HomeMy WebLinkAboutAgenda - 06-03-2021; 5 - Options to Expand Affordable Housing Incentives and Opportunities 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 3, 2021
Action Agenda
Item No. 5
SUBJECT: Options to Expand Affordable Housing Incentives and Opportunities
DEPARTMENT:
ATTACHMENT(S): INFORMATION CONTACT:
A. February 16, 2021 Information Item John Roberts, County Attorney, 919-245-
B. List of Action Items to Expand Affordable 2318,
Housing Erika Brandt, Interim Director of Housing
C. Affordable Housing Continuum and Community Development, 919-
D. Primer - How Does Affordable Rental 245-4331
Housing Get Built? Craig Benedict, Director of Planning &
E. Affordable Housing - UDO and Other Inspections, 919-245-2592
Approaches PowerPoint Presentation
F. Affordable Housing Action Items
PowerPoint Presentation
PURPOSE: To discuss options to expand affordable housing incentives and opportunities in
Orange County
BACKGROUND: Staff from the County Attorney's Office, Housing and Community Development
Department, and Planning and Inspections Department were requested to explore opportunities
to incentivize affordable housing in Orange County, with a focus on modifications to the Orange
County Unified Development Ordinance (UDO). Staff met to discuss opportunities as they relate
to regulations contained in the UDO, but also examined other options including housing policy
and programs.
At the February 16, 2021 BOCC Business Meeting, the County Attorney's Office drafted an
information item (Attachment A) related to this request. The information item included an
affordable housing report examining regulations contained in the UDO and a proposed list of items
to incentivize affordable housing related to the UDO. At that meeting, Board members requested
the item be brought back at a later date to review and discuss further. The Board further requested
all options and opportunities to incentivize affordable housing be considered.
As a result of the Board's request, staff have compiled a revised list of twenty-two action items to
expand affordable housing incentives and opportunities in Orange County. This list includes items
related to land use, planning, and zoning regulations, which were in the list presented at the
February 16 BOCC meeting. In addition, the revised list includes proposed action items related to
housing programs and policies. Proposed action items, including brief descriptions, timeframes,
and complexity, are contained in Attachment B.
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FINANCIAL IMPACT: There is no direct financial impact associated 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: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people
of all races, cultures, incomes and educational levels with respect to the development and
enforcement of environmental laws, regulations, policies, and decisions. Fair treatment
means that no group of people should bear a disproportionate share of the negative
environmental consequences resulting from industrial, governmental and commercial
operations or policies.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board receive the presentation
and discuss.
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MEMORANDUM
TO: Board of County Commissioners
FROM: James Bryan, Staff Attorney
DATE: February 4, 2021
SUBJECT: Options for Increasing Affordable Housing in Orange County Through the Unified
Development Ordinance
ATTACHMENT(S): Affordable Housing Report, Incentives & Opportunities Chart, Framework Chart,
Regulatory Process Chart, Survey Summary
BACKGROUND: The County Attorney was asked to report to the Board on all available options to
incentivize affordable housing in Orange County, focusing on potential changes to the Unified
Development Ordinance. This report aims to build upon a similar response from October 2019 by providing
a list of actionable items as well as incorporating feedback from the development community. James
Bryan, the staff attorney who works most with the Planning Department was tasked with this item.
While a list of seventeen actionable incentives and opportunities are included, staff sees four as being the
most fruitful although some would be controversial and others would require assistance from the towns.
In no particular order these are: First, the initiation of an updated comprehensive plan likely followed by
the adoption of a more modern UDO. Second, seek expansion to existing special legislation to allow for
an increased density bonus program allowing for payment in lieu of construction or donation of land. Third,
initiate discussion with stakeholders in the Joint Planning Agreement ("JPA") and Water Sewer
Management Planning Boundary Agreement ("WSMPBA") to allow exceptions for affordable housing.
Fourth, revise major subdivisions to be an administratively reviewed process.
The Incentives & Opportunities Chart is a compilation of seventeen potential options. The Framework
Chart lists traditional regulatory or financial incentive, indicating the statutory limitations and comparison
to other jurisdictions. The Regulatory Process Chart demonstrates the review process and the multiple
decision points along the way. The Survey Summary describes the feedback from developers.
Affordable housing is a ubiquitous issue that could seemingly endlessly benefit from further consideration.
Some communities, most recently Apex, utilize outside consultants to provide guidance. The longstanding
history of housing here and elsewhere also makes it a worthwhile topic for consideration under the lens of
racial equity.
While staff did receive feedback from the development community, much of that is anecdotal. At the
Board's direction, staff can compile comparison data for abutting jurisdictions and seek more concrete
financials.
In addition to this report, on October 1, 2019 Michael Harvey, Current Planning Supervisor, provided a
memorandum to the Board discussing the Development of Affordable Housing in Orange County, which
addressed many of the same items found in this report. Mr. Harvey's report may be viewed here.
Should the Board wish to further explore any of these seventeen items the County Attorney's office will
work with the Planning Department to bring them forward as expeditiously as possible.
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Report on Affordable Housing Incentives
February 20211
Zoning and land development incentives for affordable housing are necessarily tied to financial costs.
These incentives often aim to lower the transactional costs by allowing greater density or flexibility to
make the process quicker, more certain or cheaper.
Staff from the Orange County Housing & Community development reached out to several developers
(both non-profit and for-profit)to have them identify regulatory,financing and other barriers. Developers
responded that it was a long, slow and expensive review process.
The regulation of development inherently contributes to transactional costs and dampens the market's
full potential to provide low cost housing. To incentivize guaranteed affordable housing(i.e. protected by
covenants)local governments have some limited options such as fast track permitting. The more powerful
incentives,such as density bonuses, require special legislation from the NC General Assembly. In 1991 the
County received such special local authority (codified in UDO 6.18) but this incentive has never been
utilized by a developer.
The general belief is that developers, both for-profit and non-profit, have largely written-off Orange
County as too difficult to work in. Aside from land costs, the development process was seen as
unwelcoming due to a lengthy process with uncertain results. There are reasons warranting that feeling
as the UDO itself is lengthy, dense and confusing. For instance, there are expedited, exempt, minor and
major subdivision classifications with major subdivisions being further broken down into five
subcategories with three different permitting processes. All of those distinctions have true differences,
but perhaps for little purpose as there were 100 subdivisions in the last five years yet only four subdivided
into more than five lots. Subdivisions which require approval by the governing board involve a long
process with uncertain outcomes. In contrast, all subdivisions in Alamance County are handled
administratively.
Compounding the problem of an anti-development perception were outdated plans. The Comprehensive
Plan was adopted in 2008 using,for example, housing price data from 1970-2000. While a '30 year plan,'
the document itself called to be reviewed annually and then an update by 2015. There have been periodic
amendments to the plan necessitated by rezonings and text amendments to the UDO, but no review in
its entirety. Likewise, there are new demographics and notes from advisory boards, although these are
not adopted by the governing board as a formal update to the plan. The amount of attention to the plan
and resulting development may have reinforced the perception that the County was not interested in
attracting development. A new comprehensive plan would likely be a prelude to a wholesale replacement
to the UDO to drastically reduce the over 700 pages and create clear pathways to desired results.
In the past two decades there have been considerable shifts in planning regulations allowing much greater
legislative tools to replace cumbersome quasi judicial hearings. The General Assembly has provided for
1 This report was drafted by and reflects the opinions of James Bryan,Staff Attorney with recognition of
tremendous contributions and assistance from the Housing&Community Development Department(Emila Sutton,
Erika Brandt, Maria Dewees)and Planning& Inspections Department(Craig Benedict,Ashley Moncado,and Molly
Boyle).
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Conditional Zoning and Development Agreements—both legislative processes that allow for the
placement of conditions and provision of public infrastructure. These powerful tools replace outdated
methods of regulation with more straightforward procedures. There have also been the codification of
regulatory trends, such as with form based codes.
The County has been steadily amending its land use ordinance. It added some of the new tools, but
retained the outdated or unused tools. Staff recently updated the table of permitted uses and will be
recommending streamlining of the subdivision approval process. However, this piecemeal approach has
kept the ordinance large and complex. This is an ordinance which requires a quasi-judicial hearing, five
months of processing and more than a thousand dollars of fees to determine whether a taxidermy
business is appropriate in the Agricultural Residential zoning district with no guiding standards for the
Board of Adjustment other than the statutory minimum (e.g. being in harmony with the area).
