HomeMy WebLinkAboutAgenda - 06-07-2022; 5-a - Second Public Hearing and Proposed Orange County FY 2022-2023 HOME Annual Action Plan and Activities 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 7, 2022
Action Agenda
Item No. 5-a
SUBJECT: Second Public Hearing and Proposed Orange County FY 2022-2023 HOME
Annual Action Plan and Activities
DEPARTMENT: Housing and Community
Development
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: Draft FY 2022-2023 Annual Corey Root, Director, Housing and
Action Plan Community Development, (919) 245-
Attachment 2: Resolution Authorizing 2490
Submission of the FY 2022-
2023 Annual Action Plan
Attachment 3: Draft FY 2022-2023 Annual
Action Plan Summary
Attachment 4: Resolution Approving the
FY 2022-2023 HOME
Program Design
PURPOSE: To hold a second public hearing on the Annual Action Plan for the HOME Investment
Partnerships Program and to consider:
1) Adoption of a Resolution authorizing submission of the FY 2022-2023 Annual Action Plan;
2) Adoption of a Resolution approving the proposed HOME Program Activities for FY 2022-
2023; and
3) Authorizing the County Manager to implement the HOME Program as approved by the
BOCC, including the ability to execute agreements with partnering nonprofit organizations
after consultation with the County Attorney and based on the allocation received from HUD.
BACKGROUND:
Annual Action Plan
Every year, state and local governments ("Participating Jurisdictions") that receive HOME
Investment Partnerships Program ("HOME") funds from the U.S. Department of Housing and
Urban Development ("HUD") are required to complete an Annual Action Plan that lays out how
they will allocate HUD funds for the upcoming program year in order to address the goals and
priorities in the Consolidated Plan. A summary of the draft Annual Action Plan for FY 2022-2023
is provided at Attachment 1.
Orange County is a special type of Participating Jurisdiction, called a Consortium, consisting of
Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough. Orange County serves
as the lead entity for the Orange County HOME Consortium. The Consortium completed the
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Annual Action Plan based on the HOME award recommendations made by the Local Government
Affordable Housing Collaborative, detailed in the section below.
A public comment period, as required by HUD, was established for April 1 — May 2, 2022, and a
public hearing was held on the draft Annual Action Plan at the April 26, 2022 Orange County
Board of Commissioners meeting. Public notice of the hearing was posted in The Herald Sun and
La Noticia. Copies of the draft Annual Action Plan were posted on the Orange County Department
of Housing and Community Development website, and a link to the website and draft plan were
circulated by public notice in the newspapers listed above, as well as email outreach to more than
100 relevant stakeholders to include local service providers, nonprofit organizations, government
entities, elected officials, and interested residents. All comments have been incorporated into the
final Annual Action Plan to be submitted to HUD.
In April, HUD issued Notice CPD-22-05 instructing HOME Participating Jurisdictions to not submit
Annual Action Plans until the actual grant amounts have been determined by HUD. HUD
announced those amounts on May 17, 2022, necessitating this second public hearing on the
proposed FY2022-23 HOME awards with correct funding amounts. Public notice for this second
public hearing was also posted in The Herald Sun and La NotIcia. Copies of the revised draft
Annual Action Plan were posted on the Orange County Department of Housing and Community
Development website, and a link to the website and draft plan were circulated by public notice in
the newspapers listed above, as well as email outreach to more than 100 relevant stakeholders
to include local service providers, nonprofit organizations, government entities, elected officials,
and interested residents. Staff will incorporate all comments into the final Annual Action Plan to
be submitted to HUD.
The FY 2022-2023 Annual Action Plan must be submitted to HUD on or before July 17, 2022. The
Board of Commissioners is therefore asked to consider approval of the attached resolution
authorizing submission of the Annual Action Plan (Attachment 2).
FY 2022-2023 HOME Program Activities
For FY 2022-2023, Orange County will receive the following HOME resources:
FY 2022-2023 HOME Funds $ 443,498
HOME Program Income $ 13,306
Local Match $ 99,787
Total $ 556,591
The Local Government Affordable Housing Collaborative (the "Collaborative"), comprised of one
(1) elected official and staff members from Orange County and the Towns of Carrboro, Chapel
Hill, and Hillsborough, reviewed the received applications for the FY 2022-2023 HOME Program
on March 3, 2022, and again after actual HOME allocations were announced by HUD on May 17,
2022. The Collaborative made the following funding recommendations for consideration by each
of the jurisdictions' elected bodies:
Applicant and Project HOME HOME
Request Award
Community Empowerment Fund — Homebuyer $50,000 $90,000
Assistance
EmPOWERment — Rental Acquisition $ 105,000 $ 105,000
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Gateway — Debt Refinancing and Rental Units $771,800 $0
Rehabilitation
Habitat for Humanity — Homebuyer Assistance $ 475,000 $ 167,241
Rebuilding Together of the Triangle - Homeowner $ 150,000 $ 150,000
Rehabilitation/Reconstruction
Administration 10% of HOME Funds, per statute $ 44,350 $ 44,350
Total $ 1,551,800 $ 556,591
As the chart above shows, all applicants except for the Gateway project received either full or
partial funding. The Gateway application requested debt refinancing and unit upgrades for a
project based Section 8 apartment complex in Hillsborough, and requested more funding
($771,800) than the Consortium expects to have for all projects for the FY 2022-2023 HOME
Program ($439,392). Discussions with the applicant revealed that partial funding for this project
would not be a viable option, because the debt refinancing must be paired with the renovations.
The applicant asked if partial funding could be guaranteed over a 5-year period, but HOME funds
do not allow for multiyear allocations. Staff is working with this project applicant to pursue other
funding streams to preserve affordable housing resource at Gateway.
Two other projects also received a different amount of funding from their application amounts.
The Collaborative members were concerned that the Community Empowerment Fund (CEF)
funding requested of$2,000 per homebuyer would not be a substantive amount for potential new
homeowners in the current housing market climate once these funds will come available for use
starting July 1, 2022, and increased the CEF award amount to $4,000 per homebuyer for 20
homebuyers (subtotal, $80,000) in addition to the $10,000 in overhead in the original application
(total award, $90,000). After also fully funding the EmPOWERment rental acquisition property
application ($105,000) and the Rebuilding Together of the Triangle homeowner rehabilitation
($150,000), Collaborative members awarded the balance of available funding ($167,241) to
Habitat for Humanity for down-payment assistance. A summary of each of the above projects is
provided at Attachment 3.
In accordance with the Orange County HOME Consortium Agreement, approved in May 2011,
the HOME Program Design for each year must be approved by all jurisdictions prior to submission
to HUD. The HOME Program Design is scheduled for approval by the:
• Town of Chapel Hill on June 8, 2022
• Town of Hillsborough on June 13 2022; and
• Town of Carrboro on June 14, 2022.
The Board of Commissioners is therefore asked to consider approval of the attached HOME
Program Design Resolution (Attachment 4).
HOME Program Implementation
After approval of the FY 2022-2023 HOME Program Design by all Consortium participants,
authorization is requested to allow the Orange County Manager, based on the HUD allocation
received, to execute agreements with partnering nonprofit organizations as necessary to
implement the approved HOME Program Design. All agreements will be reviewed and approved
by the County Attorney's Office.
FINANCIAL IMPACT: There are no additional County financial impacts anticipated with this item
as it allocates federal funding from the HOME program.
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SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
• GOAL: 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. Before implementation, all proposed HOME projects will undergo
Environmental Review according to HUD requirements.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Conduct the public hearing and accept comment on the revised FY 2022-2023 Annual
Action Plan;
2) Adopt a Resolution authorizing submission of the FY 2022-2023 Annual Action Plan;
3) Adopt and authorize the Chair to sign a Resolution approving the proposed HOME
Program Activities for FY 2022-2023; and
4) Authorize the County Manager to implement the HOME Program as approved by the
BOCC, including the ability to execute agreements with partnering nonprofit organizations
after consultation with the County Attorney and based on the allocation received from HUD.
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Orange County, North Carolina
HOME Consortium
FY 2022 2023
Annual Plan
Orange County, Town of Carrboro, Town of
Chapel Hill, and Town of Hillsborough
w 4 ► ORANGE COUNTY
17 f����� NORTH CAROLINA
Annual Action Plan 1
FY 2022-2023
6
Table of Contents
AP-05 Executive Summary........................................................................................................................3
PR-05 Lead & Responsible Agencies.........................................................................................................7
AP-10 Consultation ...................................................................................................................................8
AP-12 Participation .................................................................................................................................13
AP-15 Expected Resources......................................................................................................................15
AP-20 Annual Goals and Objectives........................................................................................................17
AP-35 Projects.........................................................................................................................................18
AP-38 Project Summary..........................................................................................................................19
AP-50 Geographic Distribution ...............................................................................................................22
AP-55 Affordable Housing.......................................................................................................................22
AP-60 Public Housing..............................................................................................................................23
AP-65 Homeless and Other Special Needs Activities..............................................................................24
AP-75 Barriers to Affordable Housing.....................................................................................................26
AP-85 Other Actions................................................................................................................................27
AP-90 Program Specific Requirements...................................................................................................29
Annual Action Plan 2
FY 2022-2023
7
AP-05 Executive Summary
Introduction
The Orange County, North Carolina HOME Consortium, is a Participating Jurisdiction in the U.S.
