HomeMy WebLinkAboutAgenda - 02-03-2004-7aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 3, 2004
Action Agenda
Item No. rJ Q
SUBJECT: Orange County Consolidated Housing Plan Update
DEPARTMENT: Housing /Comm. Development PUBLIC HEARING: (Y /N) Yes
ATTACHMENT(S):
Executive Summary
Application Form
INFORMATION CONTACT:
Tara L. Fikes, ext. 2490
TELEPHONE NUMBERS:
Hillsborough
Chapel Hill
Durham
732 -8181
968 -4501
688 -7331
336 - 227 -2031
needs to be included in the 2004 -2005 Annual Update of the Consolidated Housing Plan for
Housing and Community Development Programs in Orange County and proposed uses of
2004 -2005 HOME funds.
BACKGROUND: In May 2000, a Consolidated Plan for Housing and Community Development
Programs in Orange County was developed and approved by the U.S. Department of Housing
and Urban Development (HUD). This document details the housing needs of very low income,
low income and moderate- income families and special population groups in addition to outlining
the strategies and plans for addressing those needs.
Each year, local communities are required to reassess the needs of the community. This public
hearing provides an opportunity for citizens, public agencies and other interested parties to
provide input into the Annual Update. In addition, the public is asked to comment on proposed
uses of approximately $737,000 in 2004 -2005 HOME funds and $165,825 in match funding for
a total of $829,125 in available funding. Eligible HOME Program activities include: acquisition;
new construction; housing rehabilitation; and rental assistance. An application form has been
designed for agencies interested in accessing HOME funds for local housing projects. A copy
of the application is attached to this abstract for information. The deadline for completing this
application form is February 27, 2004. The HOME Program Review Committee will then review
the applications received and make recommendations regarding funding for consideration by
the local elected officials in late April 2004.
In order to inform the general public of this opportunity and encourage participation, notices
have been placed in the Chapel Hill Herald and sent to local non- profit agencies.
FINANCIAL IMPACT: NONE
RECOMMENDATION(S): The Manager recommends that the Board receive comments from
the public as additional information.
Orange County, NC
Consolidated Plan for 2000 -2005
Executive Summary
Background
2
Located in North Carolina, Orange County includes not only the towns of Carrboro and
Hillsborough, but also Chapel Hill, the home of the largest campus of the State university, The
presence of university students, more affluent and transient than other county residents, has
created an imbalance in terms of housing and community development needs. Orange County
must, therefore, concentrate its efforts on serving a strong urban community and rural areas as
well
The important housing issues in Orange County have not changed. The high cost of
homeownership has left many families out of the housing market or sent then: to surrounding
counties to buy homes and commute into Orange County for work The rental market, inflated
by the ability of UNC CH students able to pay higher rents, is beyond the means of families with
intones below 50% of the area median. For families in need of three or more bedrooms, verb,
little housing stock exists. The number of women and children staying at the homeless shelter-
continues to increase dramatically, and transition from the shelter into permanent housing in
Orange County is nearly impossible since no transitional housing exists Housing for special
interest groups such as the elderly, persons that are developmentally disabled, and persons with
alcohol or chug addiction, is limited in Orange County.
Community Profile
Orange County, North Carolina includes the incorporated Towns of Carrboro, Chapel Hill, and
Hillsborough, and is the home of the largest campus of the State university system — the
University of North Carolina at Chapel Hill. The County is a part of the Raleigh- Durham - Chapel
Hill Metropolitan Statistical Area (MSA) that comprises six counties in the Research Triangle
Area with a population of 1.1 million people.
The region is highly rated as a place to live and do business. In addition, Orange County, in
particular, has the most expensive cost for new housing in the region and Chapel Hill is among a
few larger cities in the state rated high on the cost of living index. Further, the County enjoys a
low unemployment rate of approximately one (1) percent, These "firsts" present a challenge in
addressing the housing needs of Orange County residents.
In 2000, the population of Orange County is estimated to be 111,982. That represents a 19%
population growth since 1990, with an anticipated growth of 8% through 2005. Of that number,
approximately 77 percent were White, 16 percent were African American, and 7 percent were of
other minority groups including American Indian, Asian, and Hispanic. The fastest growing
segments of the population are of Asian and /or Hispanic descent whose population has more than
doubled since 1993.
