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HomeMy WebLinkAboutAgenda - 05-03-2005-5eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, 2005 Action Agenda Item No. ~-~, _ SUBJECT: Orange Count Consolidated Housing Plan DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolution Consolidated Plan Executive Summary Consolidated Plan (separate cover) INFORMATION CONTACT: Tara L. Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732-8181 968-4501 688-7331 336-227-2031 PURPOSE: To adopt a resolution approving the 2005 - 2010 Consolidated Housing Plan far Oranae County. North Carolina. BACKGROUND: In 2000, a Consolidated Plan for Housing and Community Development Programs in Orange County was developed and approved by the U.S. Department of Housing and Urban Development (HUD). This document details the housing needs of very law income, low income and moderate income families and special population groups in addition to outlining the strategies and plans for addressing those needs, The Consolidated Plan is required for all communities receiving HOME funds (Orange County HOME Consortium) and CDBG entitlement funds (Town of Chapel Hill). The Consolidated Plan is required for all communities receiving HOME funds and CDBG entitlement funds (Chapel Hill). In 2005, a new five-year plan must be developed and submitted far approval to HUD by May 13, 2005, The fallowing development schedule was utilized for completion of the Consolidated Housing Plan. Public Hearing -Town of Chapel Public Hearing -Orange County Cammunity Consultations Completion of Draft Documents Public Comment Period Public Hearing -- Orange County Plan Approval Plan Submitted to HUD Hill January 26, 2005 February 1, 2005 February, March 2005 April 4, 2005 April 4 -May 6, 2005 April 12, 2005 May 3, 2005 May 13, 2005 Training Development and Associates (TDA) with consultation with County and Town staff have now developed the Consolidated Plan, and, as required by HUD, A public comment period as required by HUD was established for April 4 -May 6, 2005 by native in the Chapel Hill Herald. Copies of the Consolidated Plan including the 2005 HOME Program design were made available at the Chapel Hill and Orange County Public Libraries as well as the County and Town of Chapel Hill websites. A summary of public comments received to date is included with the Executive Summary. The Consolidated Housing Plan must be approved by all jurisdictions prior to submission of the document to the Greensboro HUD Office no later than May 13, 2005. These items are scheduled for approval by Carrboro on May 3, 2005; and Chapel Hill and Hillsborough on May 9, 2005. FINANCIAL IMPACT: An approved Consolidated Housing Plan for Fiscal Years 2005 - 2010 must be on file with the Greensboro HUD Office in order for the Orange County HOME Consortium to continue to receive HOME Investment Partnership Program funding. RECOMMENDATON(S): The Manager recommends adapting the resolution approving the FY2005-2010 Consolidated Plan. RESOLUTION AUTHORIZING THE SUBMISSION OF THE FY 2005-2010 CONSOLIDATED HOUSING PLAN FOR ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, that the Commissioners authorizes the County Manager to submit the Orange County Consolidated Plan for Housing and Community Development Programs Annual Update to the U,S, Deparhnent of Housing and Urbazi Development, including all understandings, assurances, and certifications required therein. BE IT FURTHER RESOLVED, that the Manager is hereby designated as the authorized representative of the County to act in connection with the submission of the Consolidated Plan and the Annual Update and to provide such additional information as may be required by the U.S, Deparhnent of Housing and Urban Development. This the 3rd day of May 2005.. Housing and Community Development Consolidated Plan 2005-2010 County of Orange, North Carolina Town of Carrboro, North Carolina Town of Chapel Hill, North Carolina Town of Hillsborough, North Carolina DRAFT FOR PUBLIC COMMENT ahw~ F°° ray °!.. Cr a~ 5 Housing and Community Development Consolidated Plan 2005-2010 County of Orange, North Carolina Town of Carrboro, North Carolina Town of Chapel Hill, North Carolina Town of Hillsborough, North Carolina 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.co.orange.nc.us April 27, 2005 Prepored with the assistance of: Training & ~ Development Associates, Inc. _ www.tdaincorg 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 High 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 Hill, 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. The North Carolina Office of State Plan- ning estimates that the population in the County in 2003 is 120,881. 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 population are students enrolled at the University of North Carolina. Over 40% of the County's population lives in Chapel Hill. Less than 20% of the population lives in other munici- palities with the remaining 39.4% living in the remainder of Orange County, The number of households in Orange 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 % of the County and the Town of Chapel Hill. Blacks comprise 13.8 % of Orange County (11 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, repre- senting a 312.3% increase and 4.5% of the total population in Orange County. The Asian popu- lation grew 1052% dur ing 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 1.1% in 1999 to a high of 3.2% in 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 [4] in median income over the past 10 years. The median income in Orange County is about 20% 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, In terms of per capita income, Orange County ranks fourth among all counties in North Carolina and third among counties located in the Triangle region of North Carolina, according to data obtained from the U S, Bureau of Economic Analysis. 