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Home My WebLink AboutAgenda - Item 8-t - Approval of Revised FY 2013 and FY 2016 HOME Funds Award and Associated Orange County Capital Investment Fund Grant Award to CHT and CASA ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2018 Action Agenda Item No. 8-t SUBJECT: Approval of Revised FY 2013 and FY 2016 HOME Funds Award and Associated Orange County Capital Investment Fund Grant Award to Community Home Trust and Community Alternatives for Supportive Abodes (CASA) DEPARTMENT: Housing and Community Development ATTACHMENT(S): Resolution INFORMATION CONTACT: Sherrill Hampton, Housing and Community Development Director, (919) 245-2490 PURPOSE: To: 1) Amend the Board’s June 5, 2018 Award of FY 2013 and FY 2016 funds to Community Home Trust (CHT) by adopting and authorizing the Chair to sign a Resolution approving: • a Revised FY 2013 HOME Funds Award to Community Home Trust (CHT) for homeownership assistance activities; • a Revised FY 2016 HOME Funds Award to Community Alternatives for Supportive Abodes (CASA) and/or Community Housing Trust contingent upon submission of eligible CHDO set-aside projects in an amount not to exceed $46,529.40 collectively or singularly; and • the allocation of Orange County local funds to the Community Home Trust to acquire units and provide homebuyer assistance activities; 2) Authorize the County Manager to execute the necessary agreement(s) with Community Home Trust (CHT) and Community Alternatives for Supportive Adobes (CASA) after consultation with the County Attorney. BACKGROUND: The Orange County HOME Consortium, now known as the Local Government Affordable Housing Collaborative, consists of Orange County, the Towns of Carrboro, Chapel Hill, and Hillsborough. The County serves as the lead member of the Consortium. The Orange County HOME Program has a total of $63,200.30 in remaining FY 2013 and FY 2016 HOME funds, which are available for eligible activities to be administered by a Community Housing Development Organization (CHDO). In an effort to ensure that all remaining funds from the applicable fiscal years are committed and/or spent by the August 31, 2018 deadline, a 1 request for proposals (RFP) was released on April 13, 2018 requesting applications from nonprofit housing providers eligible as CHDOs. On June 5, 2018, the BOCC took action and approved awarding the total amount of funds to Community Home Trust (CHT). Given prescribed project activities and federal regulations, staff is requesting that the BOCC amend the June 5, 2018 award as follows: FY 2013 HOME Funds: Originally the FY 2013 funds were set-aside as funds for operating assistance for CHDOs. The remaining balance of those funds is $16,670.90. On June 14, 2018, the Local Government Affordable Housing Collaborative met, and given the need for general HOME project funds, voted to revert the designation of these funds from operating assistance for CHDOs to the general HOME project funding pool. The proposed reversion is allowable by HUD as the funds were originally a part of the general HOME project funding pool. Staff recommends that the reverted funds ($16,670.90) be awarded to CHT for general homebuyer assistance activities, which is not an eligible CHDO set-aside activity according to the federal regulations. These funds must be spent and recorded in HUD’s electronic system by August 31, 2018. In addition, to mitigate any negative impacts that Community Home Trust (CHT) may incur as a result of the decrease in award funding, County staff recommends approving an award under the County’s Capital Investment Plan Land Banking Fund not to exceed $46,529.40 to CHT. The funds would be used to provide assistance to Orange County residents as previously approved and to be spent before December 31, 2018. If approved, the funds will be awarded on a per project basis and any unused funds will revert to the County. The first identified project is 105 Greenway Landing with a project amount of $25,630. These funds are needed before June 30, 2018. FY 2016 CHDO Set-Aside Funds: As noted above, a balance of $46,529.40 in CHDO set-aside funds is still available for eligible CHDO set-aside activities. These funds must be committed to eligible projects and reported in HUD’s electronic system by August 31, 2018. Staff recommends that the BOCC approve awarding funds to Community Alternatives for Supportive Abodes (CASA) and/or Community Home Trust (CHT), collectively and/or singularly, and allow staff to determine the final award amounts based on eligible project activities and needs. No award, collectively and/or singularly, will exceed the total amount of available FY2016 CHDO Set-Aside funds mentioned above. Notwithstanding the aforementioned awards to CHT, including Orange County funds, CHT will not receive more than $63,200.30 in total funding, irrespective of the pool of funding. FINANCIAL IMPACT: No negative financial impact is anticipated based on the recommended grant awards. However, any HUD funds not expended or committed, as required, will be de- obligated. 2 SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this 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. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. Furthermore, the proposed projects, before any funds are spent, will be assessed for any environmental impacts according to HUD requirements, as applicable, and the appropriate action(s) will be undertaken, as specified in the environmental review. RECOMMENDATION(S): The Manager recommends that the Board take the following actions: 1) Amend the Board’s June 5, 2018 Award of FY 2013 and FY 2016 funds to Community Home Trust (CHT) by adopting and authorizing the Chair to sign a Resolution approving: • a Revised FY 2013 HOME Funds Award to Community Home Trust (CHT) for homeownership assistance activities; • a Revised FY 2016 HOME Funds Award to Community Alternatives for Supportive Abodes (CASA) and/or Community Housing Trust contingent upon submission of eligible CHDO set-aside projects in an amount not to exceed $46,529.40 collectively or singularly; and • the allocation of Orange County local funds to the Community Home Trust to acquire units and provide homebuyer assistance activities; 2) Authorize the County Manager to execute the necessary agreement(s) with Community Home Trust (CHT) and Community Alternatives for Supportive Adobes (CASA) after consultation with the County Attorney. 3 RES-2018-050 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2013 GENERAL HOME, FY 2016 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CH DO) SET-ASIDE AWARDS AND ORANGE COUNTY CAPITAL INVESTMENT PLAN LAND BANKING FUNDS AWARD BE IT RESOLVED, the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, approves the following awards as it relates to the remaining FY 2013 General HOME Program funds, FY 2016 Community Housing Development Organizations (CHDOs) funds, and Orange Count y Capital Investment Plan Land Banking funds: Homeownership Assistance FY 2013 HOME Program funds will be allocated to the Community Home Trust (CHT) to provide first-time homebuyer financial assistance for up to five (5) homebuyers earning less than 80% of the Area Median Income. (Requested amount: $63,200.30) $16,670.90 Orange County local funds to the Community Home Trust to acquire units and provide homebuyer assistance activities. The funds awarded are on a per project basis with 105 Greenway Landing being the first project. All funds awarded are to be spent by December 31, 2018. Any unused portion of the grant award will revert to Orange County. Not to exceed $46,529.40 FY 2016 Community Housing Development Organizations (CHDO) Set-Aside FY 2016 CHDO funds will be allocated to the Community Alternatives for Supportive Abodes (CASA) and/or Communit y Home Trust, collectively and/or singularly, based on submitted applications involving eligible CHDO set-aside activities. All funds must be committed by August 20, 2018. $46,529.40 BE IT FURTHER RESOLVED, that the County Manager is hereby authorized to execute the agreements with Community Home Trust (CHT) and/or Community Alternatives for Supportive Abodes (CASA) after consultation with the County Attorney. This is the day of , 2018 SEAL Mark Dorosin, Chair Orange County Board of Commissioners 4