The availability of land suitable to dense development is also a concern heard from the home builders.
There are three existing policies which exist primarily due to concerns about the environment or urban
sprawl, but consequentially also reduce the availability of land. The Joint Planning Agreement contains
minimum lot sizes within the Rural Buffer, the Water and Sewer Management, Planning and Boundary
Agreement limits the availability of public utilities and the Water Supply Watershed Overlay District limits
impervious surface on lots. These three policies cover the majority of land in the unincorporated county.
None of the policies have allowances to incentivize affordable housing.
Staff has compiled a list of available incentives in the Incentives & Opportunities Chart. Several other
attachments aim at providing context. The Framework Chart lists each traditional regulatory or financial
incentive, indicating the statutory limitations and comparison to other jurisdictions. The Regulatory
Process Chart demonstrates the review process and the multiple decision points along the way. The
Survey Summary describes the feedback from developers.
The most direct incentive would be to expand the current density bonus which would require special
legislation. Next, allowing exceptions for affordable housing in the rural buffer would create more
opportunities, but would require initiating a discussion with stakeholders in the JPA and WSMPBA.
Streamlining the subdivision process to be entirely administratively reviewed would make the process
both quicker and more certain. Finally, an update to the comprehensive plan and adoption of a modern
UDO would signal to the development community a recognition that affordable housing is a current
priority.
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Incentives and Options Chart
Action Item Description
1. Streamline the Reduce the number of options and increase the lot threshold required for greater
Subdivision scrutiny.
Processes
The most comprehensive review occurs at 20 units at which point there are 5 types of
major subdivisions.
2. Increase Density Allow a greater density for those projects which contain housing for low-to moderate-
Bonus income households.To date, a developer has never pursued this policy.
Current policy generally allows for 25% more density where at least 40%of units are
affordable. This bonus is not available in the protected watershed.
Current bonus is authorized by special legislation, and thus alterations to this bonus
would likely require additional special legislation.
3. Government Similar to previous economic development efforts, staff may examine and identify
Initiated Rezonings areas well suited for affordable housing and initiate pre-zonings to accommodate that
use.
4. Alter Approval Allow for more subdivision processes to occur with administrative review versus board
Authority to review which require public hearings.
Expedite Subdivision
Process Assess the existing development review process, specifically related to residential
development, including schedules, review times, and fees to determine if there are any
excessive requirements or measures impacting housing affordability.
5. Expedite Review Create a shorter timeframe for staff and board reviews of approvals.
Time for
Subdivisions and
Rezonings
6. Reduce Allow for reduced, refunded, or waived fees or maintenance guarantees.
Development Fees
7. Alter Development Alter standards for affordable housing projects. Standards include road construction
Standards Specific to requirements; dimensional standards; recreation and open space requirements; flag
Affordable Housing lot prohibitions; access to roadways; landscaping; stream buffers; and traffic impact
Projects improvements. May require special legislation.
8. Alter Development Alter standards for all residential development. Standards include road construction
Standards Applicable requirements; dimensional standards; recreation and open space requirements; flag
to All Development lot prohibitions; access to roadways; landscaping; stream buffers; and traffic impact
improvements.
9. Utilize Development Use development agreements for particular affordable housing projects. Engage with
Agreements individual developers or create a general policy to exchange vested rights in long term
projects for several considerations including the provision of affordable housing.
10. Expand Accessory Allow for the expanded use of ADUs.There are limitations due to existing water and
Dwelling Units sewer capacity and well/septic requirements.
11. Amend WASMPBA Increase access to public water and sewer service to allow more dense development.
to Increase Access to
Public Water and
Sewer Service
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Incentives and Options Chart
12. Equity and Inclusion Conduct a review of past, current and future endeavors in light of equity, diversity and
Review inclusion principles. A consultant has begun work reviewing current programs.
13. Affordable Housing Seek local legislation from the NC General Assembly to allow an affordable housing
Impact Fee impact fee.This would be a fee charged on non-residential or residential (new market
rate housing) development which is utilized for various affordable housing programs
including construction of affordable housing or rehabilitation of existing affordable
housing units.
14. Innovative Evaluate existing standards and new opportunities to support and allow for offsite
Wastewater Systems septic facilities for wastewater treatment. By reviewing existing standards and
exploring modern advances in offsite septic infrastructure and technology,the Unified
Development Ordinance may allow for flexible residential site design and
accommodate smaller lot sizes compared to the traditional onsite septic system.
15. Rural Buffer and JPA Modify existing ordinances, plans, policies, and agreements related to development in
Modifications the Rural Buffer to accommodate denser development projects which contain
substantial affordable housing.
16. Update the 2008 Initiate the overdue update to the 2008 Comprehensive Plan to incorporate updated
Comprehensive Plan data information and current County objectives.
17. Unified Complete a thorough review and redrafting of the Orange County Unified
Development Development Ordinance.This item would most likely come subsequent to a
Ordinance Rewrite recommendation from an update to the Comprehensive Plan.
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FRAMEWORK CHART
Standard Statutory Limit Special Legislation or Special Considerations Orange County
Density Bonus Set density restrictions by zoning district or SL 1991-246 Offers affordable housing density bonus
by overlay(e.g. watershed) Allows for>25% increase in density if (UDO 6.18); Restricts density in water
developer agrees to 1) rent 40%of units to supply watershed through impervious
those at<60% median income, 2) rent 20% surface limitations;
of units to those at<50% median, 3) sell 2
or more units to<80%, or 4) donate land.
Fee Assess user fees for regulatory services Fee reimbursements possible for affordable $1,500+ rezoning
Reduction or provided such fees are reasonable. housing under 157-9 and 153A-376(b)
Waiver Prohibited from charging different rates to (160D-1311). $3,000+Conditional Zoning
similarly situated customers.
Major Subdivision $2,500 ($310+concept
plan, $1,600 Preliminary, $500 final)
Fast-Track Set a maximum time for review or set Earliest approval for major subdivision
Permitting separate review procedures. submitted on 1/3/20 would be 5/5/20 with
>dozen intermediary deadlines.
Relaxed Modifiable standards include setbacks, Greater density can trigger other threshold Restrictions in place by the Rural Buffer
Development minimum lot size, parking, etc. requirements such as minimum lot size. A (JPA), impervious surface (Watersheds), and
Standards modification of lot size would need to be open space requirements; no allowance for
objective or be reviewed with subjective increased density.
guidance by a quasi judicial body.
Miscellaneous Development Agreements likely could Payment in lieu would likely require special
Development include affordable housing provisions. legislation.
Payment in lieu (similar to recreation).
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Summary of the Residential Review Process
Currently,the Orange County Unified Development Ordinance contains nine different review processes
for residential subdivisions. These vary based on number of lots proposed and designation in the rural or
urban areas of the County.The various process are summarized below.
SubdivisionsExempt
Definition-The combination or recombination of portions of previously subdivided and recorded lots if
the total number of lots is not increased and the resultant lots are equal to or exceed the standards of
the County, including private road justification standards, as detailed within this Ordinance.The division
of land into parcels greater than 10 acres if no street right-of-way dedication is involved.The public
acquisition by purchase of strips of land for widening or opening streets.The division of a tract in single
ownership of the entire area of which is no greater than two acres into not more than three lots, if no
street right-of-way dedication is involved and if the resultant lots are equal to or exceed the standards
of the County as shown by its subdivision regulations.
Review Process
Orange1. Submittal of exempt 2. Staff review and 3. Recordation atsubdivision plat decision >
of Deeds
Review Schedule–One to five days from submittal to recordation.
SubdivisionsExpedited
Definition–A subdivision shall be classified as "expedited"for divisions of a tract or parcel of land in
single ownership meeting all of the following criteria:
1. The tract or parcel to be divided is not exempt under the provisions of the Ordinance,
2. No part of the tract or parcel to be divided has been divided within the past 10 years from the
date of application submittal,
3. The entire area of the tract or parcel to be divided is greater than five acres,
4. No more than 3 lots result from the division,
5. All resultant lots comply with the following:
a. Lot dimension and size requirements of applicable land use regulations,
b. The use of the lot(s) is in conformity with applicable zoning requirements, and
c. A permanent means of ingress and egress is recorded for each lot.
