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HomeMy WebLinkAboutAgenda 11-16-2021; 5-a - Public Hearing on 2020 Consolidated Annual Performance Report (CAPER) for the HOME Investment Partnerships (HOME) Program 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2021 Action Agenda Item No. 5-a SUBJECT: Public Hearing on 2020 Consolidated Annual Performance Report (CAPER) for the HOME Investment Partnerships (HOME) Program DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Draft Consolidated Annual Performance Corey Root, Director, Housing and Report (CAPER) Community Development, (919) 245- HOME Funding Timeline 2490 PURPOSE: To hold a public hearing on the draft Consolidated Annual Performance Report (CAPER) for the HOME Investment Partnerships (HOME) Program. BACKGROUND: Each year, Orange County reports on activities undertaken with funds from the U.S. Department of Housing and Urban Development through the HOME Program. This annual report, called the Consolidated Annual Performance Report (CAPER), documents the progress towards implementing the priorities and activities identified in the Annual Action Plan. During the 2020 CAPER period (July 1, 2020 through June 30, 2021), the County disbursed approximately $200,000 in HOME funds and an additional $45,000 in local matching funds (contributed by the Towns of Chapel Hill, Carrboro, and Hillsborough, as well as the County) for eligible housing activities. These activities included provision of down payment assistance for low-income homebuyers and provision of tenant-based rental assistance. Orange County must hold a public hearing to obtain residents' comments and feedback on the Consolidated Annual Performance Report (CAPER). Members of the public may also submit comments during the public comment period (November 16— December 1, 2021) to Erika Brandt, Community Development Manager, by email (ebrandt(@orangecountync.gov), by mail (PO Box 8181, Hillsborough, NC 27278) or by telephone (919-245-4331). FINANCIAL IMPACT: There are no financial impacts anticipated with this item. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. 2 • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts applicable to this item. RECOMMENDATION(S): The Manager recommends that the Board open the public hearing, accept comments on the Consolidated Annual Performance Report (CAPER), and close the public hearing. Members of the public may also submit any additional comments to the County through the methods noted above by December 1, 2021. 3 Orange County, North Carolina HOME Consortium 300 W. Tryon Street Hillsborough, NC 27278 DRAFT PROGRAM YEAR 2020 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) HOME Consortium Members: Orange County, Town of Carrboro, Town of Chapel Hill, and Town of Hillsborough • • ORANGE COUNT'S NO FH CAROLINA C�I't7H7�MITY CAPER 1 OMB Control No:2506-0117(exp.09/30/2021) 4 Table of Contents ExecutiveSummary...................................................................................................................................3 CR-05 -Goals and Outcomes ....................................................................................................................7 CR-10- Racial and Ethnic composition of families assisted....................................................................11 CR-15 - Resources and Investments 91.520(a).......................................................................................12 CR-20-Affordable Housing 91.520(b)....................................................................................................20 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................23 CR-30- Public Housing 91.220(h); 91.320(J)...........................................................................................26 CR-35 -Other Actions 91.220(J)-(k); 91.320(i)-(J)....................................................................................27 CR-40- Monitoring 91.220 and 91.230...................................................................................................32 CR-50- HOME 91.520(d).........................................................................................................................34 CAPER 2 OMB Control No:2506-0117(exp.09/30/2021) 5 Executive Summary In accordance with the Federal Regulations found in 24 CFR Part 570, Orange County, North Carolina has prepared this Consolidated Annual Performance and Evaluation Report (CAPER)for the period of July 1, 2020 through June 30, 2021, referred to as Program Year 2020 (or"PY 2020").The CAPER describes the activities undertaken during this time period for funding from the U.S. Department of Housing and Urban Development (HUD) under the HOME Investment Partnership Program (HOME).The projects/activities and accomplishments described in this CAPER principally benefited low- and moderate-income households. The Orange County, North Carolina, HOME Consortium is a Participating Jurisdiction under the U.S. Department of Housing& Urban Development (HUD) HOME Investment Partnerships Program (HOME). Under the HOME Program, local governments are able to join together to form a consortium in order to receive HOME funding for affordable housing.The Orange County HOME Consortium is made up of four members: Orange County,the Town of Carrboro,the Town of Chapel Hill, and the Town of Hillsborough. The Town of Chapel Hill also receives Federal Community Development Block Grant (CDBG)funding each year. The following is the overall program narrative based on the Five Year Consolidated Plan and Annual Action Plans.This is the CAPER for the first year of the 2020-2025 Five Year Consolidated Plan. It provides information on how the funds received by the County through the HUD programs were used, including an explanation on the leveraging and matching of funds. Funds Available Orange County had the following grant funds available during Program Year(PY) 2020, the time period of July 1, 2020 through June 30, 2021.This chart only includes funds received during PY 2020.Any other prior program year funds that were spent during PY 2020 are not included. HOME PY 2020 Entitlement Grant $374,761.00 Program Income $13,306.32 Local Match $84,334.00 Total Funds Available $472,401.32 Funds Expended The funds shown in the following chart were expended during the time period of July 1, 2020 through June 30, 2021. The only expenditures from Program Year(PY) 2020 funds were for administration; all other funds expended were prior program year funds that had not been drawn down until this time period. HOME Match PY 2020 $37,476.10 $0.00 CAPER 3 OMB Control No:2506-0117(exp.09/30/2021) 6 PY 2019 $84,500.00 $25,500.00 PY 2018 $70,617.59 $17,654.40 PY 2016 $6,580.32 $1,645.08 Total Funds Expended $199,174.01 $44,799.48 Regulatory Caps and Set Asides Orange County's program administration expenditures were within the regulatory cap for the HOME programs.This is shown in the table below: HOME PY 2020 Entitlement Grant $374,761.00 PY 2020 Program Income $13,306.32 Administrative Cap Percentage 10% Maximum Allowable Expenditures $37,476.10 Total Administration Expenditure $37,476.10 Administrative Percentage 10% HOME CHDO Set-Aside The Consortium expended $0 of its PY 2020 CHDO funds during this CAPER period. HOME PY 2020 Entitlement Grant $374,761.00 CHDO Set-Aside Minimum Percentage 15% Minimum Allowable Set-Aside $56,214.15 Actual CHDO Set-Aside $56,228.00 Program Year 2020 HOME Budget The Orange County HOME Consortium received $374,761 in HOME entitlement funds for Program Year (PY) 2020.The Consortium also received $13,306.32 in HOME program income and Consortium members collectively provided $84,334 in HOME Match. The chart below lists the PY 2020 HOME activities that were funded. Project ID Project Title/Description 2020 HOME Budget 2019 HOME Expenditures Number HOME-20-01 Habitat for Humanity— $94,138.00 $0.00 Homeownership Assistance HOME-20-02 CASA—Rental Development $200,000.00 $0.00 HOME-20-03 EmPOWERment, Inc.