HomeMy WebLinkAboutAgenda - 03-19-2019 6-b - Approval of Proposed Changes to the Affordable Housing Bond Program 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 19, 2019
Action Agenda
Item No. 6-b
SUBJECT: Approval of Proposed Changes to the Affordable Housing Bond Program
DEPARTMENT: Housing and Community
Development
ATTACHMENT(S): INFORMATION CONTACT:
1) Affordable Housing Bond Projects Sherrill Hampton, Housing and
Funded to Date Community Development Director,
2) Affordable Housing Program (919) 245-2490
Evaluation - Previously Revised
Scoring Criteria with Newly
Proposed Changes
PURPOSE: To review and approve the second phase of proposed changes to the Orange
County Affordable Housing Bond Program.
BACKGROUND: On June 6, 2017 the Board of County Commissioners (BOCC) awarded $2.5
million in Affordable Housing Bond funds to projects that had submitted proposals through a
request for proposal (RFP) process. The County received six (6) proposals from affordable
housing providers. All respondents were local non-profits. One (1) of the proposals was
incomplete and therefore was not scored, so five (5) of the six (6) proposals were scored using
the original standard scoring criteria.
Based on the scoring criteria and available funds, four (4) of the five (5) remaining projects were
recommended for Affordable Housing (AH) Bond funding. One of the projects submitted by
EmPOWERment (606 Bynum Street) was not recommended for funding due to non-availability
of AH Bond funds in the applicable funding round. The Board of Commissioners funded this
project using other affordable housing funds appropriated in the Capital Investment Plan. See
Attachment 1 for an update and information on the funded projects.
During discussion on June 6, 2017, the Board requested an analysis of the scoring criteria to
determine why some projects scored higher than others. On September 19, 2017, County staff
proposed recommended changes to the Affordable Housing Bond Scoring Criteria, which were
approved by the BOCC. The approved changes and programmatic refinements are highlighted
in "yellow" on Attachment 2. Note that items "underlined" on Attachment 2 are the new
proposed changes outlined below.
Staff is requesting approval for additional programmatic changes to ensure that identified
County needs are being met, as well as to enhance the operational efficiency and optimization
2
of the Affordable Housing Bond Program. It is recommended that these proposed changes also
be applicable to the disposition of County surplus properties for affordable housing projects.
The proposed changes are as follows:
➢ Add the phrase "or other " to Footnote 1 on Page 1 as it relates to including all types
of vouchers in the definition of Special Needs Populations, especially since the
County approved the new Local Voucher Program.
➢ On Page 2 of the Scoring Criteria, the following changes are proposed:
o Reorganize Section D for clarification purposes and enhance maximum points
to be awarded for Questions 2 and 4, as well as reduce the points awarded for
Question 5.
o Reorganize Section E for clarification purposes and enhance maximum points
to be awarded for Question 2, as well as add a new question and points
awarded for the project being located in an area of the County that is
traditionally underserved.
Under the Scoring Criteria section on Developer Experience on Page 3, add a
Question 4: Is the project sponsor a non-profit? The proposed number of points for
this new question is "15". This helps negate an inequitable total score between non-
profits and for-profit developers given earlier changes to the section on Leveraging on
Page 1.
The total available score has been increased to 235 given the aforementioned
changes to the Scoring Criteria.
Establish application requirements for bond funding based on project size. For future
applications, the projects must have a project size of five (5) or more units. If a
proposed project has less than five (5) units, it must utilize other appropriate County
funding sources.
Establish maximum grant periods for Affordable Housing Bond-funded and Surplus
Property projects:
Affordable Housing Bond Projects
For projects of 5-10 units that involve acquisition only, acquisition/rehab or any
combination of eligible activity type, the grant period will be established at the time of the
grant award based on the details of the project but should be no more than three (3)
years. For projects of more than 10 units that involve any combination of eligible activity
type, the grant period will be established at the time of the grant award based on the
details of the project but should be no more than five (5) years.
Surplus Property Projects
For projects of 1-4 units that do not involve new construction activity, the grant period will
be established at the time of the grant award based on the details of the project but
should be no more than one (1) year. For projects of 5-10 units that involve new
construction or rehabilitation, the grant period will be established at the time of the grant
award based on the details of the project but should be no more than three (3) years.
3
v Implement a quarterly reporting requirement for all Affordable Housing Bond-funded and
Surplus Property projects.
Note that all requests for grant period extensions and/or needed re-authorizations or
grant award rescissions will require approval by the Board of County Commissioners.
FINANCIAL IMPACT: There is no negative financial impact anticipated with consideration of
the proposed changes.
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.
RECOMMENDATION(S): The Manager recommends that the Board review and approve the
second phase of proposed changes to the County's Affordable Housing Bond Program.
4
ATTACHMENT 1
AFFORDABLE HOUSING BOND PROJECTS FUNDED TO DATE
z F
p N u
z 0
z G
z 3 ° o
z
G G ° a m G
z p z a W
0
i a l'7 '?r' O Ou z AREA MEDIAN INCOME TARGETS i
<30% 30%-50% 31%-50% <50% 51%-60% 61%-80%
Habitat for Humanity Crescent Magnolia Hillsborough $925,000 64% $38,542 $2,568,500 24-Townhouse 12 8 4 Under construction
CASA Merritt Mill West Carrboro $746,500 66% $46,656 $2,213,450 16-Apartment 12 4 Pending•
CASA Merritt Mill East Chapel Hill $646,200 65% $53,850 $1,808,025 12-Apartment 8 4 Pending*
EmPOWERment 116 Cole Street Chapel Hill $211,300 0% $211,300 $211,300 1-Single-Family 1 Closed December 2018
Acquisition Completed
EmPOWERment 606 Bynum Street Chapel Hill $264,400 0% $132,200 $264,400 2-Single-Family 2 Closed April 2018
Acquisition Completed
*No funds released for these projects.Applications for funding pursuant to the NCHFA Tax Credit Program were not approved in 2018.
