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Home My WebLink AboutAgenda - 04-20-2021; 5-a - Public Hearing on FY 2021-2022 Annual Action Plan for the HOME Investment Partnerships Program 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 20, 2021 Action Agenda Item No. 5-a SUBJECT: Public Hearing on FY 2021-2022 Annual Action Plan for the HOME Investment Partnerships Program DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1 : Draft FY 2021-2022 Annual Emila Sutton, Director, Housing and Action Plan Summary Community Development, (919) 245- Attachment 2: Summary Sheet for FY 2490 2021-2022 Proposed Projects PURPOSE: To hold a public hearing on the Annual Action Plan for the HOME Investment Partnerships Program. BACKGROUND: Every year, state and local governments ("Participating Jurisdictions") that receive HOME Investment Partnerships Program ("HOME") funds from the U.S. Department of Housing and Urban Development ("HUD") are required to complete an Annual Action Plan that lays out how they will allocate HUD funds for the upcoming program year in order to address the goals and priorities in the Consolidated Plan. A summary of the draft Annual Action Plan for FY 2021-2022 is provided at Attachment 1. For FY 2021-2022, Orange County anticipates receiving the following HOME resources: FY 2021-2022 HOME Funds $ 378,743 FY 2020-2021 HOME Funds $ 200,000 returned by CASA * HOME Program Income $ 13,306 Local Match $ 85,218 Total $ 677,267 *CASA elected to return its award due to receiving a Low-Income Housing Tax Credit award, which filled their funding gap; thus, HOME funds were no longer needed. The above amounts are estimates and may be adjusted according to the actual allocation received from HUD. A summary of each of the above projects can be found in Attachment 2. 2 Orange County is a special type of Participating Jurisdiction, called a Consortium, consisting of Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough. Orange County serves as the lead entity for the Orange County HOME Consortium. The Consortium has drafted the FY 2021-2022 Annual Action Plan based on the HOME award recommendations made by the Local Government Affordable Housing Collaborative, detailed below. The Local Government Affordable Housing Collaborative (the "Collaborative"), comprised of one (1) elected official and staff members from Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough, reviewed the applications received for the FY 2021-2022 HOME Program on March 25, 2021 and made the following funding recommendations for consideration by each of the jurisdictions' elected bodies: Applicant and Project HOME HOME Request Award Habitat for Humanity— Homebu er Assistance $ 450,000 $ 434,393 Pee Wee Homes — Rental Construction $ 100,000 $ 100,000 EmPOWERment — Rental Acquisition $ 105,000 $ 105,000 Administration 10% of HOME Funds, per statute $ 37,874 $ 37,874 Total $ 692,874 $ 677,267 In accordance with HUD requirements and the Orange County Citizen Participation Plan, the Orange County HOME Consortium must hold a public hearing to obtain public comments and feedback on the draft Annual Action Plan during the public comment period, from April 1 — May 2, 2021 . Notice of this public hearing was published in The Herald Sun and La Noticia. Copies of the draft Annual Action Plan were posted on the Orange County Department of Housing and Community Development website, and a link to the website and draft plan were circulated by public notice in the newspapers listed above, as well as email outreach to more than 100 relevant stakeholders to include local service providers, nonprofit organizations, government entities, elected officials, and interested residents. All comments received during this hearing, and anytime during the public comment period, will be incorporated into the final Annual Action Plan to be submitted to HUD. Before submitting the final plan, the Board of Commissioners will consider the approval of the Annual Action Plan and the FY 2021-2022 HOME Program Design (funding recommendations) on May 4, 2021. The governing boards for the Towns of Chapel Hill, Carrboro, and Hillsborough are also scheduled to consider the approval in early May, in order for the final plan to be submitted to HUD by the federal deadline of May 15, 2021. 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. 2 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. • 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. RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing and accept comment on the FY 2021-2022 Annual Action Plan, with the approval of the Annual Action Plan and the FY 2021-2022 HOME Program Design (funding recommendations) subsequently scheduled for the Board's May 4, 2021 Business meeting. 3 ORANGE COUNTY 4 l ow + NORTH CAROLINA Ca'44 H C D ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Orange County, NC HOME Consortium FY 2021-2022 Annual Action Plan Summary Annual Goals and Objectives Goal Name Start End Category Needs Addressed Funding Goal Outcome Year Year Indicator 1 Home Buyer 2020 2024 Affordable Housing for Low-and $434,393 Direct Financial Assistance Housing Moderate-Income Assistance to Households Homebuyers:3 Households Assisted 2 Rental 2020 2024 Affordable Housing for People $100,000 Rental units Construction Housing Experiencing Homelessness constructed:3 Homeless Housing for Low-and Housing Units Moderate-Income Households 3 Housing 2020 2024 Affordable Housing for Low-and $105,000 Rental units Rehabilitation/ Housing Moderate-Income rehabilitated:2 Preservation Households Housing Units Projects # Project Name Description 1 Habitat for Humanity— Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment Homebuyer Assistance zero interest mortgages to an estimated fifteen (15) homebuyers in the Fairview Community in Hillsborough earning between thirty percent(30%)and eighty percent(80%)of the area median income. (The final number of homebuyers assisted may be more or less than 15 and will depend on homebuyer underwriting.) 2 Pee Wee Homes— Funds will be allocated to Pee Wee Homes to finance construction of three(3)small rental Rental Construction units at 106 Hill Street in Carrboro. Units will be leased to households experiencing homelessness and earning less than thirty percent(30%)of the area median income. 3 EmPOWERment—Rental Funds will be allocated to EmPOWERment, Inc.for acquisition of a duplex containing two(2) Acquisition units at 706 Gomains Avenue in Chapel Hill. Units will be leased to households earning less than thirty percent(30%)of the area median income. Affordable Housing One Year Goals for the Number of Households to One Year Goals for the Number of Households be Supported Supported Through Homeless 3 Rental Assistance 0 Non-Homeless 17 The Production of New Units 3 Total 20 Acquisition of Existing Units 17 Total 20 #� 5 ORANGE COUNTY • NORTH CAROLINA • noCHCD ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Summary of Proposed FY 2021-2022 HOME Projects Habitat for Humanity Pee Wee Homes EmPOWERment Funding Request $450,000 $100,000 $105,000 Funding Award $434,393 $100,000 $105,000 Activity Type Homebuyer Assistance Rental Construction Rental Acquisition Project Name Fairview Homebuyer 106 Hill Street 706 Gomains Avenue Assistance Second mortgage Gap financing for Merritt Acquisition of a duplex(2 Project Description assistance for an estimated Mill, a 48 unit rental projectwith some units set aside units)to be rented to 15 Habitat home buyers low-income households for people with disabilities Project Location Fairview community Northside Neighborhood Northside Neighborhood (Hillsborough) (Carrboro) (Chapel Hill) 11 units for households 3 units for households 2 units for households Income Targeting earning 31-50%AMI and 4 0 0 earning up to 30/AMI earning up to 30/AMI units for 51-80%AMI Specific units are not targeted, but Habitat Current residents will not markets to low-income All 3 units will be rented to Population be displaced (both elderly seniors and voucher people experiencing Targeting holders(23%of most homelessness households,voucher recent homebuyer pool holders) were voucher holders) 5.67 : 1 1.06 : 1 1.29 : 1 Leveraging (total non-HOME project (total non-HOME project (total non-HOME project funding is$3 million) funding is$206,425) funding is$240,000)