—Rental $56,228.00 $0.00 Development N/A* OrangeCounty—Tenant-Based Rental $84,334.00* $0.00 Assistance* HOME-20-04 Administration $37,476.10 $37,476.10 Total $472,176.10 $37,476.10 *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds.As such,this activity is not set up in HUD's reporting system, IDIS,and does not have a project ID number. CAPER 4 OMB Control No:2506-0117(exp.09/30/2021) 7 Orange County spent$0 of its PY 2020 HOME allocation on direct project costs.The County spent all of the PY 2020 admin funds ($37,476.10) on personnel costs and overhead. During the 2020 CAPER period, the County expended $199,174.01 in Entitlement Funds from prior Program Years, plus$44,799.48 in local Match. As shown above, of the funds that were awarded in the 2020 Program Year(in May of 2020), only administration funds were actually disbursed in that program year.This is typical of projects that apply for and are awarded Orange County HOME funds. Organizations typically apply for HOME funds well in advance of when they actually need them, so most projects do not begin the Environmental Review process or enter into Development Agreements until near the end of the program year in which they applied (e.g., spring or summer of the following year). Below is an example of a typical timeline for the Orange County HOME Program: Orange County releases HOME Program application for upcoming year December(prior year) HUD releases HOME allocations for Participating Jurisdictions and Consortia February/March Orange County HOME Program applications are due February The Collaborative reviews HOME applications and creates a funding March/April recommendation for the elected bodies of each jurisdiction The Collaborative's funding recommendations go before the elected bodies for April/May approval Orange County HOME Program Year(for reporting purposes)officially starts July (aligned with the County Fiscal Year) The County may begin conducting Environmental Reviews of HOME Awardees' July* projects* Organizations awarded HOME funds(HOME Awardees) may begin executing July* HOME Written Agreements with the County(also called Development Agreements)* Other HUD-required items(depending on the type of HOME project): Once Environmental Review Homebuyer Assistance and Development • Executed HOME Written Agreement between the HOME Awardee and Agreement are complete homebuyer (often 9-12 months after • Homebuyer Underwriting start of the program year, • Homebuyer Counseling depending on the HOME • Property Appraisal Awardee's project Rental or Ownership Acquisition timeline) • Property Appraisal Tenant-Based Rental Assistance • Income Verification Forms • HOME Rental Assistance Agreement • HOME Rent Reasonableness Certification CAPER 5 OMB Control No:2506-0117(exp.09/30/2021) 8 • Minimum Habitability Checklist • HOME Lease Addendum The County disburses HOME funds to HOME awardees Once the above requirements are met *Typically,organizations apply for HOME funds well in advance of when they actually need them,so most projects do not begin the Environmental Review process or enter into Development Agreements until near the end of the program year in which they applied(e.g.,spring or summer of the following calendar year) Public Input Process and Public Comments Received The draft Orange County Program Year 2020 Consolidated Annual Performance and Evaluation Report (CAPER)was made available for public display and comment on the OCHCD website at www.orangecountync.gov/2336/HOME-Program and available upon request at the Orange County Housing and Community Development Department (OCHCD) office. A Public Hearing on the draft CAPER was held on November 16, 20201 and public notice of the hearing and on the public comment period was published in The Herald Sun on Friday, October 29, 2021 and in La Noticia on Wednesday, November 3, 2021. The public comment period ran November 16—December 1, 2021. Public comments received on the 2020 CAPER and responses from the Orange County HOME Consortium are below. PUBLIC COMMENT:TBD RESPONSE: TBD CAPER 6 OMB Control No:2506-0117(exp.09/30/2021) 9 CR-05 - Goals and Outcomes Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This year's CAPER reports on the actions and achievements the HOME Consortium accomplished in Program Year(PY) 2020. The 2020 CAPER outlines which activities the County undertook with HOME funds during PY 2020(July 1, 2020-June 30, 2021). Orange County is the lead entity and administrator for the HOME funds. The Orange County HOME Consortium received $374,761 in HOME entitlement funds for PY 2020; $13,306.32 in HOME program income; and Consortium members collectively provided $84,334 in HOME Match. In PY 2020, the County budgeted and expended PY 2020 HOME funds to address the following goals: • Rental Construction—Budget$256,228 1 Expended $0 • Rental Assistance— Budget$84,334 1 Expended $0 • Home Buyer Assistance—Budget$94,138 Expended $0 • Grant Administration—Budget$37,476.10 Expended $37,476.10 Additionally,the County expended HOME funds from prior Program Years on the following strategies: • Rental Assistance— Expended $96,497.39 ($6,580.32 PY 2016 Entitlement funds, $70,617.59 PY 2018 Entitlement funds, and $19,299.48 Match) • Home Buyer Assistance—Expended $110,000 ($84,500 PY 2019 Entitlement funds and $25,500 Match) During this 2020 CAPER period, the County expended $37,476.10 in PY 2020 HOME and Match funds and $206,497.39 in HOME and Match funds from prior Program Years. CAPER 7 OMB Control No:2506-0117(exp.09/30/2021) 10 Goal Category Source/ Indicator Unit of Expected— Actual— Percent Expected— Actual— Percent Amount Measure Strategic Strategic Complete Program Program Complete Plan Plan Year Year Affordable Housing Homeless HOME: Rental $502,131 Rental Units Household Construction Non- Constructed Housing Unit 15 0 0.00% 6 0 0.00% Homeless Special Needs Affordable Housing Homeless Tenant-based Rental Non- HOME: Households Rental Assistance/ 25 12 48.00% 0 12 100.00% Assistance $484,816 Assisted Homeless Rapid Rehousing Special Needs Affordable Direct Financial Home Buyer HOME: Households Assistance g $623,419 Assisted Housing Assistance to 22 5 22.72% 3 5 100.00% Homebuyers Grant HOME: Other Other Other 1 1 100.00% 1 1 100.00% Administration $177,485 Table 1-Accomplishments—Program Year&Strategic Plan to Date CAPER 8 OMB Control No:2506-0117(exp.09/30/2021) 11 Assess how the jurisdiction's use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified. The goal of the Orange County HOME Consortium is to improve the quality of life for County residents by retaining and increasing the supply of affordable housing units for both owner occupants and renters and by providing homeownership opportunities for low- and moderate-income residents. During the 2020 HOME Program Year,the County proposes to address the following priority need categories identified in its Five Year Consolidated Plan.The priority ranking of needs for housing, homelessness, other special needs, community development, economic development, and anti-poverty are as follows: Housing for People Experiencing Homelessness (High Priority) There is a need to provide affordable rental housing for households experiencing homelessness. Goals/Strategies: Rental Assistance: Provide rental assistance to low-income households. • The HOME Consortium did not propose to assist any households with tenant-based rental assistance using HOME Entitlement funds during this CAPER period (however, all $84,334 in Match contributions were allocated for tenant-based rental assistance).The HOME Consortium assisted 12 households with tenant-based rental assistance during this CAPER period using prior Program Year funds. Grant Administration:Administration, planning, and policy setting for CDBG and HOME funds. • The HOME Consortium continued to use HOME funds to pay for administrative expenses. A new Director of Housing and Community Development for Orange County was hired in June 2021 and is working actively with staff, Consortium members, and HUD to improve HOME program operations. Housing for Low-and Moderate-Income Households(High Priority) There is a need to provide affordable housing (both rental and ownership) for households with moderate and low incomes, especially those with extremely low incomes. Goals/Strategies: Rental Construction: New construction of rental units that are affordable to people with low incomes. • The HOME Consortium proposed to assist six households during this CAPER period by adding units of affordable rental housing (six units would be considered "HOME-assisted" out of a total of 56-58 units to be constructed). The HOME Consortium did not expend any PY 2020 or prior Program Year funds on rental construction during this CAPER period. CAPER 9 OMB Control No:2506-0117(exp.09/30/2021) 12 Home Buyer Assistance: Provide direct assistance to buyers to help them purchase affordable homes. • The HOME Consortium proposed to assist a total of three households during this CAPER period. The HOME Consortium assisted five households with direct home buyer financial assistance during this CAPER period using prior Program Year