HomeMy WebLinkAboutAgenda 05-03-22; 6-a - Longtime Homeowner Assistance (LHA) Program Evaluation 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 3, 2022
Action Agenda
Item No. 6-a
SUBJECT: Longtime Homeowner Assistance (LHA) Program Evaluation
DEPARTMENT: Housing and Community
Development
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: 2021 LHA Program Data Corey Root, Director, Housing and
Attachment 2: Tax Assistance Application Community Development, 919-245-
Package LHA Insert 2492
Nancy Freeman, Tax Administrator,
Orange County Tax Office, 919-245-
2735
Gary Donaldson, Chief Financial Officer,
Orange County Finance, 919-245-
2453
PURPOSE: To receive information about the results of the 2021 Longtime Homeowner
Assistance (LHA) program and consider options for program changes for a potential continuation
of the LHA program in 2022.
BACKGROUND: On October 5, 2021, the Orange County Board of Commissioners authorized
the program design for the Longtime Homeowner Assistance Program (LHA) to assist households
affected by the 2021 property tax revaluation. LHA launched on October 8, 2021 to serve
households earning no more than 80% of the area median income who had lived in their homes
for at least 10 years and experienced an increase in Orange County property taxes in 2021.
Between October 8 and December 15, the Housing & Community Development Department
received 125 applications. Housing staff worked alongside colleagues in the Tax Office and
Finance & Administrative Services Department to award $16,364 across 91 households in
property tax assistance (Attachment 1). There were some very small award amounts — as low as
$1.51 — and the largest award was $1,334.63. A third of the awards were under $50 and 52% of
awards were under $100.
In addition to the communication plan about the program presented in October, in response to
requests from non-profit partners, Housing staff also organized and staffed three in-person events
to help people complete LHA applications — at Piney Grove Baptist Church and Dorothy M.
Johnson Community Center in Hillsborough, and Lattisville Grove Missionary Baptist Church in
Cedar Grove (a planned event at the Roger Eubanks Neighborhood Association Community
Center was canceled due to facility issues). Applications were relatively slow in the beginning
weeks of the program, and picked up greatly toward the end of the application period. 72.8% of
all received applications were approved. The most common reason for application denial was the
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household not having a tax increase (30 denials), followed by households not owning their home
for ten or more years (6 denials), and the household being over income (3 denials).
Of the 91 approved applicants, 45% were white, 44% were black, 4% were multi-racial, and 1%
Asian. 60% of the approved applications were age 65 or over.
Staff from the three participating departments offer the following proposed program design
changes should the Board wish to continue the LHA program in 2022 with the remaining $233,636
allocated for this purpose:
1) Change program design to cover more of the amount owed by the taxpayer. Using data
from the 2021 LHA program, staff proposes three options:
a. Institute a baseline minimum award amount: The award amount would be equal to
the difference between the County Tax portion of the 2020 tax bill and the 2022 tax
bill, with a minimum award amount of$300 (note that the average award amount for
2021 was roughly $190). Estimated amount of assistance for 2022: $37,290
b. Base award on full bill amount: The amount will be equal to the difference between
the full bill amount of the 2020 tax bill and the 2022 tax bill with no minimum: $46,861
i. For 2021, the range of assistance $1.94 - $2,974.00, average $348
ii. Minimal award amounts: 56 under $300, 33 under $100, and 21 under $50
iii. If the minimum award amount was set at $300, the estimate would be
$55,731
c. Standard award amount: The award amount would be a standard award amount
with a cap, based on approximately one-half of the average County tax portion for
2021 recipients, which would result in an award amount of$830: Estimated amount
of assistance for 2022: $94,684
i. Cap the award amount so it is no more than that actual bill amount.
ii. This follows a similar method used by another county.
d. Capping tax amount based on income: Homeowners earning 80% area median
income (AMI) or under pay no more than 3% of income on total property tax bill.
Estimated amount of assistance for 2022: $176,587
e. Awards cover half of total tax bill: Award would cover half of total tax bill for
homeowners earning 80% AMI or under, up to these total amounts:
i. $1000.00 for households with incomes <_ 61- 80% AMI
ii. $1250.00 for households with incomes <_ 31- 60% AMI
iii. $1500.00 for households with incomes <_ 30%- below AMI
iv. The amount of assistance that may be granted for this option will vary
based on the level of income of the applicants. Assuming a 50% increase in
the number of applicants, an estimated range is $169,123 to $243,454.
2) Adjust program operation dates to August 1 through December 1, 2022. This would start
the program two months earlier, immediately following when homeowners receive property
tax notices in July. It would also move the deadline back by two weeks which will allow
staff additional needed time for application processing, which was a challenge in 2021.
3) Include an informational insert with the tax assistance application packet, with the goal of
both increasing awareness about LHA and making the process of applying for all
assistance programs simpler for taxpayers.
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4) Formalize policy for heirs' properties where there are more than one person/households
listed on the deed. Staff recommends considering the 10 year occupancy requirement
based on the amount of time the property has remained within the family (rather than
current owners who may be heirs of a previous owner). Staff also recommends providing
assistance based on the income of the household members who reside in the home rather
than the income of all heirs.
