Loading...
HomeMy WebLinkAboutAgenda - 02-05-2002 - 7aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA REM ABSTRACT Meeting Date: February 5. 2002 Action Agenda Item No. 7-c? SUBJECT: Oran ge County Consolidated Housing Plan Update DEPARTMENT: HousinglCtmm. Oevelopment PUBLIC HEARING: (YM) Vee ATTACHMENTIS): INFORMATION CONTACT: Tara L. Flees, ext. 2490 Executive Summary Application Form TELEPHONE NUMBERS: Hillsborough 732.8181 Chapel Hill 961 Durham 688.7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public regarding the housing and non-housing needs to be included in the 2002-2003 Annual Update of the Consolidated Housing Plan for Housing and Community Development Programs in Orange County and proposed uses of 2002-2003 HOME funds. BACKGROUND: In May 2000, a Consolidated Plan for Housing and Community Development Programs in Orange County was developed and approved by the U S. Department of Housing and Urban Development (HUD). This document details the housing needs of very law inspired, law income and moderate-income families and special population groups In addition to outlining the strategies and plans for addressing those needs. Each year local communities are required W reassess the needs of the community. This public m anng provides an opportunity for citizens, public agencies and other interested parties to provide input into the Annual Update. In atldltion, the public is asked W Comment on proposed uses of approximately $481,000 In 2002-2003 HOME funds. $108.225 in match funding and $73,992 In program income for a total of$615, 117 in available funding. Eligible HOME Program activities include: acquisition; new construction', housing rehabilitation; and rental assistance. An application farts has been designed for agencies interested in accessing HOME funds for local housing protests. A copy of to application is attached W this abstract for information. The deadline for completing this application form is March 1. 2002. The HOME Program Review Committee will then review the applications received and make recommendations regarding funding for consideration by the local elected officials in April 2002. In order to inform the general public of this opportunity and encourage participation, notices have been placed In the Chapel Hill Herald and sent to Ideal non-profit agencies. FINANCIAL IMPACT: NONE RECOMMENDATION(S): The Manager recommends that the Board receive comments from the public as additional information. Orange County, NC Consolidated Plan for 2000-2005 Executive Summary Background Grimed in North Carolina, Orange County includes not paid the awns of Caroberse and jefilbbteiscoh but also Chapel Hilh the home of the largest campus Of the Stare university. Re presence of id rsity smden more affluent aM rani ent then other eosin res'lddon bas created an unbalance In terms of homing and commcnly development needs Orange cache muse durtire, tons ,prhe its efforts on serums a strong urban Investment and real areas as weft The emotions housing issues m Orange Corme here n changed the West cost of have ershlp has left many laxative u of the housing market or sent them to ruling contest to buy homes and commune into Orange Concrete? work Rerental market wi lined hvthe ability of UNC-CH include able he pay higher ants, Is beyond the means Ofamiltee with es below 50%ofthe area medmn_ Aorfde wles to need ofthree or more bedrooms. very polls housing track exists. The number of women and children amying at the homeless shelter continues to ire dramaNcalN, and emerged from the shelter into permanent housing in Orange Cohost, isa decade Impossible since no transitional housing seism Housing for special inn n groups such as the elderly, persons that are developmentally disabled conspiratorial skit element coding demrium, is limited in Orage County. Community Profile Orange County, Not h Creative neludes the incoryormei Towne of Cartlwro, Chapel Hill, and Hillsbormed, and is the home of into largest campus of the State mivttsity system - the U naciry of Noun Carolina a Chapel Hill. The Ununty is a part of the Raingh lgrals m- Chapel Hill Metropolitan Statistical Arne (MSA) that comprises six counties in the Research Triangle Atca with a pegu id n of 1.1 million people. The region is highly rated as a place to live and do business. In mother, Orange County, in ledt6cular, has the most appearance cost for new housing in the regain and Chapel Hill in adding a few after cities in the seam read high on the cost of living index. rights, the County enjoys a low employment rate of approximately one (1) percent These "first" present a ohallengn i addressing the housing vends of Orange COwry residuum. In 2000, the population of Orange Coumy is estimated to m 111,982. That represents a 19% pejoration Main since 1990, with an anticipated growth of 8% through 3005. Of rest cumber, approximately P percent wart White, 16 pemeurwere African Amerkaq and ] per mild were of other minority groups including Ammlean ledin Asian and Hispanic. The fastest growing ants of the population ate of Asian major Hispanic descent whose population has more seam IFan dmibled s{ace 1993. 