funds. Grant Administration:Administration, planning, and policy setting for CDBG and HOME funds. • The HOME Consortium continued to use HOME funds to pay for administrative expenses. A new Director of Housing and Community Development for Orange County was hired in June 2021 and is working actively with staff, Consortium members, and HUD to improve HOME program operations. CAPER 10 OMB Control No:2506-0117(exp.09/30/2021) 13 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) HOME White 5 Black or African American 11 Asian 1 American Indian or American Native 0 Other Multi-racial 0 Total 17 Hispanic 1 Not Hispanic 16 Table 2—Table of assistance to racial and ethnic populations by source of funds Narrative Orange County HOME programs benefitted five White households, 11 Black or African American households, and one Asian household during this CAPER period. Of the families that benefitted from Orange County HOME programs in PY 2020, one was Hispanic and 16 were not Hispanic. CAPER 11 OMB Control No:2506-0117(exp.09/30/2021) 14 CR-15 - Resources and Investments 91.520(a) Identify the resources made available Source of Funds Source Resources Made Amount Expended Available During Program Year HOME public-federal $472,401.32 $206,497.39 Table 3-Resources Made Available Narrative Orange County received the following funds during the time period of July 1, 2020 through June 30, 2021: • PY 2020 HOME Allocation: $374,761.00 • HOME Match: $84,334.00 • HOME Program Income: $13,306.32 • Total: $472,401.32 HOME Match received for PY 2020: • Town of Carrboro: $12,651.00 • Town of Chapel Hill: $34,572.00 • Town of Hillsborough: $4,217.00 • Orange County:$32,894.00 • Total: $84,334.00 HOME Program Income received in PY 2020: • Community Home Trust(repayment of mortgage for the Landings): $13,306.32 • Total: $13,306.32 Identify the geographic distribution and location of investments Target Area Planned Actual Narrative Description Percentage of Percentage of Allocation Allocation The County assisted 17 households during County-wide 100 100 this CAPER period in this Target Area. Table 4—Identify the geographic distribution and location of investments Narrative The allocations and priorities were established by stakeholder meetings, follow-up surveys from service providers and public meeting. CAPER 12 OMB Control No:2506-0117(exp.09/30/2021) 15 Leveraging Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan. HOME Match • The Orange County HOME Consortium uses cash as its local match for HOME Funds. Cash match is contributed from the general funds of each of the four members of the Consortium (Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough). This year the local match contribution for the PY 2020 HOME award was$84,334. • HOME Match liability is incurred as HOME Entitlement funds are disbursed. In PY 2020 (July 1, 2020—June 30, 2021), $161,697.91 in HOME Entitlement funds were disbursed, incurring $40,424.48 in Match liability.The actual amount of Match funds disbursed for PY 2020 was $44,799.48. • HUD officially tracks Match liability and contribution on the Federal fiscal year(October to September), not on Orange County HOME Consortium's Program Year(July to June). This can lead to a mismatch in how Match liability is tracked by HUD versus the Consortium. o In Federal fiscal year 2020 (October 1, 2020—September 30, 2021), a total of$209,697.91 in HOME Entitlement funds was disbursed (the$161,697.91 reported above, plus an additional $48,000), incurring$52,424.48 in Match liability(the $40,424.48 reported above, plus an additional $12,000). o The actual amount of Match funds disbursed for Federal fiscal year 2020 was$56,799.48 (the $44,799.48 reported above, plus an additional $12,000). Other Resources Leveraged • Orange County was awarded North Carolina Housing Finance Agency Essential Single-Family Rehabilitation Loan Pool (SFRLP)funds to rehabilitate households that are at or below 80%of AMI. The County received $190,000 in SFRLP 2020 funds and also contributed $50,000 in local match. • Orange County was awarded North Carolina Housing Finance Agency Urgent Repair Program funds for emergency home repairs and modifications.The County received $100,000 in URP 2020 funds and also contributed $40,000 in local match. Fiscal Year Summary—HOME Match 1. Excess match from prior Federal fiscal year $0 2. Match contributed during current Federal fiscal year $56,799.48 3 .Total match available for current Federal fiscal year(Line 1 plus Line 2) $56,799.48 4. Match liability for current Federal fiscal year $52,424.48 5. Excess match carried over to next Federal fiscal year(Line 3 minus Line 4) $4,375 Table 5—Fiscal Year Summary-HOME Match Report CAPER 13 OMB Control No:2506-0117(exp.09/30/2021) 16 Match Contribution for the Federal Fiscal Year Project No.or Date of Cash Forego Appraised Required Site Bond Total Other ID Contribution (non- ne Land/Real Infra- Preparation, Financing Match Federal Taxes, Property structure Construction sources) Fees, Materials, Charges Donated labor HOME-19-02 (Habitat-308 Odie 5/26/2021 $5,000 $5,000 St) HOME-19-02 (Habitat-312 Odie 6/1/2021 $5,000 $5,000 St) HOME-19-02 (Habitat-545 6/1/2021 $7,500 $7,500 Homemont Ave) HOME-19-02 (Habitat-300 Odie 6/28/2021 $4,000 $4,000 St) HOME-19-02 (Habitat-302 Odie 6/28/2021 $6,000 $6,000 St) HOME-18-04 (Orange County- 7/13/2021 $1,204.34 $1,204.34 TBRA) HOME-18-04 (Orange County- 7/20/2021 $435.20 $435.20 TBRA) HOME-18-04 (Orange County- 7/28/2021 $723.92 $723.92 TBRA) HOME-18-04 (Orange County- 8/5/2021 $405 $405 TBRA) HOME-18-04 (Orange County- 8/12/2021 $1,002.01 $1,002.01 TBRA) HOME-18-04 (Orange County- 8/18/2021 $262.62 $262.62 TBRA) HOME-18-04 (Orange County- 8/20/2021 $206.62 $206.62 TBRA) HOME-18-04 (Orange County- 9/14/2021 $1,264.63 $1,264.63 TBRA) HOME-18-04 (Orange County- 9/25/2021 $700 $700 TBRA) CAPER 14 OMB Control No:2506-0117(exp.09/30/2021) 17 Match Contribution for the Federal Fiscal Year Project No.or Date of Cash Forego Appraised Required Site Bond Total Other ID Contribution (non- ne Land/Real Infra- Preparation, Financing Match Federal Taxes, Property structure Construction sources) Fees, Materials, Charges Donated labor HOME-18-04 (Orange County- 10/23/2021 $1,101.11 $1,101.11 TBRA) HOME-18-04 (Orange County- 11/2/2021 $786.80 $786.80 TBRA) HOME-18-04 (Orange County- 11/3/2021 $343.81 $343.81 TBRA) HOME-18-04 (Orange County- 11/25/2021 $1,635.04 $1,635.04 TBRA) HOME-18-04 (Orange County- 11/29/2021 $77.15 $77.15 TBRA) HOME-18-04 (Orange County- 12/14/2021 $739.70 $739.70 TBRA) HOME-18-04 (Orange County- 12/22/2021 $615.34 $615.34 TBRA) HOME-18-04 (Orange County- 12/31/2021 $107.62 $107.62 TBRA) HOME-18-04 (Orange County- 1/11/2021 $280 $280 TBRA) HOME-18-04 (Orange County- 1/20/2021 $1,458.44 $1,458.44 TBRA) HOME-18-04 (Orange County- 1/29/2021 $152.76 $152.76 TBRA) HOME-18-04 (Orange County- 2/2/2021 $167.80 $167.80 TBRA) HOME-18-04 (Orange County- 2/18/2021 $1,365.14 $1,365.14 TBRA) HOME-18-04 (Orange County- 2/26/2021 $91.49 $91.49 TBRA) CAPER 15 OMB Control No:2506-0117(exp.09/30/2021) 18 Match Contribution for the Federal Fiscal Year Project No.or Date of Cash Forego Appraised Required Site Bond Total Other ID Contribution (non- ne Land/Real Infra- Preparation, Financing Match Federal Taxes, Property structure Construction sources) Fees, Materials, Charges Donated labor HOME-18-04 (Orange County- 3/23/2021 $977.54 $977.54 TBRA) HOME-18-04 (Orange County- 3/24/2021 $107.60 $107.60 TBRA) HOME-18-04 (Orange County- 3/29/2021 $320 $320 TBRA) HOME-18-04 (Orange County- 3/30/2021 $30.12 $30.12 TBRA) HOME-18-04 (Orange County- 4/20/2021 $977.54 $977.54 TBRA) HOME-18-04 (Orange County- 4/30/2021 $115.06 $115.06 TBRA) HOME-16-03 (Orange County- 5/19/2021 $977.54 $977.54 TBRA) HOME-16-03 (Orange County- 6/14/2021 $667.54 $667.54 TBRA) HOME-19-02* (Habitat-208 8/3/2021 $6,000 $6,000 Sunset St) HOME-19-02* (Habitat-580 9/24/2021 $6,000 $6,000 Homemont Ave) TOTAL $58,799.48 Table 6—Match Contribution for the Federal Fiscal Year *Included in the Match Contribution for the Federal Fiscal Year(October 1—September 30)but not Orange County's Program Year(July 1 —June 30) HOME Program Income CAPER 16 OMB Control No:2506-0117(exp.09/30/2021) 19 Program Income—Enter the program amounts for the reporting period Balance on hand Amount received Total amount Amount Balance on hand at beginning of during reporting expended during expended for at end of reporting period period reporting period TBRA reporting period $111,004.47 $13,306.32 $0 $0 $124,310.79 Table 7—Program Income HOME MBE/WBE