Department of Housing & Urban Development's (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(4) members: Orange County, the Town of Carrboro, the Town of Chapel Hill, and the Town of
Hillsborough, with Orange County serving as the lead entity. The Town of Chapel Hill also receives
Federal Community Development Block Grant (CDBG) funds each year.
Orange County is required to complete an annual plan for the use of HOME funds to HUD, called the
Annual Action Plan. The Annual Action Plan is a guide to how the County will allocate its resources for
specific activities that support the Goals and Objectives of the Orange County HOME Consortium's Five
Year Consolidated Plan. This is the HOME Consortium's third Annual Action Plan of the 2020-2025 Five
Year Consolidated Plan. The Consolidated Plan describes the housing and non-housing needs of County
residents and presents a five-year strategy to address those needs.
This Annual Action Plan outlines how Orange County will use HOME funds to address the goals and
priorities in the Consolidated Plan and which activities the County will undertake using HOME funds
during the upcoming program year. The Orange County HOME Program Year aligns with the County
Fiscal Year, beginning July 1 and ends June 30 of each year.This Annual Action Plan is for funds for Fiscal
Year (FY) 2022-2023, which begins July 1, 2022 and ends June 30, 2023.
The FY 2022-2023 Annual Action Plan outlines the actions to be undertaken with the HOME funds to be
received by the Orange County HOME Consortium. This plan excludes the Town of Chapel Hill's CDBG
program; the Town will complete a separate Annual Action Plan for its CDBG allocation from HUD.
Based on HUD's FY 2022 budget numbers, the Orange County HOME Consortium anticipates receiving
$443,498 in awarded funds, $13,306 in HOME program income and the Consortium members will
provide $99,787 in HOME Match. Orange County will use 10% of awarded funds for administration—
$44,350. In total, Orange County will have $512,241 available to award for FY 2022-2023.
FY 2022-2023 Budget:
Orange County proposes to undertake the following activities with FY 2022-2023 HOME funds:
HOME-21-01 - Habitat for Humanity, Homebuyer Assistance $167,241
HOME-21-02-Community Empowerment Fund, Homebuyer Assistance $90,000
HOME-21-03 - EmPOWERment, Inc., Rental Acquisition $105,000
HOME-21-04- Rebuilding Together of the Triangle, Mobile Home Acquisition: $150,000
Total $512,241
Annual Action Plan 3
FY 2022-2023
8
Summarize the objectives and outcomes identified in the Plan
The goal of the Orange County HOME Program is to improve the quality of housing 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.
The Consolidated Plan is a five-year guide that the Orange County HOME Consortium uses to address its
housing and community development initiatives. Based on the Housing Needs Assessment, Market
Analysis, and community and stakeholder input received during the Consolidated Planning process,the
Strategic Plan portion of the Plan establishes the following priorities:
• Housing for People Experiencing Homelessness
• Housing for Low-and Moderate-Income Households
• Integrated Housing for People with Special Needs
• Community/Economic Development and Services
During FY 2022-2023 HOME Program Year,the County proposes to address the following priority need
categories identified in the 2020 Consolidated Plan:
• Housing for People Experiencing Homelessness
• Housing for Low-and Moderate-Income Households
Evaluation of past performance
Orange County has a good performance record with HUD and the County regularly meets the
performance standards established by HUD.The County prepares a Consolidated Annual Performance
and Evaluation Report (CAPER) each year.Typically, this report is submitted within ninety(90) days after
the start of the new program year. An electronic copy of the CAPER is available for review at the Orange
County Housing and Community Development Department website www.orangecountync.gov/Housing.
Hard copies are available upon request.
The FY 2020-2021 CAPER (submitted in 2021), the first CAPER for the FY 2020-2025 Five Year
Consolidated Plan, indicates that in program year 2020,the County expended $199,174.01 in HOME
funds and $44,799.48 in local Match funds (a total of$243,973.49 in expenditures).These funds
included FY 2020 administrative funds, as well as funds from prior years (FY 2019, 2018, and 2016).
Funds spent in FY 2020 were used to:
• Administer the HOME grant ($37,476.10 in FY 2020 funds);
• Provide homeownership assistance to two (2) low-income homebuyers ($45,000 in FY 2018
funds);
• Acquire one (1) unit to be preserved as affordable rental housing ($145,000 in FY 2018 funds);
• Provide tenant-based rental assistance to 12 low-income renter households ($6,580.32 in FY
2016 funds, $70,617.59 in FY 2018 funds, and $19,299.48 in Match funds); and
• Provide homeownership assistance to five (5) low-income homebuyers ($84,500 in FY 2019
funds and $25,500 in Match funds).
Annual Action Plan 4
FY 2022-2023
9
The HOME Consortium strives to operate its HOME program in a timely manner and in accordance with
applicable regulations and match requirements.
Summary of Citizen Participation Process and consultation process
Developing the Annual Action Plan includes receiving requests for HOME funding from local agencies
and organizations; review of funding applications and development of funding recommendations by the
Orange County Local Government Affordable Housing Collaborative (the Collaborative), which consists
of one (1) elected official from each of the governing boards of Orange County,the Town of Carrboro,
Town of Chapel Hill, and Town of Hillsborough; soliciting resident input on those funding
recommendations; and drafting the Annual Action Plan to reflect final funding decisions and funded
activities for the upcoming program year.All HOME-funded activities benefit low-and moderate-income
residents of Orange County.
Orange County has an approved Citizen Participation Plan, as required by HUD, which is available on the
Orange County Department of Housing and Community Development website
(www.orangecountync.gov/Housing) or in hard copy upon request. The County has abided by its Citizen
Participation Plan in the preparation and development of the FY 2022-2023 Annual Action Plan.
The Orange County HOME Consortium solicited applications for the FY 2022-2023 HOME program in
December of 2021, and applications were due on February 25, 2022. On March 3, 2022, the
Collaborative met to review the applications received and develop a funding plan to be approved by
each of the governing boards of the four(4) member jurisdictions of the Consortium. In reviewing
applications and making awards for the 2022-2023 Orange County HOME Program, the stakeholder
input gathered during the Consolidated Planning process and the priorities and goals ultimately
identified in the 2020-2025 Consolidated Plan were considered.
The Consortium's funding plan was the basis for drafting the FY 2022-2023 Annual Action Plan.The draft
Annual Action Plan was posted to the County's website on March 30, 2022 and distributed electronically
to more than 100 stakeholders to solicit input and feedback.
The Consortium held a public hearing on the draft plan first on April 26, 2022 and again on June 7, 2022.
Public notice of the both hearings were made by email notification to known stakeholders,
advertisement in The Herald Sun and La Noticia (a Spanish language newspaper), social media posts, and
advertisement in the Orange County newsletter. At the public hearing, residents had the opportunity to
give their input and ideas on the proposed HOME-funded activities for FY 2022-2023.
Draft Annual Action Plan:
The draft FY 2022-2023 Annual Action Plan was on public display beginning Friday, April 1, 2022 through
Monday, May 2, 2022, a period of 31 days.The FY 2022-2023 Annual Action Plan was posted on the
Orange County Department of Housing and Community Development's website
(www.orangecountync.gov/Housing) and hard copies were made available upon request at the
following locations:
Annual Action Plan 5
FY 2022-2023
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• Orange County Housing and Community Development Department, 300 W.Tryon Street,
Hillsborough, NC 27278
• Orange County Housing and Community Development Department, 2501 Homestead Road,
Chapel Hill, NC 27516
• Town of Carrboro Town Hall, 301 W Main Street, Carrboro, NC 27510
• Town of Chapel Hill Town Hall, 405 M.L.K.Jr Blvd, Chapel Hill, NC 27514
• Town of Hillsborough Town Hall, 101 E Orange St, Hillsborough, NC 27278
Summary of public comments
Public comments received during the public hearing held on April 26, 2022 and during the public
comment period from April 1, 2022 to May 2, 2022 are summarized in section AP-12 Participation.
