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HomeMy WebLinkAboutAgenda - 05-05-20; 8-g - Approval of a Resolution Authorizing a Revision in the Orange County FY 2018-2019 HOME Program Design 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 2020 Action Agenda Item No. 8-g SUBJECT: Approval of a Resolution Authorizing a Revision in the Orange County FY 2018- 2019 HOME Program Design DEPARTMENT: Department of Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1 : May 1, 2018 Resolution Authorizing the Orange Emila Sutton, Director, Housing and County FY 2018-2019 Community Development, (919) 245- HOME Program Design 2490 Attachment 2: December 2, 2019 Resolution Authorizing a Revision in the Resolution Adopted May 1, 2018 which Authorized the Orange County FY 2018- 2019 HOME Program Design Attachment 3: Proposed Resolution Authorizing a Revision in the Orange County FY 2018-2019 HOME Program Design PURPOSE: To request approval of a revision in the resolution adopted May 1, 2018, as amended by the resolution adopted December 2, 2019, which authorized the Orange County FY 2018-2019 HOME Program Design. BACKGROUND: The resolution to approve the project activities for the 2018-2019 HOME program, adopted by the Board on May 1, 2018, included the approval of $60,000 to Community Home Trust (CHT) to provide homebuyer financial assistance for two (2) families in the Northside and Pine Knolls neighborhood in Chapel Hill (Attachment 1). The Board adopted a resolution to amend the May 1, 2018 resolution on December 2, 2019 (Attachment 2). This resolution allowed CHT to diverge from its usual model (acquiring and selling a property simultaneously and providing direct financial assistance to the homebuyer) in order to acquire a single-family property at 200 Culbreth Park Drive and rehab it prior to selling it to an eligible homebuyer. As such, CHT requested that $15,000 of the Homeowner Assistance funds granted be used instead for the acquisition of this property, and the remaining $45,000 remained as originally intended for direct Homeowner Assistance. 2 CHT is requesting another amendment to this resolution in order to use $40,000 of the $45,000 funds that were designated for Homeowner Assistance for acquisition of a single-family home in the Tin Top community in Carrboro to be used for affordable rental. The home is owned by two brothers. One brother has lived there for over 20 years. The other brother wants to sell the property and currently has it under contract with Self-Help. The proposed project would be a partnership with the Town of Carrboro and the Northside Neighborhood Initiative (with funding from Self-Help and the Oak Foundation, coordinated by the Marian Cheek Jackson Center). Self-Help and the Oak Foundation have agreed to fund the rehabilitation needed for the home to bring it up to habitable standards. CHT has designated $60,000 of its own funds and secured $30,000 from the Town of Carrboro for acquisition of the home after rehabilitation, and is requesting permission to use $40,000 of its FY2018-19 HOME award to cover the remainder of the purchase price. After acquiring the property, CHT will rent the home back to one of the current owners of the home, the brother currently living in the home who wishes to remain. That individual's income is less than 30% of the area median income (AMI) and an affordable rent would be around $210 per month. At such time as the individual no longer lives there, the home will be sold as a permanent affordable home using CHT's homeownership model. In summary, the proposed resolution (Attachment 3) would amend the existing resolution authorizing the 2018-2019 HOME Program design to change CHT's HOME award to read: Homeownership Acquisition Funds will be allocated to the Community Home Trust for the acquisition of one (1) single-family property for sale to a household earning 80% or less AMI. (Requested amount: $15,000) $15,000 Rental Acquisition Funds will be allocated to the Community Home Trust for the acquisition of one (1) single-family property for rental to a household earning 30% or less AMI. (Requested amount: $40,000) $40,000 Homeownership Assistance Funds will be allocated to the Community Home Trust to provide homebuyer financial assistance for one (1) household earning 80% or less AMI. (Requested amount: $5,000) $5,000 FINANCIAL IMPACT: There is no financial impact to the County. 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. 3 • 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. The creation and preservation of affordable housing options helps to meet a basic need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. Affordable housing options allow individuals to reduce risks associated with being un-housed. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impact is applicable to this item: • GOAL: ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. The rehabilitation of older or dilapidated housing creates an opportunity to provide for more energy-efficient elements and the enhanced use of recycled and renewable resources. RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the Chair to sign the proposed resolution (Attachment 3) authorizing a revision in the Orange County FY 2018-2019 HOME Program Design. RES-2018-028 4 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2018-2019 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, approves the following activities for the FY 2018-2019 HOME Program. Second Mortgage Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment, zero interest second mortgages for ten (10) homes throughout Orange County. Homes will be sold to households earning between 30 percent and 65 percent of the area median income. (Requested amount: $60,000) $60,000 Homeownership Assistance Funds will be allocated to the Community Home Trust to provide homebuyer financial assistance for two (2) families in the Northside and Pine Knolls Neighborhood of Chapel Hill. (Requested amount: $60,000) $60,000 Acquisition Funds will be allocated to EmPOWERment, Inc., for the acquisition of a single family property for lease to households earning 80% or less AMI. (Requested amount: $145,000) $145,000 Tenant Based Rental Assistance Funds will be allocated to the Inter-Faith Council for Social Services for assisting persons experiencing homelessness too move quickly into permanent housing and achieve stability through a combination of rental assistance and supportive services. (Requested amount: $25,000) $25,000 Housing Rehabilitation Funds will be allocated to the Orange County Housing and Community Development Department for housing rehabilitation activities. This program will provide rehabilitation to owner-occupied homeowners throughout Orange County earning 80% or less of the area median income. (Requested amount: $49,211) $49,211 Program Administration $28,969 TOTAL FY 2018-2019 HOME PROGRAM FUNDS $368,180 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized re tive of the County to act in connection with the submission of this plan and to provide * 1 information as may be required by the U.S. Department of Housing and Urban 17 y of , 2018 yz/ Mark Dorosin, Ch Orange County Board of Commissioners 5 RES-2019-073 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION AUTHORIZING A REVISION IN THE RESOLUTION ADOPTED MAY 19, 2018 WHICH AUTHORIZED THE ORANGE COUNTY FY 2018-2019 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the revision in the Resolution adopted May 1, 2018 so that there is an addition of a new Acquisition project activity and a revision in the first Homeownership Assistance project activity so that both read as follows in their entirety: Acquisition Funds will be allocated to the Community Home Trust for the acquisition of one (1) single- family property for sale to a household earning 80%or less AMI. (Requested amount: $15,000) $15,000 Homeownership Assistance Funds will be allocated to the Community Housing Trust to provide homebuyer financial assistance for one (1)household in the Northside and Pine Knolls Neighborhood of Chapel Hill earning 80% or less AMI. (Requested amount: $60,000) $45,000 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 this plan and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the 2nd day of December, 2019. 4toard mmissioners r �1 SEAT, P; 6 RES-2020-031 Attachment 3 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION AUTHORIZING A REVISION IN THE ORANGE COUNTY FY 2018-2019 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approves the revision in the Resolution adopted May 1, 2018 so that there is an addition of a new Rental Acquisition project activity and a revision in the Homeownership Assistance project activity so that both read as follows in their entirety: Homeownership Acquisition Funds will be allocated to the Community Home Trust for the acquisition of one (1) single- family property for sale to a household earning 80% or less AMI. (Requested amount: $1 S,000) $15,000 Rental Acquisition Funds will be allocated to the Community Home Trust for the acquisition of one (1) single- family property for rental to a household earning 30% or less AMI. (Requested amount: $40,000) $40,000 Homeownership Assistance Funds will be allocated to the Community Housing Trust to provide homebuyer financial assistance for one (1) household in the Northside and Pine Knolls Neighborhood of Chapel Hill earning 80% or less AMI. (Requested amount: $5,000) $5,000 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 this plan 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