3
Further, it is estimated that approximately 12,280 of all households in Orange County (44,854)
were considered very low income, with incomes between 0 -50 percent of median family income
(MFI).
HOUSING AND COMMUNITY
DEVELOPMENT NEEDS
Conditions
The high cost of'homeownership has forced many families to purchase housing in other counties
and commute into Orange County for work. The inflation of the rental market by University of
North Carolina- Chapel Hill (UNC -CH) students has caused hardships for families with incomes
below 50 percent of MFI. Larger rental units are particularly scarce.
Market Conditions
According to the Orange County Economic Development Commission, the average new home
sales price in 1999 was $247,661, and for an existing home the price was $200,601. To purchase
this new home a low income family of four persons would have to spend approximately 7.9 times
their annual wages. For an existing home, the family would have to spend approximately 6.4
times their annual wages. In both of these instances, the low- income family needs to have more
money than they earn and is certainly well above the HUD standard for affordable housing.
(U. S, Department of HUD standards define affordable owner occupied housing as purchasable at
2.5 to 3.0 times total family annual income.)
The rental housing market, inflated by the ability of University of North Carolina at Chapel Hill
students able to pay market rents, is beyond the means of families with incomes below 50% of
the area median. In 2000, it is estimated that rental units represent 43% of the county -wide
housing market and approximately 67% of those rental households experience an extreme cost
burden — paying between 30% to 50% of their income for rental housing.
Each year, HUD publishes existing housing Fair Market Rents (FMRs) for metropolitan areas
and non - metropolitan counties in the country. These FMRs are based on the fortieth percentile
of standard quality rental units occupied by recent movers. Public housing units, newly
constructed units, and substandard units are excluded from the calculations. FMRs are
established by unit size (number of bedrooms) and include an allowance for utilities.
Experience in Orange County has shown that local rents often run an average of 15 to 20 percent
higher than those HUD published rates, which explains why such a high percentage (35 %) pay
more than 50% of their income for rental housing costs.
For families earning 80% or more than the County median monthly family income of $4,022
renting a multi- bedroom apartment is relatively easy given that they are able to locate units with
3 or more bedrooms. Larger apartments are in relative scarcity because the rental market is
oriented toward providing student rental housing. The most recent County data estimates that
24% of the County's rental properties contain three or more bedrooms.
4
For families earning 50% or less than the median monthly income the primary concern is not
finding a rental unit but rather affording one. In 2000, the upper level income limit for a low -
income family of four was $29,740. For these families renting a three bedroom dwelling unit in
the County, or at a minimum, a two bedroom apartment in Chapel Hill the same set of families
would have to spend at least 37% of their monthly income. In both instances, these families
would have to spend more than 30% of their gross monthly income on rent. US HUD standards
define affordable as occurring when a renter spends no more than 30% of their gross monthly
income on total housing cost (rent & utilities).
Affordable Housing Needs
According to the 1990 census, Orange County had the highest percentage of very low- income
households with housing problems in North Carolina; 77 percent of residents in this category
cited cost burden and overcrowding as major issues. In 2000, the County has approximately
12,280 low- income households with a cost burden and overerowdedness remaining the primary
impediments to obtaining affordable housing.
Further, according to a 1989 report from the North Carolina Rural Economic Development
Center, 1,052 units in Orange County lacked indoor plumbing. The County considers this
estimate to be a good approximation of the problem.
The lack of affordable housing often times forces renters to live in substandard units. Housing
problems were reported in 86 percent of very low- income households, and 97 percent of large
families were forced to live in overcrowded, substandard units. The majority these families were
also cost burdened.
Homeless Needs
The numbers of homeless persons in Orange County have increased dramatically. During fiscal
year 1998 -1999, the InterFaith Council Community House reported serving 801 individuals, 700
adults and 101 children. Of this number, 535 were African American, 198 were White, and 48
were Hispanic, and 20 of other race and ethnicity. The IFC Community House is the only
emergency housing resource for families in Orange County.
The greatest increase in the homeless population in Orange County continues to be women,
children, and families, frequently victims of domestic violence, Thus, the opening of Project
Homestart last year was welcomed into the community. Project Homestart is a transitional
housing program for homeless families that provides a structured setting for families to receive
support before they live independently.