All comments were incorporated into on the FY 2022-2023 Annual Action Plan. [FINAL ANNUAL ACTION
PLAN WILL INCORPORATE ANY PUBLIC COMMENTS MADE ON JUNE 7, 2022]
Summary
The FY 2022-2023 Annual Action Plan for the Orange County HOME Consortium outlines which activities
the County will undertake using HOME funds during the program year beginning July 1, 2022 and ending
June 31, 2023.This is the County's third year of the 2020 Five-Year Consolidated Plan.
During the FY 2022-2023 program year, the Orange County HOME Consortium will receive the following
revenue:
• FY 2022-2023 HOME Funds: $443,498, less 10% administration costs = $399,148
• HOME Program Income: $ 13,306
• HOME Match: $ 99,787
Total: $512,241
During the FY 2022-2023 HOME program year, the Orange County HOME Consortium proposes to
address the following priority need categories from the 2020 Consolidated Plan:
• Housing for People Experiencing Homelessness: Provide affordable rental housing for
households experiencing homelessness.
o Priority Level: High
o Associated Goals: Rental Construction, Rental Assistance, Housing Rehabilitation/
Preservation, Grant Administration
• Housing for Low-and Moderate-Income Households: Provide affordable housing (both rental
and ownership)for households with moderate and low incomes, especially those with extremely
low incomes.
o Priority Level: High
Annual Action Plan 6
FY 2022-2023
11
o Associated Goals: Rental Construction, Rental Assistance, Housing Rehabilitation/
Preservation, Home Ownership Construction, Home Buyer Assistance, Grant
Administration
PR-05 Lead & Responsible Agencies
Agency/entity responsible for preparing/administering the Consolidated Plan
The following are the agencies/entities responsible for preparing the Consolidated Plan and
those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
Lead Agency Orange County, NC
HOME Administrator Orange County, NC Department of Housing and
Community Development
Table 1—Responsible Agencies
Consolidated Plan Public Contact Information
Corey Root, Housing Director, Orange County
Phone: 919-245-2490
Email: croot@orangecountync.gov
Office Address: 300 W.Tryon Street, Hillsborough, NC 27278
Mailing Address: PO Box 8181, Hillsborough, NC 27278
I
Annual Action Plan 7
FY 2022-2023
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AP-10 Consultation
Introduction
Consultation with community stakeholders was a critical component in the development of the 2020-
2025 Consolidated Plan. Consultation helped the Orange County HOME Consortium identify and
prioritize community needs, develop strategies, and coordinate subsequent action plans.This process
also facilitated information sharing regarding community resources and promotes coordination within
the Consortium and its member jurisdictions.
During development of the Consolidated Plan in early 2020,the Consortium consulted with social
services agencies, service providers, community-based organizations, housing providers, local
government agencies and boards, neighborhoods leaders, and elected officials.Two (2) questionnaires
were created and distributed to both residents and stakeholders to help identify needs, gaps, and
priorities for the next five years. The resident questionnaire was available online in three (3) languages
(English, Spanish, and Burmese) and in hard copy in four(4) languages (English, Spanish, Burmese, and
Karen). Input from a series of in-person and online meetings as well as the questionnaires were used in
the development of the strategies and priorities detailed in the Consolidated Plan.
In developing the FY 2022-2023 Annual Action Plan and making funding awards for the 2022-2023
Orange County HOME Program,the stakeholder input gathered during the Consolidated Planning
process and the priorities and goals ultimately identified in the 2020-2025 Consolidated Plan were
considered.The Orange County Local Government Affordable Housing Collaborative (the
Collaborative), which consists of one (1) elected official from each of the governing boards of Orange
County,the Town of Carrboro,Town of Chapel Hill, and Town of Hillsborough, was the key entity
consulted on funding recommendations for the FY 2022-2023 HOME Program and thereby the
development of the FY 2022-2023 Annual Action Plan.
Provide a concise summary of the jurisdiction's activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health
and service agencies (91.215(1)).
Orange County works with the following agencies to enhance coordination:
• Orange County Housing Authority: Housed within the Department of Housing and Community
Development,the Housing Authority operates the Section 8 Housing Choice Voucher Program
for Orange County.
• Town of Chapel Hill Public Housing and Affordable Housing and Community Connections
Departments:The Town of Chapel Hill manages public housing communities in Chapel Hill.
• Orange County Partnership to End Homelessness (OCPEH): Housed within the Department of
Housing and Community Development, OCPEH acts as the Continuum of Care (CoC) lead for
Orange County and coordinates among local governments and service providers (including those
providing health services)to meet the housing and services needs of housing insecure Orange
County residents.
Annual Action Plan 8
FY 2022-2023
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• Social Services Agencies:The County provides funds to improve services to low-and moderate-
income people.
• Housing Providers:The County provides funds to rehabilitate and develop affordable housing
and provide housing options for low-and moderate-income households.
Each year, as part of the HOME and CDBG application planning process, local agencies and organizations
are invited to submit proposals for HOME and CDBG funds for eligible activities.These groups
participate in the planning process by attending informational meetings, receiving technical assistance
from the Consortium, and attending public hearings.The outreach process facilitates communication
around affordable housing in Orange County and how public and private agencies and organizations can
help address the most urgent needs.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families,families with
children,veterans, and unaccompanied youth) and persons at risk of homelessness.
The Orange County HOME Consortium coordinates extensively with the Orange County Partnership to
End Homelessness (OCPEH)that serves as the Continuum of Care (CoC)for Orange County.The four(4)
jurisdictions participating in the Orange County HOME Consortium—Orange County and the Towns of
Chapel Hill, Hillsborough and Carrboro—fund OCPEH, sharing costs based on population. Elected
officials from each jurisdiction serve on the CoC board, and staff from the two jurisdictions that have
Public Housing Authorities also have ex officio board seats with full voting privileges. In this way,the
jurisdictions direct all efforts to end homelessness, including funding decisions and policy priorities.
OCPEH staff meet weekly with Orange County Housing and Community Development staff, and are co-
located in this department. OCPEH staff meet regularly with all jurisdiction staff, and present annually to
the four elected boards on the work of OCPEH. Starting in 2016, OCPEH created a system map and gaps
analysis of homeless services in Orange County, and has updated this document annually with the latest
update issued December 2021. OCPEH staff also serve with staff from the four jurisdictions on the
Orange County Affordable Housing Coalition, a group of affordable housing developers,funders,
advocates, and staff seeking to collaboratively increase affordable housing units in Orange County.
OCPEH staff contribute information and ideas to the Consolidated Plan and to the Annual Action Plan
updates.
OCPEH leads efforts, in conjunction with the HOME Consortium,to end homelessness in Orange County.
OCPEH directs the work of the bi-annual Plan to End Homelessness and ongoing coordination among
service providers through seven monthly standing meetings. In addition to the CoC board, HOME
Consortium members participate regularly in these CoC workgroups, including care coordination using a
by-name list.
OCPEH operates coordinated entry for people in housing crisis, directing people to appropriate
resources including homelessness diversion, shelter/emergency response referrals, and permanent
housing resources. Coordinated entry prioritizes permanent supportive housing for people experiencing
chronic homelessness. OCPEH has a standing monthly meeting with veteran service providers to
Annual Action Plan 9
FY 2022-2023
14
particularly address ending veteran homelessness, including care coordination using a veterans-only by-
name list. As part of the gaps analysis, OCPEH seeks to increase the quality and availability of Rapid
Rehousing for all people experiencing homelessness, including families. OCPEH coordinates the annual
Point-in-Time count in conjunction with HOME Consortium members, and has not found
unaccompanied youth in any year. OCPEH works closely with youth services providers and LGBTQ
service providers and advocates to ensure no youth are going uncounted. One of the current system
gaps is a youth homeless program to serve youth experiencing homelessness. Overall, OCPEH
coordinates with HOME Consortium members to continue to fill system gaps and make updates the
homeless gaps analysis.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
HOME Consortium members serve on the OCPEH Leadership Team, the CoC board that determines ESG
allocations each year. HOME Consortium members also serve on the CoC Project Review Committee
that determines program performance standards, evaluates program outcomes, crafts funding
priorities, and creates recommendations for CoC and ESG funding for Leadership Team approval. Project
Review Committee members look at program data each quarter to keep eyes on program outcomes and
help with funding decision-making during application periods. The Project Review Committee
determines funding policies and procedures annually during the CoC and ESG grant competitions.The
CoC contracts with the statewide Coalition to End Homelessness to serve as HMIS lead, and administers
HMIS in consultation with the Leadership Team, as CoC board, inclusive of HOME Consortium members.
In 2016-2017 the Orange County Partnership to End Homelessness (OCPEH) gathered people with lived
experience of homelessness, homeless service providers, community leaders, and state homeless
experts to map the homeless service system in Orange County.This process created the Orange County
homeless system map and the homeless system gaps analysis. OCPEH staff typically update the gaps
analysis each year; the last update was completed in December 2021.