report CAPER 17 OMB Control No:2506-0117(exp.09/30/2021) 20 Minority Business Enterprises and Women Business Enterprises—Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total Minority Business Enterprises White Non- Alaskan Asian or Black Non- Hispanic Hispanic Native or Pacific Hispanic American Islander Indian Contracts Number 0 0 0 0 0 0 Dollar 0 0 0 0 0 0 Amount Sub-Contracts Number 0 0 0 0 0 0 Dollar 0 0 0 0 0 0 Amount Total Women Male Business Enterprises Contracts Number 0 0 0 Dollar 0 0 0 Amount Sub-Contracts Number 0 0 0 Dollar 0 0 0 Amount Table 8-Minority Business and Women Business Enterprises Minority Owners of Rental Property—Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Total Minority Property Owners White Non- Alaskan Asian or Black Non- Hispanic Hispanic Native or Pacific Hispanic American Islander Indian Number 0 0 0 0 0 0 Dollar 0 0 0 0 0 0 Amount Table 9—Minority Owners of Rental Property CAPER 18 OMB Control No:2506-0117(exp.09/30/2021) 21 Relocation and Real Property Acquisition—Indicate the number of persons displaced,the cost of relocation payments,the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 0 Businesses Displaced 0 0 Nonprofit Organizations 0 0 Displaced Households Temporarily 0 0 Relocated, not Displaced Households Total Minority Property Enterprises White Non- Displaced Alaskan Asian or Black Non- Hispanic Hispanic Native or Pacific Hispanic American Islander Indian Number 0 0 0 0 0 0 Cost 0 0 1 0 1 0 1 0 0 Table 10—Relocation and Real Property Acquisition N�k ,"EMIL CAPER 19 OMB Control No:2506-0117(exp.09/30/2021) 22 CR-20 - Affordable Housing 91.520(b) Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served,the number of extremely low-income, low-income, moderate-income, and middle-income persons served. One-Year Goal Actual Number of Homeless households to be provided affordable housing units 0 12 Number of Non-Homeless households to be provided affordable housing units 9 5 Number of Special-Needs households to be provided affordable housing units 0 0 Total 9 17 Table 11—Number of Households One-Year Goal Actual Number of households supported through Rental Assistance 0 12 Number of households supported through The Production of New Units 6 0 Number of households supported through Rehab of Existing Units 0 0 Number of households supported through Acquisition of Existing Units 3 5 Total 9 17 Table 12—Number of Households Supported Discuss the difference between goals and outcomes and problems encountered in meeting these goals. • HOME-20-01—Habitat for Humanity—Homeownership Assistance: Funds were allocated to Habitat for Humanity of Orange County to provide deferred payment, zero interest second mortgage loans for an estimated three households to purchase newly constructed homes in the Fairview community in Hillsborough and the Northside neighborhood in Carrboro/Chapel Hill. Five households received direct home buyer assistance during the PY 2020 CAPER period using funds from prior program years. • HOME-20-02—CASA—Rental Development: Funds were allocated to CASA as gap financing for a 48-unit rental community on Merritt Mill Road in Carrboro/Chapel Hill. Five of these units would be considered HOME-assisted based on the proportion of HOME funds to total funding in the project. Nine units total will be set aside for people with disabilities, with priority for people experiencing homelessness. No funds were disbursed for this project during the PY 2020 CAPER CAPER 20 OMB Control No:2506-0117(exp.09/30/2021) 23 period, and no households were assisted. In the spring of 2021, CASA returned the$200,000 HOME award because the project received a Low Income Housing Tax Credit award and the HOME funds were no longer needed.The returned 2020 HOME funds were reallocated during the Consortium's 2021 HOME Program application cycle to Habitat for Humanity, to be used for home buyer assistance. As such,this project is no longer considered a HOME-assisted project. • HOME-20-03—EmPOWERment, Inc.—Rental Development: Funds were allocated to EmPOWERment for development of an eight-to ten-unit rental community on Johnson Street in Chapel Hill. One of these units would be considered HOME-assisted based on the proportion of HOME funds to total funding in the project. No funds were disbursed for this project during the PY 2020 CAPER period, and no households were assisted. • N/A—Orange County—Tenant-Based Rental Assistance*:The Consortium's PY 2020 HOME Match contribution of$84,334 was allocated to be used for tenant-based rental assistance in a Rapid Rehousing program operated by the Orange County Housing and Community Development Department.Twelve households were assisted with tenant-based rental assistance during the PY 2020 CAPER period using funds from prior program years. • HOME-20-04—Administration: Funds were allocated to provide program management and oversight for the successful administration and leveraging of Federal, State and local funded programs, including support of collaborative initiatives, research and planning services for special studies, environmental clearance, fair housing and compliance with all federal, state and local laws and regulations. *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds Orange County proposed to assist a total of nine households in the 2020 Annual Action Plan (this number includes: three home buyers for the Habitat project, five HOME-assisted units in the CASA project, and one HOME-assisted unit in the EmPOWERment project; it does not include the tenant- based rental assistance, as this is to be funded with 2020 HOME Match rather than HOME Entitlement funds). During this CAPER period,the County assisted 17 households in total with funds from previous program years (including households assisted by tenant-based rental assistance). Discuss how these outcomes will impact future annual action plans. Orange County is working toward achieving its goal of providing decent, safe, and affordable housing for its low-and moderate-income residents. In future Annual Action Plans, Orange County will continue to provide funding for projects that increase the supply, availability, and quality of affordable housing units through partnerships with community organizations. Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity. Number of Households Served HOME Actual Extremely Low-income (0-30%AMI) 12 Low-income (31-50%AMI) 4 Moderate-income (51-60%AMI) 1 CAPER 21 OMB Control No:2506-0117(exp.09/30/2021) 24 Total 17 Table 13—Number of Households Served Narrative Information During this CAPER period, Orange County HOME Consortium used HOME funds to assist 17 households, of which 12 were Extremely Low-Income (earning no more than 30%of the area median income, or "AMI"), four were Low-Income (earning 31-50%AMI) and one was Moderate-Income (earning 51-60% AMI). CAPER 22 OMB Control No:2506-0117(exp.09/30/2021) 25 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction's progress in meeting its specific objectives for reducing and ending homelessness through: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The Orange County Partnership to End Homelessness (OCPEH) coordinates among homeless service providers, directs grant activities for the Continuum of Care (CoQ and Emergency Solutions Grant (ESG) annual competition, and administers four direct service programs.The latest Orange County Plan to End Homelessness was adopted in May of 2019.The plan is structured into eight main objectives with 12 action steps to ensure that homelessness is a rare, brief and one-time experience and to sustain an end to homelessness in Orange County.The plan is available at: https://www.ocpehnc.com/plan. The Continuum of Care completes an annual "Point in Time Count" each January to determine the number of people experiencing homelessness on one night in Orange County.The 2021 Point-In-Time Count was conducted in January of 2021.This count identified 176 people who experienced homelessness in Orange County, including 12 veterans.There were 36 people living unsheltered and 140 people in shelters. The Orange County Partnership to End Homelessness provides Coordinated Entry via a centralized access point,the Housing Helpline, which connects residents with housing resources and other services. The Helpline is accessible by phone (919-245-2655) or e-mail (housinghelp@orangecountync.gov) and in-person on a limited basis due to the Covid pandemic. In order to provide the needed resources to County residents,the Department and Housing Helpline staff collaborate with other community service