Public and Assisted Housing Needs
Orange County's only conventional public housing program consists of 336 units. The majority
of Chapel Hill's public housing units are two- and three - bedroom units and is located in Chapel
Hill except for one community in Carrboro.
The county's Section 8 program, administered by the Orange County Housing and Community
Development Department, included 623 vouchers. There are an additional 543 other assisted
housing units in the County that have benefited from the HUD Section 202 Program; the Low
Income Housing Tax Credit Program; the Fanners HOME 515 Program; the HUD Section 236
Loan Management Program; the Section 8 New Construction Program; and the HUD Section 811
Program..
Barriers to Affordable Housing
The Consolidated Plan for Orange County identifies the following barriers to affordable housing:
High cost of public improvements. In most of southern Orange County, there is virtually no
vacant land available that is served by public utilities. In unincorporated Orange County,
although land accessible to urban services is available, the cost of extensions is expensive. Also,
many existing residences lack adequate plumbing facilities due to the high cost of public utility
connections.
Lack of adequate transportation. While the public transportation system in the Chapel
Hill- Carrboro urban area is comprehensive, access to jobs and facilities outside the urban area are
limited by a lack of transportation. Many of the people who work in Orange County live in
neighboring counties, partly by choice and partly as a result of an inability to find affordable
housing in the County.
High cost of'rental housing. The rental housing market, particularly in Southern Orange County
continues to be inflated by the university students.
High cost of homeownership. The average new detached home in Orange County sold for nearly
$247,661 in 1999. That is approximately $100,000 more than what a family of four at 100
percent of median income could afford.
Fair Housing
Analysis of Impediments /Action Plan
Impediments:
The Sale or Rental of Housing
Public Policies
Administrative Policies
Residential Segregation
Fair Housing Education
Based on the analysis, the following recommendations are offered to pronnote fair housing within
the] risdiction.
Providing one -on -one consultation to landlords to encourage participation in the Section 8
Housing Assistance Program.
6
➢ Working with the university to promote development of adequate campus housing in order to
free -up local rental units and make them more affordable,.
➢ Working with HUD to ensure that fair market rents reflect actual market rents in Orange
County.
➢ Meeting with local bank executives to formalize participation in public - private partnerships
that further housing opportunities.
➢ Creating public policies that link public deposits to financial institutions that commit to
meeting community reinvestment needs of the County,.
➢ Developing reasonable evaluative criteria and producing an annual report for the Board of
County Commissioners on lending practices by financial institutions and ceasing to do
business with institutions failing to employ inclusive lending practices.
➢ Building incentives and proscriptions into Orange County regulations for planned unit
developments that promote affordable, non - segregated housing.
➢ Studying and promoting other land use strategies that encourage development of affordable
housing.
➢ Increasing educational opportunities through fair housing workshops, forums and
presentations.
➢ Adding source of income, (e.g. elimination of any differentiation between wages or Social
Security or disability benefits, etc.) to the list of protected classes under the Orange County
Civil Rights Ordinance.
➢ Conduct fair housing testing to ensure compliance with the Ordinance.
Lead -Based Paint
According to the 1990 census, 22,653 very low- and low - income housing units in Orange County
built between 1960 and 1979 were contaminated with lead -based paint. Of this number, 10,236
were rental units and 12,417 were owner occupied. (No new data is available at this time.)
Evaluations of the prevalence of lead -based paint in housing units will be conducted through
Orange County by project, and lead abatement will be prescribed for all dwellings targeted for
rehabilitation. In addition, all assisted - housing tenants will be informed of the hazards of lead
based paint. The Orange County Health Department provides ongoing consultation to local
housing staff.
7
Community Development Needs
Orange County has identified the need for increased economic development opportunities for low
and moderate- income citizens and revitalization of businesses serving low - income
neighborhoods in Chapel Hill.
Anti - Poverty Strategy
In a recent update to the County's Work First Plan, a subcommittee of the Welfare Reform Task
Force, Strengthening Independence, was charged with identifying strategies and resources for
Work First families that will enable them to increase their income and to become self - sufficient.
As a part of their work, this committee identified the lack of affordable housing for those in the
lowest income ranges as a major impediment to building self - sufficiency. They identified the
following strategies to address this situation..
1, Build, renovate, or designate existing affordable housing and rental units for
which preference is given to families who are engaged in a self - sufficiency
program that provides ,job skills, employment counseling, entrepreneurship
training, money management, and other social supports.
