The URL can be used to link to this page

Home My WebLink AboutAgenda - 05-04-2021; 8-j - Proposed Orange County FY 2021-2022 Annual Action Plan and HOME Activities 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 4, 2021 Action Agenda Item No. 8-j SUBJECT: Proposed Orange County FY 2021-2022 Annual Action Plan and HOME Activities 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: Resolution Authorizing 2490 Submission of the FY 2021- 2022 Annual Action Plan Attachment 3: Summary Sheet for FY 2021-2022 Proposed Projects Attachment 4: Resolution Approving the FY 2021-2022 HOME Program Design PURPOSE: To consider: 1) Adoption of a Resolution authorizing submission of the FY 2021-2022 Annual Action Plan; 2) Adoption of a Resolution approving the proposed HOME Program Activities for FY 2021- 2022; 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: Annual Action Plan 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 in Attachment 1 . 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 completed the 2 Annual Action Plan based on the HOME award recommendations made by the Local Government Affordable Housing Collaborative, detailed in the section below. A public comment period, as required by HUD, was established for March 29 —April 28, 2021 and a public hearing was held on the draft Annual Action Plan at the April 20, 2021 Orange County Board of Commissioners meeting. Public notice of the hearing was posted 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 have been incorporated into the final Annual Action Plan to be submitted to HUD. The FY 2021-2022 Annual Action Plan must be submitted to HUD on or before May 15, 2021. The Board of Commissioners is asked to consider approval of the attached resolution authorizing submission of the Annual Action Plan (Attachment 2). FY 2021-2022 HOME Program Activities 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 The above amounts are estimates and may be adjusted according to the actual allocation received from HUD. 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 received applications 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: Habitat for Humanity — Homebuyer Assistance $ 434,393 Pee Wee Homes — Rental Construction $ 100,000 EmPOWERment — Rental Acquisition $ 105,000 Administration 10% of HOME Funds, per statute $ 37,874 Total $ 677,267 The above amounts may still be adjusted according to the actual allocation received from HUD. A summary of each of the above projects can be found in Attachment 3. 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: 3 • Town of Hillsborough on May 10, 2021 • Town of Chapel Hill on May 5, 2021; and • Town of Carrboro on May 4, 2021. The Board of Commissioners is asked to consider approval of the attached HOME Program Design Resolution (Attachment 4). HOME Program Implementation After approval of the FY 2021-2022 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. 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 the Resolution authorizing submission of the FY 2021-2022 Annual Action Plan; 2) Adopt and authorize the Chair to sign the Resolution approving the proposed HOME Program Activities for FY 2021-2022; 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. 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 RES-2021-027 Attachment 2 RESOLUTION AUTHORIZING THE SUBMISSION OF THE FY 2021-2022 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 Annual Action Plan for FY 2021-2022 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 , 2021 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 , 2021. 1, Laura Jensen, 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 , 2021, 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 , 2021. Laura Jensen Clerk to the Board SEAL #� 6 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) 7 RES-2021-028 Attachment 4 RESOLUTION AUTHORIZING THE ORANGE COUNTY FY 2021-2022 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 2021-2022 HOME Program: Homebuyer Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment 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.) (Requested amount: $450,000) $434,393 Rental Construction Funds will be allocated to Pee Wee Homes to finance construction of three (3) small rental 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. (Requested amount: $100,000) $100,000 Predevelopment Loan Funds will be allocated to EmPOWERment, Inc. for acquisition of a duplex containing two (2) 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. (Requested amount: $105,000) $105,000 Program Administration $37,874 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 , 2021 Renee Price, Chair Orange County Board of Commissioners SEAL