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HomeMy WebLinkAboutAgenda - 04-21-20; 6-a - Proposed Orange County Five-Year Consolidated Plan, FY 2020-2021 Annual Action Plan, and FY 2020-2021 HOME Activities 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 21, 2020 Action Agenda Item No. 6-a SUBJECT: Proposed Orange County Five-Year Consolidated Plan, FY 2020-2021 Annual Action Plan, and FY 2020-2021 HOME Activities DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Resolutions Emila Sutton, Director, Housing and Attachment 2: Draft Consolidated Plan Community Development, (919) 245- Summary 2490 Attachment 3: Draft FY 2020-2021 Annual Action Plan Summary Attachment 4: Summary Sheet for FY 2020-2021 Proposed Projects PURPOSE: To consider: 1) Adoption of a Resolution approving the draft Five-Year Consolidated Plan for FY 2020- 2021 through FY 2024-2025 and FY 2020-2021 Annual Action Plan; 2) Adoption of a Resolution approving the proposed HOME Program Activities for FY 2020- 2021; and 3) Authorizing the County Manager to implement the HOME Program as approved by the BOCC, including the ability to execute agreements with partnering nonprofit organizations after consultation with the County Attorney and based on the allocation received from HUD. BACKGROUND: Consolidated Plan and Annual Action Plan Every five years, state and local governments ("Participating Jurisdictions") that receive HOME Investment Partnerships Program funds from the U.S. Department of Housing and Urban Development ("HUD") are required to complete a Consolidated Plan that assesses the housing and community development needs of their jurisdiction, analyzes market conditions, and lays out a strategic plan that identifies priority needs and associated goals and anticipated allocations of federal and other funds. Additionally, Participating Jurisdictions must complete an Annual Action Plan showing how they will work to fulfill the goals and address the priorities in the Consolidated Plan in each program year. The Orange County HOME Consortium (also called the Local Government Affordable Housing Collaborative), consisting of the County and the Towns of Carrboro, Chapel Hill, and Hillsborough, completed the Consolidated Plan and Annual Action Plan through extensive data analysis and community engagement conducted in partnership with Apiary Community Consulting and University of North Carolina researchers. 2 FY 2020-2021 HOME Program Activities For FY 2020-2021, Orange County anticipates receiving the following HOME resources: FY 2020-2021 HOME Funds $ 374,851 HOME Program Income $ 13,000 Local Match 25% of HOME $ 93,712 Total $ 481,563 The above amounts are estimates and may be adjusted according to the actual allocation received from HUD. The HOME Consortium, comprised of one (1) elected official and staff members from Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough, reviewed the received applications for the FY 2020-2021 HOME Program on March 26, 2020 and made the following funding recommendations for consideration by each of the jurisdictions' elected bodies: Habitat for Humanity — Homeownership Assistance $ 94,138 CASA— Rental Development $ 200,000 EmPOWERment — Rental Development $ 56,228 Local Match — Rental Assistance $ 93,712 Administration $ 37,485 Total $ 481,563 The above amounts may still be adjusted according to the actual allocation received from HUD. In accordance with the Orange County HOME Consortium Agreement, approved in May 2011, the HOME Program Design for each year must be approved by all jurisdictions prior to submission to HUD. The HOME Program Design is scheduled for approval by the: • Town of Carrboro on April 21, 2020; • Town of Chapel Hill on April 22, 2020; and • Town of Hillsborough on May 11, 2020. The Board of Commissioners is therefore asked to consider approval of the attached HOME Program Design Resolution. The Consolidated Plan and FY 2020-2021 Annual Action Plan must be submitted to HUD on or before May 15, 2020. HOME Program Implementation After approval of the FY 2020-2021 HOME Program Design by all Consortium participants, authorization is requested to allow the Orange County Manager, based on the HUD allocation received, to execute agreements with partnering nonprofit organizations as necessary to implement the approved HOME Program Design. All agreements will be reviewed and approved by the County Attorney's Office. FINANCIAL IMPACT: There are no financial impacts anticipated with this item. 2 3 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. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts applicable to this item. Before implementation, all proposed HOME projects will undergo Environmental Review according to HUD requirements. RECOMMENDATION(S): The Manager recommends that the Board: 1) Adopt a Resolution approving the draft Five-Year Consolidated Plan for FY 2020-2021 through FY 2024-2025 and FY 2020-2021 Annual Action Plan; 2) Adopt and authorize the Chair to sign a Resolution approving the proposed HOME Program Activities for FY 2020-2021; and 3) Authorize the County Manager to implement the HOME Program as approved by the BOCC, including the ability to execute agreements with partnering nonprofit organizations after consultation with the County Attorney and based on the allocation received from HUD. 3 4 RES-2020-023 Attachment 1 RESOLUTION AUTHORIZING THE SUBMISSION OF THE FY 2020-2025 CONSOLIDATED PLAN AND FY 2020-2021 ANNUAL ACTION PLAN FOR ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, that the Commissioners authorize the County Manager to submit the Orange County Consolidated Plan for FY 2020-2025 and the Annual Action Plan for FY 2020-2021 to the U.S. Department of Housing and Urban Development, including all understandings, assurances, and certifications required therein. BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of these plans and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the day of , 2020 NOW THEREFORE BE IT ORDAINED by the Orange County Board of Commissioners that this resolution is effective upon approval. Upon motion of Commissioner , seconded by Commissioner , the foregoing resolution was adopted this the day of , 2020. I, Donna S. Baker, Clerk to the Board of Commissioners for the County of Orange,North Carolina, DO THEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on , 2020, as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and seal of said County, the day of , 2020. Donna Baker, Clerk to the Board SEAL 5 RES-2020-024 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2020-2021 HOME PROGRAM DESIGN BE IT RESOLVED,by the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, that the Commissioners approve the following activities for the FY 2020-2021 HOME Program: Homeownership Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment zero interest mortgages for an estimated three (3) homes in the Fairview Community in Hillsborough and the Northside Neighborhood in Carrboro. Homes will be sold to households earning between thirty percent(30%) and sixty percent(60%) of the area median income. (Requested amount: $390,000) $94,138 Rental Development Funds will be allocated to CASA to provide gap financing for an eighty-four(84)unit rental development on Merritt Mill Road in Chapel Hill and Carrboro. Units will be leased to households earning between thirty percent(30%) and sixty percent(60%) of the area median income. (Requested amount: $350,000) $200,000 Predevelopment Loan Funds will be allocated to EmPOWERment, Inc. as a predevelopment loan for a proposed rental development with eight(8)to ten(10)units on Johnson Street in Carrboro. Units will be leased to households earning between thirty percent (30%) and eighty percent(80%) of the area median income. (Requested amount: $200,000) $56,228 Program Administration $37,485 BE IT FURTHER RESOLVED,that the County Manager is hereby designated as the authorized representative of the County to act in connection with the HOME Program and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the day of , 2020 Penny Rich, Chair Orange County Board of Commissioners SEAL Orange County, North Carolina ORANGE COUNTY HOME Consortium NORTHCAROLINA 2020 — 2025 • Consolidated Plan Summary Background The Orange County HOME Consortium (or,the Local Government Affordable Housing Collaborative) receives federal funds for affordable housing through the HOME Investment Partnerships Program (HOME).The Consortium has four members: Orange County (the lead entity) and the Towns of Carrboro, Chapel Hill, and Hillsborough. Chapel Hill also receives federal Community Development Block Grant (CDBG)funding. Like HOME, CDBG funds can be used for affordable housing, and also broader community development activities. The Consolidated Plan lays out how the Consortium and Chapel Hill will use HOME and CDBG funds over the next five years.The Plan is required to include three main components: Needs Assessment, Market Analysis, and Strategic Plan. Summaries of each component are on the back of this page. See the infographics below from the North Carolina Housing Coalition for more context on the term "affordable housing." What is Affordable Housing? Rent/Mortgage + Utilities < 30% of income 100%AMl for a family of4in2019 082 families in Orange Area is$84,800 County faced an eviction Median filing this year... Income(AMI) 30% 50% 80% I 120% � 11 ems% of all cost-burdened Extremely Very Low-Income Moderate Income renters. Low Low Income Income To afford a modest two- Average Orange bedroom apartment at: $990/month Average Annual Salaries $39 600 income needed toafford a r two-bedroom apartment # i A family needs to earn: • • - $39,600/year Food prep and service Childcare Retail sales Construction Police officer Healthcare $20,810 $22,980 $26,930 $32,150 $51,050 $71,830 But the average renter $84,800 Area Median Income(AMI) can only afford a rent of; for orange county $711/month 25% 32% 60% 7 Needs Assessment Cost burden is the most common housing problem • 21%of homeowners and 43%of renters pay more than 30%of their income for housing • 40%of households with cost burden are elderly • 69%of households earning below 30%AMI are cost burdened • Within certain income groups, Hispanic and Asian households are disproportionately cost burdened, and black households are more likely to be cost-burdened than any other racial/ethnic group Homelessness in Orange County remains stubbornly high • Black households are disproportionately likely to experience homelessness (they make up 11.6%of the population as a whole and 54%of people experiencing homelessness) • The following homeless system gaps exist: (1) a best practice,fully funded rapid re-housing program; (2) income-based rental housing; (3) drop-in day center with integrated services; (4) street outreach program; (5) 24-hour bathrooms; (6) coordinated entry staff; (7) medical respite beds; (8) memorial service funding; and (9)youth host homes Orange County has many people with