc., will make referrals to Goodwill and the Salvation Army or other similar community entity, if the individual or family needs to replace their household goods.  Direct Assistance -- If after being shown up to four (4) housing options and the approved applicant rejects all housing options identified by the County, the Relocation Coordinator may provide a direct, one-time, assistance payment for the residents’ security deposit and/or utility connection for an alternative rental unit that the resident self-identified. o The direct assistance payment will be made payable to an applicable vendor(s) when the resident identifies the alternative rental unit and provides the Relocation Coordinator with a copy of their signed lease. Also, additional one-time direct assistance payments up to $1000.00 may be available on a case-by-case basis, based on household need and eligibility.  Manufactured Home Repair Assistance – Orange County’s Housing and Community Development Department (H & CD), under its Housing Rehabilitation Initiative, will provide funding for repair assistance up to $8,000 based on the identified needed repairs. The H & CD Department will 6 3 conduct an inspection of the applicant’s manufactured home to determine if the unit can be repaired and/or relocated. The results of the inspection will be reviewed with the applicant.  Manufactured Home Replacement – If Orange County determines that an applicant’s manufactured home cannot be repaired, and the applicant legally owns the unit, the applicant may be eligible for a new or near-new replacement unit.  Manufactured Home Relocation – If Orange County determines that an applicant’s manufactured home can be repaired, EmPOWERment, Inc., will provide assistance for the moving of the unit to the new park site before the repair activity takes place. The assistance will be paid directly to a competitively secured, licensed manufactured home mover.  Utility and Security Deposit Assistance – One-time utility and security deposit assistance may be provided through funding from Orange County’s Risk Mitigation/Housing Displacement Fund. Approval for the assistance will be determined on a case-by-case basis, per household need. Lease-Up: Approved applicants will be required to sign a lease with EmPOWERment, Inc. Rent must be paid each month to EmPOWERment, Inc., according to the lease terms or eviction proceedings may be instituted according to North Carolina statue. A non-refundable administrative/maintenance fee of $60.00 will be charged each month in addition to the lot rental. Potential disqualifiers that may cause your rental application to be rejected includes the following: • Lifetime registered sex offender status • Drug and other criminal offenses All applicants or persons receiving assistance under D-MAP must comply with EmPOWERment and the park owner’s guidelines. Guidelines may include a pet and/or parking policies, as well as requirements regarding junk cars and storing of work equipment onsite at the selected manufactured home park or other type rental property. Note that applicants will not be allowed to construct additions, decks or sheds on their manufactured home without the expressed written permission of EmPOWERment, Inc. and the park owner. Homeownership Opportunity: A Lease-Purchase Program will be available for individuals and families interested in homeownership. However, twelve (12) months of a positive rental history with no late payments or other lease violations 7 4 is required before being considered for the program. Participants in the Lease-Purchase Program may not move the manufactured home to another site until the mortgage is paid. ___________________ For more information, interested persons should contact Orange County’s Housing and Community Development Department or EmPOWERment, Inc. Orange County reserves the right to amend, revise and/or waive the program requirements and specified assistance amounts based on community needs, fiscal limitations, etc. 8