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HomeMy WebLinkAboutAgenda - 04-12-2005-8cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 12, 2005 Action Agenda Item No. SUBJECT: Draft Orange County Consolidated Housing Plan DEPARTMENT: Housing/Comm, Development PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): INFORMATION CONTACT: Tara L, Fikes, ext, 2490 Strategic Plan Summary Draft Consolidated Plan TELEPHONE N UMBERS: (under separate cover) Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public regarding the Draft 2005-2010 Consolidated Housing Plan for Housing and Community Development Programs in Orange County. BACKGROUND: The Consolidated Plan for Housing and Community Development Programs in Orange County is a five-year document required by the U.S, Department of Housing and Urban Development (HUD) for all communities receiving HOME funds and Community Development Block Grant (GDBG) entitlement funds (Chapel Hill). The Plan details 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. The plan must be submitted to HUD by May 13, 2005. Prior to submission of a new five-year plan, a public hearing must be established to provide an opportunity for citizens, public agencies and other interested parties to provide input into the Draft Consolidated Housing Plan. Additionally, a 30-day public comment period has been established as April 4 through May 6, 2005. The Affordable Housing Advisory Board and the HOME Program Review Committee will be reviewing the Plan at their April meeting. The final Plan will be presented to the Board on May 3, 2005 for approval, All comments received will be incorporated into the final Consolidated Plan document. In order to inform the general public of this opportunity and encourage participation, notices have been placed in the Chapel Hill Herald and sent to local non-profit agencies. Additionally, copies of the Plan are available in the Planning Departments of the Towns of Chapel Hill and Hillsborough, the Carrbaro Town Manager's office, the Orange County Housing and Community Development Department, and the Orange County and Chapel Hill libraries. The draft is also available on the Town of Chapel Hill and Orange County's websites, FINANCIAL IMPACT: None, RECOMMENDATION(S): The Manager recommends that the Board receive comments from the public as additicnal information. 0 Consolidated Plan for Hou ing and Community Development. Programs in Orange County, NC 2:00,5-2.010 DRAFT FOR PUBLIC COMMENT Orange County Consolidated Plan 2005-2010 Orange County Department of Housing and Community Development (Lead Agency) 200 South Cameron Street Post Office Box 8181 Hillsborough, North Carolina 27278 (919)245-2490 (919)644-3056 Fax www.ao.orange.nc.us April 1, 2005 Prepnted vy Orange County Department of Housing and Community Development With the arristaivice of Training & ~ Development Associates, Inc. www.tdainc.org 5 EXECUTIVE SUMMARY Orange County is well known for its rich history, outstanding educational and employment op- portunities, and diverse and friendly citizens. Nestled in the hills of the North Carolina Piedmont, Orange County is located strategically between the Research Triangle Park and the Triad cities of Greensboro, Winston-Salem and Nigh Point. With more than 100,000 citizens, Orange County includes historic Hillsborough, the county seat, Chapel Hill, home of the University of North Carolina, and Carrboro, a former railroad and mill town, When Orange County was founded in 1752, five Native American tribes lived in this area.. The Town of Hillsborough was the center of North Carolina politics in the colonial era and hosted the state's Constitutional Convention in 1778, where North Carolina delegates demanded that a Bill of Rights be added before they would ratify the U.S. Constitution. Orange County lies on the western edge of the Research Triangle area, which is anchored on three sides by UNC-Chapel HiII, North Carolina State University and Duke University. Research Triangle Park is home to leading technological companies and institutions. Orange County is part of the Raleigh-Durham-Chapel Hill, North Carolina Metropolitan Statistical Area (MSA) which comprises six counties in the Research Triangle Area, '.Housing Market Analysis General Market Conditions Orange County's population has increased by more than 25% between 1990 and 2000 (rising from 93,662 to 118,227). The County is expected to experience continued growth through 2010, with the population increasing to a projected 140,750. While most of the county's population is centered in Chapel Hill (46,798 in 2000), the areas experiencing the most rapid growth are Carrboro and Hillsborough. It is estimated that almost one-third (32%) of Chapel Hill's popula- tion are students enrolled at the University of North Carolina. The number of households in Or- ange County, according to the 2000 Census, was 45,863, which represents a 27% increase in households since 1990. The racial composition of Orange County is changing. As a percentage of the total population, whites make up 78 percent of the County and the Town of Chapel Hill. Blacks comprise 13.8 percent of Orange County (i i percent of Chapel Hill). The most dramatic increase in racial groups is