3 Former, it is estimated that approximmely 12,280 fall households or forays County 144,854) nstdered very low income, with incomes between 0.50 percent of median family income Sere (MFU HOUS6O AND COMh1UMTY DEVELOFMIyNE NEEDS Conditions the high cost of homeownership has forced many families to purchase housing in other counties and commute imh Orange County for work. 'I he inflation of the rental market by University of North Cafollna-Chapel Hill (Usoc ") students has caused hardships for families with incomes below 50 percent of MCI. largo rental units m panwlarly sooner Market Conditions Anna g to she Orange County Economic Development Commission, sae average new home sales in 1999 was 8247,661, and for an existing home the pace was $200,601, To purchase this new hot a low income; family of four person odd haw to spend approximately 79 times their capped wages For a existing home, the family would have to spend approximately 6 4 times heir annual wages. by ham of these instances, the lhappy need to have money than they earn and is contrary well above the HUD me happy for affordable housing. (I- SDepartment of HUD standanS define affordable owner occupied housing as purchasable at 25 to 3.0 times total family annual time) The rental housing market, Intlacd by the ability of Unis roily of North Carolina at Chapel Hill students able to pay cracker red is beyond she means of families with incomes below 50% of the area median. In 200q it estimates that rental units represent 43% of the c wry-wide housing market and approxunutely 67% of than rental households ref erenw tar extreme cost burden paying between 30% to 50% oftheir income for rental hearing Each year, DUD publishes existing housing Fair Market Rents (FMFS) for metropolitan areas amid non metropolitan counties in the country. these FMRS ae based on the fortieth percentile of standard quality mental units occupied by recent m Poblie housing units, newly constructed uN6 and substandard units are excluded from the calculations. PMRS are , established by colt slmo (numbs of bedmomr)nd indvde an allowance For utilities. Terecronce in Orange County has shown the local rants often tun an average of 15 m 20 percent higher than those MID published rates, which explains why such a high percentage (35%) pay more than 50% of their income for rental housing costs. For famines coming 80% or mote than the County madmn monthly family 'income of 54.022 woman a multi -bedroom apartment is relatively easy given that they are able to locale units with 3 or more bedrooms. Larger apartments are in mladve sanctity because the rental market is oriented toward providing Shared rental bounce. The most recent County data estimates that 24%ofWd County's coal properties contain t'att OI more bedrooms For families canning 50% or less than the median monthly income the primary approach is not finding a emal unit but rather affording one, In 2900, the upper level income limit for a low- income family of four was 529,740. For these families renting a Farm bedroom dwelling wit in 4 the County, rata ntinilli atwo bedroom apartment in Chapel Hill the same set of temp lies would have to spend at least 37% of Hear monthly m me. In both innances, these families would have to spend more than 30% of their gross monthly income on rect. US HUD standards define aHbrdable as omanning when a enter spends no more than 30% of their gross monthly income to mml housing cost (rent & unilateral Appealable Hosing Needs Acesim ng to the 1990 censor, Orange Comfy had the highest peroentage of cowl, low. Income households with housing problems in North Carolina, 71 percent of residents in obis category cited cast burden and overcrowding as major issues In 2000, the County has appmx masaly 12,280 low-income households with a cost burden and overmin deduess remaining the primary impediments to obtaining athirst housing. Furdteq according to a 1989 report from the North Carolina Rural Economic Development Copper, 1,052 units in Change County lacked indoor plumbing. The County considers this estimate to be a good approximation of the problem. the lack of affordable housing forced aentera to live substandard units.. housing problems sera otvery low income bmseh and 9'1 percent es we families were sported is e 86 ipercent seem freed to live in Overcrowded, substandard wits. The e mn maj jodty there families were re also coat Increased Homeless Needs The numbers of homeless persons m Orange Comfy have promotion dramatically. Using focal war 199&1999, the domain Coundl Community House reported oars ing 801 individuals, 700 adults and 101 culdrearra Of this ranumber, ce and were African PC Con, 198 were white, and 48 es20 of other mew and Orange The e PC Commuvry House is the evil, a Hispanic, only c hots and emergency cy housing resource for but its Ocmge Cowry. The greatest increase in the homeless population in Orange County continues ad be women, children, and families, frequently victims of domestic violence. Thus, the washing of Project Homestead laid year welcomed into the m inity. Project Homwthat is a transitional housing pmgmm for homeless families that provides a spollmo d selling for families to receive suppen before they live independently. Public and Assisted Housing Needs OregN County's only conventional public housing Too an