providers, including:the Orange County Departments of Social Services,Aging, and Health; Habitat for Humanity; CASA; EmPOWERment; Community Home Trust; Compass Center; Inter-Faith Council for Social Services; Durham Veterans Affairs Healthcare; UNC Hospitals, Community Empowerment Fund; and the two County public school districts. Housing Helpline staff direct people to the resources they need to prevent homelessness,to divert people from homelessness,to emergency housing referrals, and to permanent housing referrals via case conferencing using a by-name list at the HOME Committee. Permanent housing referrals are available for veterans programs, including HUD-VASH and SSVF,for Housing Choice Vouchers,for Permanent Supportive Housing, and for Rapid Re-housing. In the fall of 2020, in partnership with the Orange County Criminal Justice Resource Department, OCPEH launched the Street Outreach, Harm Reduction and Deflection program.The program connects people living unsheltered in Orange County with housing and services.The three team members, including two peer navigators and a clinical coordinator, use a relationship-based model, provide ongoing engagement, response, and case management to people living unsheltered with the goal of reducing harm and deflecting individuals from criminal justice system involvement. CAPER 23 OMB Control No:2506-0117(exp.09/30/2021) 26 OCPEH has also completed a Homeless System Gaps Analysis (https://www.ocpehnc.com/gaps-analysis) inclusive of input from people with lived experience of homelessness and housing insecurity. Addressing the emergency shelter and transitional housing needs of homeless persons Of the 140 people in shelters or transitional housing programs counted in the 2021 Point-in-Time Count, 76 of those were in emergency shelters and 64 were in transitional housing. The Orange County Partnership to End Homelessness reported the following number of beds on in the 2021 Housing Inventory Count: •Transitional Housing: 65 beds •Emergency Shelter: 85 beds •Permanent Supportive Housing: 89 beds •Rapid Re-Housing:41 beds Orange County does not have a domestic violence shelter, but the domestic violence service provider, Compass Center, started an emergency housing program in scattered site apartments in 2020 for three households. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. OCPEH works on homelessness prevention and diversion extensively. Flexible homelessness diversion funding is available via the Housing Helpline and any households who have less than two weeks of stable housing or who have been experiencing homelessness for two week or less are guided through a structured conversation to determine if there are any safe places, other than shelter,that the household can go. Coupled with the flexible diversion funding, these conversations have led to about 20%of eligible households being diverted from homelessness. OCPEH partners with the Local Reentry Council to offer services and housing referrals to people exiting jail or prison. OCPEH partners with DSS to help youth exiting foster care to connect with resources available and avoid homelessness. OCPEH partners with UNC Healthcare to find short- and long-term housing options for people exiting health care settings. OCPEH partners with Freedom House and other mental health service providers to connect their clients with services and housing. OCPEH partners with the wide network of human services agencies in Orange County to ensure anyone with housing needs are connected with emergency and permanent housing referrals as needed. Helping homeless persons (especially chronically homeless individuals and families,families with children,veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that CAPER 24 OMB Control No:2506-0117(exp.09/30/2021) 27 individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again OCPEH works on many different fronts to increase exits to permanent housing and decrease the length of time homeless for households in our system, and average and median lengths of time homeless system-wide. As part of coordinated entry, OCPEH administrates the by-name list and manages regular case conferencing meetings to ensure people are connected to resources, ensure people do not fall through the cracks in the human service system, and coordinate permanent housing referrals. OCPEH prioritizes Permanent Supportive Housing referrals for people experiencing chronic homelessness. OCPEH coordinates the monthly standing meeting of the Orange County Veterans Experiencing Homelessness Working Group to review the veteran by-name list. OCPEH also administers a Rapid Re- Housing Program with State ESG and HOME TBRA funds. During the veteran and other coordinated entry processes, OCPEH also connects households to other housing programs available in the community, including the Section 8/Housing Choice Voucher program, veterans programs like SSVF and HUD-VASH, the Targeting/Key program, and the Transitions to Community Living Initiative.The CoC's Plan to End Homelessness and its overall approach to ending and preventing homelessness is based on the HEARTH Act and Federal Strategic Plan to End Homelessness goals and strategies. Ago%\ CAPER 25 OMB Control No:2506-0117(exp.09/30/2021) 28 CR-30 - Public Housing 91.220(h); 91.320(j) Actions taken to address the needs of public housing Public housing in Orange County is provided by two entities—the Orange County Housing Authority (OCHA) and the Town of Chapel Hill's Office of Housing and Community. Housed within the Orange County Department of Housing and Community Development, OCHA does not manage any public housing units, but oversees 643 Housing Choice Vouchers (HCV, commonly known as Section 8), all of which are tenant-based. OCHA currently has 20 HUD-VASH vouchers and is applying for five Foster Youth to Independence (FYI)vouchers. OCHA is also exploring the possibility of implementing project- based vouchers within the next year. OCHA is overseen by a seven-member Board. The Orange County HOME Consortium undertook the following to address the needs of HCV holders: • In partnership with the Towns and local nonprofits,the County worked to increase the number of landlords willing to participate in the HCV Program. In spring of 2020, a Housing Access Coordinator was hired specifically to recruit more landlords to accept vouchers and to help connect voucher holders and other low-income households with affordable housing options. • The County worked to streamline the design and administration of the housing stabilization funds (designed to help low-income renters, including HCV holders, secure and maintain stable housing) offered by the County and each of the Towns. In spring of 2020, a streamlined program called the Emergency Housing Assistance program was created using funds from the County and Towns, as well as Coronavirus Relief Funds and other state and federal funding sources. • OCHA ensured units in which households in the HCV Program live are safe and healthy by conducting Quality Control inspections on a subset of units. • The County laid the groundwork to implement a "Move On" program, in which people with Permanent Supportive Housing Vouchers(PSHVs)whose service needs have lowered considerably and/or who no longer need services are transitioned to HCVs,freeing up PSHVs for more vulnerable individuals with higher service needs. Actions taken to encourage public housing residents to become more involved in management and participate in homeownership OCHA does not own any public housing units. However, OCHA has HCV holder involvement on its Board and encourages HCV holders to become homeowners.The Chapel Hill Office of Housing and Community provides programs and services for public housing residents, as well as the broader neighborhood and community.These include community clean-ups, neighborhood pop-ups, a weekly food bank program, a Reading Partners program, National Night Out, senior bingo (in conjunction with the Hargraves Community Center), an International Potluck, and a 2020 Census Information Center. Actions taken to provide assistance to troubled PHAs OCHA is not designated as troubled. OCHA's current rating is "High Performer" and received a score of 93% in its 2019 SEMAP rating. CAPER 26 OMB Control No:2506-0117(exp.09/30/2021) 29 CR-35 - Other Actions 91.220(j)-(k); 91.320(1)-(j) Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls,tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The Analysis of Impediments to Fair Housing in Orange County, completed in April 2020, recommends a combination of