Review Process
1. Submittal of Staff review . 3. Recordation at
expedited subdivision —� decision Orange
plat of Deeds
Review Schedule–Five days maximum, as contained in the UDO. However, in reality,these subdivisions
are experiencing a two to four week review period.
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Definition-A subdivision shall be classified as "minor" if it does not:
1. Create more than:
a. Five lots, including the residual acreage, following the Conventional subdivision design
model; or
b. Twelve lots, including the residual acreage,following the Flexible Development
subdivision design model, from any one tract of land in any ten year period;
2. Dedicate or improve any new public street other than widening an existing public street;
3. Extend public water and/or sanitary sewerage systems other than laterals to serve individual
lots; and
Necessitate the installation of drainage improvements, which would require easements through one
or more lots to serve other lots.
Traditional
Review Process
1. Pre-application 2. Review by Orange
Countymeeting and submittal
Developmentof Concept Plan
application Committee
I
Complete5.Submittal of Final 6. Review by Orange 7.
. . .
Plat application County staff requirements plat by Orange County
contained in the D• Planning staff
I
9.Recordation at
Orange
Register of Deed
Review Schedule—Average three to five month review process from submittal to recordation.
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. . . -
Mm
Definition-A subdivision shall be classified as "minor" if it does not:
1. Create more than:
a. Five lots, including the residual acreage,following the Conventional subdivision design
model; or
b. Twelve lots, including the residual acreage,following the Flexible Development
subdivision design model,from any one tract of land in any ten year period;
2. Dedicate or improve any new public street other than widening an existing public street;
3. Extend public water and/or sanitary sewerage systems other than laterals to serve individual
lots; and
Necessitate the installation of drainage improvements,which would require easements through one
or more lots to serve other lots.
Flexible Development
Review Process
1. Pre-application 2. Review by Orange
meeting • submittal CountyNeighborhood 1--> Plan by Orange County
applicationof Concept Plan Development Advisory Information Meeting Planning staff
5. Initiation of final plat 6.Submittal of Final 7. Review by Orange 8. Complete all
application process Plat application •
containedD•
9.Approval of final plat 10.Recordation at
by Orange CountyOrange County
Planningsta ..
Review Schedule—Average four to six month review process from submittal to recordation.
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Definition—Any division of land that is not classified as an Exempt or Minor subdivision. Proposed for a
subdivision of 20 lots or less.
Review Process
1. Pre-application meeting 2. Review by Orange County 3. Neighborhood
Review Schedule—Average eight month review process from submittal to BOCC approval. Followed by
an average three to six month process leading up to recordation.
and submittal of Concept staff and Development
Plan application Advisory Committee Information Meeting
6. Review by the Orange
4. Planning Board review 5. Submittal of preliminary County staff and
and approval plat application Development Advisory
Committee
7. Planning Board review 8. BOCC reivew and 9. Complete all
and recommendation approval requirements contained in
the UDO
10. Complete site 11. Final review and 12. Recordation at Orange
improvements approval by Orange County County Register of Deed
Planning staff
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. .
Definition—Any division of land that is not classified as an Exempt or Minor subdivision. A tract of land
in a Rural Designated area on the Growth Management System map that is proposed for a subdivision of
21-40 lots or a tract of land in an Urban Designated area on the Growth Management System map that
is proposed for a subdivision of 21-79 lots.
Review Process
1. Pre-application 2. Review by Orange 3. Neighborhood
meeting and submittal County Planning staff Information Meeting
1
4. Review by the Orange 5. Planning Board review 6. BOCC holds
DevelopmentCounty
Advisory Committee decision
I
7. Complete all 8. Complete site 9. Final review and
requirements contained improvements approval by Orange
in the
D. County Planning staff
I
10.
Recordation
Orange
of Deed
Review Schedule—Average seven to ten month process overall. Average four month review process
from submittal to BOCC approval of SUP. Followed by an average three to six month process leading up
to recordation.
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. . .
Definition—Any division of land that is not classified as an Exempt or Minor subdivision. A tract of land
in a Rural Designated area on the Growth Management System map that is proposed for a subdivision of
41 or more lots. A tract of land in an Urban Designated area on the Growth Management System map
that is proposed for a subdivision of 80 or more lots.
Review Process
1. ■ Orange 3. Neighborhood
Countymeeting and submittal County Planning staff Information Meeting
4. Review by the Orange 5. Planning Board 6. BOCC holds public
Development . hearing and makes
Advisory Committee recommendation decision
7. Complete all 8. Complete site 9. Final review and
requirements contained improvements approval by Orange
in the • County Planning
1 Recordation
Orange
of •
Review Schedule—Average seven to ten month process overall. Average four month review process
from submittal to BOCC approval of Conditional District. Followed by an average three to six month
process leading up to recordation.
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SURVEY SUMMARY ON AFFORDABLE HOUSING REGULATORY BARRIERS
AUGUST 2020
Background
In July, the Orange County Department of Housing and Community Development
surveyed local real estate developers to identify barriers and possible incentives to
affordable housing development. Survey questions asked about development
standards, fees, developable land in Orange County and the affordable housing density
bonus. Four developers responded — two nonprofit and two for-profit — and identified
several regulatory, financing and other market-driven obstacles to affordable housing
development in addition to policy solutions and possible incentives that may mitigate
these obstacles.
Regulatory Barriers
Survey respondents identified several regulatory barriers in Orange County that inhibit
or complicate affordable housing development. One developer described inconsistency
in fees and review processes across jurisdictions as a challenge. Several others cited
high impact fees, slow building permitting processes, and long development review
timelines as inhibiting factors. One developer also mentioned low-density zoning,
watershed restrictions, and the Rural Buffer as land-use limitations on buildable land.
Another developer had never considered developing outside of the jurisdictions
because they assumed that the broader County is not zoned to allow multifamily
building. Possible incentives suggested include reducing or refunding development
fees, relaxing building permitting processes, creating an expedited review process for
affordable housing projects, and otherwise modifying land-use regulations or creating
exceptions for affordable housing developments.
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Attachment B- Action Items to Expand Affordable Housing Incentives and Opportunities
1.Short-Term-Less Complexity Item Description
1.1 Residential Development Assess the existing development review process including schedules,review times,and fees to determine if there are any excessive requirements or measures affecting
Review Process Analysis housing affordability.
Complete a thorough review ofthe Orange County Unified Development Ordinance,specifically related to residential development,to identify existing standards or
regulations,which create impediments or barriers to affordable housing.Proposed amendments packages will be phased.
1.2 Orange County UDO Text
Amendments(Phase 1)- The first LIDO text amendment package may address modifications to minor subdivision,major subdivisions,and related development standards contained in Article 7.
Process and Standards Standards to be amended include,but are not limited to,dimensional standards,duplexes,flag lots,roadway access,private roadways,and recreation and open space
requirements.May also include amendments to streamline review process and alter approval authority.This may allow for more subdivision processes to occur with
administrative review versus Board review,which require public hearings.
1.3 Explore developing an Explore the opportunity to implement a streamlined review process for affordable housing projects.This may include the development of an"affordable housing
expedited and/or streamlined advocate"with existing staff,which may act as the main contact in assisting and guiding non-profit or affordable housing developers through the development process.
review process for affordable This additional guidance may assist to streamline the review process for non-profits and developers without any actual change to development regulations.In addition,
housing projects this may assist in addressing concerns with uncertainties in the development review process,which may impact development costs overtime.
1.4 Continued partnership and
coordination among OCHD staff continue to meet with Town staff to review existing and future joint efforts to promote and support affordable housing throughout the County.
departments and with the
towns.
1.5 Monitoring County-funded To maintain deed restrictions,affordability standards etc.there needs to be increased staff capacity to monitor ongoing development projects that have received
affordable developments County funding.
1.6 Continued funding of OCHCD administers several federal,state and local housing programs to respond to residents'housing needs.Many of these programs are new or have recently scaled
County programs,particularly up and have required additional staffing and resources. (For example,The Landlord Incentive Program,Rapid Re-Housing'The Emergency Housin Assistance Program,and eviction
prevention and home the Housing Helpline,the Street Outreach,Harm Reduction and Deflection Program(SOHRAD)).There continues to be a need to fund home rehab and repair programs
throughout the County as well.
rehab/repair
1
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Attachment B- Action Items to Expand Affordable Housing Incentives and Opportunities
Complexity2.Mid-Term-Intermediate
Action Item Description
2.1 Orange County UDO Text
Amendments(Phase 2)- To continue efforts to address barriers to affordable housing,a second text amendment package may be presented to address regulations pertaining to efficiency
Dwelling Based apartments,accessory dwelling units,and home parks.