Annual Action Plan 10
FY 2022-2023
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Agencies, groups, organizations and others who participated in the process and consultations
1 Agency/Group/Organization Habitat for Humanity of Orange
County
Agency/Group/Organization Type Housing
Services- Housing
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the Agency/Group/Organization Habitat for Humanity of Orange
was consulted. What are the anticipated outcomes of County applied for FY 2022-2023
the consultation or areas for improved coordination? HOME funds.
2 Agency/Group/Organization EmPOWERment, INC.
Agency/Group/Organization Type Housing
Services- Housing
Services- Employment
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the Agency/Group/Organization EmPOWERment, Inc. applied for FY
was consulted. What are the anticipated outcomes of 2022-2023 HOME funds.
the consultation or areas for improved coordination?
3 Agency/Group/Organization Community Empowerment Fund
Agency/Group/Organization Type Services- Housing
Services- Employment
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the Agency/Group/Organization Community Empowerment Fund
was consulted. What are the anticipated outcomes of applied for FY 2022-2023 HOME funds.
the consultation or areas for improved coordination?
4 Agency/Group/Organization Rebuilding Together of the Triangle
Agency/Group/Organization Type Housing
Services- Housing
Services- Rehabilitation
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Annual Action Plan 11
FY 2022-2023
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Briefly describe how the Agency/Group/Organization Rebuilding Together of the Triangle
was consulted. What are the anticipated outcomes of applied for FY 2022-2023 HOME funds.
the consultation or areas for improved coordination?
5 Agency/Group/Organization Gateway Village
Agency/Group/Organization Type Housing
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the Agency/Group/Organization Gateway Village applied for FY 2022-
was consulted. What are the anticipated outcomes of 2023 HOME funds.
the consultation or areas for improved coordination?
6 Agency/Group/Organization Orange County Partnership to End
Homelessness
Agency/Group/Organization Type Services-homeless
Other government-County
Other government- Local
What section of the Plan was addressed by Housing Need Assessment
Consultation? Homeless Needs-Chronically
homeless
Homeless Needs - Families with
children
Homelessness Needs -Veterans
Homelessness Needs -
Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization OCPEH was consulted to ascertain the
was consulted. What are the anticipated outcomes of current, most pressing needs of
the consultation or areas for improved coordination? people experiencing homelessness in
the community.
Table 2—Agencies,groups,organizations who participated
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Identify any Agency Types not consulted and provide rationale for not consulting
All Agency Types were consulted in the development of the 2020-2025 Consolidated Plan, which lays out
the goals and strategies upon which this Annual Action Plan is based.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan Lead Organization How do the goals of your
Strategic Plan overlap with
the goals of each plan?
Orange County Partnership to End
Continuum of Care The goals are compatible.
Homelessness
Table 3—Other local/regional/federal planning efforts
Narrative
The Orange County HOME Consortium is a cooperative venture of Orange County and the Towns of
Carrboro, Chapel Hill, and Hillsborough. There is an excellent working relationship between all the
jurisdictions. In addition, there is an excellent rapport with the Continuum of Care and its member
organizations.
AP-12 Participation
Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal-setting
The FY 2022-2023 Annual Action Plan has many components that include citizen participation. These
components included: soliciting applications for funding from local agencies and organizations; meeting
with agencies/organizations to provide technical assistance on how to complete the HOME application;
review of applications by elected officials from the County and the Towns (the Local Government
Affordable Housing Collaborative), and two public hearings on the proposed funding plan for FY 2022-
2023 HOME funds and draft Annual Action Plan. All public comments received during the public
comment period, running from April 1 through May 2, 2022, and at both public hearings on April 26,
2022 and June 7, 2022 are included in the Annual Action Plan.
Annual Action Plan 13
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Citizen Participation Outreach
1)Newspaper Ad
Mode of Outreach: Newspaper Ad
Target of Outreach: Minorities; Non-English Speaking:Spanish; Non-targeted/broad community
Summary of response/attendance: No responses received
Summary of comments received: No comments received
Summary of comments not accepted and reasons:N/A
URL(If applicable): N/A
2)Public Hearing
Mode of Outreach: Public Hearings
Target of Outreach: Minorities; Non-English Speaking:Spanish; Persons with disabilities; Non-targeted/broad
community; Residents of Public and Assisted Housing, Relevant local agencies and organizations
Summary of response/attendance:One member of the public signed up to speak, no other comments
received.
Summary of comments received: Douglas Call,of Habitat for Humanity,said his organization helps
homeowners with down payments. He said these down payments are getting larger and larger due to the
increase in values. He said in FY17 they were given$285,000 and they helped twelve families. He said that in
FY20 there was less money available at$131,000,and that helped six families. He said that last year,$450,000
was allocated to help fifteen families at$30,000 each. He said they have nineteen homes they plan to close on
this year. He said they hope to serve affordable housing community as much as possible. He said that it will
allow only$7,000 for each family. He said they had requested$475,000 but these requests were made before
the conflict in Ukraine. He said there are a lot of changes in the amount of money that is allocated from
federal dollars. He said he was here to give details on how they use the funding and if further monies become
available, he will return to make a request to add to that amount. He said that some homes built in
Hillsborough that were assessing for$180,000 3-4 years ago are now assessing at$300,000.
Any comments received at the June 7,2022 public hearing will be placed here.
Summary of comments not accepted and reasons:All comments were accepted and incorporated into the
Annual Action Plan.
URL(If applicable):http://orangecountync.gov/967/Meeting-Videos
3)Internet Outreach
Mode of Outreach:Internet Outreach
Target of Outreach: Minorities; Non-English Speaking:Spanish, Burmese, Karen; Persons with disabilities;
Non-targeted/broad community; Residents of Public and Assisted Housing; Relevant local agencies and
organizations
Summary of response/attendance: N/A
Summary of comments received: No comments received.
Summary of comments not accepted and reasons: N/A.
URL(If applicable):http://orangecountync.gov/2336/HOME-Program
Table 4—Citizen Participation Outreach
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AP-15 Expected Resources
Introduction
The Orange County HOME Consortium expects to receive $378,743 in 2022 HOME funds, $85,217 in
HOME Match funds, and $13,306 in HOME Program Income for the FY 2022-2023 program year. The
program year is from July 1, 2022 through June 31, 2023.
Anticipated Resources
Program Source Uses of Expected Amount Available Year 1 Expected Narrative
of Funds Annual Program Prior Year Total: Amount Description
Funds Allocation: Income: Resources: $ Available
$ $ $ Remainder
of ConPlan
HOME public Acquisition The
- Homebuyer Orange
federal assistance County
Homeowner HOME
rehab Consortium
Multifamily will receive
rental new $443,498
construction in annual
Multifamily allocation
rental rehab iii. plus
New program
construction income
for
ownership
TBRA 1 $443,498 $13,306 0 1 $498,935 $784,098
Table 2-Expected Resources—Priority Table
Explain how federal funds will leverage those additional resources (private, state and local
funds), including a description of how matching requirements will be satisfied
The Orange County HOME Consortium uses cash as the local Match for HOME funds.The estimated
Match contribution for FY 2022-2023 is $99,787.
In addition, Orange County leverages other funds from a variety of sources to address the needs
identified in the plan, including but not limited to:
• Home Repair and Rehabilitation: Orange County has received funds for home repair and
rehabilitation under the North Carolina Housing Finance Agency's 2021 Urgent Repair Program
($100,000) and 2020 Essential Single-Family Rehabilitation Loan Pool program ($190,000).
• Emergency Housing Assistance: Orange County leverages local funds from the County and
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Towns, as well as CDBG and CDBG-CV funds from Chapel Hill and CDBG-CV funds awarded by
the North Carolina Department of Commerce to the Towns of Hillsborough, Carrboro, and
Orange County, to operate the Emergency Housing Assistance (EHA) program. EHA provides
financial assistance for eviction and homelessness prevention through emergency rent,
mortgage, and utility payments, as well as security deposits, application fees, and other costs to
help households experiencing homelessness move in to housing.
• Rapid Rehousing Program: Orange County uses HOME funds as well as ESG and ESG-CV funds
from the North Carolina Department of Health and Human Services to operate a Rapid
Rehousing program that provides short-to mid-term rental assistance, depending on the
tenant's needs, to people experiencing homelessness, through the local Continuum of Care
(COC).
• Other Local Funds for Affordable Housing: A variety of other local funding sources are used for
affordable housing activities, including: Outside Agency/Human Services Funding, Carrboro
Affordable Housing Fund, Chapel Hill Affordable Housing Development Reserve, Chapel Hill
Affordable Housing Fund, and Chapel Hill Affordable Housing Bond.