strategies to address barriers to fair housing, including amending land use policies that create barriers to affordable housing.The following strategies are discussed in the Al report: • Seek additional funding for subsidized housing. • Encourage the development of some subsidized housing outside of Chapel Hill and Carrboro. • Educate landlords, property managers, and other housing providers about fair housing law and reasonable accommodation, especially as they pertain to persons with disabilities. • Offer educational courses on mortgage lending and building credit scores that are geared toward African American and Hispanic borrowers. • Encourage cooperation and coordination between the affordable housing advisory boards in the county. • Explore funding options for a best-practices Rapid Rehousing program to serve homeless individuals and families in Orange County. • Identify ways to protect residents of mobile home parks who may be under threat of displacement. • Consider areas to strategically up-zone to promote the development of affordable housing. Much of the county is zoned for low-density residential,which can be more expensive to build upon and thus inhibits the construction of affordable housing units.The Towns of Chapel Hill and Carrboro have enacted Inclusionary Zoning Ordinances to encourage developers to set-aside 15%of new units in residential developments that have more than five (5) units for people with low-and-moderate incomes. The Town of Chapel Hill's Inclusionary Zoning Ordinance also incentivizes affordable housing by providing development bonuses including density bonuses and floor area bonuses and waiving certain development-related fees for the affordable units. In recent years,voters in Orange County and the Town of Chapel Hill have approved affordable housing bonds to fund the development of new affordable units. Orange County passed a $5 million bond in 2016 and the Town of Chapel Hill passed a $10 million bond in 2018.These measures to increase affordable housing could be coupled with additional strategies to up-zone land and promote more housing development, particularly in areas with low transportation costs and access to services. Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) Despite County and service provider efforts,there remain significant obstacles to meeting underserved needs.The following are obstacles to meeting these needs in Orange County: CAPER 27 OMB Control No:2506-0117(exp.09/30/2021) 30 • The demand created by a continued population growth, including growth from the University, creates a housing shortage. • A tight rental housing market and escalating rental rates in the urban areas of the County increases costs for all income levels. • There is a lack of housing choice for people aging in place. Furthermore,the COVID-19 pandemic increased housing instability for many County residents due to business closures and job losses, creating the need for significant scale-up in the County's provision of emergency rent and utility assistance (through the Emergency Housing Assistance program), housing resource navigation and referrals (through the Housing Helpline), and non-congregate shelter for people experiencing homelessness. Orange County's population is growing, with population growth concentrated mainly in the higher income household category.This growth has raised the value of housing, both owner-and renter- occupied, and created a shortage of decent, safe and affordable housing for very low-, low-, and moderate-income persons. Orange County's highest priority is to address issues of affordable housing in the County. During this CAPER period,the County used its limited financial resources to address affordable housing issues and other needs addressed in this plan by funding the projects that would create more housing opportunities for County residents. In PY 2020,the Orange County HOME Consortium funded the following activities to increase affordable housing opportunities: • HOME-20-01—Habitat for Humanity—Homeownership Assistance • HOME-20-02—CASA—Rental Development • HOME-20-03—EmPOWERment, Inc.— Rental Development • N/A*—Orange County—Tenant-based Rental Assistance *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) In Orange County, evaluations (risk assessments) of lead-based paint in housing units were conducted on a case-by-case basis and lead abatement was prescribed as needed for dwellings assisted with rehabilitation funds. In addition, all assisted housing tenants were informed of the hazards of lead-based paint.The Orange County Health Department provided ongoing consultation to local housing staff. During this CAPER period, no units were abated for lead-based paint in the County using HOME funds. Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The latest HUD CHAS data (2014-2018) indicates that 29%of Orange County households (both renters and home owners) are cost burdened, meaning they spend more than 30%of their income on housing. Of all renters and homeowners in Orange County, about 15%are severely cost burdened, spending more than half of their income on housing. Cost burden is most prevalent among extremely low-income households earning 30%or below the area median income. Three-quarters (75%) of all very low income CAPER 28 OMB Control No:2506-0117(exp.09/30/2021) 31 households are cost burdened by their housing,with 69%of these very low-income households spending over half of their income on housing. While extremely low-income households only represent 13% of all households in the county,they constitute 33%of all cost burdened households 60%of all severely cost burdened households. These statistics demonstrate the urgent and ongoing need for more affordable housing options in Orange County for low-and moderate-income households. The Orange County HOME Consortium continued to address issues of affordable housing in the County through funding the following activities in program year 2020: • HOME-20-01—Habitat for Humanity—Homeownership Assistance • HOME-20-02—CASA—Rental Development • HOME-20-03—EmPOWERment, Inc.— Rental Development • N/A*—Orange County—Tenant-based Rental Assistance *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds Actions taken to develop institutional structure. 91.220(k); 91.320(j) The Orange County Housing and Community Development Department continued to coordinate activities among public and private agencies and organizations in the county to ensure the goals established in the latest Five Year Consolidated Plan are consistently met and addressed by more than one agency.The Housing and Community Development Department continued to facilitate and coordinate the linkages between these public-private partnerships and developed new partnership opportunities. The private sector was an important collaborator in the services and programs associated with the Five Year Consolidated Plan.The private sector brought additional resources and expertise that was used to supplement existing services or fill gaps in the system. Lenders, affordable housing developers, business and economic development organizations, and private service providers offered a variety of assistance to residents such as health care, small business assistance, home loan programs, and assisted housing, among others.The County continued to collaborate with local financial institutions, private housing developers, and local realtors. The Orange County Partnership to End Homelessness (OCPEH) has thoroughly analyzed the institutional structure and service delivery system, identified fourteen gaps in the system, and calculated the costs of filling those gaps. OCPEH has either identified existing programs and partners, or worked to set up the necessary infrastructure,through which to fill most of these gaps, and some funding has already been secured. In addition to filling the homeless system gaps, OCPEH also aims to improve existing projects and processes and improve the quality of homeless service delivery. Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j) CAPER 29 OMB Control No:2506-0117(exp.09/30/2021) 32 Orange County works with the following agencies to enhance coordination: • Orange County Housing Authority—Administers and operates the Section 8 Housing Choice Voucher Program. • Social Services Agencies—Administers programs and support services to low-and moderate- income persons. • Housing Providers— Rehabilitates and develops affordable housing and provides housing options for low-and moderate-income households. • Orange County Partnership to End Homelessness—Coordinates the County's homeless outreach and prevention effort. Each year, as part of the HOME application planning process, local agencies and organizations are invited to submit proposals for HOME funds for eligible activities.These groups participate in the planning process by attending the public hearings, informational meetings, question and answer meetings, and completing survey forms. Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) Orange County prepared an Analysis of Impediments to Fair Housing Choice in 2020 to coincide with the Consortium's FY 2020-2025 Five Year Consolidated Plan. The report identified the following five main impediments to fair housing: • A lack of affordable housing has resulted in severe rent burdens among many renters, especially those with low and moderate incomes. • African Americans and Hispanics face difficulties receiving conventional mortgage loans. • Based on the number of fair housing complaints filed, disabled persons face difficulties accessing fair housing. • There exists a lack of subsidized rental properties outside the Towns of Chapel Hill and Carrboro. • Zoning throughout the county largely restricts the development of denser, more affordable housing. Based on the fair housing impediments identified,the Al recommends the following strategies to address these barriers: • Seek more funds for subsidized housing. Low-and moderate-income households are disproportionately rent-burdened, and recently, rents have increased faster than wages. • Encourage development of some subsidized housing outside of Chapel Hill and Carrboro. • Educate landlords, property managers, and other housing providers about fair housing law and reasonable accommodation, especially as they pertain to persons with disabilities. • Offer educational courses on mortgage lending and building credit scores that are geared toward African American and Hispanic borrowers. • Encourage cooperation and coordination between the affordable housing advisory boards in the CAPER 30 OMB Control No:2506-0117(exp.09/30/2021) 33 county. • Explore funding options for a best-practices Rapid Rehousing program to serve homeless individuals and families in Orange County. • Identify ways to protect residents of mobile home parks who may be under threat of displacement. • Consider areas to strategically up-zone to promote the development of affordable housing The Orange County Human Rights and Relations Department implemented an Eviction Diversion Program in 2020 to assist residents with housing legal issues and eviction cases.This Department also handles discrimination and fair housing complaints for the County, education and outreach, and provides fair housing resources for the community. CAPER 31 OMB Control No:2506-0117(exp.09/30/2021) 34 CR-40 - Monitoring 91.220 and 91.230 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements The Orange County Department of Housing and Community Development (OCHCD) will be responsible for collecting data internally and from HOME Awardees, including subrecipients, developers, owners, sponsors, and CHDOs. OCHCD will use a risk analysis matrix for monitoring HOME Awardees, based on guidance in CPD Notice 04-01 and CPD 02-11,which outline factors by which to determine the risk level of HOME recipients. Once projects have been approved and HOME Awardees have signed Written Agreements, staff will enter projects into a HOME Project Monitoring spreadsheet,which uses a scoring system to conduct a risk analysis of each project. Based on its score, each subrecipient will be considered low risk, moderate risk, or high risk. OCHCD will use these scores to determine its annual monitoring schedule.As a general rule, staff will annually conduct onsite monitoring for all high risk HOME Awardees. Conversely, moderate and low risk HOME Awardees will be monitored onsite every other Program Year, and desk reviews will be conducted throughout the year. During Project Development OCHCD will monitor new construction and rehab projects that are solely administered by the Consortium. If a project has multiple funding sources, OCHCD will work with the other funders to determine who will take the lead for construction monitoring. Monitoring will include: • A review of any bid documents (negotiated, informal or formal) before they are finalized to determine if application federal, state or local requirements are included; • Documentation of labor standards; • Review of change orders; • Review of payment requests and supporting documentation; • Periodic inspection of the work being done; and • Final inspection before final invoice is approved. During project development, all HOME Awardees will be required to submit quarterly reports that describe the progress of their projects, using a template provided by OCHCD on its website. At project completion, OCHCD will conduct an on-site inspection of each project to determine the projects meets the applicable property standards. This inspection will occur before marking the project complete in the disbursement and information system established by HUD (IDIS). Ongoing Monitoring for Rental Housing CAPER 32 OMB Control No:2506-0117(exp.09/30/2021) 35 Annual reports and periodic onsite inspections (at least once every three years) will be required after the project is completed for the duration of the HOME Affordability Period. If there are observed deficiencies for any of the inspectable items in the property standards, a follow-up onsite inspection to verify that deficiencies are corrected must occur within 12 months. Health and safety deficiencies must be corrected immediately. For properties that have been found to have health and safety deficiencies, OCHCD will conduct inspections every year for three years; after three years, if no new health and safety deficiencies have been found,the three-year onsite inspection schedule will resume. The property owner must annually certify to the Consortium that each building and all HOME-assisted units in the project are suitable for occupancy. OCHCD will monitor projects for compliance with the requirements of the contract documents including rent and occupancy, maintenance of the property, ongoing financial feasibility of the project, maintenance and use of reserves, and recordkeeping. Tenant-Based Rental Assistance All housing occupied by tenants receiving HOME tenant-based rental assistance must meet Housing Quality Standards (HQS). OCHCD staff perform annual onsite inspections of rental housing occupied by tenants receiving HOME-assisted TBRA to determine compliance with these standards. Recordkeeping and Reporting HOME Awardees must maintain records demonstrating compliance with HOME requirements. Description of the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports. The Citizen Participation Plan describes the County's process for involving residents in planning and funding decisions for Federal housing and community development funds.The Plan is available online at: http://orangecountync.gov/2336/HOME-Program. The guidelines in the Citizen Participation Plan were followed in preparing the 2020 CAPER. CAPER 33 OMB Control No:2506-0117(exp.09/30/2021) 36 CR-50 - HOME 91.520(d) Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Please list those projects that should have been inspected on-site this program year based upon the schedule in §92.504(d). Indicate which of these were inspected and a summary of issues that were detected during the inspection. For those that were not inspected, please indicate the reason and how you will remedy the situation. The Orange County HOME Consortium did not inspect any units in PY 2020 due to the COVID-19 pandemic.The Orange County's Department of Housing and Community Development's three certified housing inspectors will perform all future inspections.The County's goal is to develop a timetable to inspect all its HOME-assisted rental units that are still within their period of affordability and submit this timetable to HUD. Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units. 92.351(b) Orange County HOME Consortium continued to follow its Affirmative Marketing Policies and Procedures.The Affirmative Marketing Policy is in all of the HOME Subrecipient Agreements and is applicable to projects that have contained five or more units. Most of the Consortium's HOME projects that have been developed do not meet this threshold. Orange County HOME Consortium provided all HOME funded projects and all sub-recipients with the Affirmative Marketing Policy, when applicable. The marketing of units is the responsibility of the housing provider to undertake in accordance with the Affirmative Marketing Policy. Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics The HOME Consortium received $13,306.32 in program income this program year. Describe other actions taken to foster and maintain affordable housing. 91.220(k) (STATES ONLY: Including the coordination of LIHTC with the development of affordable housing). 91.320(j) The Orange County HOME Consortium worked in cooperation with the non-profit housing providers to address the County's affordable housing needs through the use of HOME funds, Low-Income Housing Tax Credits, and other State and Federal funds.The HOME Consortium funded the following projects to address the Consortium's housing needs: • HOME-20-01—Habitat for Humanity—Homeownership Assistance • HOME-20-02—CASA—Rental Development • HOME-20-03—EmPOWERment, Inc.— Rental Development CAPER 34 OMB Control No:2506-0117(exp.09/30/2021) 37 • N/A*—Orange County—Tenant-based Rental Assistance *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds Orange County's population is growing. However, the population growth is mainly in the higher income household category.This raises the value of both owner-and renter-occupied housing, and creates a shortage of decent, safe and affordable housing for low-and moderate-income households. HUD CHAS data on housing cost burden indicates that Orange County is facing an affordability crisis for lower income persons who cannot afford to live in the southern and eastern parts of the County. Targeting HOME funds to these projects will help the HOME Consortium reach the top priorities identified in the 2020-2025 Consolidated Plan of providing housing for people experiencing homelessness and providing housing for low-and moderate-income households. CAPER 35 OMB Control No:2506-0117(exp.09/30/2021) 38 • ORANGE COUNTY + NC7WM CAROLINA H C D ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Understanding the Funding Timelines for the Orange County HOME Program HOME Program Overview The U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME Program) provides formula grants to states and localities, called Participating Jurisdictions,to fund a wide range of affordable housing activities including building, buying, and/or rehabilitating affordable housing for rent or ownership. In Orange County,the HOME Participating Jurisdiction is a Consortium consisting of Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough, with the County acting as lead entity. In 2017, the Consortium was renamed the Orange County Local Government Affordable Housing Collaborative. The Collaborative coordinates the funding process for the HOME program, accepts and reviews applications from local organizations, and presents recommendations to the elected bodies of each jurisdiction for funding approval. Examples of activities that have used Orange County HOME funds include: • Provision of down payment assistance to low-income homebuyers • Acquisition and development of affordable homes for rent or ownership • Rehabilitation of affordable housing units • Provision of tenant-based rental assistance HOME Funding Timeline Below is an example of a typical timeline for the Orange County HOME Program: Orange County releases HOME Program application for upcoming year December(prior year) HUD releases HOME allocations for Participating Jurisdictions and February/March Consortia Orange County HOME Program applications are due February The Collaborative reviews HOME applications and creates a funding March/April recommendation for the elected bodies of each jurisdiction The Collaborative's funding recommendations go before the elected April/May bodies for approval 39 • ORANGE COUNTY r NOWI-H CAROLINA QwCHCD ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Orange County HOME Program Year(for reporting purposes) officially July starts (aligned with the County Fiscal Year) The County may begin conducting Environmental Reviews of HOME July* Awardees' projects* Organizations awarded HOME funds (HOME Awardees) may begin July* executing HOME Written Agreements with the County (also called Development Agreements)* Other HUD-required items (depending on the type of HOME project): Once Environmental Homebuyer Assistance Review and Development • Executed HOME Written Agreement between the HOME Agreement are complete Awardee and homebuyer (often 9-12 months after • Homebuyer Underwriting start of the program year, • Homebuyer Counseling depending on the HOME • Property Appraisal Awardee's project Rental or Ownership Acquisition timeline)* • Property Appraisal Tenant-Based Rental Assistance • Income Verification Forms • HOME Rental Assistance Agreement • HOME Rent Reasonableness Certification • Minimum Habitability Checklist • HOME Lease Addendum The County disburses HOME funds to HOME awardees Once the above requirements are met *Typically,organizations apply for HOME funds well in advance of when they actually need them,so most projects do not begin the Environmental Review process or enter into Development Agreements until near the end of the program year in which they applied(e.g.,spring or summer of the following calendar year) 40 • • ORANGE COUNTY NOWT-H CAROLINA QCHCD ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT HOME Project Status Update Funds Awarded in the 2020 HOME Program Year In the 2020 HOME Program Year,the following awards were made (HOME Entitlement, local Match, and Program Income funds combined). Project ID 2019 HOME 2019 HOME Number Project Title/Description Budget Expenditures HOME-20-01 Habitat for Humanity—Home Ownership Assistance $94,138.00 $0 HOME-20-02 CASA— Rental Development $200,000.00 $0 HOME-20-03 EmPOWERment, Inc.— Rental Development $56,228.00 $0 N/A* Orange County—Tenant-based Rental Assistance $84,334.00 $0 HOME-20-04 Administration $37,476.10 $37,476.10 Total $472,176.10 $37,476.10 *Only HOME Match budgeted for this project,no 2020 HOME Entitlement funds.As such,this activity is not set up in HUD's reporting system,IDIS,and does not have a project ID number. As shown above, of the funds that were awarded in the 2020 Program Year(in May of 2020), only administration funds were actually disbursed in that program year.This is typical of projects that apply for and are awarded Orange County HOME funds. Organizations typically apply for HOME funds well in advance of when they actually need them, so most projects do not begin the Environmental Review process or enter into Development Agreements until near the end of the program year in which they applied (e.g., spring or summer of the following year). The current statuses of the 2020 projects are summarized below. Project ID Number Project Title/Description Status HOME-20-01 Habitat for Humanity— Home Ownership In Progress Assistance (spending down 2019 funds first) Funds Returned HOME-20-02 CASA—Rental Development (returned in spring of 2021;no longer needed due to receipt of LIHTC award) HOME-20-03 EmPOWERment, Inc.—Rental In Progress Development (currently in pre-development phase) N/A* Orange County—Tenant-based Rental In Progress Assistance (spending down 2016 and 2018 funds first) HOME-20-04 Administration Complete 41 • • ORANGE COUNTY NOWT-H CAROLINA QCHCD ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Funds Expended in the 2020 HOME Program Year While HOME funds awarded in a given program year may not be spent in that same year, significant HOME funds are disbursed each program year(most of which were typically awarded in prior years). In the 2020 HOME Program Year,the following expenditures were made (HOME Entitlement, local Match, and Program Income funds combined). Project ID HOME 2020 HOME Remaining Number Project Title/Description Budget Expenditures Funds as of 6/30/21 HOME-20-04 Administration $37,476.10 $37,476.10 $0.00 HOME-19-02 Habitat for Humanity— $181,392.00 $110,000.00 $71,392.00 Homeownership Assistance HOME-18-04 Orange County-County-wide TBRA $139,613.00 $88,271.99 $43,516.31 HOME-16-03 Orange County-County-wide TBRA $114,655.00 $8,225.40 $106,429.60 Total $243,973.49 The current statuses of the other projects from the table above are summarized below. Project lD Number Project Title/Description Status HOME-20-04 Administration Complete Habitat for Humanity— Homeownership Assistance HOME-19-02 (funds disbursed for 300, 302, 308, and 312 Odie St In Progress and 545 Homemont Ave) HOME-18-04 Orange County-County-wide TBRA In Progress (County-wide) (ongoing program) HOME-16-03 Orange County-County-wide TBRA In Progress (County-wide) (ongoing program)