in the Hispanic community, where the population grew from 1,279 in 1990 to 5,273 by 2000, representing a 312.3% increase and 4.5% of the total population in Orange County. The Asian population grew 105.2% during this same period and now makes up 4,1% of the total population. The unemployment rates for Orange County have been 2% or more below the statewide unem- ployment rates and about 3% to 4% below the national unemployment rates for the past 10 years. In Orange County, unemployment has ranged from a low of only i.t% in 1999 to a high of 3.2% for 2002. Median household income is likewise much higher than state and national averages. In 2004, the median household income for Orange County was $69,800. This represents a 49% increase in median income over the past 10 years.. The median income in Orange County is about 20% [4] higher than the median family income for North Carolina and 21 % higher than the national aver- age. The estimated median family income in Chapel Hill is over $86,000. Housing Market Conditions In 1990, the total number of housing units in Orange County was 38,683.. During the period 1990 to 2000, the total number of housing units increased by 27.4% to 49,289 units, Also during this period, the number of owner-occupied units increased by 32.4% and represented over one- half of all housing units in Orange County are owner occupied. In 2000, owner-occupied hous- ing in Chapel Hill represented 43% of all occupied units in 2000. In renter-occupied housing, structures with five or more units continues to be the majority of the housing stock at 52.9% in 2000. According to the 2000 census, the median value of owner-occupied housing in Orange County was $179,000-up from $100,400 in 1990. More than 40% of owner-occupied housing in Or- ange County is valued between $100,000 and $199,999. Almost 9% of owner-occupied housing has a value of $400,000 or more. There are only 708 units (or 3.6%) of owner-occupied housing with a value below $60,000. Housing in the Chapel Hill area is among the most expensive in the Research Triangle region. The average purchase price of a home in Orange County rose from about $261,895 to $280,592. In Chapel Hill, the average purchase price was $320,913. Since 2000, the average purchase price has increased 22.4% in Chapel Hill. Rental Housing in Orange County is dominated by larger apartment developments-those with five or more units- which represent 52.9% of the renter-occupied housing in Orange County. The median gross rent (rent plus utility expenses) for 2000 is $684. The 2005 fair market rents (FMR)for atwo-bedroom apartment in Orange County is $779. Public Housing Programs The Orange County Department of Housing and Community Development is responsible for the administration of Section 8 rental assistance. The Department does not operate public housing developments, Currently, the Department administers approximately 623 units of Section 8 as- sistance. The Town of Chapel Hill Department of Housing administers 336 units of low-rent housing lo- cated at 13 sites (12 in Chapel Hill and one in Carrboro) with one additional development un- derway in Chapel Hill. The department's goal is to refurbish all 336 units of public housing over a five-year cycle using Community Development Block Grant funds to pay for refurbishing work. The Department does not administer Section 8 tenant-based rental assistance. There is a wait- ing list of 195 persons for housing assistance from the Town of Chapel Hill's Department of Housing. Housing Needs Assessment Renter Households One-half of all renter households experience a housing problem, which represents a 0.8% re- duction since 1990. The percentage of extremely low-income renters who experience housing problems has increased overall since 1990. However, among extremely low- and very low- [Sl 7 income and low-income renters, there has been an overall reduction in the number of housing problems. Owner Households Over 20% of all owner households experience a housing problem, which represents a 0.3% in- crease since 1990. The percentage of extremely low-income owners who experience a cost burden over 50% increased since 1990 to 49.3%. During this same period, however, extremely low income owners experienced a slight decrease in any housing problems and in cost burdens of more than 30%. Among very low-income and low-income owners, there has been an overall increase in the number of housing problems Disproportionate Needs Among renters, Hispanic households experience a disproportionately higher percentage of housing problems' in Orange County, Among homeowners, African Americans, Hispanics and Asian Americans experience a disproportionately higher percentage of housing problems. When looking at all households (renters and owners), Hispanic and Asian American households ex- perience adisproportionately higher percentage of housing problems, Very low-income house- holds (those earning less than half of the area's median income) and extremely low-income households (those earning less than 30% of the area median income) have the greatest number of housing problems, whether renters or homeowners. Supportive Housing for Non-Homeless Persons with Special Needs In examining supportive housing for persons