consists of 336 units. The majority she of Chapel [ills public hands'rig units are two- and thee-bedroom win and are Ideated in Chapel Hill except for one community in Cmrsou . The county's Section 8 progan, eaministaed by the orange County Housing add Community Development Depmfined5 included 623 vouchers. There are an additional 543 other assisted housing units in the County that have benefited Gum the HUD Section 202 Prograng rho Low Income Housing Tax Credit Pmgrand the farmers HOME 515 Program; the HUD Section 236 5 Loan Management Program; the Section 8 New C ributetion Program; and the HUD Section 811 Program.. Harriers to Affordable Housing The Concolidaad Plan for Orange Counts tdentlfies the following barriers to affordable housing idgh con selection, improvemeow In most of southern Orange County done is virtually no vacant laud available but is served by Public billions In a comorated Orange Counts. hinumgb land accessible to rabic services is available, the eon of extension is expensive. Also, many existing residences lack adequate plcenbing room tics due m the high cost of public India connections. Ltuk of adequate lraaspsnmfon. While the public mensportatiov seamen in the Chapel Hill-Canbor urban comprehensive, to jobs and facilities outside the urban area are limited by a lack of transportation. Many of the people who work in manage Couury live nenadding sources, partly by choice and panty as a verb of an mobility, m find affnnlable hearing in the County. High caul savants! hosamse The rental housing market, particularly in Southern Orange County continues to beiMated by the unnetxlty students. High cull of hoaeewneoschys The average bee detached home in Orange County bold for nearly 8267,661 in 1999. that is approximately 5100,000 mom than what a family of four at 100 percent of median income could ofind. Fair Hinging Analysis of Impedimenta/Action Plan IThu Sale or Rental of Housing Public H Public Policies Administrative Polities F Fair Residential Fah Horsing Education Based on the analysis, the ho w,dAreoomrnenda bores are offered to cartooefalr housing within thefunsdiecon. r providing one on one consultation m landlords to anchorage participation in the Section 8 Housing Assistance Procipe, 6 + Working with the univenily to promote development ofadeyuate campus homing in order to base up local rental units and make them more off,)' done > Working with OLD to manure cast fair market rents reflect actual market rats in Orange County. > clotting with local bard executives to formulize particreatton in public privam pannersups that mother ho"ing opportunities > Creaing ratio -wholes that link public deposits to financial institutions that commit to mccringcommunity coruscation needs of the Comly Developing reasonable evaluadve critenn ard producing an anvaal report for the Board of County Commkslonem on lending ptachcet by ful l institutions and ceasing to do business with institutions failing to employ inclusive lending practices. ? Building incentives and proscriptions into Orange Coanty regulations for planned unit developments that promote affordable, nonsegregated housing. > Studying and traumatic, other land use contents that encourage development of affordable housing. L Increasing educational oppottunities trough fair housing workshops, famous and presentations. + Adding source of income, (e.g. elimination of any differentiation between wages or Social Security or disability benefits, etc) to the list of protected classes under the Omnge County Civil Right, ONiaance. > Conduct ftirhouniog testing to asurc compliance with the Ordinances Lead-Based Faint According to the 1990 census, 22,653 very low- and low-income housing units in Orange County built between 190 and 1979 were contaminated wit lead-hazed paint Of this number, 10,236 were rental =is and 12,417 were owner occupied (No new dabs available at this time) Evaluations of the prevalence of lcvd-hued paint in housing units will be conducted trough Orange County by project, and lead abatement will be presentation for all dwellings targeted for rehabilitation In addition all assisted-M1ousing renanis will be confined of me hazards of lead based paint the Orange County Health Department provides ongoing consultation to local housing staff. Community Development Heeds Orange Comity has identified the need for increased economic developmem opportunities for low and moderetc-incerm citizens and revitalization of businesses serving low-income neighborhwds in Chapel Hill. Anti-Poverty Strategy In a recent adding to the County's Work First Plan, a subcommittee of fire Welfare Reform Task Force, 8nempherdng Imetemd ..o vas charged with identifying strategies and crour es for Work First families that will enable them to oreacce them income and to become self-sufficient As u pan of their work, this committee occupied the lack ofetrordable housing fur those in the lowest income ranges as a major impediment to building sellsufticiency. They identified the following go egies m address this s amat oa- I. Ends, renovate. or designate reining affordable housing and rental wits for which pmrmmee is given to families who me engaged hi aeasutficiiii program that provides job skills, employment soling awrreprenturship Rainwg, money maagement, and other social supponzn 2. Dramatic avlability codaccess to affmdablc rental housing and to special incentives and home mortgage loans in the primary market at rates attractive to buyers in this income group. 