Complete a thorough examination of the existing Orange County Density Bonus policy to allow for a greater density for those projects which contain housing for low-to
2.2 Modify Existing Density moderate-income households.To date,a developer has never pursued this policy.Current policy generally allows for 25%more density where at least 40%of units are
affordable. This bonus is not available in the protected watershed.This will include an analysis to determine a more viable density bonus for developers,which may be
Bonus more practicable and feasible to pursue.Current bonus is authorized by special legislation,and thus alterations to this bonus would likely require additional special
legislation.May result in amendments to the UDO.
2.3 Utilize Development Explore the use of development agreements for particular affordable housing projects. Engage with individual developers or create a general policy to exchange vested
Agreements rights in long-term projects for several considerations including the provision of affordable housing.May result in amendments to the UDO.
2.4 Pursue an affordable
housing bond in the next Pursue an Affordable Housing Bond in the next viable bond year.Orange County allocated remaining$2.5 million in 2016 Affordable Housing Bond Funds to affordable
viable bond year housing development projects in 2020,leveraging the creation and preservation of 261 affordable housing units.
2.5 Create a naturally Create a public-private fund to provide low cost financing for acquisition and rehabilitation of Naturally-Occurring Affordable Housing(NOAH)properties within Orange
occurring affordable housing/ County.NOAH funds enable socially-minded developers acquire NOAH properties,make modest upgrades,remove them from the speculative housing market and
manufactured housing preserve their affordability.Ideally,the fund would be flexible in nature,allowing for preservation of rental properties,mobile home and homeowner rehabilitation as
preservation fund well as flexible funds for mobile home resident displacement,and affordable housing gap financing.
2.6 Public education and
outreach re County programs, There is a need to expand public outreach and engagement around County programs and existing resources in place to support,retain,and maintain existing affordable
continued engagement with housing stock.The Housing Helpline has connected thousands of Orange County residents to housing services and resources and the Housing Access Coordinator has
landlords and developers increased landlord participation in County programs.However there is not sufficient staff capacity for thorough community outreach and engagement.
2
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Attachment B- Action Items to Expand Affordable Housing Incentives and Opportunities
3.Long-Term-Greater Complexity
Action Item Description
Complete a thorough review of existing land use and zoning in the County to determine if there are any areas of incompatible or inappropriate zoning designations,
3.1 Comprehensive Review of which may create hindrances for existing and future residents to attain or maintain affordable housing.May also explore Affordable Housing Overlay District,which may
the Zoning Atlas relax certain zoning and land use standards and/or provide bonus incentives for developers who choose to reserve a certain portion of their development for affordable
housing within designated areas of the county.May require special legislation and result in amendments to the UDO.
3.2 Innovative Wastewater Evaluate existing standards and new opportunities to support and allow for offsite septic facilities for wastewater treatment.By reviewing existing standards and
Systems exploring modern advances in offsite septic infrastructure and technology,the LIDO may allow for flexible residential site design and accommodate smaller lot sizes
compared to the traditional onsite septic system.May result in amendments to the LIDO.
3.3 Reduce Watershed The watershed overlay districts restrict development to certain impervious surface limits with no exception for affordable housing. This could be amended to raise the
Protection limits for all development orjust for affordable housing. May require coordination or approval of state agencies.May result in amendments to the LIDO.
3.4 Update the 2008 Initiate an update to the 2008 Comprehensive Plan to incorporate more accurate data information and current County objectives.
Comprehensive Plan
3.5 Unified Development Complete a thorough review and redrafting of the Orange County Unified Development Ordinance.This item would most likely come subsequent to a recommendation
Ordinance Rewrite(Focus on from an update to the Comprehensive Plan.
Affordable Housing)
3.6 Amend the Water and
Sewer Management Planning Initiate discussions with stakeholders and amend WASMPBA in order to increase access to public water and sewer service to allow for more dense development.
Boundary Agreement
(WASMPBA)
3.7 Rural Buffer and Joint Initiate discussion with stakeholders and modify existing ordinances,plans,policies,and agreements related to development in the Rural Buffer to accommodate denser
Planning Agreement(JPA) development projects on public water and sewer systems,which contain affordable housing.
Modifications
3.8 Leverage public land for a.Acquire land for the purpose of affordable housing development.
affordable housing b.Donate or sell underutilized County owned parcels for the development of affordable housing.This action item was previously initiated by Orange County in 2017 and
development resulted in the construction of two affordable housing units on County owned parcels.This action item may continue with a focus on the remaining nine County owned
parcels and the Greene Tract.This strategy would also involve an RFP process and public engagement.
3.9 Expand down payment Provide additional local funds for a down payment assistance program to assist lower-wealth residents gain access to homeownership opportunities.Assistance can be
assistance for low and offered in a variety of forms,including as a grant,a no-or low-interest amortizing loan or a deferred loan in which repayment is not due until the resale of the home.
moderate income households. Habitat for Humanity of Orange County currently provides second mortgage assistance to low-income homebuyers using HOME Program funds.
3.10 Develop a missing middle Develop a strategy for fostering affordable missing-middle housing development in Orange County,including technical assistance/capacity building support to
housing strategy developers seeking to build affordable missing middle housing types(i.e.accessory dwelling units,duplexes,triplexes and cottage courts).This strategy would
complement proposed amendments to the County's LIDO targeting regulatory and land use obstacles to missing middle housing types.
3
Affordable Housing Continuum ^' !CD
30%AMI and below: 31%-50%AMI 51%-80%AMI 81-100%AMI
Unsubsiclized low cost rental and homeownership housing/Naturally
$21,990 and below $21,991-$36,650 $36,651-$58,640 $58,641-$73,300
Occurring Affordable Housing/Market
Subsidized rental units(such as Low-Income Housing Tax Credit and USDA Rural Development funded units)
Income-restricted homeownership units
Public Housing
Market rate rental and homeownership units
Unsheltered/Shelters/Supportive
6,870 total households 5,080 total ZM
seholds 4,750 total hohouseholds) (10%of Orange County (17%of Orange County households) (9%of Orange County households)
75%of households(5,160)are 69%of households(3,520)are 41%of households(3,725)are 22%of households(1,030)are
cost burdened with 68%(4,700) cost burdened with 37%(1,855) cost burdened with 9%(805) cost burdened with 4%(210)
spending morethan halfoftheir spending N- 11111 loftheir spending morethan halfoftheir spending morethanhalfoftheir
� income on housing. income on housing. income on housing. income on housing.
Harm reduction Housing First
Permanent
supportive
Rapid rehousing
Homelessness and on prevention
Tenant protections
housingInclusionary
Preservation and rehabilitation
Production(e.g.Low-income housing tax credits-ILIHTC,affordable housing bond funds,local housing trust funds,and development on town-owned land)
Down payment
Housing Counseling
Orange County,Towns of Carrboro,Hillsborough and Chapel Hill,The State of North Carolina,North Carolina Housing Finance Agency(NCHFA)U.S. Private banking systems,equity investors,
Department of Housing and Urban Development(HUD),Low Income Housing Tax Credits/Internal Revenue Service(IRS),Equity Investors NCHFA,TowWit f Chapel Hill
Coordinated
Service Providers
Landlords/property
Affordable housing d op
Federal,State and Local Governments(The Towns of Carrboro, .pel Hill and Hillsborough,1 1
developers
'For consistency with population and cost burden data from 2013-2017,area median income(AMI)data is for 2017.AMI is calculated by HUD for a four person household and is available at:https://www.huduser.gov/portal/datasets/il.html#2017
2Household and cost burden data from the HUD CHAS data set,2013-2017.Available at https://www.huduser.gov/PORTAL/datasets/cp.html.AMI is calculated here fora 4-person household.
20
Partners in Affordable HousingOCHCD
ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT
CASA provides and manages affordable housing for underserved,disabled,and homeless veterans and individuals in Chapel Hill and other areas of n
North Carolina.
Centerfor Community Self-Help provides financial services and develops real estate(including affordable housing)with a focus on communities that 0' 0
may be underserved by conventional lenders,including people of color,women,rural residents and low-wealth families and communities.