with special needs, Orange County has considered the needs of the elderly, persons with disabilities (including mental, physical and developmen- tal), alcohol and substance abusers and persons with HIV/AIDS. People with supportive housing needs have special housing and care needs, largely because they are out of the workforce and/or have substantial medical and care requirements,. The types of housing for the elderly (and all those with supportive housing needs) vary depending on the services needed to meet the requirements of the residents. In general, those who provide spe- cial housing needs offer an array of services. Efforts are made to ensure maximum independ- ence in the least restrictive setting, but onsite support of those with special needs is often needed. Service providers for people with special needs face substantial challenges. In 2000, there were 7,164 elderly households in Orange County, of which, 61.2 percent were low-income. Develop- mentally disabled and mentally ill in the County both need case management, support services, and outpatient treatment services for monitoring and treatment. Alcohol and substance abusers have access to outpatient services in Orange County, but are required to go out of the County for residential treatment.. ' Households with housing problems are those households occupying units without a complete kitchen or bathroom, that contain more than one person per room andlor that pay more than 30% of their income to cover housing expenses. [g] 8 Orange County had 16 reported cases of HIV disease and eight cases of AIDS in 2004. This is a marked increase in the number of AIDS and HIV cases in Orange County. While prevention, medical and support services are available to people with HIV(AIDS, there is also a greater need for permanent supportive housing Lead-Based Paint Hazards Lead poisoning is one of the worst environmental threats to children in the United States. While anyone exposed to high concentrations of lead can become poisoned, the effects are most pro- nounced among young children. There are as many as 12,058 occupied housing units in Orange County contain lead-based paint.. Of these units with lead-based paint, 6,001 are owner-occupied and 6,057 are occupied by renters. Up to 5,276 houses may have deteriorated lead-based paint. According to the 2000 Census, there are 16,540 households with annual incomes below $30,000. Applying the as- sumption that as much as 35% of these low-income households contain lead-based paint haz- ards results in an estimated 5,789 low-income households with lead-based paint hazards in Or- ange County. Barriers to Affordable Housing As with other types of development, Orange County's supply of affordable housing is dictated by a variety of factors, the most significant being project profitability, availability of land and infra- structure, and government regulation, including the Orange County Educational Impact Fee. To address the Educational Impact Fee, the Orange County Board of Commissioners adopted an impact fee reimbursement policy, which provides funds to nonprofit housing developers con- structing rental and owner-occupied housing to enable them to pay the fee without passing the cost to the prospective renters or homebuyers. Impediments to Fair Housing Based on the county's analysis of impediments affecting the furtherance of fair housing, appro- priate strategies have been designed and implemented to eliminate or reduce the impact of those barriers. The following recommendations included in the "Fair Housing Plan" promote fair housing within Orange County: • Increase the educational opportunities and provide training relating to Fair Housing through workshops, forums and presentations • Target specific protected groups for fair housing information • Continue to consult with local lending institutions regarding their Community Reinvestment Act activities. • Involve the local housing coalition, ABODE • Provide training to housing providers and consumers about their obligations and rights un Homeless Assessment On December 15, 2003, a total of 50 persons were found sleeping outside in Orange Gounty, In addition, there were 12 families with 42 individuals as well as 144 homeless individuals sleeping Ill g in transitional or emergency shelters. There were 58 individuals counted who were character- ized as chronically homeless, 41 of whom were unsheltered. As of this 2003 point-in-time count, there were no less than 236 homeless individuals in Orange County The resources and services to support the homeless in Orange Gounty are coordinated by the Orange County Continuum of Care, with the Orange Person Chatham (OPC) Area Program serving as the lead agency. There are prevention, outreach and supportive services available to Orange County homeless to help alleviate the needs of the homeless which is coordinated through the Continuum of Care. There is also a vision to create a 10 year plan to end chronic homelessness through the support of the Triangle Alliance to Resolve Chronic Homeless (TARCH) Non-Housing Community Development Orange County and the Town of Chapel Hill believe that true community revitalization requires a comprehensive set of strategies to ensure success.. Rehabilitating