unique housing needs,such as the elderly and people with disabilities • Quality of life for these groups is harmed by a lack of quality, affordable housing near transit options • There is a need for ADA accessibility in public facilities and infrastructure _Market Analysis The housing market in Orange County is high-cost • A substantial proportion of housing stock was built since 2000 • Housing costs have increased 15% since the previous Consolidated Plan • Only 5%of units are affordable to households at 30%AMI There are some, but not enough, subsidized units • Public Housing: 336 units in Chapel Hill and Carrboro,targeted to households earning below 50%AMI • Housing Choice Vouchers (Section 8): 623 vouchers issued by the Orange County Housing Authority, targeting households earning below 50%AMI • Low-Income Housing Tax Credits: 11 properties in the county with 680 units; two properties (200 total units) are reserved for elderly/disabled households • HOME: 23 developments in Orange County constructed with HOME funding • Community Home Trust: 318 permanently affordable homes,targeted to households below 80%AMI • Inter-Faith Council for Social Services: 52-bed facility for men experiencing homelessness Orange County's economic base lies in healthcare,education, and professional services, in addition to retail and service sectors that accommodate them • As such,the county's workforce has high educational attainment and low unemployment • The greatest shortages of jobs are in lower-paying sectors that rely on less-trained workers • These workers are likely unable to afford the high cost of housing in Orange County Strategic Plan Based on the Needs Assessment, Market Analysis, and community and stakeholder input, the Strategic Plan establishes the following priorities: • Housing for People Experiencing Homelessness • Housing for Low-and Moderate-Income Households • Integrated Housing for People with Service Needs • Community Development and Services (CDBG only) Activities to address these priority needs will be: rental construction, rental assistance, housing rehabilitation/preservation, home ownership construction, and home buyer assistance. With CDBG funds, additional activities may be pursued: supportive and youth services, code enforcement and neighborhood revitalization, and infrastructure. Orange County, North Carolina ORANGE COUNTY HOME Consortium NORTHCAROLINA FY 2020 - 2021 • Annual Action Plan Summary Annual Goals and Objectives Goal Name Start End Category Needs Addressed Funding Goal Outcome Year Year Indicator 1 Rental 2020 2024 Affordable Housing for People HOME: Rental units Construction Housing Experiencing Homelessness $256,228 constructed: 56 Homeless Housing for Low-and Household Housing Non- Moderate-Income Unit Homeless Households Special Integrated Housing for Needs People with Service Needs 2 Home Buyer 2020 2024 Affordable Housing for Low-and HOME: Direct Financial Assistance Housing Moderate-Income $94,138 Assistance to Households Homebuyers: 3 Households Assisted Projects # Project Name Description 1 Habitat for Funds will be allocated to Habitat for Humanity of Orange County to provide deferred Humanity—Home payment,zero interest second mortgage loans for an estimated three newly constructed Buyer Assistance homes in the Fairview community in Hillsborough and the Northside neighborhood in Carrboro/Chapel Hill. 2 CASA—Rental Funds will be allocated to CASA as gap financing for a 48-unit rental community on Merritt Mill Construction Road in Carrboro/Chapel Hill. Five of these units will be considered HOME-assisted (based on the proportion of HOME funds to total funding in the project). Nine units total will be set aside for people with disabilities,with priority for people experiencing homelessness. 3 EmPOWERment— Funds will be allocated to CASA as a predevelopment loan an 8-to 10-unit rental community Rental on Johnson Street in Chapel Hill. Construction (Predevelopment) Affordable Housing One Year Goals for the Number of Households to One Year Goals for the Number of Households be Supported Supported Through Homeless 0 Rental Assistance 0 Non-Homeless 50 The Production of New Units 56 Special-Needs 9 Rehab of Existing Units 0 Total 59 Acquisition of Existing Units 5 Total 59 9 Summary of Proposed FY 2020-2021 HOME Projects Habitat for Humanity CASA EmPOWERment Funding Request $390,000 $350,000 $200,00 Funding Award $94,138 $200,000 $56,228 Second mortgage Gap financing for Merritt Financing for 107 Johnson a 48 unit rental project Project Description assistance for Habitat home Mill, Street,an 8 to 10 unit buyers with some units set aside rental project for people with disabilities 9 units for households 9 units for households 2 units for households Income Targeting earning up to 50%AMI and earning up to 30%AMI and earning up to 3 0%AMI,7 4 units up to 80%AMI 39 units for households units up to 50 oAMI,and earning up to 80%AMI 1 unit at 80%AMI Low-income seniors and None, but of their existing Population people with disabilities will People with disabilities will portfolio,48%of o Targeting be targeted in 2 units(15%) be targeted in 9 units(19%) residents are voucher holders Fairview community in Merritt Mill Road in Pine Knolls neighborhood Project Location Hillsborough and Northside Carrboro/Chapel Hill in Chapel Hill neighborhood in Carrboro Leveraging Total non-HOME project Total non-HOME project Total non-HOME project funding is$1.5 million funding is$8.6 million funding is$2.4 million