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HomeMy WebLinkAboutAgenda - 05-03-2005-9cORANGE COUNTY BOARD OF GOMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, 2005 Action Agenda Item No. q--~„ SUBJECT: Orange County FY 2005 HOME Program Action Plan DEPARTMENT: Housing/Community Dev PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolution INFORMATION CONTACT: Tara L, Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To adopt a resolution approving the proposed HOME Program Activities far 2005- 2006 and to authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. BACKGROUND: The U.S. Department of Housing and Urban Development has awarded the Orange County HOME Consortium approximately $707,949 in 200.5-2006 HOME funds. The match requirement for this amount is $159,287. Additionally, there is $111,660 in residual funds from prior years, thus there is a total of $908,102 available for HOME Program activities and $70,794 for program administration for a total budget of $978,896. Eligible HOME Program activities include: acquisition; new construction; housing rehabilitation; and rental assistance. A standard application form has been designed far agencies interested in accessing HOME funds for local housing projects and organizations interested in obtaining HOME funding were required to complete the application by February 28, 2005. A total of 12 applications were received from local non-profit organizations requesting approximately $1,236,000. The HOME Program Review Committee comprised of an elected official from each local elected board as well as the Manager or his representative reviewed applications for HOME Program funding and developed the proposed HOME Program Design for the 2005-2006 Program Year, The recommended program design is detailed in the attached resolution, This recommendation reduces a total of three (3) applications for funding in the following manner. 1. The Chrysalis Foundation requested a total of $200,000 to acquire property for a permanent supportive housing project. The Committee recommends allocating an initial investment of $100,000 to this project due to the limited amount of HOME funds available this fiscal year, z 2. Habitat for Humanity requested $200,000 in HOME funds for infrastructure development of Phase II of the Rusch Hollow project in Chapel Mill. The Committee recommends allocating $100,000 to this project given that the Town of Chapel Hill allocated $100,000 in Community Development Block Grant funds thus providing Habitat the requested $200,000 in fulh 3. Inter-Faith Council for Social Services (IFC) requested $250,000 in HOME funding for pre-development costs related to the development of a Residential Center for homeless men. The Committee recommends allocating $75,000 to this project as an initial investment rather than providing full funding at $250,000 for the following reasons: a. Lack of a specified site for the Center; b. Concern regarding the ability to meet the time restrictions of HOME funding that requires project commitment within two years of funding award given no site is identified when the "clock" begins in .July 2005; c. Concern that funds spent far pre-development costs could be spent for a site that is later rejected thus yielding no direct beneficiaries; and d. The inability to fully fund all funding applications since the amount of requests exceeded the amount of available funds, It should be noted that the Town of Chapel Hill has allocated $25,000 for this project, thus a total of $100,000 in funds will be available to IFG during the 2005-2006 fiscal year, Additionally, a $75,000 request for second mortgage funds from EmPOWERment, Inc, was not included in the recommendation because previously awarded second mortgage funding remains available to this organization to assist first-time homebuyers with their initial purchase, Also, during the public comment period, the Sunrise Coalition submitted a written memorandum dated April 11, 2005 detailing their opposition to the allocation of $70,000 in HOME funding to Habitat for Humanity of Orange County, NC, Inc. for the proposed Sunrise Ridge development in Chapel Hill. In accordance with the HOME Program Consortium Agreement, the 2005 HOME Program Design must be approved by all jurisdictions prior to submission to HUD with the FY 2005 - 2010 Consolidated Housing Plan. The Program Design is scheduled for consideration for approval by the Town of Carrboro on May 3, 2005; and the Towns of Chapel Hill and Hillsborough on May 9, 2005. FINANCIAL IMPACT: The Orange County HOME Consortium is scheduled to receive approximately $707,000 in federal housing program funding. The required total local government match is $159,287, Orange County's share of the match is $63,715, RECOMMENDATON(S): The Manager recommends adopting a resolution approving the proposed HOME Program activities for 2005-2010 and authorizing the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney, 3 RESOLUTION AUTHORIZING THE ORANGE COUNTY 2005-2006 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approve following activities for the 2005-2006 HOME Program.. Property Acquisition Funds would be allocated to the Town of Hillsborough to acquire and renovate a dwelling unit in the Fairview community to resale to a first-time homebuyer earning less than 80% of area median income, (Requested amount $100,000) $100,000 Funds would be allocated to the Chrysalis Foundation to acquire property for a permanent supportive housing project that would provide housing for chronically homeless individuals and families, (Requested mnount: X200,000) $100,000 Funds would be allocated to Orange Community Housing and Land Trust to acquire, demolish, or renovate (if necessary and appropriate) housing in the Northside neighborhood in Chapel Hill. (Requested arnomrt: $100,000) $100,000 Homeowner Assistance Funds would be allocated to Habitat for Humanity to provide four (4) deferred second mortgages to first- time homebuyers with incomes below 80% of median income in the Richmond Hills subdivision.. (Requested amomrt: $80,000) $80,000 Funds would be allocated to Orange Community Housing and Land Trust to provide down-payment assistance for up to three newly constructed townhomes in the Pacifica development in Carrboro. The dwelling units will be developed by the private sector, and then placed in the Land Trust. Eligible families would be first-time homebuyers with incomes below 80% of median income, (Requested amorort: ISIS,000) $15,000 Funds would be allocated to EmPOWERment to provide second mortgages to three (3) first-time homebuyers earning less than 80% of the area median income to buyers of the planned new condominiums on Davie Road in Chapel Hilh (Requested amount: $7.5,000) $75,000 Funds would be allocated to Orange County to serve as match funds for a FY 2005 Individual Development Account (IDA) Program that will serve first-time homebuyers below 80% of area median income. $25,000 Operational Support Funds would be allocated to Orange Community Housing and Land Trust as a Community Housing Development Organization for administrative expenses. (Requested amowrt: ISLS, 000) $15,000 New Construction Funds would be allocated to Habitat for Humanity to provide funding for pre-development costs related to the development of a 17-acre vacant tract of land on Sunrise Road in Chapel FIill. (Requestedmnowrt: X70,000) $70,000 Funds would be allocated to Habitat for' Humanity to provide funding for infrastructure development of Phase II of the Rusch Hollow project located on Rusch Road in Chapel Hill. Habitat plans to build at least I2 dwelling units for sale to first-time homebuyers earning less than 60% of the area median income, (Requested amount: $200,000) $100,000 Funds would be allocated to InterFaith Council for' Social Service for pre-development costs related to development of a Residential Center for homeless men. The Center would offer emergency and longer term housing and provide services for homeless citizens. (Requested nmount $2.50,000) $75,000 Rental Assistance Funds would be provided for short-term rental assistance for tenants of cooperative housing in the County operated by Weaver Community Housing Association. The program will operate in a similar manner to the Section 8 Program and provide rental subsidies for a period of two years to families at or below 50% of the area median income. (Requested nmosnt $26,000) $26,000 Funds would be provided for rental assistance for approximately 5 - IOlow-income families leasing standard property in Orange County. The program will operate in a similar manner to the Section 8 Program and provide rental subsidies for a period of two years to families at or below 50% of the area median income,. This is an extension of the program begun in the 2004-2005 program year. $127,102 Program Administration TOTAL HOME PROGRAM FUNDS $ 70,794 $978,896 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'this plan and to provide such additional information as may be required by the U.S Department of Housing and Urban Development.. This the .3rd day of May 2005.