2. Increase availability and access to affordable rental housing and to special
incentives and home mortgage loans in the primary market at rates attractive to
buyers in this income group.
3. Advocate among policy makers, housing organizations, and funding sources to
limit undue analysis of the need and to place emphasis on action.
Coordination of the Strategic Plan
Through the Orange Community Housing Corporation, Habitat for Humanity, EmPOWERment,
Inc., and other non -profit organizations, Orange County, Chapel Hill, Carrboro, and Hillsborough
work in collaboration to implement the plan, as follows:
1. The Chapel Hill Planning Department administers the CDBG program.
1 The Orange County Housing and Community Development Department
administers Section 8 program and serves as the lead agency for the Orange
County HOME Consortium, which includes Orange County, Carrboro, Chapel
Hill, and Hillsborough, and administers the County -wide Housing Rehabilitation
Program.
3. The Chapel Hill Department of Housing operates public housing in Chapel Hill
and Carrboro..
4. The Town of Carrboro administers the Carrboro CDBG Small Cities program.
5. The Hillsborough Planning Department is responsible for planning and policy
development for the town, including the recently adopted 2010 plan.
8
Orange Community Housing Corporation, Habitat for Humanity, EmPOWERment, Inc., and
other non - profit organizations carry out direct housing activities, i.e. new construction,
rehabilitation, etc..
9
HOUSING AND COMMUNITY DEVELOPMENT STRATEGY
Housing Priorities
The Consolidated Plan for Orange County identified the following housing priorities for 2000-
2005.
• Provide rehabilitation assistance for very low- and low- income homeowners and renters.
• Reduce the number of owner - occupied and rental housing units without indoor plumbing.
• Provide assistance to households at less than 80 percent of'MFI to connect to existing public
water and sewer systems.
• Facilitate the construction of new or substantially rehabilitated housing units that are
affordable to families below 80% of the area median.
• Facilitate the construction of rental housing affordable to very low and low- income families.
Priority will be given to projects participating in the Low Income Housing Tax Credit
Program, with at least three bedrooms.
• Create transitional housing units for homeless individuals and families.
• Assist local nonprofit human service agencies to provide a continuum of housing options for
special populations, including older adults, disabled, mentally ill, and persons with AIDS.
Non - housing Community Development Priorities
The Consolidated Plan for Orange County identified the following community development
priorities:
Provide economic development opportunities to low- and moderate - income citizens in
Chapel Hill.
Revitalize the business areas serving low- income neighborhoods of Chapel Hill..
INSTRUCTIONS FOR COMPLETING THE 2004 -2005 APPLICATION FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
AND 11
HOME PROGRAM FUNDS
Introduction
The U.S. Department of Housing and Urban Development has informed the Town of Chapel Hill
that it may receive approximately $711,000 of Community Development Block Grant (CDBG)
Fund, and that the Orange County HOME Consortium may receive up to $757,000 of HOME
Program funds. HOME Program funds require a local match; therefore a total of $851,625
HOME Program funds may be available.
Eligible Applicants
Non -profit organizations, for profit entities, individuals and neighborhoods are eligible to apply
for funding under the Community Development or HOME Program.
Eligible Activities
Please see page 12 of the application packet for a summary of eligible Community Development
activities and page 13 for a summary of eligible HOME Program activities.
If you have questions about eligibility of an activity please contact one of the following:
Community Development Program: Loryn Bames
Community Development Coordinator
Town of Chapel Hill
(919) 968 -2728
HOME Program: Tara Fikes, Director
Orange County Housing and Community Development
(919) 245 -2490
Public Participation Process
A schedule for adoption of the Community Development and HOME Programs is attached.
Public hearing dates are also included on this schedule. You may attend any or all of the public
hearings of the Chapel Hill Town Council and Board of Orange County Commissioners..
Submission Procedures
We recommend that applicants submit an application for funding.
The application consists of two parts: the Standard Application; and Project Detail for Affordable
Housing Projects.
CDBG / HOME Program Application
January 2004
12
Please do not skip any sections of the Standard Application. If you believe that a section does
not apply to your project or your organization, please indicate "not applicable ". Please be sure to
attach the narrative requested in the Project Description (Section IV) and Applicant Experience
(Section VI).
Section IV, Project Description requests information on the proposed project. Responses should
be clear and concise.