Community Empowerment Fund((EF)provides person-centered support,financial education,and asset building tools to individuals experiencing
homelessness or housing insecurity,and helps people with transition out of poverty.
Community Home Trust is a nonprofit,licensed real estate firm that buys and sells affordable homes and provides property management and educa- HMO
tional programming such as financial counseling and homebuyer education for low-income households.
DHIC,Inc.provides homebuyer support and develops rental communities for families and individuals with limited incomes in the Triangle region. Q
EmPOWERment,Inc.is a community development corporation and HUD-certified housing counseling agency that provides financial education cours- p®®
es such as home buying and budgeting classes.EmPOWERment,Inc.also provides utility assistance to people in need,among other services.
Habitat for Humanity of Orange County builds and rehabilitates affordable homes in Orange County for low-income households. Q Q
Inter-Faith Council for Social Service(IFC)provides shelter and housing services including permanent supportive housing for people who experi100
-
ence complex barriers to housing or have been chronically homeless.IFC also provides community services such as food assistance,emergency financial
assistance and other programs to meet people's basic needs when they are crisis.
Orange County Home Preservation Coalition is a collaborative of organizations that provide home repairs and modifications to Orange County res- 0
idents.Members include the Orange County Dept.on Aging,Orange County Housing and Community Development,Rebuilding Together of the Triangle,
Habitat for Humanity of Orange County,Central Piedmont Community Action Inc.,Marian Cheek Jackson Center for Saving and Making History,Triangle J
Council of Governments,Hope Renovations,the Town of Carrboro,Town of Chapel Hill,OWASA and UNC's Partnerships in Aging Program.
Orange County Housing and Community Development Department(OCHCD)funds a wide array of affordable housing,eviction and homeless- HUM
ness prevention,and community development programs through three divisions.
The Housing and Community Development(HCD)Division coordinates the County's home repair programs,federal HOME program,Emergency
Housing Assistance fund,and other community development initiatives.
Orange County Housing Authority(OCHA)runs the County's Section 8 Housing Choice Voucher program,which provides rental assistance vouch-
ers to more than 600 renters earning at or below 50%of the area median income,and the Landlord Incentive Program,which encourages landlord
participation in voucher programs.OCHA does not manage any public housing units.
Orange County Partnership to End Homelessness(OCPEH)is a coalition of service providers,local governments,and residents who coordinate
funding and bring best practices to end homelessness in Orange County.OCPEH operates the Housing Helpline(Coordinated Entry System)to connect
people in housing crisis to resources and services;Rapid Re-Housing program,a flexible mix of mid-term rental assistance and services;and the Street
Outreach,Harm Reduction and Deflection team(in partnership with the Criminal Justice Resource Dept.)to reach people living unsheltered.
Orange County Health Dept.Social Services Dept.,Human Rights and Relations Dept.and Criminal Justice Resource Dept.each provide
various services to people experiencing housing crises,such as financial assistance to prevent eviction and homelessness(DSS),legal assistance with
eviction diversion(HR&R),and programs that reduce health hazards in the home such as the Healthy Homes Program(Health Dept.).The Criminal
Justice Resource Dept.partners with Orange County Partnership to End Homelessness to provide street outreach to people experiencing homelessness.
Pee Wee Homes builds affordable tiny homes for people transitioning out of homelessness in Orange County. HIM
Town of Carrboro Housing and Community Services Department works with local government,non-profit,and private • Qi m0
partners to increase and preserve the supply of affordable housing and to improve the economic and social well-being of its •
residents.The Town funds affordable housing opportunities through a special revenue fund and Human Services funding to •
local non-profits,and helps fund the Orange County Emergency Housing Assistance program.
Town of Chapel Hill Office for Housing and Community seeks to provide access to affordable housing and livable communities for a range of non
income levels where all residents can thrive.The Office crafts and implements affordable housing policy and works with many community partners, ,
including affordable housing developers and advocates and services providers,to create and preserve affordable housing.
The Public Housing Department is a part of the Office and manages 336 public housing apartness in 13 neighborhoods throughout Chapel Hill and
Carrboro,with some units dedicated for elderly and disabled residents.Public Housing residents must earn below 80%of the area median income.
Town of Hillsborough works in partnership with local governments,non-profits,and private developers T ow N OF H 1 L L s s o Ro UGH
to expand affordable housing opportunities in town.The Town provides funding to support Hillsborough
residents through the Orange County Emergency Housing Assistance program and has secured land
donations and payments in lieu to be used for affordable housing initiatives.
Q Development ®Emergency/Transitional Shelter Q Preservation ®Support Services
' Down Payment Assistance ®Housing Management Q Rental Assistance
Last updated May,2021
21
HOW DOES AFFORDABLE RENTAL
HOUSING GET BUILT?
Like any real estate development, affordable housing requires capital.
However, the rents must be affordable to families earning lower incomes.
Special financing tools are required to make the numbers work.
On the equity side, the Housing Credit
leverages the power of the private MARKET RATE HOUSINGCREDIT
market to attract private investment SOFT
II
by providing tax benefits to DEBT
investors. EQUITY
■ ■ ■ ■ ■ ■
On the debt side, the North Carolina ■ ■ ■ ■ ■ ■
-.
Housing Finance Agency provides DEBT
developments with below-market-
rate loans. L $1,000 RENTS $500 RENTS
Equity • soft • -•
are key to creating
affordability
SOFT DEBT
� (I.E., WHLP, NC HOUSING TRUST FUND)
� HOUSING CREDITS
■■ a
OWNER/
INVESTO �■ ■ ■
EQUITY ■ ■ ■ ■
■ ■
LENDER
MORTGAGE ! T
This financing makes it possible to charge rents that are affordable NORTH CAROLINA
to families earning lower incomes.
www.nchfa.com HOUSING
1-800-393-0988 or 919-877-5700 FINANCE
tt
&. Q
A self-supporting public agency AGENCY
Affordable
Housing
UDO & Other Approaches
ORANGE COUNTY
NORTH CAROLINA
1
23
as
00 *
Lei „i
.�r, - , °r,►� ,,,, }? * ,',� �: : • A working group was tasked with
responding to request from the BOCC
• p g a
•• , to explore options to incentivize
affordable housing in Orange County
Scope including suggestions to change the
UDO.
Affordable Housing • The goal was to provide options to the
Allow those at 1 ' , of _ • • _ to spend BOCC for their consideration .
24
The Basics
Aim_
AV
Monetary Regulatory Market Factors
Contribution Relaxations
Grants or Bonds Alter the Process Supply v Demand I
Direct to Developers or Quicker, Cheaper or
partner with Non-Profits More Certain
_ 3 �
25
Compiled a list of 33 available options
included in the Incentives & Opportunities
Chart.
Reached out to stakeholders resulting in a
Survey Summary.
Framework Chart identifies the traditional
incentives along with limitations and
comparisons.
Process
Housing 101 gives a basic view of financing
Reached out to stakeholders
Laundry List of Options The Report summarizes this work and
Recommendations of those with Impact identifies five recommendations.
26
RegulatoryOptions
Y B Right Development
g p
- The review process can add
time and uncertainty to
projects.
Ib
Fast Track Permitting
One of the few options
available to all local
• governments.
- _ Density Bonus
Authorized by special
<. f legislation in 1991.
r
27
Stakeholder Response
There is an opportunity for success
Expensive Demand & Capacity Slow Process
Developers cite fees as Developers recognize a Any delay is due to
costs incorporated into market and have ability, requirements for public
housing prices but require public meetings rather than to
funding. staffing levels
6
28
Five Recommendations
1117�
Amend JPA & Streamline Update the Plans Additional Bonds Expand Density
WSMPBA Subdivisions Bonus
Allow an exception for Consolidate the process Acknowledge what has Funds are critical to The idea of a density
Affordable Housing so that it is clear, and has not worked, achieving substantial bonus still has merit,
within the Rural Buffer concise and certain particularly the current impacts but perhaps a greater
density bonus distinction is needed
7
29
Specific Strategies
Changes to the UDO
Subdivisions � � Density Bonus 1
• Exempt, Minor & • Never used since
Major with 1991.
multiple
subcategories • Likely not
• Distinctions disparate enough
without a of a bonus
difference • Would need
• Cumbersome and NCGA to increase
confusing incentive.