or constructing residential structures without improving the physical, social and economic environment in which they are located does not automatically revitalize neighborhoods. The public spaces and infrastructure used to support community development includes public facilities, including neighborhood facilities, parks and numerous health facilities for specialized care and medical research. The area's infrastructure includes water and wastewater treatment facilities that provide sufficient server capacity to all townships. Streets include two major inter- states as well as hundreds of miles of primary and secondary highways. Public services include support to handicapped and substance abuse services, employment training, health services, and transportation for a wide variety of needs. Anti-crime measures and youth programs work in and out of the school system to provide awareness for students and increase public safety. There are three senior centers which pro- vide classes, wellness programs, trips, and lunches for area seniors. Orange County and the Town of Chapel Hill also provide small business owners with a variety of information and assis- tance to promote area economic development. The Orange County and Town of Chapel Hill Planning and Inspections Department implements land use and environmental policies, zoning, building constriction and standards through a system of regulations to promote stable and qual- ity development. Five-Year Strategic Plan As a growing community, the Orange County and the City of Chapel Hill must successfully bal- ance adiverse array of housing and community development issues. Given the range of com- peting needs, the community must invest its scarce public resources wisely. Therefore, as a general principle, the City will attempt to expend public funds in a way that leverages the com- mitment of private sector support whenever possible. The following presentation utilizes this performance-centered approach to outline the City's ap- proach to housing and community development in the upcoming five years. These include iden- tifying goals, objectives and strategies; determining what resources are necessary to achieve them' analyzing and evaluating performance data' and using that data to drive improvements in organization. All objectives and performance indicators are based on a five-year time frame. [$] ID Goal 1-Decent and Affordable Housing for Lower-Inwme Households Priorit 1.1-Low income < 80%AMl homeowners that live in substandard housin Strategies: - Continue to fund urgent repairs for qualified units - Continue to fund substantial rehabilitation for qualified units Continue to incorporate handicap, weathedzation and lead-based paint improvements into all sub- stantial rehabilitations Out ut Indicators: 6 substantial) rehabilitated units Oran a Coun Pdorit 1.2-Low income renters <60%AMI that live in substandard housin Strategies: - Continue to fund the rehabilitation of existing rental housing units - Monitor and enforce rent and property standards for completed projects - Leverage existing City resources by utilizing the federal low income tax credit program to construct new rental housing Provide educational opportunities related to fair housing, tenant rights, etc. - Continue to dialogue with the University of North Carolina -Chapel Hill on issues that affect afford- able rental o ortunities in the area Output Indicators: - 70 additional affordable rental units (Orange CountylChapel Hill) - 20 low income renters will receive rental assistance for up to 2 years each (Orange County) - 100 units of renovated public housing (Chapel Hill) 150 units of refurbished ublic housin Cha el Hill Priority 13-Low income (<80%AMI) homeowners that do not have indoor plumbing or adequate connections to existing public water and sewers stems Strategies: - Continue to fund the connection of lower income homeowners to existing water and sewer facilities. Continue to fund the construction of com lete indoor lumbin facilities Out ut Indicators; 100% of all Count residents have ode uate indoor lumbin Oran a Coun ICha el Hill Priorit 1.4-Low-income renters 60% to 80%AMI that are otenlial homebu ers Stmtegies: - Provide down-payment and closing cost assistance to qualified homebuyers - Provide homebuyer education and counseling with an emphasis on credit. - Provide property acquisition funding to eligible non-profits and for-profits to develop affordable hous- in o ortunities Output Indicators: - 125 additional lower income homebuyers (Orange County) Infrastructure tundin to su ort homeownershi Cha el Hill C9~ Pdorit 1.5 -Eliminate barriers to affordable housin Strategies: - Challenge and encourage non-profit and for-profit affordable housing providers to share resources and collaborate. Require all new residential and commercial development in the County and Towns seeking zoning approval andlor permits to contain at least 15% affordable units in residential projects. - Declare 2006 "The Year of Affordable Housing" and implement a public education that defines af- fordable housing - Utilize equity sharing and community land trust concepts to limit the dramatic escalation of housing costs. Output Indicators: - 100 units of new affordable