Please answer each question and submit the requested attachments. Attachments must be clearly
identified so that a reviewer may easily access the necessary information. If additional space is
required for any section, attach additional pages, clearly marking the section to which they relate..
Submission Deadline
All applications must be received by Friday, liffiffiffliffaM at 5:00 pm.
Please submit one original and one copy of the application and all attachments to:
CDBG Loryn Barnes, Community Development Coordinator,
Town of Chapel Hill, 306 North Columbia Street, Chapel Hill, NC 27516
HOME Tara Fikes, Director, Orange County Housing and Community Development,
300 W. Tryon Street, Hillsborough, NC 27278
If your agency is applying for both Community Development and HOME Program funds, please
submit applications and requested copies to both entities.
No facsimile submissions will be accepted. For further information please contact the Town of
Chapel Hill Planning Department at (919) 968 -2728 or the Orange County Department of
Housing and Community Development at (919) 245- 2490.
Evaluation of Applications
Community Development Block Grant applications will be evaluated by Town staff, the Town's
Housing and Community Development Advisory Board and considered by the Chapel Hill Town
Council on April 26, 2004.
HOME Program Applications will be reviewed by the HOME Program Review Committee
consisting of one elected official and staff person from Chapel Hill, Carrboro, Hillsborough and
Orange County. A 2004 -2005 HOME Program Plan will be approved by each local government.
CDBG / HOME Program Application
.January 2004
Application for 2004 -2005 13
Town of Chapel Hill Community Development Block Grant (CDBG)
Program
and / or
Orange County HOME Program
NAME OF APPLICANT:
CONTACT PERSON:
Address (no P.O. boxes): _
Mailing Address (if different):
City:
Zip:_
County:
E -mail address:
Phone: (
PART I STANDARD APPLICATION
1. APPLICANT INFORMATION
State:
Federal I.D #
Fax:( )
Type of Applicant
(Check all that apply)
• Applicant is an existing entity
• Corporation ❑ General Partnership ❑ Limited Partnership
• Limited Liability Company
Suite #:
• Joint Venture ❑ For - Profit ❑ Non -Profit ❑ Local Housing Authority
• Municipality ❑ Individual(s) ❑ CHDO ❑ Current Owner
❑ Proposed Owner ❑ Developer ❑ Contractor ❑ Other: (specify) _
If a non profit organization please submit a copy of your 501 (c)(3) documents and a
current list of all Board members.
CDBG / HOME Program Application 4
.January 2004
14
AMOUNT OF REQUEST:
SOURCE:
PURPOSE:
❑Community Development Block Grant
❑Land Acquisition
❑Acquisition and Rehabilitation
❑Second Mortgage Assistance
❑Public Infrastructure Improvement
❑Other: (,p,, ry)
❑HOME
❑Property Acquisition
❑Rehabilitation Only
❑Economic Development
❑Community Service
III. PROJECT NAME AND LOCATION
Project
Name:
Proj ect
Address:
City: County: Zip:
Census Tract #: Tax Map Number (if applicable):
Target geographic area of project (if applicable):
IV. PROJECT DESCRIPTION
For all projects, please attach to this page a thorough description of the project including:
population served, geographic area served, schedule for completing the project, and how
Community Development / HOME funds will be used.
If an applicant is applying for fiords to purchase property, please provide an appraisal or assessed
value of the property, and pictures of the property..
In addition, please provide details about the goals of the project, timeline for completion,
benchmarks for determining success of the project, partnerships with other agencies, how the
project meets the priorities of the Consolidated Plan, and how the project meets the CDBG
National Objectives and / or goals of the HOME Program. Information about the Consolidated
Plan and the CDBG and HOME Programs are attached.
CDBG / HOME Program Application 5
January 2004
15
V. INCOME TARGETING
Please indicate the number and percentage of units set aside for each income category in the table
below.
Description
# of Units /
Individuals
% of Total
Activity will serve households at 60 -80% of median income
Activity will serve households at 30 -59% of median income
Activity will serve households earning below 30% of median
income
Total
Units
Units
VI. APPLICANT
Please attach a description of the mission, management structure, and staffing of your
organization. Explain your organization's experience and ability to implement, administer and
manage the project for which you have applied for funding. The description should include a
description and status of current projects utilizing federal, state and local funds.