30
Plan Based Strategies
Long term approaches
Comprehensive Plan JPA & WSM PBA
Update
• Adopted in 2008 • There is currently no
calling for annual exception for
review and a full affordable housing
update by 2015. within the rural buffer.
• Many new tools and • Creating an allowance
strategies since would increase the
2008, including supply of land
available to these
Development projects
Agreements.
• Would require
• Will likely result in collaboration with
recommendations to partner jurisdictions
update the UDO.
i
•
The politics of geography can have dramatic
impacts on matters of diversity, equity, inclusion
and social justice.
4k1
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ORANGE COUNTY r
Thanl< You NORTH CAROJ N
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33
ORANGE COUNTY
NORTH CAROLINA
Board of County Commissioners
Work Session — June 3 , 2021
Affordable Housing Incentives and Opportunities
Background
34
■ Spring/Summer 2020
■ Request to Orange County Attorney to report all available options to incentivize affordable
housing, focusing on modifications to the Orange County Unified Development Ordinance.
■ Summer/Fall 2020
■ Staff work group met to review and discuss all options available to incentivize, support, and
expand affordable housing in Orange County. Staff work group included:
■ Attorney's Office — John Roberts and James Bryan
■ Housing and Community Development Department — Emila Sutton, Erika Brandt, and Maria Dewees
■ Planning and Inspections Department — Craig Benedict, Ashley Moncado, and Molly Boyle
■ February 16, 2021 BOCC Meeting
■ Attorney's Office presented seventeen planning related actionable incentives and opportunities.
■ BOCC requested further review at a later meeting and to present all options available.
■ Following this meeting, staff reviewed, revised, and reordered the original list in order to
incorporate housing related incentives and proposed timeframes.
ORANGE COUNTY
NC3ItTH CARCQLINA
35
Purpose
■ To present options to expand affordable housing incentives and opportunities in
Orange County.
Strategy
■ Review the varying complexities and potential timelines involved in various options
Overview
■ Presentation of the existing housing need in Orange County
■ Planning Department's Action Items (related to the UDO)
■ Housing and Community Development Department's Action Items
■ Board Discussion
ORANGE COUNTY
NORTH CAROLINA
Unmet Housing Need
36
■ Despite combined efforts by federal , state and local governments, non-profit
community partners, service providers, and housing developers to provide housing
opportunities in Orange County, there remain unmet housing needs and
opportunities for housing incentives and local policy action
■ The County has opportunities to expand affordable housing supply, preservation
and resources for low and moderate income (LMI ) households at risk of/
experiencing housing instability and homelessness.
ORANGE COUNTY
1`4C3RTH CARCJLINA
Affordable Mousing ontintj.,--�-' PSCHCD
37
Income' 30%AMI and below: 31%-50%AMI S1%-80%AM1 81-18 AMI
$21,990 and below $21,991-$36,650 $36,651-$58,640 $58,641-$73,300
Housing Types
I; I
Housing Choice Voucher(Section 8)rental units e. M
Population2 6,870 total households 5,080 total households 8,995 total households 4,750total households
f.--52,160 households) 03%orfOrange County households) ;1Q1.�ofOrange County households) 07%ofOrangeCountyhouseholds) (9%of-Orange County households
Cost Burden 75%of households(5,160)are � 69%of households(3,520)are 41%ofhouseholds(3;725)are 22 of households 1;1,030)are
cost burdened with 68%(4,700) � cost burdened widr 37%(1,855) coast burdened wd 996(805) cost burdened with 41,j(210)
spending more than half of their spending more than half of their spending more than half o]ftheir �7 spend ing more tha n half of thei r
incomeion housing. income on housing. income on housing. income on housing.
Strategies I , 1 0 ,
i'• MMI 1 1 e_
1,.J 1 1
Rent assistance(such as Emergency Housing Assistance/Housing Choice Voucherslfenant-Hawd
Rental Assistance)
iflornelessnessancl evicbonprevention
Eenant protections
1PIPwyation and rehabilitation
' ..I tl I.Low-income housing tax '1lits-LIHTC,affbrdabletl g bond funds, housing trust funds, 1 development town-ownedland)
Dawn M iT
PousingCounseling
Fu
nders
Orange County.Towns offarrbnm,HiIIsbwoughand Chapel Hill,The State ofNorth�Carolina,North CarolinaHousing FinanceAgency(NCHF.�11U.S. 7Priw,te ban king system s,equity investors,
Department of Housing and lJrbanDIwlopmerrt(HUQ),LowIncome Ho�usingTax CreditsflntemajRosvenue5errirce(IR5),Equity Investors A,Ton'nofChapelHill
Systerus 1 r
Partners11service Providers
LandlordsJproperty owners
FffY I.! `housing dewlopen
Federal, I Local Go*ernrnentsof Carrlboro,Chapel Hill and Hillsbarough,Orange 1 of NorthCarolina, '' M'
For-profit developers ORANGE COUNTY
'Forcunsistency with population a nd cost burden data from 2013-M17.area median income{AMI)data is for 7017.AMI iscalculated byH UD far a four person household and isavailahleat:httus_i/www.huduser_govJuautalfdatasetsfiI.htmI#2017 NORTH CARCJLINA
'Household and cost burden data hom the HUD CHAS data set,2013-2017.Available at httos:,`lwww.huduser.govJPORTAUdatasetsi cp.html.AMI is calculated here fora 4-person household.
Partners in Affordable Housing QXHCD 38
�. rcrr�yr�sccnw,�m�:aop�vr
MU praidesandl manages affordable housing forLndefsemed,disalbled,and homeless veterans and individuals in Chapel Hill and other areas of 0113
kflh Carolina
CenterfnrConn muaity5elf-Helppmvic,�fnancialservices and developsrealstaterindudingaffordable hnusinglwith afocusoncornmunitiestfat On
maybe underserted by co rheational Iencer.including people of€dor,women.rural re identsandloru-wealthfarnil ies and oommunnM5.
CommunityEonpawermentFurid;(EF)pmidesperson-centensdsupport,fnancia,ledK ion,and asset building took toindividuals ex"noing
homelessness or housing insecurity,and helps people with transition out ofporerty-
CommunityHomeTrustisanoaprofiylicensedrealestatefnthathuysandsellsaffordaMehcrnesandproadesproper management and educa- O�
tonal programming such as finart"counseling and homebirrereducation for low-income households. OQ
DHl(rlrrc.pravideshomebuyerstpport and develops rental commuririesforfamilies andindividuals wahlimited incomes ink7riangknsgion. Q
EmPO'WERment,I nc.is a community development corporation and HUD-oertified horesing roumeling agency that provides financial educatiar can-
es sudr as horse buying and budgeting losses.Em P FWERment,Inc.also paovides utility asstraime to people in rteed amahg other services
HabitatforHumanityofOrange(ountyrhuildsaidrehabilitatesaffordahlehomesinOrange(ountyforcy—ineornehousehekk OEM
0
Inter-Faith Council for Social 5en4p(IFC;provides shelter and housing services indudingpermanent suppartirehousing far Pe*Who eh[peri- E30
ence complex barriers to hoLziing or hae bmn chronically hompk--is.lFC also pmvdes community senices such as food assistanu.emergencyfinancial
assistance and other programs to meet people's basic needs when they are crisis.
Grange Cou M Horne Preservation Coalition is a collaborative of organizations that pmride home repairs and modifications to Orange County res-
idem Members induce the[range County Dept-on Aging Gahge(oumty Housing and(ummunrry Detelopment,RebuildingTongether of the Triangle,
Habitat for Humanity c(Orange(curly,(ental Nedmwnt Communk Aohon Inc,Marian Cheek ladson Center for Saving and Malting History.Triangle J
Council of Governments,Hope RencyAmsrtheTowncf(amhoro,TawnofChapelHill,OWASAandUNCsPartnershipsinAgingProgram.
1-1 range Coumy Housing and Community Development Department{1CHCD)funds awide array c(aHordablehousing,eviction and homeless-
Fess preWfition,and community d<telhohment progams through three divisions_ 0
rice Housing and Community Development(H(D)Divislon coordinates the County's home repair programs,federal HOME p c-gramr Emergency
Housngks smncefund,andothercomrnunrtydevelopnrentiniroatws.
