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HomeMy WebLinkAboutAgenda - 02-07-2023; 8-g - Adoption of Orange County’s HOME-ARP Allocation Plan 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 7, 2023 Action Agenda Item No. 8-g SUBJECT: Adoption of Orange County's HOME-ARP Allocation Plan DEPARTMENT: Housing ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: HOME-ARP Allocation Plan Corey Root, Housing Director, (919) 245- Attachment 2: HOME-ARP Allocation Plan 2490 Resolution PURPOSE: To consider adoption of a resolution authorizing the submission of the HOME-ARP Allocation Plan. BACKGROUND: The American Rescue Plan Act of 2021 appropriated $5 billion nationwide to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. The funds were allocated by formula to jurisdictions through the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership (HOME) Program. This funding is called "HOME-ARP". In September 2021, HUD awarded the Orange County HOME Consortium (which consists of the County — the "lead entity" for the Consortium — and the Towns of Carrboro, Chapel Hill, and Hillsborough) a total of $1,371,401 in HOME-ARP funds. Led by the Local Government Affordable Housing Collaborative (a group made up of one elected official from each jurisdiction that comprises the Consortium), the Orange County HOME Consortium was required to develop an Allocation Plan to identify priority housing and service needs in the community that may be supported with HOME-ARP funds, and to describe the process that will be used to distribute HOME-ARP funds. The Consortium's $1.3 million in HOME- ARP may not be used for eligible housing projects or activities until an Allocation Plan is approved by HUD. The Allocation Plan determines how the HOME-ARP funds will be awarded to projects or activities and broadly describes which types of eligible uses the Consortium plans to prioritize. Once the Allocation Plan is approved, staff will follow the process outlined in the Plan. As part of the development of the Plan, Orange County consulted with stakeholders that work with the "Qualifying Populations". County and Town staff actively engaged stakeholders by presenting at meetings, soliciting feedback through a survey, and incorporating feedback from the Towns' community engagement processes around ARPA funding. The County held two public hearings, the first in Fall 2021 and the second in Fall 2022. Since then staff have drafted the HOME-ARP Allocation Plan based on the feedback received during the public hearings and public comment period, on the other community engagement and stakeholder consultation efforts (including a survey and presentations at community meetings), 2 and from the ARPA public participation processes being conducted by the Towns of Carrboro and Chapel Hill. Staff incorporated public feedback into the Plan and the Collaborative approved the attached draft Plan. Staff are requesting approval by Town and County governing boards, and upon receiving approval will submit the Plan to HUD. HUD is responsible for final approval of the Plan, at which point, the Consortium may begin to use its HOME-ARP funds. To use the funds, the County will submit draw requests to HUD through its finance system on a reimbursement basis. Any HOME- ARP funds not disbursed by September 30, 2030 will revert back to HUD. FINANCIAL IMPACT: There are no financial impacts anticipated with this item. 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. RECOMMENDATION(S): The Manager recommends that the Board adopt and authorize the Chair to sign the attached Resolution authorizing submission of the HOME-ARP Allocation Plan. 3 Attachment 1 Orange County (NC) HOME-ARP Allocation Plan Participating Jurisdiction: Orange County, NC HOME Consortium Date: February 3, 2022 Background The American Rescue Plan Act of 2021 appropriated$5 billion to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. These funds were allocated by formula to jurisdictions that qualified for funding through the HOME Investment Partnership Program (HOME Program)from the U.S. Department of Housing and Urban Development(HUD). This special round of funding is called the "HOME-ARP"program. In September 2021, HUD awarded the Orange County, NC HOME Consortium (which consists of Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough)$1,371,401 in HOME-ARP funds. Eligible activities that may be funded with HOME-ARP include: (1)development and support of affordable housing, (2)tenant-based rental assistance; (3)provision of supportive services(such as housing counseling, homelessness prevention, child care,job training, legal services, case management, moving costs, rental applications, and rent assistance);and(4)acquisition and development of non- congregate shelter units. Funds must primarily benefit individuals and households in the following qualifying populations: • Experiencing homelessness (as defined in 24 CFR 91.5 "Homeless"(1), (2), or(3)) • At risk of homelessness (as defined in 24 CFR 91.5 "At risk of homelessness") • Fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking, (as defined in 24 CFR 5.2003) • Other populations with high risk of housing instability(including highly cost-burdened low- income households, households who have moved two or more times in the last 60 days, and households living in a hotel/motel) 4 Consultation Before developing its plan, the Orange County, NC HOME Consortium must consult with the local Continuum of Care(CoC), homeless