VII. PROJECT DETAIL
Applicants proposing affordable housing projects should complete Part 2 of this application.
Applicants proposing non - housing projects only need to complete the Standard Application,
All applicants must sign the attached Certifications.
CDBG / HOME Program Application 6
.January 2004
16
PART 2
PROJECT DETAIL FOR AFFORDABLE HOUSING PROJECTS
I. DESCRIPTION OF HOUSING PROJECT
A. TYPE
(Check all that apply)
• Detached Single Family Residences on One Lot
• Detached Single Family Residence Subdivision
• Multifamily Rental ❑ Residential Condominium ❑ Residential Cooperative
• Townhouse Units ❑ Scattered Sites ❑ Duplexes
• Elderly Housing ❑ Transitional Housing
❑ Other': (specify)
B. LONGTERM AFFORDABILITY
Please briefly describe a long term affordability mechanism that will be used for this project.
(Note: Projects funded with HOME Program funds must remain affordable for at least 99 years)
Attach additional sheets if necessary,
C. SITE DESCRIPTION
Size: acres square feet
Is the property zoned for intended use? ❑ Yes ❑ No
Is the present use of the property non - conforming under existing zoning restrictions?
❑ Yes ❑ No
Is the property in the process of rezoning? ❑ Yes ❑ No
Current zoning (or describe permitted
uses):
Flood Zone Designation:
Describe Topography:
Mark all proposed or existing off -site facilities
❑ Electric ❑ Gas ❑ Storm Drains ❑ Water - public ❑ Water -
private
❑ Sidewalks ❑ Street Lights ❑ Fire Hydrants ❑ Sewers - public ❑ Sewers -
private
❑ Paved Streets ❑ Concrete Curbs ❑ Rolled Curbs ❑ Well ❑ Septic
Expected date of availability:
CDBG / HOME Program Application
January 2004
II. VALUATION INFORMATION
A. APPRAISED VALUE
Land Only: $
Date of Valuation:
Existing Building (as is):$
Date of Valuation:
Proposed Building (as completed):
$ Date of Valuation:
Appraiser:
Address:
City:
State: Zip:
Phone: ( )
If the property has been appraised,
please include a copy of with your application.
B. ASSESSED VALUE
Land: $
Assessment for the Year of:
Building: $
Valuation by:
Total Assessed Value:$
III.
OTHER SOURCES OF FUNDS
Please describe all other sources of funds. If additional space is necessary, attach information directly behind this
page.
I. Source:
Contact:
Address:
City: State:
Zip:
Phone: ( )
Type of Loan (use appropriate letter(s) from chart below):
Principal Amount: $
Committed Applied for
Interest Rate: % Amortization:
yrs. Term: _ yrs.
Payment Amount: $
Priority of Lien:
Commitment Date:
H Source:
Contact:
Address:
City: State:
Zip:
Phone: ( )
Type of Loan (use appropriate letter(s) from chart below):
Principal Amount: $
Committed _ Applied for
Interest Rate: % Amortization:
_ yrs. Term: yrs,
Payment Amount: $
Priority of Lien:
Commitment Date:
CDBG / HOME Program Application
.January 2004
III,
Contact:
Address:
City: State: Zip:
Phone: ( ) Type of Loan (use appropriate letter(s) from chart below)
Principal Amount: $ Committed Applied for
Interest Rate: % Amortization: _ yrs. Term: _ yrs.
Payment Amount: $ Priority of Lien:
ICI
Commitment Date:
Designations for "Type of Loan" Entries
A.
Conventional Construction
H. CDBG Funds
B.
Conventional Permanent
L Other State Funds: (specify)
C
Conventional Gap
J Other Federal Funds: specify):
D
Conventional Mini -Perm
K Local Government Funds: (specify)
E
FHA
F.
HOME Program
G.
Private Funds
IV. DEVELOPMENT CONSULTANT
A consultant on behalf of the applicant prepared this application.. ❑ Yes ❑ No
If yes, will the consultant also administer the proposed activity on behalf of the applicant? ❑Yes ❑ No
Name of Consultant: Phone: ( )
Address: City: State: _ Zip:
Please attach the consultant's resume.