If appropriate, describe publicly owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
Some of the Consortium's member jurisdictions own surplus land and regularly evaluate their inventory
to identify sites suitable for affordable housing activities, including the Town of Chapel Hill's public
housing communities. All member jurisdictions actively collaborate with private and public entities to
assist them in acquiring property for projects that address the needs identified in this plan. For example,
the jurisdictions are involved in the Northside Neighborhood Initiative, a land bank in historically black
neighborhoods in Chapel Hill and Carrboro that is funded in part by the University of North Carolina, the
Center for Community Self-Help, and the Oak Foundation. The Town of Chapel Hill has one affordable
housing development project on Town-owned land expected to begin construction in summer 2022 and
two other projects on Town-land expected to receive zoning entitlements to develop or redevelop
affordable housing in spring 2022.
Discussion
Although there are limited resources available to address the needs identified in the Consolidated Plan,
the Consortium member jurisdictions are continuously collaborating to maximize what resources are
available and develop new ones.
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AP-20 Annual Goals and Objectives
Goals Summary Information
Sort Goal Name Start End Category Geographic Needs Funding Goal
Order Year Year Area Addressed Outcome
Indicator
1 Home Buyer 2022 2027 Affordable Orange Down $257,241 Direct
Assistance Housing County payment Financial
assistance Assistance to
Estimated 26
Homebuyers
2 Rental Acquisition 2022 2027 Affordable Carrboro Affordable $105,000 1 rental unit
Housing housing acquired
acquisition
Homeless
Non-
Homeless
Special
Needs
3 Housing 2022 2027 Affordable Orange Affordable $150,000 Rental units
Rehabilitation/ Housing County housing rehabilitated:
Preservation Non-
preservation 2 Units
Homeless
Special
Needs
Table 3—Goals Summary
Goal Descriptions
1 Goal Name Home Buyer Assistance
Goal Description Provide direct assistance to buyers to help them purchase affordable homes.
2 Goal Name Rental Acquisition
Goal Description Purchase of rental unit affordable to people with low incomes
3 Goal Name Housing Rehabilitation/Preservation
Goal Description Repair and reconstruction of existing owned housing.
Annual Action Plan 17
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AP-35 Projects
Introduction
The Orange County HOME Consortium proposes to undertake the following activities with FY 2022-2023
HOME funds:
# Project Name
1 Habitat for Humanity—Homebuyer Assistance
2 Community Empowerment Fund—Homebuyer Assistance
3 EmPOWERment—Rental Acquisition
4 Rebuilding Together of the Triangle - Homeowner Rehabilitation/Reconstruction
5 Administration—2022
Table 4—Project Information
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AP-38 Project Summary
Project Summary Information
1 Project Name Habitat for Humanity—Homebuyer Assistance
Target Area County-wide
Goals Supported Home Buyer Assistance
Needs Addressed Housing for Low-and Moderate-Income Households
Funding HOME: $134,661 Local Match: $32,579 Total: $167,241
Description Provide assistance to an estimated 6 low-income households for
the purchase of affordable homes.
Target Date 12/31/2023
Estimate the number and 5 households at 30%-50%AMI and 1 household at 50%-80%AMI
type of families that will
benefit from the proposed
activities
Location Description 118 Hill Street, Hillsborough; 307 N Roberson Street, Chapel Hill;
2200 Homestead Road, Chapel Hill
Planned Activities Down payment assistance
2 Project Name Community Empowerment Fund—Homebuyer Assistance
Target Area County-wide
Goals Supported Home Buyer Assistance
Needs Addressed Housing for Low-and Moderate-Income Households
Funding HOME: $72,468 Local Match: $17,532 Total: $90,000
Description Provide assistance to an estimated 20 low-income households for
the purchase of affordable homes.
Target Date 12/31/2023
Estimate the number and 19 households at 30%-50%AMI and 1 household at 50%-80%
type of families that will AMI
benefit from the proposed
activities
Location Description Locations to be determined
Planned Activities Down payment assistance
3 Project Name EmPOWERment- Rental Acquisition
Target Area Carrboro, NC
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Goals Supported Rental Acquisition
Needs Addressed Housing for Low-and Moderate-Income Households
Funding HOME: $84,546 Local Match: $20,455 Total: $105,000
CHDO set aside$66,525
Description Provide funds to purchase 1 townhome in Carrboro
Target Date 7/1/2022
Estimate the number and 1 household at 60%or below AMI
type of families that will
benefit from the proposed
activities
Location Description Carrboro, NC
Planned Activities Rental Acquisition
4 Project Name Rebuilding Together of the Triangle - Homeowner
Rehabilitation/Reconstruction
Target Area Unincorporated Orange County
Goals Supported Housing Rehabilitation/Preservation
Needs Addressed Affordable housing preservation
Funding HOME: $120,779 Local Match: $29,221 Total: $150,000
Description Purchase of 2 mobile homes to replace existing units
Target Date 12/31/23
Estimate the number and 1 household at 30%-50%AMI and 1 household at 50%-80%AMI
type of families that will
benefit from the proposed
activities
Location Description Both project sites will be located on owner-occupied land outside
municipal jurisdictions that have an uninhabitable mobile home on
them.
Planned Activities Manufactured home replacement for two Orange County property
owners who are currently living in hazardous conditions due to
deteriorating manufactured housing units
5 Project Name Administration—2022
Target Area County-wide
Annual Action Plan 20
FY 2022-2023
25
Goals Supported Home Buyer Assistance
Rental Construction
Housing Rehabilitation/Preservation
Needs Addressed Housing for People Experiencing Homelessness
Housing for Low-and Moderate-Income Households
Funding HOME: $44,350
Description Funds for administration of the HOME Program will be allocated to
the Orange County Housing and Community Development
Department.Total funds will equal 10%of the 2022 HOME award
of$443,498
Target Date 6/30/2023
Estimate the number and Administration will support HOME-funded housing activities.
type of families that will
benefit from the proposed
activities
Location Description N/A
Planned Activities Administration
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26
AP-50 Geographic Distribution
Description of the geographic areas of the entitlement (including areas of low-income and
minority concentration) where assistance will be directed
The Orange County HOME Consortium relies on program partners to identify geographic areas of need
and direct assistance to those areas. For the FY 2022-2023 program, HOME funds will be directed
Geographic Distribution
Target Area Percentage of Funds
County-wide 100
Table 5-Geographic Distribution
Rationale for the priorities for allocating investments geographically
The Consortium affirms the importance of affirmatively furthering fair housing, by investing resources
not only in low- and moderate-income areas, but creating housing opportunities for households with
lower incomes in more affluent areas of the county.
AP-55 Affordable Housing
Introduction
Orange County will use its HOME funds for direct homebuyer assistance, rental construction, and rental
acquisition. The one year goals for affordable housing in Orange County for FY 2022-2023 are as follows:
One Year Goals for the Number of Households to be Supported
Homeless 1
Non-Homeless 28
Special-Needs 0
Total 29
Table 6-One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through
Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 2
Acquisition of Existing Units 27
Total 29
Table 7-One Year Goals for Affordable Housing by Support Type
Annual Action Plan 22
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Discussion
Orange County will fund the following projects with the FY 2022-2023 HOME funds:
• HOME-22-01—Habitat for Humanity—Homebuyer Assistance: Provide assistance to an
estimated 6 low-income households for the purchase of affordable homes. $475,000 was
requested and $167,241 was awarded.
• HOME-22-02 Community Empowerment Fund—Homebuyer Assistance: New down payment
assistance program for 20 households. $50,000 was requested and $90,000 was awarded.
Flexibility was given on serving less than 20 people if needed.
• HOME-22-03—EmPOWERment, Inc.—Rental Acquisition: Provide funds to purchase 1
townhome in Carrboro. $105,000 was requested and $105,000 was awarded. CHDO set aside
$66,525.
• HOME-22-04 Rebuilding Together of the Triangle—Mobile Home Replacement: Purchase of 2
mobile homes to replace existing units. $150,000 was requested and $150,000 was awarded.
AP-60 Public Housing
Introduction
Public housing in Orange County is provided by two entities: the Orange County Housing Authority
(OCHA) and the Town of Chapel Hill's Public Housing Department. Housed within the Orange County
Department of Housing and Community Development, OCHA has been allocated 648 Housing Choice
Vouchers (HCV, commonly known as Section 8), of which 564 are being actively administered. The OCHA
does not manage any public housing units. OCHA is overseen by a seven (7) member Board.
Actions planned during the next year to address the needs to public housing
The Orange County HOME Consortium is undertaking the following to address the needs of HCV holders:
providing homeownership assistance that can be paired with homeownership Housing Choice Vouchers
to transition renters to homeownership.
Actions 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.
If the PHA is designated as troubled, describe the manner in which financial assistance will be
Annual Action Plan 23
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28
provided or other assistance
OCHA is not designated as troubled.