County Housing Authority(OCHA)rurc the County's Section A Housing Choice Voudter program,which provides rental assistance voh►dh-
ers to more than 600 revers earring at or below 50%of the area median incomer and the landlord Incentreee Program,which encourages landlord
partinpatio n in voucher lam grams OCTA does not manage any public housing unci.
r,range County Partnership to End Homelessness(OCPEHI is a coal iticn of service providers,local goremmen ts,A residents who coo rdinate
funding a rid bring best practices to end hornelessnes in 0rang e County-OCPEH operates the Housing Helpline('Coordinated Entry Systern I to connect
people in housing costs to resources and services;Rapid Re-Housing program r a Flexible mo¢of mid-tern rental assistance and services;and the Street
Outreach,Harm Red uaion and Def'enon team(in pararership with the Crim in al Justice Resource Ciept.)to reach people Iiti ng umheltered.
Grange County HeahhDept.SodalServmes Dept.;Human Rights and RefationsDept.ai-A Criminal J ustite ResourceDept.each prmside Q
various RN topeople ex*enc ng housing care%such asfinancial assistance to prevent eviction and hamelessnes IDSSI,le-ga,Iassistance with
eviction diversion(HRU1,and.pro grarns thole reduce Itahh hazards in the home such as the Healthy Homes Progran{Health Dept.).the Criminal
JcsdTResourceDept.pamerswith0rang eCountyPartnershiptoEndAomelessneztoprovide streetou eachtopeopleexpefiendnghomelssnesi
re'Wee Homes lbudds affordable tiny homes for pecoe tra nsitiuning aunt of homelessness in Orange County. 00
Town of Carrboro Housi ng a rid(ommunitySerrriees Department works with local government non-pf*and pivateDom
parmers^oinmaseandpreseenethe supply ofalfnrdafilehutuingand toimproYethe economicandsndaIwe11-M ng of ` & 0
residents.The Town funds affr rdable housing opportunities through a sped al revenue fund and Human Services funding to 13
local nun-prohK and helps fund the Ora ge(curry Emergency Housing Asisrahoe progran.
Town ofChapelHi11Office forHousing arid(ommonitgwe&with local gcyemments,developers�andservicesprmnderstodAver -
hurn a n services programs and to ueate and preserve"able hum ing,inducting pruvidng fimds to the Orange CohrrtyEmergency
Housing.Assistance program.The Pahl it Housing Ekpartinent w ithin the Offi[e manages 136 public housing apartmss in 13
neighborhoods in Chapel HilIand farrhorofnrrertersearning hdow +oaftheareamedia irheornerwthsomeunitsdedhmttd
fa elderly and disabled residents
Town of Hill sborn ughworksinpartnershipwthlocal grnemmenti,nonlrufts,andprinte&veIopers f4 og HILLSSop,0Lr � �F
to Expandaffordahlehousingopportunitiesintown-TheTorvnprovidesfundingtosupportHlillsborough c �,��` �—
IMM13
residerts through the Orange County Emergency%using Assistance program and has secured land
donations and parrnemsinlieu tobeusedfor affordable housing intiatihes ORANGE COUNTY
ODevelopment ®Emergemcyf ransitinnal5hefter pPreservation 05upportSetvices TSPQRTH CARCJLINA
OCiownPayment Assistance [D Housing Management QRental Assistance
tesf aphin*ed'. rg:202
Unmet Housing Need
39
■ -5,000 extremely low-income households (earning >30% AMI) are cost burdened in
Orange County
■ Supply of affordable rental units for <30% AMI much lower than the number of households;
staff estimate gap of 3,800 affordable rental units
■ Since most low-income households live in unsubsidized naturally occurring affordable
housing (NOAH), preservation of these units has potential for significant impact. The
County administers rehab and repair programs to preserve NOAH housing however, there
is no countywide strategy to prevent NOAH housing units from being redeveloped into
more expensive units.
No. of renter households compared to no. of Households occupying units affordable for
affordable rental units by income bracket (HUD CHAS households earning <30% AMI (HUD CHAS
2013-2017) 2013-2017)
12000 Iaoo
13005 9{]Q
10000
800
8000 7394 700
600
6000
4725 4675 4689 Sao
4000 3150 400
2$70
2000L
300
200
0 100
€300 AMI 30-50%RMI 50-80%AMI 80%<AMI o ORANGE
COUNTY
■IRenter households ■Affordable rental units <30%AM] 30-50%AMI 50-80%AMI 80-100% 100%€AMI NC)ItTH CARC)LINA
County Programs to Target Housing Needs
40
Production Preservation Ending Housing Instability and Homelessness
Affordable Housing Bond Urgent Repair Program (URP) Housing Choice Vouchers (HCV)
The HOME Program Single-Family Rehabilitation Program (SFR) The Housing Helpline —Coordinated Entry
Supplemental Weatherization Program (SWP) Emergency Housing Assistance (EHA)
Rehab initiatives and collaboration with OC The Eviction Diversion Program (EDP ) -with NC Legal Aid and
Home Preservation Coalition, Handy Helpers OC Human Rights and Relations
(Dept. on Aging) and Hope Renovations
Rapid Re-Housing
Housing Access Coordination / Landlord Incentive Program
The Street Outreach, Harm Reduction and Deflection
(SOHRAD) Program
DMAP (Displacement Mitigation Assistance Program) for
manufactured home residents
The Orange County Partnership to End Homelessness provides
coordination and planning among service providers.
Action Items to Expand Affordable Housing Incentives and Opportun1ties
Less Complexity Intermediate Greater Complexity
jimmuShort-Term Mid-Term Long-Term 7
Timing: Timing: Timing:
< 6 months < 1 year > 1 year
Existing Funding Existing Funding Funding Needed
Existing Staff Capacity Existing Staff Capacity Greater Staff Capacity Needed
Internal Staff Internal Staff Internal Staff
Minimal Department Coordination Marginal Department Coordination External Staff (Consultant)
County Advisory Boards' Review State Coordination Significant Department Coordination
BOCC Review and Approval Legislative Authority Town Coordination
County Advisory Boards' Review State Coordination
BOCC Review and Approval Legislative Authority
County Advisory Boards' Review
BOCC Review and Approval
Town Advisory Boards' Review
Town Boards' Review and Approval
42
Action Items to Expand Affordable Housing Incentives and Opportunities
Planning and Inspections Department
Existing Funding
1. Short-Term — Less Complexit-- 49
Existing Staff Capacity
1.1 Residential Development Review Process Analysis
1.2 Orange County UDO Text Amendments (Phase 1) Internal Process and Coordination
1.3 Explore developing an expedited and/or streamlined review process for affordable housing projects County Advisory Boards' Review
' BOCC Review and Approval
2.1 Orange County UDO Text Amendments (Phase 2)
State Coordination
2.2 Modify Existing Density Bonus
2.3 Utilize Development Agreements Legislative Authority
73.1
MSignificant Department Coordination
Comprehensive review of the zoning atlas Greater Staff Capacity Needs
3.2 Innovative Wastewater Systems External Staff (Consultant)
3.3 Reduce Watershed Protection
3.4 Update the 2008 Comprehensive Plan Funding Needed
3.5 Unified Development Ordinance Rewrite (Focus on Affordable Housing) Town Coordination
3.6 Amend WASMPBA Town Advisory Boards' Review
3.7 Rural Buffer and JPA Modifications
Town Boards' Review and Approval
Action Items to Expand Affordable Housing Incentives and Opportunities
Planning and Inspections Department
1. Short-Term — Less Complexity Item Description
1.1 Residential Development Assess the existing development review process including schedules, review times, and fees to determine if there are any
Review Process Analysis excessive requirements or measures affecting housing affordability.
Complete a thorough review of the Orange County Unified Development Ordinance, specifically related to residential
development, to identify existing standards or regulations, which create impediments or barriers to affordable housing. Proposed
amendments packages will be phased.
1.2 Orange County UDO Text
Amendments (Phase 1) - The first UDO text amendment package may address modifications to minor subdivision, major subdivisions, and related
Process and Standards development standards contained in Article 7. Standards to be amended include, but are not limited to, dimensional standards,
duplexes, flag lots, roadway access, private roadways, and recreation and open space requirements. May also include
amendments to streamline review process and alter approval authority. This may allow for more subdivision processes to occur
with administrative review versus Board review, which require public hearings.
