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HomeMy WebLinkAboutAgenda - 11-05-20; 6-b - Affordable Housing Advisory Board (AHAB) Funding Recommendations for 2020 Affordable Housing Bond Program 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 5, 2020 Action Agenda Item No. 6-b SUBJECT: Affordable Housing Advisory Board (AHAB) Funding Recommendations for 2020 Affordable Housing Bond Program DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: 2020 Orange County Emila Sutton, Director, Housing and Affordable Housing Bond Community Development, (919) 245-2490 Program Scorecard Attachment 2: Summary of Bond Applications Attachment 3: AHAB Bond Applications Scores Attachment 4: Resolution PURPOSE: To consider adoption of a Resolution awarding funds for the 2020 Affordable Housing Bond Program based on the funding recommendations of the Affordable Housing Advisory Board. BACKGROUND: In the fall of 2016, Orange County voters passed a $5 million Affordable Housing Bond. Half of the bond funds ($2.5 million) were awarded in 2017. The 2020 application cycle is for the remaining $2.5 million of the bond funds. Eligible projects are new construction and/or rehabilitation for homeownership and/or rental development affordable to low-income households. Projects may be mixed-use and/or mixed- income. No more than 20% of residential units may be set aside for people with disabilities, in compliance with best practices outlined in the State of North Carolina's Olmstead settlement agreement. Land banking is not an eligible use. Eligible applicants for funding are: nonprofit organizations involved in affordable housing and community development (including faith-based organizations), for-profit developers, and joint ventures between eligible nonprofit and for-profit entities. The application evaluation scorecard (see Attachment 1) considers the following factors for each proposed project: (1) income and vulnerable population targeting, (2) targeting of households currently living and/or working in Orange County, (3) leveraging of other funding sources, (4) building and site design, including environmental sustainability and accessibility features, (5) community design, including neighborhood compatibility and location, (6) community sponsorship, engagement, and support, (7) project feasibility, and (8) developer experience. 2 The application cycle opened on June 8, 2020 and closed on July 31, 2020. Four applications were submitted, summarized below and in Attachment 2. Weaver's Grove (Habitat for Humanity): $817,080 Community Partners: N/A Funds will be used to assist with infrastructure and site improvement costs for Weavers Grove, Habitat's future development of 100 affordable homes off of Sunrise Road in Chapel Hill. Habitat also plans to sell 136 finished lots to market-rate builders to develop entry-level homeownership opportunities. The project's vision is to create a thriving, mixed-income community of homes that are aesthetically pleasing, architecturally integrated, and energy efficient. This would be the first affordable housing development in this section of Chapel Hill. Chase Park Apartments Stairwell Rehabilitation (InChuCo): $165,840 Community Partners: N/A Funds will be used to make critical repairs to 8 elevated stairwell landings between the upper levels of the 4 residential buildings at Chase Park Apartments, a 45-year old complex home to 40 affordable units. The stairwell landings require immediate attention because of their deteriorated condition. Further, heavy rainfall from Hurricanes Michael and Florence damaged the road and now the creek-side lane is closed. However, HUD will not endorse a loan to repair the only road into and out of the complex until the stairwell landings are replaced. The complex's estimated remaining useful life is estimated to be at least an additional 40 years barring any natural disasters PEACH Apartments (EmPOWERment, Inc.): $700,000 Community Partner(s): Pine Knolls Community Center Funds will be used to construct 8 affordable rental apartments in the Northside Neighborhood Conservation District at the location of the former Pine Knolls Center. This project will produce a mixed-income, multigenerational apartment building that will honor the historical culture of this neighborhood. 2200 Homestead Road (Center for Community Self-Help): $817,080 Community Partner(s): CASA, Community Home Trust, Habitat for Humanity Funds will be used to develop infrastructure and site improvements at 2200 Homestead Road to prepare individual parcels for construction of approximately 117 affordable rental and affordable homeownership units. Site development includes demolition of an existing vacant building, site grading and paving, installing water, sewer, and storm water infrastructure, and construction of community amenities, such as greenways, open spaces, sidewalks, outdoor seating, community garden, basketball court, and landscaping throughout the site. Applicant Funding Request Center for Community Self-Help $ 1,500,000 EmPOWERment, Inc. $ 700,000 Habitat for Humanity of Orange County $ 1,500,000 Interchurch Council Housing Cor $ 165,840 Total $ 3,865,840 The Affordable Housing Advisory Board (AHAB) reviewed the applications for the 2020 Affordable Housing Bond Program on August 18, 2020 and scored the applications using the evaluation scorecard approved by the Commissioners earlier this year (see Attachment 3). 