Discussion
Orange County lacks housing affordable to households with very low incomes. Rental assistance
programs like the HCV Program are essential in creating affordability for these households within the
private market. OCHA continues to engage landlords in order to create access to more units for HCV
holders, and works to maximize federal and local resources for housing access and stabilization.
AP-65 Homeless and Other Special Needs Activities
Introduction
The Orange County Partnership to End Homeless (OCPEH) coordinates the Orange County Continuum of
Care (CoC).The organization is jointly funded by four local governments: Orange County and the Towns
of Carrboro, Chapel Hill, and Hillsborough.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness
including:
Reaching out to homeless persons(especially unsheltered persons) and assessing their
individual needs
OCPEH's HOME Committee (no relation to the HOME Investment Partnerships Program) consists of
about 20 housing and service providers that interact with people who are experiencing chronic and/or
particularly vulnerable to homelessness, many of whom have disabilities. Service providers involved
include nonprofits, DSS and other county departments, UNC Hospitals, veterans' organizations, law
enforcement, private attorneys, and more. The Committee meets monthly to collaborate on finding
housing and services (e.g., medical, mental health, substance use, and legal services) for these people.
The CoC uses its Coordinated Entry system to assess people's needs, score their level of need, and
prioritize them for permanent supportive housing, and conducts street outreach program to reach
people who are living unsheltered. In January 2021, the Town of Chapel Hill allocated funding for a
fourth position for the street outreach program.
Addressing the emergency shelter and transitional housing needs of homeless persons
Orange County's only emergency shelter is run by the Inter-Faith Council for Social Service (IFC). IFC also
offers a transitional housing program for men.The Freedom House Recovery Center provides residential
mental health and substance use services for men, women, children, and families (in addition to
outpatient and crisis services), and there are several Oxford Houses in the County that provide
transitional housing for people in recovery from substance use disorder.The County does not have a
domestic violence shelter, but does have an emergency housing program run by the Compass Center.
Helping homeless persons (especially chronically homeless individuals and families,families
with children, veterans and their families, and unaccompanied youth)make the transition to
Annual Action Plan 24
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29
permanent housing and independent living, including shortening the period of time that
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 identified Rapid Rehousing as a gap in need of increased funding and better alignment with best
practice (i.e., flexible, individualized mix of services, financial assistance, and housing navigation). In May
2020, OCPEH launched a Rapid Rehousing program (funded with HOME and state ESG) that works
through the CoC's HOME Committee to provide short-to mid-term rental assistance to the community's
most vulnerable people experiencing homelessness.The CoC also operates a Rapid Rehousing program
for veterans with state ESG money.
Service providers, such as IFC, Community Empowerment Fund (CEF), and Cardinal Innovations (the
LME/MCO for Orange County), provide case management services to clients experiencing homelessness
and can help connect them to housing. Orange County has also seen success in implementing a
homeless diversion program, and currently diverts about 25% of households presenting for a shelter bed
using a best-practice model that includes a strengths-based guided conversation with participants
exploring other safe places to stay plus flexible funding that can make this happen.
However, there is a great need for affordable housing units in the County, particularly subsidized,
income-based rental units that can be accessed by people experiencing or at risk of homelessness.This
gap presents a continuous challenge for connecting people experiencing homelessness with permanent
housing.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: 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); or, receiving
assistance from public or private agencies that address housing, health, social services,
employment, education, or youth needs.
The CoC partners with UNC Hospitals and the Orange County Department of Social Services (DSS) Foster
Care division, and has developed discharge policies with local and regional institutions.The CoC also
assisted in the creation of the Outreach Court, now known as the Community Resource Court (CRC),
North Carolina's first specialty court for people experiencing homelessness who are offered mental
health evaluations and treatment plans in lieu of going to jail for misdemeanor crimes. CRC is a
collaboration between the UNC Center for Excellence in Community Mental Health and the 15B District
Court Judge's Office. Defendants are typically referred to CRC by their attorney or by the district
attorney's office, although anyone is able to make a recommendation for a referral. Court requirements
include monthly attendance to a therapeutic court session and compliance with recommended mental
health or substance use treatment. Upon graduation from the court, the participant is given some type
of legal benefit such as dismissal of criminal charges.
Annual Action Plan 25
FY 2022-2023
30
The County, in partnership with the Towns, also administers the Emergency Housing Assistance program
for people who apply directly, come through Coordinated Entry (called the Orange County"Housing
Helpline"), or are referred by service providers and are experiencing housing insecurity.The fund can
assist with pay for rent, mortgage, and utility payments, security and utility deposits, and certain other
one-time expenses to help households at risk of, or currently experiencing, homelessness or to help
individuals remain stably housed.
AP-75 Barriers to Affordable Housing
Introduction
In 2020, the Orange County HOME Consortium worked with the Center for Urban and Regional Studies
at the University of North Carolina Chapel Hill to conduct an Analysis of Impediments to Fair Housing
Choice (AI).The Al includes an analysis of Orange County laws, regulations, and administrative policies,
procedures, and practices that affect the location, availability, and accessibility of housing.The Al also
includes an assessment of conditions, both public and private, that affect fair housing choice.
The Al identified the following 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. A majority of renters in the county are rent-
burdened—spending over 30%of household income toward rent and utilities; this figure
exceeds 85%for households earning below$35,000 and is still over half for households earning
$35,000–$49,999. Meanwhile, over 80%of households earning under$20,000 are severely rent-
burdened (meaning they pay over half their income toward rent and utilities), as are nearly 40%
of households earning$20,000–$34,999.
• African American and Hispanic residents face difficulties receiving conventional mortgage
loans.The denial rate for first-lien, conventional mortgages for African Americans is consistently
over four times that of Whites, and the denial rate for Hispanic households is between two and
four times that of Whites as well.The most common reasons for denial, as noted in the HMDA
data, are credit history for African Americans (33% of all denial reasons) and debt-to-income
ratio for Hispanic households (49% of all denial reasons).
• Based on the number of fair housing complaints filed, disabled persons face difficulties
accessing fair housing. Nearly half of all fair housing complaints filed in the 2010-2018 period
were filed due to discrimination based on disability. Given that the county's population with a
disability is approximately 12,500, and that over a quarter of the elderly are also disabled, this is
a significant barrier to fair housing.
• There exists a lack of subsidized rental properties outside the Towns of Chapel Hill and
Carrboro.The only public housing in the county is located in Chapel Hill and Carrboro, and the
vast majority of other subsidized properties are located in either Chapel Hill or Carrboro. To that
end, six subsidized developments exist in Hillsborough, one exists in the Orange County portion
of Mebane, and only one subsidized property exists in unincorporated Orange County.
• Zoning throughout the county largely restricts the development of denser, more affordable
Annual Action Plan 26
FY 2022-2023
31
housing. Only a handful of areas in the county are zoned for moderately dense residential
development (over four lots or units per acre), and resident opposition can complicate or inhibit
the development of denser housing in those areas. Given the high cost of land in service-rich
neighborhoods of Chapel Hill and Carrboro, low-density zoning can prevent the construction of
affordable housing.
Actions it planned 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
Based on the impediments above,the Al makes the following recommendations. Details on these
recommendations are explained more fully in the Al.
• 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
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.
AP-85 Other Actions
Introduction
The Orange County HOME Consortium has developed the following actions to address obstacles to
meeting underserved needs, foster affordable housing, reduce lead-based hazards, reduce the number
of families living in poverty, develop institutional structures, and enhance coordination between public
and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs
Despite efforts by the County,Towns, and other affordable housing actors and service providers,there
remain significant obstacles to meeting the needs of underserved people and communities.The most
recent concern is the COVID-19 pandemic and its economic impacts, particularly for renter households
Annual Action Plan 27
FY 2022-2023
32
with lower incomes who are experiencing unprecedented job loss and housing instability.
One way the HOME Consortium worked to address this situation was by allocating local Match funds for
FY 2020-2021 to be used for tenant-based rental assistance through the County's Rapid Rehousing
program, and, in FY 2021-2022, reallocating$114,000 in FY 2016 HOME funds for tenant-based rental
assistance through the Rapid Rehousing program as well.
The County also scaled up and secured significant federal and state funding(about$4 million in calendar
year 2020)for emergency housing assistance, both through the local Emergency Housing Assistance
program and the statewide HOPE program,to help stabilize households who are experiencing or at risk
of experiencing homelessness so they could lower their exposure to COVID-19 by having a safe, non-
congregate place to stay. In 2021, the County began using about$2.2 million in CDBG-CV funds secured
from the state to continue this work, and as well as additional funds that were allocated to Orange
County through the American Rescue Plan Act.