1 Advowg among policy makers, to i a compliant an and finding spumes to Ilmi[undue analysis of the need and d to place emphasis on ecdort Coordination of the Strategic Plan Through the Orange Community Housing C'diamo ds, Habilal for Humanity, EM'OWERmrnI, Inc., and track non-pmtit organization. Orange County, Chapel Hill, Cambers, and Hillsboi work in collaboration to implement the plan, cis follows: I. The Chapel Hill planning Deln+onent administers the COBO program. 2 The Orange County Housing and Community Davclopment Dcpanmzot administers Section g program and serves as the lead agency for the Orange County HOME Consortium, which includes (range County, Cartboro, Chapel Hill, and Hillsborough, and adminlstas take County wick Housing Ralumplltatioo Program. 3. The Chapel HIII Department of Homing operates public housing in Chapel Hill and Cartboro. 4. The Town of Canbom administers the Carrbtro CDEO Small (lines japprearn 5. The Uillsborough Planning Department is responsible for planning and policy development lot the town, including be raysi adopted 2O10 plan. Orange Community Housing Corporation, Habitat for Humanity, EmPOWERmmI, Inc, and other nonprofit organizations carry out duet housing activities, rm raw contractor, rehabilitation, etc.. Housing Priorities The Consolidated Plan for Orange County identified the following housing Includes for 19952000. • Provide rehabilitation assistance for vary low. and low-income homeowners and amem • Reduce the number ofowner-ooeupled and rental massing units without indoor plumbing. • Poads assistance an houecholds at less man 90 percent of WI to comma Ian esisting public water and sewer systems. • Fadlil.Ne the construction of new or substantially rehabilitated housing units that are affordable to families below 80%ofthe use median. • facilitate the construction of rental housing affordable to wry low and low-inwme families . Priority will be given m projects participating in the Low Income Housing Tax Credit Program, with at least three Yzdroams. • Create transitional housing units for homeless individuals and famines. • Assist local nonprofit human service agencies to provide a continuum of housing options for special populations, including older adults, disabled, mentally ill, and persons with AIDS. Nan musiing Community Development Priorities The Consolidate4 Plan hr Orange insists identified the following oanmmus development constants: Provide economic development oppocturn es to low- and madcraw-fnwme citizens in Chapel Fill I Revitalize the business areas serving low-income neighborhoods oCChaPel fill • Applications are Due March 1. 2002, • Please mail CDBG applications to Loom Names, Town of Chapel HAI, 306 N', Columbia S0. Chapel Hill, NO 27516; call 968-2728 with questions. • Mail HOME applira5ons to Tara Fikes, Orange County Depmhnent or Housing and Community Development. Hillsborough. NO 2]2]0; call 245-2490 wide questions. Agency Name Address Phone E-mail Cordact Federal 1, D.# Type of organization: onpsW forprofK - If numbed, please submd copy of 501 (C)(3) and anent list of board members. Funds applying far: CDBG HOME Project name: Project is: aisting new Amount d1unding requested: Total project budge.. Please adach defalle l project budget, including sources (whether committed) and mass. Also include a timetable for spending Program funds. Target completion date: Income level of beneficiaries: Serves people with special needs? yes no If yes, please describe: Targets geographic area? yes no if yes, please describe: Housing Projects only; Type of construction: new rehab Number of units: Type of housing: ownership rental Mechanism for long-term affordabilhyn yes - no 10 2002-2003 CDBG/HOME Application Q Page 2 LIU Please attach a thorough descripdan of the project elaborating on the Information glean Iin the Project[ Summary . Please include the following additional Imomletion in your remove: a How Community Development or HOME Program funds will be used; o Detailed project budget including sauces (whether committed) and uses; o A4melableforspendinp Prooramiunds: c Population(s)reold, including number of benerciatles, income level, special needs, and other relevant demographic information; o Benchmarks far determining the success of the projecq o Anticipated outcomes of Me project; o Timetable fir accomptuhing goals and completing the protect (a g., if a project will take fi monihs to complete, please Include what would he visaw ayc o Describe how this project meets the priorities of the Consolidated Plan; O If applying for CDBG funds, describe hew this project meets the "National Objectives One chterlon for judging applications will be how wall the imposed activity satisfies Me priorities of the 'Consolidated Plan for Housing and Community Development Programs in Grange County' (see attached Outline). To Molly for Community Development Black Grant (CDBG) funding, an acbvdy must satisfy one or more of Me "National Objectives' and also must be considered an "eligible activity' of the CDBG Program (see attached outline). To qualify for HOME Program funding, an activity must sell one or more of the goals of the program and also be considered an "eligible activity/ (see attached outline). 