3 Based on these scores and discussion of the projects, the County Manager proposes the following funding recommendations: Applicant Funding Recommendation Center for Community Self-Help $ 817,080 EmPOWERment, Inc. $ 700,000 Habitat for Humanity of Orange $ 817,080 County Interchurch Council Housing Corp $ 165,840 Total $ 2,500,000 FINANCIAL IMPACT: There are no financial impacts anticipated with this item. 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 projects will undergo review according to applicable planning, zoning, and environmental health authorities. RECOMMENDATION(S): The Affordable Housing Advisory Board recommends that the Board of County Commissioners adopt a Resolution awarding funds for the 2020 Affordable Housing Bond Program based on the funding recommendations of the Affordable Housing Advisory Board. 4 ORANGE COUNTY NORTH CAROLINA Orange County Affordable Housing Bond Program 2020 Scorecard Threshold Requirements: ❑ The application is complete with all required attachments and was submitted by the established deadline ❑ The project aligns with local affordable housing goals,strategies,and/or adopted policies ❑ Funding is for an eligible activity 1. Income Targeting and Special Needs(45 points): What income range(s) and population(s)will the proposed project serve?If serving multiple ranges,score will be prorated. Household Income Range Maximum Points 0 to<30%AMI 25 >30%to< 60% AMI 15 >60%to<80%AMI 10 People with special housing needs' 20 'Defined as people with disabilities,veterans,individuals or families experiencing homelessness,holders of Housing Choice or other vouchers,and survivors of domestic violence 2. Local Residency(5 points): Will the proposed project provide housing for Orange County residents? Percent of Current Orange County Residents'at Sale or Lease-up Maximum Points 80%to 100% 5 50%to 80% 2 0 to 50% 1 2Defined as households currently residing or working in Orange County or having resided in Orange County 3. Leveraging(52 points): To what degree does the proposed project include other sources of funds? Percent Funded by Bonds and Other County Funding Maximum Points 60%to 80% 3 40%to 59% 6 20%to 39% 9 10%to 19% 15 < 10% 20 Other Criteria 5 Project pays property taxes3 2 Project repays bond funds(principal only)' 3 Project repays bond funds(principal and interest)3 10 Project is mixed-income, meaning it serves more than one income category (including market-rate)and minimizes geographic concentration of affordable units 10 Project is mixed-use, meaning it includes non-residential uses that offer access to employment,daily needs, and health and human services 10 3These criteria are not applicable to nonprofit sponsored projects 4. Building and Site Design (20 points): Scoring Criteria Maximum Points Project incorporates sustainable design elements, such as smaller building sizes, use of local/recycled building materials, energy efficient features, LED lighting, water conservation fixtures,efficient HVAC systems,etc. 5 (for energy efficient features,the project meets or exceeds the NC Housing Finance Agency's energy efficiency criteria) Project provides handicap accessibility and/or incorporates Universal Design 3 Additional points may be awarded for building and site design based on functionality, maintenance, and dispersal 2 Project incorporates sustainable community and environmental design elements, such as flexible lot design, low impact development,storm water controls, reduced impervious surface areas, natural or drought-resistant landscaping or any additional 5 element that would serve to minimize negative environmental impacts, as Orange County regulations allow Project is connected to water and sewer service,will connect to existing service,or will use a community well and sewer system consistent with water and sewer 5 boundary agreements and local standards 5. Community Design(20 points): Scoring Criteria Maximum Points Project contributes to a mix of housing within an existing neighborhood 3 Additional points may be awarded for building appearance,quality of construction, compatibility with surrounding housing,ability to foster a sense of a secure community,and contribution to neighborhood revitalization and or affordable 5 housing preservation (details must be provided by applicant) Project is accessible to services such as healthcare,schools,grocery shopping,etc. 4 Public transportation,to include a bus route or on-demand service(or equivalent) and related facilities are available(e.g., bus shelters, accessible stops,etc.) 5 Project is located in an area of the county traditionally underserved by housing development 3 6 6. Community Sponsorship/Support(20 points): Scoring Criteria Maximum Points Applicant can show evidence that they coordinated with other organizations to complement/support the proposed project 6 