and domestic violence service providers, veterans'groups,public housing agencies(PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. Summary of the consultation process An electronic survey was widely distributed to agencies and organizations that work with people experiencing homelessness, people fleeing domestic violence,justice-involved individuals, veterans, people with low incomes, and other qualifying populations. Staff from the Orange County Department of Housing and Community Development also attended standing meetings of several relevant groups to present on HOME-ARP and solicit input on priority needs. Organizations consulted and summary of feedback Agency/Organization FOrganization Type Consultation Feedback 2 5 Orange County Housing Public Housing Authority Survey Greatest unmet housing/service Authority needs:Case management; Permanent supportive housing; Education on tenant-landlord relations; Rapid rehousing; Affordable housing in general Biggest gaps:Affordable units that accept rental assistance Highest funding priority:Services; Non-congregate shelter Other feedback: • Ranked affordable housing development last because it is something local governments could facilitate by expediting the permitting process and allowing more development • Need more rental housing in general to drive rents down,and need policies that will allow developers to build reasonably- priced rental housing • Fund project-based voucher units, acquisition of rapid re- housing units 3 6 Orange County Homeless Service Meeting Biggest gaps: 1 BR units priced Partnership to End Provider within the guidelines for subsidies Homelessness Leadership and where landlords are willing to Team take rental assistance; Rental assistance overall; Rental assistance for undocumented folks and folks who are ineligible for HCV due to conviction histories; More PeeWee Homes;Case management for people to obtain and maintain housing; Ensuring landlords continue to take vouchers; Policies to put more power in the hands of tenants Other feedback: • With Alliance as new LME/MCO for the County, need to figure out what their funds can cover in terms of housing and they will intersect with other local funding 4 7 Orange County Homeless Service Survey Greatest unmet housing/service Partnership to End Provider needs:Single occupancy units; Help Homelessness with housing search process, move- in,and maintaining tenancy;24- hour bathroom and 7 day per week shower/laundry facilities in the south and north parts of the County Biggest gaps: More shelter; Low- barrier shelter for singles and families; More permanently affordable units Highest funding priority: Development of affordable housing Other feedback: • Need affordable senior housing with indoor hallway and elevators, near grocery stores and health care services • Community lacks Permanent Supportive Housing Vouchers and TCLI • Need services for folks who toe the line of not being able to care for themselves and are required (Olmstead)to be given the option to live in the community Orange County Housing Service Provider Meeting Other feedback: Affordable Housing • Incorporate the OC Forward plan Coalition 5 8 Orange County Housing Advisory Board Meeting Greatest unmet housing/service Affordable Housing needs: Physical and mental health Advisory Board services;Affordable housing supply; Rental assistance;Supports for people with disabilities experiencing domestic violence Biggest gaps: Rent and utility assistance;Affordable housing with access to transportation Highest funding priority: Rental assistance; Development of affordable housing Other feedback: • Prioritize rental assistance as it provides immediate help • Identify properties that could easily convert to non-congregate shelter(e.g.,office building or floor)or work with hotels to temporarily house people • Non-congregate shelter should make space for youth transitioning out of the foster care system,and should be explicitly LGBTQ-friendly • Prioritize housing preservation as it saves community and is more cost effective than building • Build multi-unit dwellings/tiny homes with access to outdoors • Get regulations on the books to encourage and enforce affordable housing integration in future developments; planning regulations do not make integrated affordable housing a priority; more mixed-income housing • Encourage landlords to accept vouchers and expand voucher programs(broaden eligibility criteria) • Fully adopt Housing First model 6 9 Town of Chapel Hill Housing Advisory Board Meeting Greatest unmet housing/service Housing Advisory Board needs: Permanent supportive housing units and service provision; Services and units for people with high barriers to finding and maintaining housing(such as criminal record,substance use, behavioral health); Project-based vouchers Other feedback: • Create point structure for awarding HOME-ARP funds that incentivizes developers to partner with service providers • If considering funds for development gap financing, be aware that if the funds require deeper income targeting,they may not actually fill the funding gap(e.g.,an extra $200k HOME- ARP may be less in the long run than the higher rents that could be gotten if units did not have to be targeted toward 30%AMI households) Town of Carrboro Housing Advisory Board Meeting Other feedback: Affordable Housing • Concerned with access to these Advisory Committee funds; residents(particularly Black residents)consistently struggle to access housing funds