housing in mixed income developments (Chapel Hill) Increased awareness of barriers to affordable housin Oran a Count /Cha el Hill Goal 2 -Provide Housin and Services for Po ulations with S ecial Needs Pnont 2.1- Service•ennched transitional housin forhomeless ersons with s ecial needs Strategies: - Promote and make public service funds available to homeless agencies that operate emergency shelters - Partner with other funding agencies to encourage the development of transitional housing (SRO's, group homes) that is service•endched - Continue to strengthen partnership with the local Continuum of Care.. Provide property acquisition funding to eligible non-profits and for-profits to develop transitional housin Out ut Indicators: Provide fundin for one emer enc shelter for homeless men Cha el Hill Priority 2.2-Continuum of services for special populations including alder adults, disabled, mentally ill, persons with AIDS and at-risk oulh Strategies: - Promote and make public service funds available to agencies that serve identified special popula- tions. Partner with other funding agencies to encourage the development of transitional housing (SRO's, group homes) that is service-enriched - Continue to strengthen partnership with local service providers - Provide property acquisition funding to eligible non-profits and for-profits to develop permanent housin for those with s ecial needs Output Indicators: - 20 additional permanent housing units for those with special needs (Orange County) Provide communit services to area outh Cha el Hill Goal 3 -Promote Neighborhood and Economic Development Priorit 3,1-Promote revitalization in selected Cha el Hill net hborhoods and economic develo ment in eneral Strategies: - Strengthen partnerships with neighborhood associations (community pride, education, family ser vices, educations, etc.) - Design and implement specific beautification slmlegies, including neighborhood cleanups. Promote recreational o ortunities for area outh [10] ~a - Prioritize one to two neighborhoods located in Chapel Hill and develop revitalization plans accord- ingly. - Concentrate City funding in selected neighborhoods to create maximum impact Programs include weed and seed, redevelopment activities, CHDO Development-Infill and various rehabilitation pro- grams - Build community capacity and better coordinate neighborhood services through the regular dissemi- nation of information. Examples include Community Development Day workshops, self-help work- shops, activity updates, etc. - Continue to work with the Chamber of Commerce and others to promote the economic development of the communit Output Indicators: - Development of revitalization plans for selected neighborhoods (Chapel Hill) - Creation of new'obs throw h local artnershi s Cha el HiIllOran e Count Anti-Poverty Strategy The 2000 Census reported that 15,318 people in Orange County (14.1%) had incomes below the poverty level-an increase of 3,576 people since 1990. In addition to their housing prob- lems, they often have other social service needs. They face a variety of problems that prevent them from improving their economic situation, escaping poverty and obtaining adequate and affordable housing. Orange County and the Town of Chapel Hill have targeted significant CDBG and HOME re- sources within core low-income areas to execute its anti-poverty strategies. These resources will act as catalysts to invite additional public and private investment of capital and services; in- crease the quantity and quality of affordable housing; and help low to moderate-income resi- dents acquire needed information, knowledge and skills to improve their employment opportuni- ties. The anti-poverty strategy is the unifying thread that ties the housing, homeless, public housing and non-housing community development strategies together as one comprehensive plan for reducing the number of families that fall below the poverty level.. The strategic plan, goals and objectives noted throughout this part promote self-sufficiency and empowerment, Annual Action Plan The following tables show the proposed sources and uses of funding available to Orange County for the fiscal year 2005-2006 from the U.S. Department of Housing and Urban Devel- opment. More detailed descriptions are provided in the Annual Plan portion of this document. Fiscal Year 2005-2006 Fundin Source of Funds Amount Community Development Block Grant $685,997 HOME Investment Partnership Program $707,949 HOME Matching Funds $159,287 HOME Residual Funds $111,660 Total $1,664,893 [11] i3 Fiscal Year 2005.2006 Fundin Uses of Funds__ Amount HOME Program Rental Assistance $122,102 Property Acquisition $275,000 Second Mortgage Assistance $200,OD0 Pre Development Costs $145,000 New Construction (Infrastructure) $100,000 Rental Assistance $26,000 Homeownership Assistance $25,000 Operational Support $15,000 Administration $70,794 Community Development Block Grant Renovation of Public Housing $217,000 Infrastructure Development: Habitat for Humanity $100,000 Homeownership Assistance: Orange Community Trust $tOD,OD0 Sewer Connection Assistance $42,775 Development of a Public Facility $25,OD0 Community Services $70,700 Pro ram Administration $130,502 Total $1,664,893 [12]