Applicant can show evidence that they involved the intended beneficiaries of the project in the planning process and that the outreach and marketing plan is 6 inclusive Applicant can demonstrate it has been actively involved, or describe the steps it will take to become actively involved, in the County's Consolidated Planning process to 4 identify and address a housing need related to the proposed project Applicant has developed, or can demonstrate plans to develop, links with other community activities to provide holistic community services 4 7. Project Feasibility(30 points): Scoring Criteria Maximum Points Applicant can demonstrate site control, zoning compliance,and timely and feasible construction schedule 10 Funding(other than County funding) is in place at time of application 10 Applicant's proposal is complete and presents a proposed budget and financial model that is appropriate based on reasonable assumptions 10 8. Developer Experience(42 points): Scoring Criteria Maximum Points Applicant has experience carrying out comparable projects to that proposed and has met regulatory compliance for previous projects 10 Applicant has a proposed team with demonstrated development, managerial,and financial management capabilities in prior projects 10 Applicant and team members have a successful record of meeting proposed budgets and timelines 10 Project sponsor is a nonprofit housing provider 12 Total Points: out of 234 7 2020 AFFORDABLE HOUSING BOND APPLICATION SUMMARY Center for Community Interchurch Council EmPOWERment Habitat for Humanity Self-Help Housing Corp Funding Request $1,500,000 $700,000 $1,500,000 $165,840 2200 Homestead Road Weaver's Grove Chase Park Stairwell Project Mixed rental and PEACH Apartments Mixed-income, mixed- Rehab Description homeownership Small-scale rental use homeownership Rehab stairwell of existing development development development rental development #Affordable Units 113 8 100 40* Incomes 0-30%AMI—45 units 0-30%AMI—4 units 0-30%AMI—0 units 0-30%AMI—32 units 31-60%AMI—29 units 31-60%AMI—4 units 31-60%AMI—70 units 31-60%AMI—8 units 61-80%AMI—39 units 61-80%AMI—0 units 61-80%AMI—30 units 61-80%AMI—0 units Market-rate—4 units Market-rate—136 units Project Location Weaver Dairy Rd and Johnson St in Pine Sunrise Ln across from NC 54 between Merritt Homestead Rd Knolls community Carol Woods Mill Rd and Green Level Rd %Funded by 13/o o 34% 7% 100% County *Unit rehabilitation does not increase affordable housing inventory 8 2020 BOND APPLICATION SCORES FROM AFFORDABLE HOUSING ADVISORY BOARD Center for Habitat for Interchurch Council Community Self-Help EmPOWERment Humanity Housing Corp Bond Request $1,500,000 $700,000 $1,500,000 $165,840 Total Project Cost $21 M $2.3 M $26 M $165,840 1)Incomes and Vulnerable Populations 37.3 40 33.5 43 2)Local residency 5 5 5 5 3)Leveraging 25 9 40 0 4)Building and Site Design 16.3 18.2 16.7 10 5)Community Design 17.5 17.8 17.5 13.5 6)Community Sponsorship 17.5 17.2 18.2 12.3 7)Feasibility 28.8 25.4 29.3 16.3 8) Experience 39.5 42 41.8 40 TOTAL SCORE 186.8 174.6 202 140.5 9 RES-2020-067 RESOLUTION AWARDING FUNDS FOR THE 2020 ORANGE COUNTY AFFORDABLE HOUSING BOND PROGRAM BE IT RESOLVED, by the Orange County Board of Commissioners,upon recommendation by the Orange County Affordable Housing Advisory Board, approve the following awards for the 2020 Affordable Housing Bond Program: Center for Community Self-Help Funds will be allocated to the Center for Community Self-Help as a grant for development of 2200 Homestead Road, a mixed-income rental and homeownership development in Chapel Hill with 113 affordable units and four(4)market-rate units. Affordable units will be leased or sold to households earning less than thirty percent (30%) and up to eighty percent(80%) of the area median income. (Requested amount: $1,500,000) $817,080 EmPOWERment,Inc. Funds will be allocated to EmPOWERment, Inc. as a grant for development of PEACH Apartments, a rental development with eight (8)units on Johnson Street in Carrboro. Units will be leased to households earning less than thirty percent(30%) and up to sixty percent(60%) of the area median income. (Requested amount: $700,000) $700,000 Habitat for Humanity of Orange County Funds will be allocated to Orange County Habitat for Humanity as a grant for development of Weaver's Grove, a mixed-income, mixed-use homeownership development in Chapel Hill with 100 affordable units and 136 lots to be sold for market-rate development. The 100 affordable homes will be sold to households earning between thirty percent(30%) and eighty percent(80%) of the area median income. (Requested amount: $1,500,000) $817,080 Interchurch Council Housing Corp Funds will be allocated to Interchurch Council Housing Corp as a grant for repair of the stairwell at Chase Park Apartments, an affordable rental property in Chapel Hill with 40 affordable units leased to households earning less than thirty percent (30%) and up to sixty percent (60%) of the area median income. (Requested amount: $1,500,000) $165,840 This is the 5a'day of November, 2020. Penny Rich, Chair Orange County Board of Commissioners SEAL