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. In 2000, owner-occupied housing in Chapel Hill rep- resented 43% of all occupied units.. In renter-occupied housing, structures with five or more units continue to be the majority of the housing stock at 52, 9% in 2000. Average and median sales prices of both new and existing homes in Orange County for 2004 exceed $100,000. The lowest prices are reflected in the sales of condominiums and town- houses. Sales prices for new detached homes exceed $250,000 for both new and existing homes. The average home sales price in 2004 was $279,996 and the median was $229,500, In 2004, 20% of homes sold for less than $160,000 down from 24% in 2003 and 29% in 2002. Al- most two-thirds of single-family homes sold in 2004 had a sales price of $200,000 or more with almost one half of those having a sales price over $350,OQO,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 Orange 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 currently among the most expensive in the Re- search Triangle region, The In 2003, 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, t he average purchase price has i ncreased 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 the County. The median gross rent (rent plus utility expenses) for 2000 was $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 the Section 8 rental assistance Housing Choice Voucher Program. The De- partment does not operate public housing developments. Currently, the Department administers approximately 623 units of Section 8 assistance with 909 people rema fining on a waiting I fist. 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) The department's goal is to refurbish all 336 units of public housing over afive-year cycle using Community Development Block Grant funds to pay for refurbishing work. The Department does not administer Section 8 tenant-based rental assistance. According to its most recent PHA plan, there is a waiting list of 223 persons for housing assistance from the Town of C hapel Hill's Department of Housing. [5] g Housing Needs Assessment Renter Households One-half of all renter hou Beholds 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- income, very low- income and low-income renters, there has been an overall reduction i n 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 dec tease 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/o r 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 re- quired. ' Households with housing problems are those households occupying units without a complete kitchen or bathroom, that contain more than one person per room and/or that pay more than 30% of their income to cover housing expenses. [6] 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 % were low-income. Developmen- tally 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. Orange County had t6 reported cases of HIV disease and eight cases of AIDS in 2004. This represents a marked increase in the number of AIDS and HIV cases.. 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 that 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 Cou nty'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. 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 constructing rental and owner-occupied housing to en- able them to pay the fee without passing the cost to the prospective renters or homebuyers. With this reimbursement, the Board works to alleviate barriers to affordable housing. 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, • Provide training to housing providers and consumers about their obli gations and rights. L~] /D Homeless Assessment Based on a point-in-time count conducted on January 26, 2005, the total number of homeless people in Orange County was 230, Fifty-nine homeless persons in were in families, including 38 children, Additionally, 70 chronically homeless persons were documented, representing 30% of the entire homeless population, which is well above the national average of 10%. These num- bers, however, do not include people who are doubled up, that is without a legal residence of their own and temporarily staying with another person, A more detailed survey of the homeless in Orange County is planned for the summer of 2005 to capture this information, as well as an- other point-in-time count to determine the number of unsheltered people in the summer. On December 15, 2003, a total of 50 persons were found sleeping outside in Orange County. In addition, there were 12 families with 42 individuals as well as 144 homeless individuals sleeping 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 County 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 their needs. 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 its Towns also provide small business owners with a variety of information and assistance to pro- mote area economic development. The Orange County and Town of Chapel Hill Planning and Inspections Department implements land use and environmental policies, zoning, building con- struction and standards through a system of regulations to promote stable and quality develop- ment. [$7 i~ Five-Year Strategic Plan As a growing community, the Orange County and the Town of Chapel Hill must successfully balance a diverse array of housing and community development issues, Given the range of competing needs, the community must invest its scarce public resources wisely. Therefore, as a general principle, the Town will attempt to expend public funds in a way that leverages the commitment of private sector suppor t whenever possible. The following presentation utilizes this performance-centered approach to outline the Town's approach to housing and community development in the upcoming five years. This approach includes identifying goals, objectives and strategies; determining what resources are necessary to achieve these goals; analyzing and evaluating performance data; and using that data to drive improvements in organization, All objectives and performance indicators are based on a five- yeartime frame. Goal 1-Decent and Affordable Housing for Lower-Income Households Priorit 1.1-Low income < 80%AMI homeowners that live in substandard housin Strategies: - Continue to fund urgent repairs for qualified units - Continue to fund substanGai rehabilitation for qualifed units - Continue to incorporate