and encounter barriers with local administrators • Focus on engaging landlords,as one driver of homelessness is landlords not accepting vouchers 7 10 Emergency Housing Homeless Service Meeting Greatest unmet housing/service Assistance Partners Provider needs: Long-term funding for Other Organization security deposits/utility Addressing the Needs of deposits/first month's rent; Qualifying Populations Affordable units; Hotel assistance for temporary stabilization; Permanent housing units/subsidies for people below 30%AMI; Permanent supportive housing; Landlords willing to accept vouchers 8 11 Community Homeless Service Survey Greatest unmet housing/service Empowerment Fund Provider needs: Increased bed space and Other Organization opportunities for transitional Addressing the Needs of housing for people experiencing Qualifying Populations homelessness Biggest gaps: Housing inventory for those at and below 30%AMI (from the data we see at least 13%of all new units need to be geared for 30%AMI and below to meet the current need—need will only rise as more families are destabilized by evictions) Highest funding priority: Development of affordable housing Other feedback: • Housing market is forcing out families that have been here for generations • Need for 30%AMI housing cannot be overstated • Rental assistance will keep families housed and, hopefully, prevent additional people from becoming homeless • Money alone is not sufficient to support a transition from homelessness to housed— services are essential • Funding CEF and similar organizations(IFC, EmPOWERment,etc.) ensures that needed services continue and that organizations can focus on work rather than on fundraising 9 12 Interfaith Council for Homeless Service Survey Greatest unmet housing/service Social Services Provider needs:Affordable housing Biggest gaps: Landlords unwilling to rent to the unsheltered due to stigma Highest funding priority: Development of affordable housing PeeWee Homes Housing Service Provider Survey Greatest unmet housing/service needs:Web of support for aging in community Biggest gaps: Provision of Livable Design to support those aging and/or with disabilities Highest funding priority: Development of affordable housing Other feedback: • Need more affordable housing across the income spectrum,and supports and services • Jackson Center is an asset-could HOME-ARP funds buy land bank houses? • Could HOME-ARP funds support construction of PeeWee Homes Hill Street homes,or building PeeWee Homes in rural areas? 10 13 The Arc of the Triangle Organization Serving Survey Greatest unmet housing/service People with Disabilities needs: Extremely limited housing options(and long waitlists)for people with disabilities who cannot work; Lack of affordable housing options near transportation,stores, etc. Biggest gaps: Long-term supportive housing options;Affordability Highest funding priority: Non- congregate shelter; Development of affordable housing Other feedback: • Research shows Housing First model has most success in keeping people housed and is more cost effective • Expand rental assistance to cover people who do not currently qualify based on income but still cannot afford a typical rent • Landlords should not be allowed to deny potential renters because they receive rental assistance • Develop supportive housing throughout community to promote integration and building of natural supports • Service needs include supports finding/moving into housing, transportation, help with chores/home repairs • Emergency housing is not a permanent fix • Individual rooms(non-congregate shelter) provides privacy and dignity to people experiencing homelessness 11 14 Orange County Criminal Other Organization Survey Greatest unmet housing/service Justice Resource Addressing the Needs of needs: Bridge housing;Affordable Department Qualifying Populations housing; Permanent supportive housing; Low-barrier shelter; DV shelter;Case management to locate housing, apply for housing, and set up utilities(obtaining and moving furniture as well) Biggest gaps:See OCPEH gaps analysis; Emergency shelter;Shelter options for people on the sex offender registry; Case managers to assist with housing searches and application process; Financial assistance with rental application fees Highest funding priority: Non- congregate shelter; Development of affordable housing Other feedback: • Hotel rooms with supportive services and case management • Affordable housing very difficult to locate—takes a lot of time and effort and some people do not have the capacity(and therefore remain houseless) • Prioritize construction of single- person units • Non-congregate shelter would be helpful for people with significant medical or mental health needs who cannot function in a congregate setting Local Reentry Council Other Organization Meeting Greatest unmet housing/service Addressing the Needs of needs:Short-term bridge housing Qualifying Populations with services 12 15 Triangle J Council of Other Organization Survey Greatest unmet housing/service Governments Addressing the Needs of needs: Displacement of Qualifying Populations manufactured home owners (especially on rented land); Affordable housing for aging population (could address through senior LIHTC development or home repair funds) Biggest gaps: Legal services for eviction prevention and mediation (plus rental assistance) Highest funding priority: Development of affordable housing Other feedback: • Could create more affordable housing with