HomeMy WebLinkAboutAgenda - 8-d - Approval of Proposed Changes to the Affordable Housing Bond Program 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 16, 2019
Action Agenda
Item No. 8-d
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 approve the second phase of proposed changes to the Orange County
Affordable Housing Bond Program.
BACKGROUND: At the March 19, 2019 regular meeting, the Housing and Community
Development Department presented the second phase of recommended changes to the Board
of County Commissioners (BOCC) as it relates to Orange County's Affordable Housing Bond
Program. The BOCC, during its review, suggested additional updates to be incorporated into the
program. Those changes, along with the recommended changes presented by the Housing and
Community Development Department at the March 19t" meeting, are detailed below.
Historical Context:
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 had 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 County's Capital Investment
Plan. Attachment 1 provides information and an update on the funded projects.
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During discussion at its June 6, 2017 regular meeting, 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.
The items "underlined and in purple" on Attachment 2 are the new proposed changes
outlined below.
BOCC Requested Changes Per the March 19t—" Meeting:
Correction of the maximum points to be awarded in Section C — Leveraging on Page
1 of the Scoring Criteria. As a result of this correction, the maximum number of points
to be awarded is "52" instead of "55".
Expansion of the Scoring Criterion No. 5 of Section E — Community Design on Page 2
to read "the project is located in an area of the County traditionally underserved by
housing development and if it is a new development, has proximate access to
transportation, whether public or provided by the new development".
Increase the maximum number of points to be awarded for Scoring Criterion No. 2 of
Section H — Developer Experience on Page 3 to be "10" instead of "5".
➢ Expansion of the Scoring Criterion No. 3 of Section H — Developer Experience on
Page 3 to read "applicant and team members collectively have a successful record of
meeting proposed budgets and timetables".
Decrease the maximum number of points to be awarded for Scoring Criterion No. 4 of
Section H — Developer Experience on page 3 to be 12" instead of 15".
Decrease the total maximum number of points to be awarded to any project to "234"
instead of "235", based on the overall changes to the Scoring Criteria.
Current Changes Recommended bV Staff.
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
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. It
should be noted that staff made applicable revisions to its changes, which were presented at the
March 19t" BOCC meeting, to ensure consistency with the aforementioned changes requested
by the BOCC. The revised recommended staff 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.
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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 "12". 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 234 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.
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
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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 approve the second
phase of proposed changes to the County's Affordable Housing Bond Program as delineated in
Attachment 2.
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ATTACHMENT 1
AFFORDABLE HOUSING BOND PROJECTS FUNDED TO DATE
Z
O F
O 5 s s z v~i u ~
a a W LL a
!n Z Z W O 0 N
F_U O ¢ V' a u
W W Q Z W W Z a m W
w O O
O 1'
a a c7 O u Z AREA MEDIAN INCOME TARGETS a
<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.
CASA is resubmitting its Merritt Mill Apartments Project application to NCHFA. The final portion of their application,as per NCHFA's
requirements,will be submitted in May 2019.
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ORANGE COUNTY
NORTH CA.ROLI<NA,
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 Maximum Points to be Awarded
0 to < 30% 25
>30%to< 60% of Area Median Income 15
> 60%to< 80%of Area Median Income 10
Special Needs Populations' 20
B.11 Local Residency(5 points)
°\Percent of Orange County ResidentS2 Served at Time of Occupancy Maximum Points to be Awarded
80%to 100% 5
50%to 80% 2
0 to 50% 1
C. Leveraging(52 points)
Percent Funded by Bonds and Other County Funding Maximum Points to be Awarded
60—80% 3
40—59% 6
20—39% 9
10—19% 15
<10% 20
Other Criteria Maximum Points to be Awarded
1 'The project pays property taxes.3 2
2 The project repays the bond funds—principal only.3 3
2 ' he project repays the bond funds—both principal and interest.3
;;T 10
3.The Project is a Mixed Income Project:The project serves more than one 10
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 addition to 10
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'.
1Special 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.
3These criteria are not applicable to non-profit sponsored projects.
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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 proiect provides for handicap accessibility and/or utilizes the 5
principles of Universal Design in the building design.
3.Additional points may be awarded for meeting aspects associated with 2
functionality, maintenance and dispersal.
4. Environmental impacts are identified with plans included to 5
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 connect to 5
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 proiect 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 proiect is located in an area of the County traditionally underserved 3
by housing development and if it is a new development, has proximate
access to transportation,whether public or provided by the new
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 with 4
other community activities so solutions are holistic and comprehensive.
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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 time 10
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 (42 points)
Scoring Criteria Maximum Points to be Awarded
1. Experience of the applicant in carrying out projects of comparable scope 10
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, 10
managerial and financial management capabilities in prior projects.
3. Applicant and team members collectively have a successful record of 10
meeting proposed budgets and timetables.
4. The project sponsor is a non-profit housing provider. 12
TOTAL POTENTIAL POINTS: 234
Revised as of April 5,2019