Actions planned to foster and maintain affordable housing
Using FY 2022-2023 HOME funds,the Consortium will help local nonprofit agencies undertake the
following projects to foster affordable housing:
• Habitat for Humanity—Homebuyer Assistance: Provide assistance to an estimated 5 low-
income households for the purchase of affordable homes.
• EmPOWERment—Rental Acquisition: Provide funds to purchase 1 townhome in Carrboro.
• Community Empowerment Fund: New down payment assistance program for 20 households.
• Rebuilding Together of the Triangle: Purchase of 2 mobile homes to replace existing units.
Actions planned to reduce lead-based paint hazards
The Consortium ensures that County rehabilitation staff and the contractors they work with are
knowledgeable and up-to-date on lead-based paint(LBP) requirements of all federal housing programs,
distributes information on LBP hazards to all households that participate in County housing programs,
conducts LBP inspections and assessments as necessary, and implements environmental control or
abatement measures for LBP hazards as applicable in all federally-funded projects.This strategy allows
Orange County to: be in full compliance with all applicable LBP regulations; control or reduce, to the
extent feasible, all LBP hazards in housing rehabilitated with federal funds; and reduce the number of
incidences of elevated blood lead levels in children.
Actions planned to reduce the number of poverty-level families
The Orange County Family Success Alliance (FSA), modeled after proven national programs such as the
Harlem Children's Zone and the Promise Neighborhoods Institute, is founded on the understanding that
no one organization or individual can single-handedly change the way poverty harms our children and
Annual Action Plan 28
FY 2022-2023
33
our communities. FSA is dedicated to building a comprehensive system of engagement on education and
health, with built-in family and community support. It is staffed by the Orange County Health
Department and supported by work groups made up of staff members of participating advisory council
organizations. Initial funding for FSA was awarded by the Orange County Board of County
Commissioners through the Social Justice Fund.
FSA's 2019-2022 Strategic Plan outlines three goals: (1) children are healthy and prepared for school, (2)
children and youth are healthy and succeed in school, and (3)families, neighborhoods, and institutions
support the healthy development of children.These goals are approached through four strategic areas.
The first is family empowerment. Over the 2019-2022 period, FSA is evolving its current "navigator"
model, in which peer leaders build trusting relationships with families living in poverty, into a more
comprehensive family empowerment model that will bring families together to learn, build on strengths
and knowledge, and together work to better navigate systems and to uncover their personal and
collective power to affect systems change.The second strategic area is partnership. FSA collaborates
with cross-sector agencies to center parent expertise and priorities and aims to shift more power into
the hands of parents to co-create programs and initiatives in the community.The third area is systems
change, by involving community members whose lives are most directly and deeply affected by poverty
in leadership and decision making in order to dismantle institutionalized racism and other oppressive
systems.The final strategy area is foundational work.This means building internal infrastructure in FSA
to support strategic goals.
Actions planned to develop institutional structure
OCPEH has thoroughly analyzed the institutional structure and service delivery system for homelessness
in Orange County, identified ten 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. Of the estimated
$1.7 million yet to be secured, OCPEH has approached Orange County and the Towns of Carrboro,
Chapel Hill, and Hillsborough to ask each jurisdiction to contribute a portion of the funds. 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.
AP-90 Program Specific Requirements
Introduction
The Orange County HOME Consortium receives an annual allocation of HOME funds.The questions
below related to the HOME program are applicable to the Consortium. Questions related to the CDBG
program are applicable only to the Town of Chapel Hill and are addressed separately in Chapel Hill's
Annual Action Plan 29
FY 2022-2023
34
Annual Action Plan.
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(1)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is
as follows:
The Orange County HOME Consortium use general revenue funds as its local match for HOME funds.
Orange County also provides funds for additional administrative costs to operate the program above
the 10% allowable cost that may be pulled from the HOME award.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used
for homebuyer activities as required in 92.254, is as follows:
HOME funds used for homeownership assistance require an Affordability Period based on the
amount of HOME assistance. The Orange County HOME Consortium will use resale provisions to
enforce the HOME Affordability Period for all homeownership projects, including those in which
direct assistance is provided to the buyer and homeownership unit development. Under the resale
provisions, if homebuyers assisted with HOME funds choose to sell their HOME-assisted property
within the HOME Affordability Period,they must sell to qualified low-income buyers and the resale
price will be determined according to a formula that ensures affordability to the new buyer and a
fair return on investment to the original HOME-assisted buyer.
The HOME Affordability Period for homeownership assistance is based on the level of assistance
provided to fund a unit or as direct assistance to a buyer (see the chart below). Direct assistance to
the homebuyer is defined as HOME funding that reduces the purchase price below fair market value
and includes any down payment or subordinate financing provided on behalf of the purchase. Direct
assistance does not include HOME funds provided to a developer to cover the unit production costs
that do not reduce the purchase price below fair market value.
HOME Funds Provided
to a unit or as direct assistance to buyer HOME Affordability Period
<$15,000 5 years
$15,000—$40,000 10 years
>$40,000 15 years
Resale provisions are enforced through the use of a Deed of Restrictive Covenants signed by the
homebuyer at closing. The Deed of Restrictive Covenants will specify:
A. The length of the HOME Affordability Period (per the chart above);
B. The home must remain the owner's principal residence throughout the HOME Affordability
Period; and
Annual Action Plan 30
FY 2022-2023
35
C. The conditions and obligations of the owner should the owner wish to sell before the end of the
HOME Affordability Period, including;
1. The owner must contact the Orange County HOME Consortium or its designated
representative in writing if intending to sell the home prior to the end of the HOME
Affordability Period;
2. The subsequent purchaser must be low-income as defined by HOME regulations, and
occupy the home as their primary residence for the remaining years of the HOME
Affordability Period (however, if the new purchaser receives HOME direct assistance,
the HOME Affordability Period will be re-set according to the amount of assistance
provided); and
3. The sales price must be affordable to the subsequent purchaser; affordable is defined as
limiting the Principal, Interest,Taxes and Insurance (PITI) amount to no more than 30%
of the new purchaser's monthly income.
3. A description of the guidelines for resale or recapture that ensures the affordability of units
acquired with HOME funds?See 24 CFR 92.254(a)(4)are as follows:
Fair Return on Investment
The Consortium must ensure the owner receives a fair return on their investment and that the
home will continue to be affordable to a specific range of incomes.To calculate the fair return on
investment to the homeowner, the Consortium will:
A. Determine the amount of market appreciation, if any, realized over the ownership term by
calculating the difference between the initial appraised value at purchase and the current appraised
value at resale.This figure represents the basis for calculating the fair return on investment. In
declining markets, it is possible that the homeowner may not realize a return.
B. Multiply the basis by the Federal Housing Finance Agency's Housing Price Index (HPI)to
determine the fair return to the homeowner:
https://www.fhfa.gov/DataTools/Tools/Pages/HPICalculator.aspx
To calculate the resale price to the next homebuyer, the Consortium will add the fair return on
investment to the homeowner to the original affordable price of the home at purchase by the
original buyer.
Example#1:
• Appraised (Fair Market)Value at Purchase: $210,000
• Affordable Price at Purchase: $190,000
• Appraised Value at Resale: $240,300
• Increase in Market Appreciation: $240,300-$210,000=$30,300
• Average Appreciation in the Raleigh-Durham MSA (per the HPI Calculator): 29.4%
• Fair Return on Investment: $30,300 x 0.294= $8,908
Annual Action Plan 31
FY 2022-2023
36
• Resale Price: $190,000+$8,908 = $198,908
Affordability to a Range of Buyers
The Consortium will ensure continued affordability to a range of buyers, particularly those whose
total household incomes range from 60 to 80%of area median income (AMI) as calculated by HUD
for the HOME Program. Sales price will be set such that the amount of principal, interest,taxes, and
insurance does not exceed 30%of the new buyer's annual income.
In the event the resale price required to provide a fair return exceeds the affordability to a range of
LMI buyers, additional HOME funding will be provided to the subsequent buyer based on the level of
funds required to make the unit affordable.
Principal Residency Requirements
Households receiving HOME-funded homeownership assistance will be required to occupy the home
as their principal residence throughout the HOME Affordability Period.
In the event the original HOME-assisted homebuyer no longer occupies the unit as their principal
residence (i.e.,the unit is rented or vacant),the homeowner will be in violation of the terms of the
HOME assistance. In cases of noncompliance,the Consortium will enforce the terms of the HOME
written agreement to require repayment of any outstanding HOME funds invested in the housing.
The amount subject to repayment is the total amount of HOME funds invested in the housing(i.e.,
any HOME development subsidy to the developer plus any HOME direct assistance provided to the
homebuyer) minus any HOME funds already repaid (i.e., payment of principal on a HOME loan).
Noncompliance with principal residency requirements by a homebuyer is not considered a transfer
and is not subject to resale provisions.