5) Formalize policy for Family Trust owned properties. Staff recommends that the applicant
should be a trustee for the trust. Staff also recommends providing assistance based on the
income of the household members who reside in the home rather than the income of all
trustees.
6) Require that the applicant provide a copy of the targeted tax bill. Staff recommends that
the applicant provide the tax bill to avoid incorrect application of funds or award amounts.
Staff in the Tax Office can assist the applicant with obtaining a copy as needed, and it
would be the applicant's responsibility to identify the correct tax bill/property.
7) Reduce the requirement to have owned and lived in the home for 10 years to 5 years to
increase access to the program.
a. Mecklenburg County's HOMES program has a 3-year residency requirement and
the applicant must own the property.
b. Charlotte's Aging In Place program has a 5-year residency requirement and the
applicant must own the property.
c. Another similar County program is considering changing the 10 year requirement to
5 years.
FINANCIAL IMPACT: The program would expend the remaining $233,636 in ARPA funding that
has been allocated to assist long-term, low-income households affected by the tax revaluation of
property.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Discuss and consider the design change and options detailed in "1" above;
2) Discuss and consider the additional proposed design changes detailed in "2, 3, 4, 5, 6 and
7" above; and
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3) Based on the discussion of those proposals, consider approving some or all of the design
changes for the Longtime Homeowner Assistance program — if the Board wishes to
continue the program in 2022.
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Longtime Homeowner Assistance Program Data(2021)
Longtime Homeowner Assistance Program Spending
Week Apps Reviewed Eligible Apps Funds Disbursed Percent of funds disbursed
Week 1(10/25-10/31) 6 4 $ 306.04 2%
Week 2(11/1-11/7) 8 7 $ 2,420.70 15%
Week 3(11/8-11/14) 10 6 $ 737.14 5%
Week 4(11/15-11/21) 10 7 $ 1,785.53 11%
Week 5(11/22-11/28) Holiday Holiday Holiday IrHoliday
Week 6(11/29-12/5) 11 8 $ 1,166.53 7%
Week 7(12/6-12/12) 7 6 $ 2,007.95 12%
Week 8(12/13-12/15) 73 53 $ 7,940.25 49%
Total 125 91 $ 16,364.14 100%
Minimum Award $ 1.51 Submissions By Status
Maximum Award $ 1,334.63
Median Award Amount $ 96.98
Average Award Amount $ 179.83 Declined:27.2 ss
Ineligible Applications
Reasons for denial Number denied
Taxes did not increase 30
Did not own home for 10 or more years 6
Household over Income 3
*some applicants may have been denied for more than one reason
Most awards were under$100.00
" Accepted:72.8°b
Award Amount Awards Percent
$1-$50 31 34%
$51-$100 16 18%
$101-$200 15 16%
$201-$300 14 15%
$301-$500 9 10%
$501-$999 4 4%
$1,000+ 2 2%
Total 91 100%
Racial Demographics of Program Participants
Asian 1 1%
Black 40 44%
Multi-Racial 4 4%
White 41 45%
No Data 5 5%
Total 91 100%
Age Demographics of Program Participants
Age Percent
>_55 11 12%
56-60 7 8%
61-65 17 19%
66-70 17 19%
71-75 14 15%
76-80 3 3%
81-85 8 9%
86+ 10 11%
(no data) 4 4%
Total 91 100%
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DI D YOU R PROPERTY TAXES
lncr�ease this ear ,
The Orange County Longtime Homeowner
Assistance (LHA) program provides property
tax bill assistance to help you stay in your
home.You are still eligible to apply even if you
have another form of assistance for your tax
bill. =s
YOU MUST:
• Live in Orange County
• Have owned and lived in your home for at Applications are accepted from
least 10 years AugustDecember
• Have experienced an increase in property for the Current Year Tax Bill
taxes due to the 2021 Tax Revaluation THREE WAYS TO APPLY:
• Earn at or below these income limits: 1. Online Application Portal:
www.orangecountync.gov/LHAP_PortaI
2. On Paper:
Household Household IncomePick up a paper application at the Orange County Housing and
1 $48,400 Community Development Department offices:
Hillsborough Office:
2 $55,300 300 West Tryon Street,3rd Floor,Hillsborough,NC 27278
Chapel Hill Office:
3 $62,200 2501 Homestead Road,Chapel Hill,NC 27516
Completed paper applications can be dropped in the drop boxes
4 $69,100 outside of the Housing and Community Development offices or
5 $74,650 mailed to:
Orange County Housing and Community Development
6 $80,200 P.O.Box 8181,Hillsborough,NC 27278
3. Phone/Email:
7 $85,700 Housing Helpline staff can help people complete and submit
8 $91,250 applications and to give information on the supporting
documentation needed.Call 919-245-2655 or email
HousingHelp@orangecountync.gov.
More Info: n� I C�
ORANGE COUNTY WWWorangecountync•gov/LHAP ORA®UNTYHOUSING&COMMUNITY DEVELOPMENT
NORTH CARni.iNA
312022