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Home My WebLink AboutAgenda - 11-15-2022; 6-a - Emergency Housing Assistance (EHA) Program Evaluation and Options for Next Steps 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 15, 2022 Action Agenda Item No. 6-a SUBJECT: Emergency Housing Assistance (EHA) Program Evaluation and Options for Next Steps DEPARTMENT: Housing ATTACHMENT(S): INFORMATION CONTACT: EHA Program Options Corey Root, Housing Director, (919) 245- 2490 PURPOSE: To receive an update on the Emergency Housing Assistance (EHA) program and options for next steps for program eligibility and services provided. BACKGROUND: Starting in the fall of 2019, County and Town Housing staff worked collaboratively to consolidate four different emergency housing assistance programs to streamline program access, as well as program eligibility and services offered. This program expanded rapidly in later months in response to the great need for housing and utility assistance with the onset of COVID-19 in March 2020 and the lockdowns that followed. The EHA program has used many different funding sources since its inception, including CARES Act funding from local, state, and federal sources, the HOPE 1.0 program, Community Development Block Grant CARES Act funding (CDBG-CV), and the program is currently using American Rescue Plan Act (ARPA) funding. The County has a $4.4 million in remaining APRA funds that must be allocated by December 2024 and expended by December 2026. Between January 2020 and September 2022, the EHA program has assisted 2,593 households in Orange County, providing $13.7 million in rent and utility assistance. 49% of the households served are Black/African American, 19% are Latine, 8% are multiracial, and 18% White/Caucasian. Of the households served, 74% are at extremely low income at 30% Area Median Income (AMI) and below, 21.5% are very low income at 50% AMI and below, and 4.5% are low income up to 60% AMI. These households were primarily located within the Towns of Chapel Hill (49%), Carrboro (28%) and Hillsborough (11%), and 24% were located in the unincorporated parts of Orange County. Funding demands for the Emergency Housing Assistance program for FY 2022-23 will exceed available budgeted funds. At the same time, communities across the country are scaling back emergency rent assistance programs as COVID-related funding sources are depleted. Housing Department staff have worked with the Housing Directors for the Towns of Carrboro, Chapel Hill, and Hillsborough, and consulted best practices nationally and developed three Options for continuation of the Emergency Housing Assistance program: 1. Keeping the program eligibility and services offered largely the same to provide income support for low-income households 2 2. Narrowing focus on program eligibility and services to primarily stabilize households 3. Narrowing focus even further on program eligibility and services to prevent eviction and homelessness FINANCIAL IMPACT: The Emergency Housing Assistance program has $4,201,041 budgeted for FY2022-2023 and has spent $2,446,017 through October 31, 2022. Staff project that the current EHA program model will result in $3,669,026 estimated spending through December 31, 2022. Potential financial impacts will be determined by the Board's feedback and decision on future direction of the EHA program. • Option 1 — Choosing to continue the program with current eligibility and services would require $3,708,829 additional funding to continue program operations through June 30, 2023 o 12 month program costs are estimated at $7,909,870 less budgeted funds of $4,201,041 = $3,708,829 • Option 2 — Choosing to continue the program shifting to housing stability goals would require $1,996,163 additional funding to continue program operations through June 30, 2023 0 12 month program costs are estimated at $5,056,355, or $2,528,178 for six months o $4,201,041 funded budget for FY22-23, less $3,669,026 estimated spending through December 31, 2022 leaves $532,015 available budget o $2,528,178 for six months funding less $532,015 available budget = $1,996,163 • Option 3 — Choosing to continue the program shifting to eviction and homelessness prevention goals would require $508,074 additional funding to continue program operations through June 30, 2023 0 12 month program costs estimated at $2,080,177, or $1,040,089 for six months o $4,201,041 funded budgeted for FY 2022-23, less $3,669,026 estimated spending through December 31, 2022 leaves $532,015 available budget o $1,040,089 for six months funding less $532,015 available budget = $508,074 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. 3 RECOMMENDATION(S): The Manager recommends that the Board receive options, provide feedback on next steps for the Emergency Housing Assistance (EHA) program, and consider selecting one of the options outlined above. EHA Program Options 4 Option 1 Option 2 Option 3 GOAL: Income Support for GOAL: GOAL: Eviction& Program Component Low-Income Households Housing Stability Homelessness Prevention NOTES Program Cost Highest Medium Lowest Rent arrears YES YES YES Future rent YES-3 months YES-1 month YES- 1 month YES-when not available via YES-when not available via NO-available via NCHFA Homeowner mortgage NCHFA Homeowner Assitance NCHFA Homeowner Assitance Homeowner Assistance assistance Program Program Program Utility arrears YES YES YES Only if recurring amount stated Future utilities in lease NO NO Housing application fees YES YES YES Security deposits YES YES YES Moving costs YES NO NO One-time storage fees YES NO NO Late fees to landlord YES YES YES YES-if necessary to prevent Pet fees Arrears only Arrears only eviciton or homelessness YES-if necessary to prevent Court/attorney fees Arrears only Arrears only eviciton or homelessness Only if recurring amount stated Only if recurring amount stated YES-if necessary to prevent Washer/dryer fees in lease in lease eviciton or homelessness NO-landlord costs may be NO-landlord costs may be NO-landlord costs may be covered by OC Housing covered by OC Housing covered by OC Housing Costs for damage to unit Displacement Mitigation funding Displacement Mitigation funding Displacement Mitigation funding YES-internet only when need YES-internet only when need YES-internet only when need demonstrated for work or other demonstrated for work or other demonstrated for work or other Internet/cable reasons reasons reasons NO-short-term stays with NO-short-term stays with NO-short-term stays with definite end date can be definite end date can be definite end date can be covered by homelessness covered by homelessness covered by homelessness Hotel stays diversion funding diversion funding diversion funding Only for people in eviction proceedings or exiting Serves 30%AMI and below YES YES homelessness Only for people in eviction Only for people in eviction proceedings or exiting proceedings or exiting Serves 50%AMI and below YES homelessness homelessness Only for people in eviction Only for people in eviction proceedings or exiting proceedings or exiting Serves 60%AMI and below YES homelessness homelessness 1 EHA Program Options 5 Option 1 Option 2 Option 3 GOAL: Income Support for GOAL: GOAL: Eviction& Program Component Low-Income Households Housing Stability Homelessness Prevention NOTES Serves 80%AMI and below NO NO NO Serves 100%AMI and below NO NO NO Average future rent payment is$1953; No cap on award amounts YES NO-$6000 cap annually NO-$5000 cap annually average arrears payment is$2121 No cap on repeat applicants YES YES YES 256 average applications July-September 2022;64%of approved applications are from households at 30%AMI and under;68 Number of new applications average applications for EDP+EHA eviction per month 256 164 68 cases Number of temp staff required (in addition to 1 FTE Team Lead) 8 5 2 Staff average 32 applications/month Estimated applications 15%of applications are ineligible and are not approved per month 218 139 57 approved Estimated applications Number of applications per month times 12 approved per year 2,611 1,671 689 months Estimated direct assistance for Average EHA payment is$2877, multiplied by 12 months(rent, arrears, the number of estimated approved apps per utilities, etc) $7,512,422 $4,807,950 $1,980,815 month times 12 months Estimated operating costs for Number of temp staff required x$49,261/year 12 months(staff, admin) $397,448 $248,405 $99,362 +$420/year for telephone service TOTAL PROGRAM COST for 12 months $7,909,870 $5,056,355 $2,080,177 2