a 4%tax credit project in partnership with one of the Towns;the County could assist with providing land or infrastructure funding • Building affordable housing will only become more difficult as time progresses,due to lack of land and additional subsidy needed to serve extremely low- income households • Prioritize creating senior-focused and/or supportive housing options as our population ages 13 16 Rogers-Eubanks Other Organization Survey Greatest unmet housing/service Neighborhood Addressing the Needs of needs: Home repairs Association Qualifying Populations Biggest gaps: Lack of housing inventory Highest funding priority: Development of affordable housing Other feedback: • Workforce housing is a top priority,specifically homeownership assistance • Need housing for Veterans • Need county-wide mental health services Refugee Community Other Organization Survey Greatest unmet housing/service Partnership Addressing the Needs of needs: DV housing:families with Qualifying Populations multiple kids cannot safely leave due to having children and no DV shelter in our county,and short- term solutions(e.g., hotel for 3 nights)are not enough—need longer-term housing solutions and childcare to be able to work Biggest gaps: No DV shelter; Lack of language access; Lack of affordable housing Highest funding priority: Development of affordable housing Other feedback: • More apartments with affordable rents(e.g., EmPOWERment's model) • Rental assistance for DV survivors • More units for larger families • Improve language access 14 17 Chapel of the Cross Other Organization Survey Greatest unmet housing/service Addressing the Needs of needs:Access to affordable Qualifying Populations housing;Shelter beds Biggest gaps:Supportive services for people with behavioral health concerns to help stabilize housing; Need more focus on building affordable multifamily units and/or rental assistance Highest funding priority: Development of affordable housing; Rental assistance Other feedback: • Bring services to unhoused people where they are at • Get more landlords to accept subsidies from tenants to help stabilize the rental market and make housing more affordable for low-wage workers • Expanding rental assistance programs will help low-income working people obtain housing with access to public transportation • Consider sliding scale rental subsidies with a minimum monthly amount for families with children under age 6 to help with child care or other costs • Provide financial assistance for security deposits • Fund financial counseling and services for immigrants/refugees • Non-congregate shelter should focus on providing separate rooms for single mothers with small children who are in untenable situations • Don't waste money building anything new; use funds to improve housing options we already have 15 18 Public Participation The Orange County, NC HOME Consortium must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, the Consortium must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The Consortium must follow its adopted requirements for"reasonable notice and an opportunity to comment"for plan amendments in its current citizen participation plan. In addition, the Consortium must hold at least one public hearing during the development of the HOME-ARP allocation plan and prior to submission. Public comment period:The draft Orange County HOME-ARP Allocation Plan was made available for public display and comment on the Orange County Housing and Community Development Department (OCHCD) website at http://orangecountVnc.gov/2831/HOME-ARP and available in hard copy upon request at the OCHCD office.The public comment period ran November 16—December 1, 2021. Public notice of the public comment period was published in English in The Herald Sun on Friday, October 29, 2021 and in Spanish in La Noticia on Wednesday, November 3, 2021. Public hearing:A first Public Hearing on the draft HOME-ARP Allocation Plan was held on November 16, 2021. Public notice of the hearing was published in English in The Herald Sun on Friday, October 29, 2021 and in Spanish in La Noticia on Wednesday, November 3, 2021.The public comment period ran November 16— December 1, 2021. The Orange County HOME Consortium intends to hold a second Public Hearing in March 2022 to get feedback on this draft allocation plan, specifically the funding timeline and process, before finalizing the plan to submit to HUD. Description of efforts to broaden public participation Information about Orange County's HOME-ARP funding is being widely distributed,through traditional avenues such as public notices, as well as more tailored avenues including emails to stakeholders and residents, presentations at community meetings, and an online survey. Summary of comments and recommendations received through public participation process The Consortium must consider any comments or view of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. In addition to receiving survey feedback from stakeholder agencies and organizations,the Consortium also received feedback from individual residents of Orange County.This feedback is summarized below. 