11 UOd/? 2002.2003COBGIHOMEApplication IT Y' 5 In 1990, Congress enacted the HOME Investment Partnerships Aci better known as Me HOME Program, in an effort to provide a may approach m housing. assistance at Me federal level. This federal housing black grant would afford stall and local governments the flexibility to find a wider range of housing activities through creative and unique housing partnerships among sums and Inclines, private industry, and nonprofit organizations. In order to receive future HOME Program funds, each housing activity must all in line with the following goals of Hre HOME Program: 1. To expand the supply of derane, safe, sanitary and affordable hearing, with emphasis an rental housing, for very low and low-income cit¢ens, 2. To strengthen the abildes of state and fecal govemmems 6 design and implement strategies for achieving adequate supplies of decent afforduce housing; and 3. To encourage public, privale and ncnpmfk partnerships in addressing funding needs Eligible activities for HOME Pool funding include (from the Fetlerel Regulations). • Acquisition of property (including assistance to homebuyers): • New construmlon; Reconstruction: Conversions; Moderate absolution of non-luxury housing with capable amenities • Tenant-based rental aesisrence, • Relocabon of displaced persons, families, businesses, or organizations: • She Improvements, acquisition of vacant land and demolition (under special er ifuns); • Project soft costs: • Administration l planning; and • Operating eapensasfair community housing development omamunniona. d f? tl 2002 -2003 C09GIH0MF App4icatfon 3 The Department of Housing and Urban Development (HUD) requires jurisdictions to submit a Consolidated Plan for Housing and Community Development Programs along with their applications tar funding. The propose of the Consolidated Plan is b analyea and propose solutions b the most pressing housing and community development issues of the community. The FY 2000.2005 Consolidated Plan for Housing and Community Development Programs in Orange County, N.C. identifies the following promms. • Provide rehabilitation assistance for very low- and low-income homeowners and enters; • Reduce the number of ownerbccupied and rental housing unit without indoor plumbing; • Provide assistance to households at less tan 80 %of MFI to connect to existing public water and sewer systems; • Facurtam the construction of new or substantially rehabilitated housing units man re affordable to families below 80% of the area median; • Faulitate Me construction of rental housing affordable to very low- and low-income families. Priority will be given to projeces paNCipating In Me Low Income Housing Tax Credit Program, with at least three bedrooms; • Create transitional housing units for homeless admiral and families; • Asslst local nonpmfit human comma agencies to provide a Continuum of housing options for special Populations, Including older adults, disabled, mentally ill, and persons with AIDS • Provide economic development opportunities to low- and mademtcincome crizens in Chapel Hill; and Revitalize the business areas serving low-income neighborhoods of Chapel Hill. DDe2002- 2003 CDBGIHOME Application Page 4 Congress established the Community Development Program in 1974 by consolidating a number of grant programs into one "block gri The pnmay objective of the Community Development Program is he "development of viable urban communities, by providing decent housing and a suitable living environment and expandin ecom mi opportunities, principally for persons of low and moderate income.' (Housing and Ccmmu nity Development Act of 1974). To qualify for Community Development Block Grant funding, an activay must comply with at least one of the following "natonal objectives": • Benefit low-and moderate-income families: • Aid in the prevention or elimination of slums or blight; • Meet other community development needs having a pomi a Mandy baaose existing conditions pose a schools and immediate threat m the health or welfare of the community where other financial occurred are not available to most such needs. Eligible activities include: • Homeownership assistance; Housing rehabilitation and preservation. • Acquisition of property for public purposes: • Disposition of property acquired with CoBG funds; • Public facilities and improvements; • Clearance, demdlhion, and removal of buildings; Provision of public services such as those concernetl with employment, came prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, welfare, homebuyer downpayment assistance, or recreational needs; • Micmanterprae assistance: and • Econcmi development riervidies. Activities that are generally not eligible include'. Buildings used for the general conduct of government; • New constructow, General government expenditures; • Political activities; • Purchase of equipment and personal property; and • Operation and maintenance of public facilities, Improvements, and services.