handicap, wealhedzation and lead-based paint improvements into ail sub- stantial rehabilitations Output Indicators: - 25 substantially rehabilitated units (Orange CountylChapel Hiil) - 50 units with ur ent re airs Oran a Coun Pdorif 1.2- Lowincome 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 Town and County resources by utilizing the federal low income tax credit, HUD Section 202 and 811, and other programs to construct new rental housing - Provide educational opportunities related to fair housing, tenant dghts, etc - Continue io dialogue with the University of North Carolina -Chapel Hill on issues that affect afford- able rental o ortunities in the area Output Indicators: - 50 additional affordable rental units (Orange County/Chapel Hill) - 201ow income renters receive HOME funded rental assistance for up io 2 years each (Orange County) - 100 units of renovated public housing (Chapel Hill) 150 units of refurbished ublic housin Cha el Hill Pdonty 1.3 -Low income (<80% AMIj homeowners that do not have indoor plumbing or adequate connections to existing public waterandsewers 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 Oul ut Indicators: - 100% of all Coun residents have ode uate indoor lumbin Oran a Coun /Cha el Hiil [9] ~a Priorit 1.4 -Low-income renters <80% AMI that are otential homebu ers Strategies: - Provide down-payment and closing cost assistance to qualified homebuyers - Provide homebuyer education and counseling with an emphasis on credit - Provide acquisition, infrasUucture, predevelopment andlor constmction funding to eligible non- profitsand for-profits to develop affordable housing opportunities - Establish homeownershi ro ram to assist existin Section 8 reci tents Out ut Indicators: - 75 additional lower income homebu ers Oran a Coun ICha el Hill Priodl 1.5- Eliminate bamers to affordable housin Strategies: Challenge and encourage non-profit and for-profit affordable housing providers to share resources and collaborate - Seek legislation that would require all focal governments to require new residential and commercial developers in the County and Towns seeking zoning approval and/or 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- fordablehousing - 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 (Orange County/Chapel Hili) - Increased awareness of barriers to affordable housin Oran a Coun /Cha el Hill Goal 2 -Provide Housing and Services for Populations with Special Needs Pdorit 2.1-Service-enriched transitional housin forhomeless ersons wdh s eclat 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 isservice-enriched - Continue to strengthen partnership vrith the local Continuum of Gare - Provide property acquisition funding to eligible non-profits and for-profits to develop transitional housin Output Indicators: Provide financial assistance to support the construction of a residential center for homeless men Oran a Coun /Cha el Hili Pdorily 2.2- Continuum of services forspecial populations including olderadults, disabled, mentally ill, persons with AIDS and at-dsk oath 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 isservice-enriched - Continue to strengthen partnership with local service providers - Support applications for federal supportive housing funds - Provide property acquisition funding to eligible non-profits and for-profits to develop permanent housin for those with s eclat needs Output Indicators: - 20 additional permanent housing units for those with special needs (Orange County) - Provide communi services to 100 area oath Cha el Hill [10] 13 Goal 3 -Promote Nei hborhood and Economic Develo ment Priority 31-Promote revitalization in selected Chapel Hill neighborhoods and economic development in general throughout the Coun Strategies: - Strengthen partnerships vrith neighborhood associations (community pride, education, family ser- vices, etc ) - Work with neighbofioods to design and implement specific beautification strategies, including neighbofiood cleanups - Promote recreational opportunities for area youth - Pdodtize one io two neighborhoods located in Chapel Hill and develop revitalization plans accord- ingly - Concentrate Town funding in selected neighborhoods to create maximum impact. Programs may include redevelopment activities, CHDO Development-Infill and various rehabilitation programs- - Build community capacity and better coordinate neighborhood services through the regular dissemi- nation of information Examples may include Community Development Day workshops, self-help workshops, activity updates, etc. - Continue to work with area Chambers of Commerce and others to promote the economic develop- ment of the community - Coordinate effort of various Town departments to concentrate resources into selected neighbor- hoods Output Indicators: - Development of a small area plan for the Rogers Road Neighborhood and a Neighborhood Conser- vation District for the Pine Knolls neighborhood (Chapel Hill) - Promote Coun vdde adnershi s that are dedicated to the economic develo ment of the Coun 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 HiII 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 pro mote self-sufficiency and empowerment. [11] /`~ 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 200&2006 Funding _,,,,,,, Source of Funds Amount Community Development Block Grant $685,997 NOME Investment Partnership Program $707,949 HOME Matching Funds $159,287 HOME Residual Funds $111,660 Total $1,664,893 Fiscal Year 2005-2006 Funding _ HOME Program Rental Assistance $153,102 Property Acquisition $200,000 Second Mortgage Assistance $270,000 Pre Development Costs $145,000 New Construction (Infrastmcture) $100,000 Homeownership Assistance $25,000 Operational Support $15,000 Administration $70,794 Community Development Black Grant Renovation of Public Housing $217,000 InfrastructureDevelopmenkHabitatforHumanity $100,000 Homeownership Assistance: Orange Community Trust $100,000 Sewer Connection Assistance $42,775 Development of a Public Facility $25,000 Community Services $70,700 Pro ram Administration $130,502 Uses of Funds Amount Total $1,664,893 [12]