CDBG / HOME Program Application 9
January 2004
f� V. SOURCES AND USES OF FUNDS SUMMARY 19
SUMMARY OF SOURCES
TYPE OF FINANCING
AMOUNT
SOURCE
1
Acquisition Costs
2
Construction /Rehabilitation Costs
3
Fees Related to Construction /Rehabilitation
4
Financing Fees & Charges
5
Other
G
Other
7
Other
TOTALSOURCES
S
SUMMARY OF USES
......................CATEGORY
AMOUNT
SOURCE
I
Acquisition Costs
2
Construction /Rehabilitation Costs
3
Fees Related to Construction /Rehabilitation
4
Financing Fees & Charges
5
Other
G
Other
7
Other
TOTAL USES
VI. DEVELOPMENT TIMETABLE
ACTIVITY
ACTUAL DATE
SCHEDULED DATE
Project Startup
Funding Commitments
Local Permits
Marketing
Infrastructure
Building Permits
Construction /Rehabilitation Beginning
Project Completion
Project Sales Completion
Project Lease -Up
CDBG / HOME Program Application 10
January 2004
VII. CERTIFICATIONS
rho undersigned applicant hereby makes application to the Town of Chapel Hill or Orange
County and agrees to the following certifications:
rho undersigned applicant certifies that activities undertaken with Community Development or
HOME Program funds will be made available to eligible households within the income and
accupancy limits set by the Town / County for the specific program for a specified period.
rho undersigned applicant agrees he /she will not discriminate against any person on the basis of
race, color, national origin, sex, marital status, affectional preference, physical or mental
handicap or age in any aspect of the project and to comply with all federal, State and local laws
regarding discrimination and equal opportunity in employment, housing and credit practices,
including, but not limited to, Titles VI and VII of the Civil Rights Act of 1964 and regulations
pursuant thereto, Title VIII of the Civil Rights Act of 1968, as amended, the Town of Chapel Hill
Fair Housing Ordinance (Article II, Chapter 10, Chapel Hill Code of Ordinances) and the Orange
County Civil Rights Ordinance and will comply with the County's Minority Business Enterprise
Program (HOME Program applicants), if applicable. Copies of the MBE Program Guidelines
will be provided to the applicant upon request.
The undersigned applicant certifies that no tenant living in any residential unit in the property to
be rehabilitated has been forced to move by the applicant without cause in the twelve month
period preceding the submission of this application and that no tenants will be forced to move
without cause prior to award of the capital assistance except to rehabilitate the project in
compliance with an approved relocation plan. Applicant further agrees to comply with the
relocation requirements of the Department if any residential tenant is required to be temporarily
or permanently displaced as a result of the rehabilitation undertaken pursuant to this financial
assistance application. Copies of the County Relocation Policies will be supplied upon request.
The undersigned applicant represents and certifies that the project can be completed within the
time schedule set forth herein. The undersigned further certifies that the information contained in
this application and in any attachments in support hereof is true, correct and complete to the best
of the applicant's knowledge and belief and agrees to notify the Town / County promptly in
writing of any changes in this information, including any changes in the sources and uses of
funding for the project. The undersigned agrees to immediately notify the Town / County of a
cancellation of the project, or if the project will not be completed within the proposed time
schedule.
The Town / County intends to make available to the public certain information regarding projects
recommended for funding. By signing and delivering this application to the Town / County, you
hereby AGREE TO WAIVE ANY RIGHTS TO OBJECT TO OR PREVENT THE
DISCLOSURE TO THE PUBLIC OF THE FOLLOWING INFORMATION: applicant's name;
name and location of the project, financing amount and temis; amount and source of other
financing; public purpose of the financing; a description of the project including the number of
units and number of units set aside for the public purpose.
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January 2004
20
The undersigned applicant authorizes the Town / County to obtain credit information for the
purpose of evaluating this application and to obtain verification of any of the information)
contained in this application from any source named herein.
The undersigned applicant agrees to at all times indemnify and hold harmless the Town / County''
against all losses, costs, damages, expenses and liabilities of any nature or kind (including, but
not limited to attorney's fees, litigation and court costs, amounts paid in settlement, amounts paid
to discharge ,judgment, and any loss from ,judgment) arising out of, or related to acceptance,
consideration, approval or disapproval of this application.
The undersigned applicant hereby certifies that the project proposed in this application can be
developed in accordance with the development budget set forth herein and operated in
accordance with the operating budget set forth herein.
IN WITNESS WHEREOF, the undersigned, being duly authorized, has caused this document to
be executed in its name on this day of , 2004.