The Consortium will enforce these requirements through a HOME written agreement executed with
the organization receiving the HOME award for homeownership activity to protect its investment
and minimize its risk in HOME-assisted homebuyer projects in the event the homebuyer is in
noncompliance.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is
rehabilitated with HOME funds along with a description of the refinancing guidelines required
that will be used under 24 CFR 92.206(b),are as follows:
The Orange County HOME Consortium does not intend to refinance any existing debt for multifamily
housing that will be rehabilitated with HOME funds.
Discussion
The Market Analysis found that Orange County has high housing costs and insufficient units for low-
income households, particularly extremely low-income households earning below 30%AMI—only 5% of
Annual Action Plan 32
FY 2022-2023
37
rental units in the County are affordable to households at this income level.As such, the Consortium has
identified the need for tenant-based rental assistance, and has been using HOME funds and local Match
funds to fill this gap.
Annual Action Plan 33
FY 2022-2023
38
RES-2022-030 Attachment 2
RESOLUTION AUTHORIZING THE SUBMISSION OF THE
FY 2022-2023 ANNUAL ACTION PLAN FOR ORANGE COUNTY, NORTH
CAROLINA
BE IT RESOLVED, by the Orange County Board of Commissioners, as a member of the
Orange County HOME Consortium, that the Commissioners authorize the County Manager to
submit the Orange County Annual Action Plan for FY 2022-2023 to the U.S. Department of
Housing and Urban Development, including all understandings, assurances, and certifications
required therein.
BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the
authorized representative of the County to act in connection with the submission of these plans
and to provide such additional information as may be required by the U.S. Department of
Housing and Urban Development.
This is the day of , 2022
NOW THEREFORE BE IT ORDAINED by the Orange County Board of Commissioners
that this resolution is effective upon approval. Upon motion of Commissioner ,
seconded by Commissioner , the foregoing resolution was adopted this the
day of , 2022.
I, Laura Jensen, Clerk to the Board of Commissioners for the County of Orange,North
Carolina, DO THEREBY CERTIFY that the foregoing is a true copy of so much of the
proceedings of said Board at a meeting held on , 2022, as relates in any way to the
adoption of the foregoing and that said proceedings are recorded in Minute Book No. of
the minutes of said Board.
WITNESS my hand and seal of said County, the day of , 2022.
Laura Jensen
Clerk to the Board
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ORANGE COUNTY
.p NORTH CAROLINA
_ C N, _
Orange County, NC HOME Consortium
FY 2022-2023 Annual Action Plan Summary
Annual Goals amici Objectives
Sort Goal Name Start End Category Geographic Needs Funding Goal Outcome
Order Year Year Area Addressed Indicator
1 Home Buyer 2022 2027 Affordable Orange Down payment $257,241 Direct
Assistance Housing County assistance Financial
Assistance to
Estimated 26
Homebuyers
2 Rental Acquisition 2022 2027 Affordable Carrboro Affordable $105,000 1 rental unit
Housing housing acquired
acquisition
Homeless
Non-
Homeless
Special
Needs
3 Housing 2022 2027 Affordable Orange Affordable $150,000 Rental units
Rehabilitation/ Housing County housing rehabilitated:
Preservation preservation 2 Units
Non-
Homeless
Special
Needs
ORANGE COUNTY
.p NORTH CAROLINA
Project-
1 Project Name Habitat for Humanity—Homebuyer Assistance
Target Area County-wide
Goals Supported Home Buyer Assistance
Needs Addressed Housing for Low-and Moderate-Income Households
Funding HOME: $134,662 Local Match: $32,579 Total:
$167,241
Description Provide assistance to an estimated 6 low-income
households for the purchase of affordable homes.
Target Date 12/31/2023
Estimate the number and type of families that 5 households at 30%- 50%AMI and 1 household at
will benefit from the proposed activities 50%- 80%AMI
Location Description 118 Hill Street, Hillsborough; 307 N Roberson Street,
Chapel Hill; 2200 Homestead Road, Chapel Hill
Planned Activities Down payment assistance
2 Project Name Community Empowerment Fund— Homebuyer
Assistance
Target Area County-wide
Goals Supported Home Buyer Assistance
Needs Addressed Housing for Low-and Moderate-Income Households
Funding HOME: $72,468 Local Match: $17,532 Total:
$90,000
Description Provide assistance to an estimated 20 low-income
households for the purchase of affordable homes.
Target Date 12/31/2023
Estimate the number and type of families that 19 households at 30%- 50%AMI and 1 household at
will benefit from the proposed activities 50%- 80%AMI
Location Description Locations to be determined
Planned Activities Down payment assistance
41
• • r,5 R OG,.
ORANGE COUNTY
.p NORTH CAROLINA
CN
3 Project Name EmPOWERment- Rental Acquisition
Target Area Carrboro, NC
Goals Supported Rental Acquisition
Needs Addressed Housing for Low- and Moderate-Income Households
Funding HOME: $84,546 Local Match: $20,455 Total: $105,000
CHDO set aside$66,525
Description Provide funds to purchase 1 townhome in Carrboro
Target Date 7/1/2022
Estimate the number and type 1 household at 60%or below AMI
of families that will benefit from
the proposed activities
Location Description Carrboro, NC
Planned Activities Rental Acquisition
4 Project Name Rebuilding Together of the Triangle - Homeowner
Rehabilitation/Reconstruction
Target Area Unincorporated Orange County
Goals Supported Housing Rehabilitation/Preservation
Needs Addressed Affordable housing preservation
Funding HOME: $120,779 Local Match: $29,221 Total: $150,000
Description Purchase of 2 mobile homes to replace existing units
Target Date 12/31/23
Estimate the number and type 1 household at 30%- 50%AMI and 1 household at 50%-80%AMI
of families that will benefit from
the proposed activities
Location Description Both project sites will be located on owner-occupied land outside
municipal jurisdictions that have an uninhabitable mobile home on
them.
Planned Activities Manufactured home replacement for two Orange County property
owners who are currently living in hazardous conditions due to
deteriorating manufactured housing units
42
- ORANGE COUNTY
r� a7 54;`_ NORTH CAROLINA
5 Project Name Administration—2022
Target Area County-wide
Goals Supported Home Buyer Assistance
Rental Construction
Housing Rehabilitation/Preservation
Needs Addressed Housing for People Experiencing Homelessness
Housing for Low- and Moderate-Income Households
Funding HOME: $44,350
Description Funds for administration of the HOME Program will be allocated to the
Orange County Housing and Community Development Department.
Total funds will equal 10% of the 2022 HOME award of$443,498
Target Date 6/30/2023
Estimate the number and type Administration will support HOME-funded housing activities.
of families that will benefit
from the proposed activities
Location Description N/A
Planned Activities Administration
Affordable Housing
One Year Goals for the Number of Households to One Year Goals for the Number of Households
be Supported Supported Through
Homeless 1 Rental Assistance 0
Non-Homeless 28 The Production of New Units 0
Rehab of Existing Units 2
Total 29 Acquisition of Existing Units 27
Total 29
RES-2022-031 Attachment 4 43
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION AUTHORIZING
THE ORANGE COUNTY FY 2022-2023 HOME PROGRAM DESIGN
BE IT RESOLVED,by the Orange County Board of Commissioners, as a member of the
Orange County HOME Consortium, that the Commissioners approve the following activities for
the FY 2022-2023 HOME Program:
Homebuyer Assistance
Funds will be allocated to the Community Empowerment Fund ($90,000) and Orange County
Habitat for Humanity($167,241) to provide down payment assistance for home ownership for an
estimated 26 households earning between thirty percent (30%) and eighty percent(80%) of the
area median income. (The final number of homebuyers assisted may be more or less than 26 and
will depend on homebuyer underwriting.)
(Requested amount: $525,000) $257.241
Housing Rehabilitation/Preservation
Funds will be allocated to Rebuilding Together of the Triangle to purchase replacement
manufactured homes for (2) two Orange County property owners who are currently living in
hazardous conditions due to deteriorating manufactured housing units. This funding will serve 1
household earning between thirty percent (30%) and fifty percent (50%) of the area median
income, and 1 household earning between fifty percent (50%) and eighty percent(80%) of the
area median income.
(Requested amount: $150,000) $150,000
Rental Acquisition
Funds will be allocated to EmPOWERment, Inc. for acquisition of one (1)rental unit in
Carrboro. Units will be leased to households earning less than sixty percent(60%) of the area
median income.
(Requested amount: $105,000) $105,000
Program Administration $44,350
BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the
authorized representative of the County to act in connection with the HOME Program and to
provide such additional information as may be required by the U.S. Department of Housing and
Urban Development.
This is the day of , 2022
Renee Price, Chair
Orange County Board of Commissioners
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