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HomeMy WebLinkAboutAgenda 11-16-2021; 5-b - Public Hearing on Orange County’s HOME-ARP Allocation Plan 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2021 Action Agenda Item No. 5-b SUBJECT: Public Hearing on Orange County's HOME-ARP Allocation Plan DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Draft HOME-ARP Allocation Corey Root, Director, Housing and Plan Community Development, (919) 245- 2490 PURPOSE: To hold a public hearing on Orange County's HOME-ARP Allocation Plan. BACKGROUND: The American Rescue Plan Act of 2021 appropriated $5 billion nationwide to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. The funds were allocated by formula to jurisdictions through the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership (HOME) Program. This funding is called "HOME-ARP". In September 2021, HUD awarded the Orange County HOME Consortium (which consists of the County — the "lead entity" for the Consortium — and the Towns of Carrboro, Chapel Hill, and Hillsborough) $1,371,401 in HOME-ARP funds. HOME-ARP can fund the following eligible activities: (1) development of affordable housing; (2) tenant-based rental assistance; (3) provision of supportive services (such as housing counseling, homelessness prevention, moving costs) and; (4) acquisition and/or development of non-congregate shelter units. Funds must primarily benefit individuals and households in the following "Qualifying Populations": • Experiencing homelessness • At risk of homelessness • Fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking • Other populations with high risk of housing instability (including highly cost-burdened low- income households, households who have moved two or more times in the last 60 days, and households living in a hotel) Led by the Local Government Affordable Housing Collaborative (a group made up of one elected official from each jurisdiction that comprises the Consortium), the Orange County HOME Consortium must develop an Allocation Plan to identify priority housing and service needs in the 2 community that may be supported with HOME-ARP funds and to describe the process that will be used to distribute HOME-ARP funds. The Consortium's $1.3 million in HOME-ARP may not be used for eligible housing projects or activities until an Allocation Plan is approved by HUD. It is not expected that any funds will be committed or disbursed in the near future, since the Consortium is just now starting the planning process. The Allocation Plan will determine how the HOME-ARP funds will be awarded to projects or activities and lay out, broadly, which types of eligible uses the Consortium plans to prioritize. Once the Allocation Plan is created, staff will follow the process outlined in the Plan. For example, if (based on the community engagement and needs assessment process) the Collaborative decides to distribute HOME-ARP funds through a competitive application process and to prioritize development of affordable housing, staff would then issue a funding application for affordable housing development projects. As part of the development of the Plan, Orange County must consult with stakeholders that work with the "Qualifying Populations" listed above. County and Town staff are actively engaging stakeholders by presenting at meetings, soliciting feedback through a survey, and incorporating feedback from the Towns' community engagement processes around ARPA funding. As the lead entity of the Consortium, the County must hold a public hearing to obtain residents' comments and feedback on how the HOME-ARP funds should be awarded. Members of the public may submit comments at the public hearing and 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). The County will hold a second public hearing in the next 3-6 months. Between the first and second public hearings, staff will develop a draft HOME-ARP Allocation Plan based on the feedback received during the first public hearing and public comment period, from the other community engagement and stakeholder consultation efforts (including a survey and presentations at community meetings), and from the ARPA public participation processes being conducted by the Towns of Carrboro and Chapel Hill. After the second public hearing on the draft HOME-ARP Allocation Plan, staff will incorporate public feedback into the Plan and present a final version for approval by the Collaborative. Once the Collaborative approves, the four governing boards of the jurisdictions that comprise the HOME Consortium (the Towns and the County) must approve the Plan and authorize Orange County, as lead entity, to submit the Plan to HUD. HUD is responsible for final approval of the Plan, at which point, the Consortium may begin to use its HOME-ARP funds. To use the funds, the County will submit draw requests to HUD through its finance system on a reimbursement basis. Any HOME- ARP funds not disbursed by September 30, 2030 will revert back to HUD. 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 3 The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts applicable to this item. RECOMMENDATION(S): The Manager recommends that the Board open the public hearing, accept comments on the draft HOME-ARP Allocation Plan, 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. 