(Legal Name of Applicant)
By: By:
(Signature — Chair of Board)
UZ
(Print Name)
CDBG / HOME Program Application 12
.January 2004
(Signature— Executive Director)
(Print Name)
21
22
Consolidated Plan for Housing and Community Development Programs in
Orange County
The Department of Housing and Urban Development (HUD) requires ,jurisdictions to submit a
Consolidated Plan for Housing and Community Development Programs along with their
applications for funding. The purpose of the Consolidated Plan is to analyze and propose
solutions to the most pressing housing and community development issues of the community.
Each year the plan is updated by the Orange County Consortium.
The FY 2000 -2005 Consolidated Plan for Housing and Community Development Programs in
Orange County, N.C. identifies the following priorities:
Housing Priorities
• Provide rehabilitation assistance for very low- and low - income homeowners and renters;
• Reduce the number of owner-occupied and rental housing units without indoor plumbing;
• Provide assistance to households at less than 80 % of MFI to connect to existing public
water and sewer systems;
• Facilitate the construction of new or substantially rehabilitated housing units that are
affordable to families below 80% of the area median;
• Facilitate the construction of rental housing affordable to very low- and low- income
families.
• Create transitional housing units for homeless individuals and families;
• Assist local nonprofit human service agencies to provide a continuum of housing options
for special populations, including older adults, disabled, mentally ill, and persons with
AIDS;
• Facilitate the purchase of new and existing housing units by first -time homebuyers with
incomes 80% and below the area median income.
Non Housing Community Development Priorities
• Provide funds to activities that support other Community Development objectives and
activities or serve public housing residents.
• Provide economic development opportunities to low- and moderate- income citizens in
Chapel Hill; and
• Revitalize the business areas serving low - income neighborhoods of Chapel Hill.
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January 2004
The Community Development Block Grant (CDBG) Program 23
Congress established the Community Development Program in 1974 by consolidating a number
of grant programs into one "block grant." The primary objective of the Community
Development Program is the "development of viable urban communities, by providing decent
housing and a suitable living environment and expanding economic opportunities, principally for
persons of low and moderate income." (Housing and Community Development Act of 1974).
To qualify for Community Development Block Grant funding, an activity must comply with at
least one of the following "national objectives ":
• Benefit low- and moderate- income families;
• Aid in the prevention or elimination of slums or blight;
Meet other community development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or welfare of the community
where other financial resources are not available to meet such needs.
Eligible activities include:
• Acquisition of'property;
• Disposition of property;
• Public facilities and improvements;
• Clearance, demolition and removal of buildings;
• Some public services (subject to some limits in regulations);
• Housing rehabilitation, preservation and code enforcement;
• Economic development activities; and
• Planning and administrative costs.
Alternatives that are generally not eligible include:
• Buildings used for the general conduct of govermment;
• General government expense;
• New construction;
• Political activities;
• Purchase of equipment and personal property; and
• Operating and maintenance expenses of public facilities, improvements and services.
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January 2004
24
The HOME Program
In 1990, Congress enacted the HOME Investment Partnerships Act, better known as the HOME Program, in
an effort to provide a new approach to housing assistance at the federal level This federal housing block
grant would afford state and local governments the flexibility to find a wide range of housing activities
through creative and unique housing partnerships among states and localities, private industry, and nonprofit
organizations.
In order to receive future HOME Program funds, each housing activity must fall in line with the
following goals of the HOME Program:
To expand the supply of decent, safe, sanitary and affordable housing, with emphasis on
rental housing, for very low- and low- income citizens;
2. To strengthen the abilities of state and local govermments to design and implement strategies
for achieving adequate supplies of decent affordable housing; and
I To encourage public, private and nonprofit partnerships in addressing housing needs.
Eligible activities for HOME Program funding include (from the Federal Regulations):
• Acquisition ofproperty, (including assistance to homebuyers);
• New construction;
• Reconstruction;
• Conversions;
• Moderate rehabilitation of non - luxury housing with suitable amenities;
• Tenant -based rental assistance;
• Relocation of displaced persons, families, businesses, or organizations;
• Site improvements, acquisition of vacant land and demolition (under special conditions);
• Project soft costs;
• Administration / planning; and
• Operating expenses for community housing development organizations.,
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January 2004