5
ORANGE COUNTY
NORTH CAROLINA
ATTACHMENT 2
County Funds to Help the County Reach a Countywide Shared Goal of up to 1,000
Affordable Housing Units in Five Years: 2016— 2020
AFFORDABLE HOUSING PROGRAM EVALUATION: SCORING CRITERIA
Income Targeting and Special Needs(45 points)
Household Income Range Points to be Awarded
0 to<30% 25
>30%to< 60% of Area Median Income 15
> 60%to<80%of Area Median Income 10
CB.
Special Needs Populations' 20
Local Residency(5 points)
Percent of Orange County residents2 served at time of occupancy Points to be Awarded
80%to 100% 5
50%to 80% 2
0 to 50% 1
C. Leveraging (55 points)
Percent Funded by Bonds and Other County Funding Points to be Awarded N
60—80% 3
40-59% 6
20—39% 9
10—19% 15
<10% 20
Other Criteria Points to be Awarded
(CD The project pays property taxes3 2
(a The project repays the bond funds—principal only.3 3
4-The project repays the bond funds—both principal and interest.3 10
3. The Project is a Mixed Income Project: The project serves more than 10
one income category and minimizes the concentration of affordable
housing projects in a particular geographic area.
4.The Project is a Mixed Use Project:The project includes uses in 10
addition to residential uses that offer access to employment
opportunities, daily needs and health and human services.
The criteria "circled" above was revised per the BOCC at their 09/19/2017 meeting. See those changes
below in "yellow".
'Special Needs populations are defined as people with disabilities,veterans,individuals or families experiencing homelessness,
holders of Housing Choice or other Vouchers and victims of domestic violence.
2Residency is defined as households currently residing or working in Orange County or having resided in Orange County.
3
These criteria are not applicable to non-profit sponsored projects.
1
6
D. Building and Site Design (20-points)
Scoring Criteria Maximum Points to Be Awarded
1.The project meets or exceeds the NC Housing Finance Agency Energy 3
Efficiency Criteria.
2.The project provides for handicap accessibility and/or utilizes 5
the principles of Universal Design in the building design.
3. Additional points may be awarded for meeting aspects associated 2
with functionality, maintenance and dispersal.
4. Environmental impacts are identified with plans included to 15
adequately address minimizing impact on environment, e.g. reuse of
building materials, recycling,storm water management and water
conservation.
5.The project is connected to water and sewer service or will 5
connect to existing service or will use a community well and sewer
system consistent with water and sewer boundary agreements and
local standards.
E. Community Design(20 points)
Scoring Criteria Maximum Points to be Awarded_
1.The project contributes to a mix of housing within an existing 3
neighborhood.
2.Additional points may be awarded for criteria associated with building 5
appearance, quality of construction,compatibility with surrounding
housing, ability to foster a sense of a secure community, and contributes to
neighborhood revitalization and or affordable housing preservation.
(Details must be provided by applicant)
3. The project is accessible to needed services for the target population 4
such as healthcare,schools,and or grocery shopping.
4. Public transportation and related facilities and improvements are 5
available where applicable,e.g.,bus shelters, accessible stops,etc.,or
transportation will be provided by the new or renovated development.
5.The project is located in an area of the County traditionally 3
underserved by housing development.
F. Community Sponsorship/Support (20 points)
Scoring Criteria Maximum Points to be Awarded
1. The applicant can submit explicit evidence that they coordinated the 6
application with other organizations to complement and/or support the
proposed project.
2.The applicant involved the intended beneficiaries of the project in the 6
planning process and describes outreach and marketing plan to be inclusive.
3.The applicant can demonstrate that it has been actively involved,or 4
describes the steps it will take to become actively involved, in the
Community's Consolidated Planning process to identify and address a
housing need or problem that is related in whole or part to the proposed
project.
4.The applicant has developed, or describes plans to develop, linkages 4
with other community activities so solutions are holistic and
comprehensive.
7
G. Project Feasibility(30 points)
Scoring Criteria Maximum Points to be Awarded
1. The applicant can demonstrate site control, zoning, compliance, and a 10
timely construction schedule that is feasible.
2. Funding (other than bond or other County funding) is in place at the 10
time of application.
3.The applicant's proposal is complete and presents a proposed project 10
budget and financial model that is sustainable and based on reasonable
assumptions,
H. Developer Experience (40 points)
Scoring Criteria Maximum Points to be Awarded
1. Experience of the applicant in carrying out projects of comparable 10
scope and nature (e.g., new construction, rental housing, rehabilitation,
etc.) to that proposed, and has met regulatory compliance for prior
projects.
2. Applicant has proposed a team with demonstrated development, 5
managerial and financial management capabilities in prior projects.
3. Applicant has successful record of meeting proposed budgets and 10
timetables.
4.The project sponsor is a non-profit housing provider. 15
TOTAL POTENTIAL POINTS: 235
3