4 DRAFT Orange County (NC) HOME-ARP Allocation Plan Participating Jurisdiction: Orange County, NC HOME Consortium Date: Background The American Rescue Plan Act of 2021 appropriated$5 billion to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. These funds were allocated by formula to jurisdictions that qualified for funding through the HOME Investment Partnership Program (HOME Program) from the U.S. Department of Housing and Urban Development(HUD). This special round of funding is called the "HOME-ARP"program. In September 2021, HUD awarded the Orange County, NC HOME Consortium (which consists of Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough)$1,371,401 in HOME-ARP funds. Eligible activities that may be funded with HOME-ARP include: (1)development and support of affordable housing; (2) tenant-based rental assistance; (3)provision of supportive services(such as housing counseling, homelessness prevention, child care,job training, legal services, case management, moving costs, rental applications, and rent assistance);and(4)acquisition and development of non-congregate shelter units. Funds must primarily benefit individuals and households in the following qualifying populations: • Experiencing homelessness(as defined in 24 CFR 91.5 "Homeless"(1), (2), or(3)) • At risk of homelessness(as defined in 24 CFR 91.5 "At risk of homelessness") • Fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking, (as defined in 24 CFR 5.2003) • Other populations with high risk of housing instability(including highly cost-burdened low-income households, households who have moved two or more times in the last 60 days, and households living in a hotel/motel) Consultation Before developing its plan, the Orange County, NC HOME Consortium must consult with the local Continuum of Care(CoC), homeless and domestic violence service providers, veterans'groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. Summary of the consultation process • An electronic survey was widely distributed to agencies and organizations that work with people experiencing homelessness, people fleeing domestic violence,justice-involved individuals, veterans, people with low incomes, and other qualifying populations. • Staff from the Orange County Department of Housing and Community Development attended standing meetings of several relevant groups to present on HOME-ARP and solicit input on priority needs. 1 5 Organizations consulted and summary of feedback Agency/Organization Type of Method of Feedback Consulted Agency/Organization Consultation In process 2 6 Public Participation The Orange County, NC HOME Consortium must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, the Consortium must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The Consortium must follow its adopted requirements for "reasonable notice and an opportunity to comment"for plan amendments in its current citizen participation plan. In addition, the Consortium must hold at least one public hearing during the development of the HOME-ARP allocation plan and prior to submission. Public comment period:The draft Orange County HOME-ARP Allocation Plan was made available for public display and comment on the OCHCD website at www.orangecountVnc.gov/2336/HOME-Program and available in hard copy upon request at the Orange County Housing and Community Development Department(OCHCD) office.The public comment period ran November 16—December 1, 2021. Public notice of the public comment period was published in English in The Herald Sun on Friday, October 29, 2021 and in Spanish in La Noticia on Wednesday, November 3, 2021. Public hearing:A Public Hearing on the draft CAPER was held on November 16, 20201. Public notice of the hearing was published in English in The Herald Sun on Friday, October 29, 2021 and in Spanish in La Noticia on Wednesday, November 3, 2021.The public comment period ran November 16—December 1, 2021. Description of efforts to broaden public participation Information about Orange County's HOME-ARP funding was widely distributed, through traditional avenues such as public notices, as well as The Consortium must consider any comments or view of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. Summary of comments and recommendations received through the public participation process TBD Summary of comments or recommendations not accepted and reasons why All comments or recommendations will be accepted and a response to each comment will be provided. Needs Assessment and Gaps Analysis The Orange County, NC HOME Consortium must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, the Consortium must identify any gaps within its current shelter and housing inventory as well as the service delivery system. The Consortium should use current data, including Point in Time Count, Housing Inventory Count, or other data available through the Continuum of Care(CoQ, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services. 