Explore the opportunity to implement a streamlined review process for affordable housing projects. This may include the
1.3 Explore developing an development of an "affordable housing advocate" with existing staff, which may act as the main contact in assisting and guiding
expedited and/or streamlined non-profit or affordable housing developers through the development process. This additional guidance may assist to streamline
review process for affordable the review process for non-profits and developers without any actual change to development regulations. In addition, this may
housing projects assist in addressing concerns with uncertainties in the development review process, which may impact development costs
overtime.
ORANGE COUNT
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Action Items to Expand Affordable Housing Incentives and Opportunities
Planning and Inspections Department
Complexity2. Mid-Term — Intermediate
Action Item Description
2.1 Orange County UDO Text
To continue efforts to address barriers to affordable housing, a second text amendment package may be presented to address
Amendments (Phase 2) -
Dwelling Based
regulations pertaining to efficiency apartments, accessory dwelling units, and home parks.
Complete a thorough examination of the existing Orange County Density Bonus policy to allow for a greater density for those
projects which contain housing for low- to moderate-income households. To date, a developer has never pursued this policy.
2.2 Modify Existing Density Current policy generally allows for 25% more density where at least 40% of units are affordable. This bonus is not available in the
Bonus protected watershed. This will include an analysis to determine a more viable density bonus for developers, which may be more
practicable and feasible to pursue. Current bonus is authorized by special legislation, and thus alterations to this bonus would likely
require additional special legislation. May result in amendments to the UDO.
2.3 Utilize Development Explore the use of development agreements for particular affordable housing projects. Engage with individual developers or create
Agreements a general policy to exchange vested rights in long-term projects for several considerations including the provision of affordable
housing. May result in amendments to the UDO.
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Action Items to Expand Affordable Housing Incentives and Opportunifts
Planninq and Inspections Department
Complexity3. Long-Term — Greater
Action Item Description
Complete a thorough review of existing land use and zoning in the County to determine if there are any areas of incompatible or inappropriate zoning
3.1 Comprehensive Review of the designations, which may create hindrances for existing and future residents to attain or maintain affordable housing. May also explore Affordable Housing
Zoning Atlas Overlay District, which may relax certain zoning and land use standards and/or provide bonus incentives for developers who choose to reserve a certain
portion of their development for affordable housing within designated areas of the county. May require special legislation and result in amendments to the
UDO.
3.2 Innovative Wastewater Evaluate existing standards and new opportunities to support and allow for offsite septic facilities for wastewater treatment. By reviewing existing
Systems standards and exploring modern advances in offsite septic infrastructure and technology, the UDO may allow for flexible residential site design and
accommodate smaller lot sizes compared to the traditional onsite septic system. May result in amendments to the UDO.
The watershed overlay districts restrict development to certain impervious surface limits with no exception for affordable housing. This could be amended
3.3 Reduce Watershed Protection to raise the limits for all development or just for affordable housing. May require coordination or approval of state agencies. May result in amendments to
the UDO.
3.4 Update the 2008
Initiate an update to the 2008 Comprehensive Plan to incorporate more accurate data information and current County objectives.
Comprehensive Plan
3.5 Unified Development
Complete a thorough review and redrafting of the Orange County Unified Development Ordinance. This item would most likely come subsequent to a
Ordinance Rewrite (Focus on
recommendation from an update to the Comprehensive Plan.
Affordable Housing)
3.6 Amend the Water and Sewer
Initiate discussions with stakeholders and amend WASMPBA in order to increase access to public water and sewer service to allow for more dense
Management Planning Boundary
Agreement (WASMPBA) development.
3.7 Rural Buffer and Joint Planning Initiate discussion with stakeholders and modify existing ordinances, plans, policies, and agreements related to development in the Rural Buffer to
Agreement (JPA) Modifications accommodate denser development projects on public water and sewer systems, which contain affordable housing.
Action Items to Expand Affordable Housing Incentives and Opportunities
Housing and Community Development Department
Complexity1. Short-Term — Less 1.4 Continued partnership and coordination among departments and with the towns.
1.5 Monitoring County-funded affordable developments
1.6 Continued funding of County programs, particularly homelessness and eviction prevention and home rehab/repair
22.4 Pursue an affordable housing bond in the next viable bond year
2.5 Create a naturally occurring affordable housing /manufactured housing preservation fund
2.6 Public education and outreach re County programs, continued engagement with landlords and developers
3.8 Leverage public land for affordable housing development
3.9 Expand down payment assistance for low and moderate income households
3.10 Develop a missing middle housing strategy
rcANGE COUNTY
NC3RTH CARCJLINA
Action Items to Expand Affordable Housing Incentives and Opportunities
Housing and Community Development Department
1. Short-Term — Less Complexity Item Description
1.4 Continued partnership
and coordination among OCHD staff continue to meet with Town staff to review existing and future joint efforts to promote and support affordable housing
departments and with the throughout the County.
towns.
1.5 Monitoring County-
funded affordable To maintain deed restrictions, affordability standards etc. there needs to be increased staff capacity to monitor ongoing
developments
development projects that have received County funding.
1.6 Continued funding of OCHCD administers several federal, state and local housing programs to respond to residents' housing needs. Many of these
County programs, particularly programs are new or have recently scaled up and have required additional staffing and resources. (For example, The Landlord
homelessness and eviction Incentive Program, Rapid Re-Housing, The Emergency Housing Assistance Program, the Housing Helpline, the Street Outreach,
prevention and home Harm Reduction and Deflection Program (SOHRAD)). There continues to be a need to fund home rehab and repair programs
rehab/repair throughout the County as well.
ORANGE COUNTY
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Action Items to Expand Affordable Housing Incentives and Opportunities
Housing and Community Development Department
Complexity2. Mid-Term — Intermediate
Action Item Description
2.4 Pursue an affordable Pursue an Affordable Housing Bond in the next viable bond year. Orange County allocated remaining $2.5 million in 2016 Affordable
housing bond in the next Housing Bond Funds to affordable housing development projects in 2020, leveraging the creation and preservation of 261
viable bond year affordable housing units.
2.5 Create a naturally Create a public-private fund to provide low cost financing for acquisition and rehabilitation of Naturally-Occurring Affordable
Housing (NOAH) properties within Orange County. NOAH funds enable socially-minded developers acquire NOAH properties, make
occurring affordable housing modest upgrades, remove them from the speculative housing market and preserve their affordability. Ideally, the fund would be
/manufactured housing
preservation fund flexible in nature, allowing for preservation of rental properties, mobile home and homeowner rehabilitation as well as flexible
funds for mobile home resident displacement, and affordable housing gap financing.
2.6 Public education and
There is a need to expand public outreach and engagement around County programs and existing resources in place to support,
outreach re County
retain, and maintain existing affordable housing stock. The Housing Helpline has connected thousands of Orange County residents
programs, continued
to housing services and resources and the Housing Access Coordinator has increased landlord participation in County programs.
engagement with landlords
However there is not sufficient staff capacity for thorough community outreach and engagement.
and developers
ORANGE COUNTY
NC3RTH CARCJLINA
Action Items to Expand Affordable Housing Incentives and Opportunifts
Housinq and Community Development DepatIment
Complexity3. Long-Term — Greater
Action Item Description
a. Acquire land for the purpose of affordable housing development.
3.8 Leverage public land for b. Donate or sell underutilized County owned parcels for the development of affordable housing. This action item was previously
affordable housing initiated by Orange County in 2017 and resulted in the construction of two affordable housing units on County owned parcels. This
development action item may continue with a focus on the remaining nine County owned parcels and the Greene Tract. This strategy would also
involve an RFP process and public engagement.
3.9 Expand down payment Provide additional local funds for a down payment assistance program to assist lower-wealth residents gain access to
assistance for low and homeownership opportunities. Assistance can be offered in a variety of forms, including as a grant, a no- or low-interest amortizing
moderate income households loan or a deferred loan in which repayment is not due until the resale of the home. Habitat for Humanity of Orange County currently
provides second mortgage assistance to low-income homebuyers using HOME Program funds.
Develop a strategy for fostering affordable missing-middle housing development in Orange County, including technical
3.10 Develop a missing assistance/capacity building support to developers seeking to build affordable missing middle housing types (i.e. accessory dwelling
middle housing strategy units, duplexes, triplexes and cottage courts). This strategy would complement proposed amendments to the County's UDO
targeting regulatory and land use obstacles to missing middle housing types.
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Recommendation
■ The Manager recommends that the Board receive the
presentation and discuss .
ORANGE COUNTY
NORTH CAROLINA