3 7 Homeless Needs Inventory and Gap Analysis Table Homeless Current Inventory Homeless Population Gaps Analysis Family Adults Only Vets Family Adult Family Adults Only HH (at HH Victims #of #of #of #of #of least Vets of DV #of #of #of #of Beds Units Beds Units Beds 1 child) Beds Units Beds Units child) Emergency TBD TBD TBD TBD TBD Shelter Transitional TBD TBD TBD TBD TBD Housing Permanent Supportive TBD TBD TBD TBD TBD Housing Other Permanent TBD TBD TBD TBD Housing Sheltered TBD TBD TBD TBD Homeless Unsheltered Homeless TBD TBD TBD TBD Current TBD TBD TBD TBD Gaps 1CoC Housing Inventory Count, 2021 ZCoC Point in Time Count, 2021 Housing Needs Inventory and Gap Analysis Table Non-Homeless Current Inventory Level of Need Gap Analysis #of Units #of Households #of 0-30% #of 31-50% AMI Units AMI Units Total Rental Units TBD Rental Units Affordable to HH at 0- TBD 30%AMI (At-Risk of Homelessness) Rental Units Affordable to HH at 31- TBD 50%AMI (Other Populations) 0-30%AMI Renter HH w/ 1 or More Severe Housing Problems (At-Risk of TBD Homelessness) 31-50%AMI Renter HH w/1 or More Severe Housing Problems TBD (Other Populations) Current Gaps TBD TBD 4 8 'Comprehensive Housing Affordability Strategy(CHAS) data, 2014-2018;Table 18C 12COmprehensive Housing Affordability Strategy(CHAS) data, 2014-2018;Table 14B I 'Comprehensive Housing Affordability Strategy(CHAS) data, 2014-2018; Table 1 The size and demographic composition of qualifying populations within Orange County boundaries The 2021 Point in Time Count reports that there were 176 people (in 154 households) experiencing homelessness in Orange County on one night in January 2021. People experiencing homelessness are disproportionately people of color; 67%of people experiencing homelessness in the 2021 Point in Time County were Black or African-American, whereas just 12%of people in Orange County overall are Black or African- American. To be continued—data on people at risk of homelessness, fleeing domestic violence,vulnerable to housing instability Unmet housing and service needs of qualifying populations, including but not limited to:sheltered and unsheltered homeless populations; those currently housed populations at risk of homelessness; other families requiring services or housing assistance to prevent homelessness; and those at greatest risk of housing instability or in unstable housing situations TBD-from consultation survey and meeting feedback Current resources available to assist qualifying populations, including congregate and non- congregate shelter units, supportive services, tenant-based rental assistance, and affordable and permanent supportive rental housing TBD Gaps within the current shelter and housing inventory as well as the service delivery system TBD Characteristics of housing associated with instability and an increased risk of homelessness (if the Consortium will include such conditions in its definition of"other populations") TBD-from consultation survey and meeting feedback Priority needs for qualifying populations TBD-from consultation survey and meeting feedback How the level of need and gaps in shelter and housing inventory and service delivery systems based on the data presented in the plan were determined TBD HOME-ARP Activities Description of the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the Consortium will administer eligible activities directly TBD 5 9 The Orange County, NC HOME Consortium must indicate the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. Use of HOME-ARP Funding Funding Amount Percent of the Statutory Grant Limit Supportive Services TBD Acquisition and Development of Non- Congregate Shelters TBD Tenant-Based Rental Assistance TBD Development of Affordable Rental TBD Housing Nonprofit Operating TBD 5% Nonprofit Capacity Building TBD 5% Administration and Planning $205,710 15% 15% Total HOME-ARP Allocation $1,371,401 How the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gaps analysis provided a rationale for the plan to fund eligible activities TBD HOME-ARP Production Housing Goals Estimate of the number of affordable rental housing units for qualifying populations that the Consortium will produce or support with its HOME-ARP allocation TBD Specific affordable housing rental production goal that the Consortium hopes to achieve and how it will address the Consortium's priority needs TBD Preferences 6 10 Identify whether the Consortium intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project • Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a) • The Consortium is not required to describe specific projects to which the preferences will apply TBD (If a preference was identified) How the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the Consortium's needs assessment and gaps analysis TBD (If a preference was identified) How the Consortium will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference TBD HOME-ARP Refinancing Guidelines If the Orange County, NC HOME Consortium intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being refinanced with HOME-ARP funds, the Consortium must state its HOME-ARP refinancing guidelines in accordance with 24 CFR 92.206(b). The guidelines must describe the conditions under which the Consortium will refinance existing debt for a HOME-ARP rental project. Minimum level of rehabilitation per unit or required ratio between rehabilitation to refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity TBD Required review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified population for the minimum compliance period can be demonstrated TBD State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both TBD Required compliance period(whether it is the minimum 15 years or longer) TBD State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal programs, including CDBG 7 11 HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal programs, including CDBG. Other requirements in the guidelines, if applicable 8