16 19 Method of Feedback Consultation Residents Survey Greatest unmet housing/service needs: • Affordable rental housing for households with just one adult; • Families have trouble finding affordable housing in the area and often get denied because of an eviction or other background information. • Communication with people applying for housing assistance Biggest gaps:There is not enough affordable housing available in the area and sometimes the referral process is complicated. Highest funding priorities: • Non-congregate shelter • Development of affordable housing • Rental assistance Other feedback: • Need more variety of affordable housing (apartments, townhomes, houses, condos, etc.) • Chapel Hill has prioritized student housing development and many students can't even afford student housing (student housing has primarily focused on amenities, but should focus on quality units with adequate square footage, accessibility, etc.) • Need case management for the people experiencing chronic homelessness • Need for family non-congregate with dedicated transportation services • Assistance especially with rental deposits • Need more individual rooms for emergency shelter • Improving referral processes and partnerships for service provision,funding nonprofit service providers • Need lower-barrier shelters (e.g.,family shelters not allowing men or men's shelters not allowing children) • Can personally attest to need for financial assistance; rent for income-based housing is going up$200 and I make minimum wage • Need for food assistance as well as housing 17 20 Summary of comments or recommendations not accepted and reasons why All comments or recommendations will be accepted and a response to each comment will be provided. Needs Assessment and Gaps Analysis The Orange County, NC HOME Consortium must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, the Consortium must identify any gaps within its current shelter and housing inventory as well as the service delivery system. The Consortium should use current data, including Point-in-Time Count, Housing Inventory Count or other data available through the Continuum of Care(CoC), and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing,shelter, or services. Homeless Needs Inventory and Gap Analysis Table Current Inventory Homeless Population Gaps Analysis Family Adults Vets Family Adult Vets Victims Family Adults Only Household Household of DV Only (at least 1 (w/o child) #of #of #of child) #of #of Beds Beds Beds Beds Beds Emergency 32 53 N/A Shelter Transitional 0 65 0 Housing Permanent 40 38 15 Supportive Housing Other 5 Permanent Housing Sheltered 10 111 9 5 Homeless Unsheltered 0 33 3 Homeless 18 21 Current Gaps Sources:2021 Orange County,NC Point-in-Time and Housing Inventory Counts;Orange County Shelter Referral List;HMIS Program Data 19 22 Housing Needs Inventory and Gap Analysis Table Non-Homeless Current Level of Gap Inventory Need Analysis #of Units #of #of 0-30% Households AMI Units Total Rental Units 19,990 Rental Units Affordable to Households Earning 0- 1,870 30%AMI (At-Risk of Homelessness) 0-30%AMI Renter Households with At least One 3,560 Severe Housing Problems(At-Risk of Homelessness) Current Gaps 1,690 Sources:Comprehensive Housing Affordability Strategy(CHAS)data,2014-2018;Tables IBC,149,and 1 Size and demographic composition of qualifying populations in Orange County The 2021 Point-in-Time (PIT) Count found 176 people (comprising 154 households) experiencing 200 POINT-IN-TIME COUNT DATA Ila homelessness in Orange County on 2017-2021 one night in January 2021—36 of 150 these people were living t unsheltered and 140 were sheltered. Looking at annual 100 Shehered numbers, the street outreach team Unsheltered served about 110 people in 12 so months per caseload logs and 278 people entered shelter or housing programs per FY20 HUD System a 2017 201E 2019 2020 2021 Performance Measures. People experiencing homelessness are disproportionately people of color; 67%of people experiencing homelessness in the 2021 Point-in-Time (PIT) Count were Black or African-American, whereas just 12%of people in Orange County overall are Black or African-American.The Latinx population is underrepresented, however—9%of Orange County population overall identifies at Latinx compared with 5% of the homeless population. 20 23 PIT data also show that people experiencing homelessness are overwhelmingly in adult-only households (94%), and most are age 25 and older(84%) and male (72%). 0% 6% GENDER AGE HOUSEHOLDTYPE ■Mile V 25arsdOft " AdultsOnly ■Female i 17 and*W@w Fdmrlies ■vasordO& 018-24 0 finder 411 wwh.,.9 Unmet housing and service needs of qualifying populations Feedback from the online survey and community meetings revealed four major areas of unmet housing and service needs in Orange County: affordable housing supply, affordable housing access, supportive services, and shelter and bridge housing supply. Further detail on each of these four areas is below. Affordable Housing Affordable Housing Supportive Services Shelter and Bridge Supply Access Housing Supply • Affordable housing in • Rental assistance • Case management • Shelter beds in general (particularly for people • Housing navigation general • Permanent below 30%AMI) and tenancy support • Low-barrier shelter supportive housing • Rapid rehousing (including education • Domestic violence • Single occupancy • Project-based on tenant-landlord shelter units vouchers relations) • Hotel assistance for • Units near • Long-term funding for • Physical and mental temporary transportation, providing assistance health services stabilization stores,etc. with security • Supports for people • Bridge housing with • Housing for aging deposits/utility with disabilities and services population deposits/first month's domestic violence • Transitional housing • Housing for people rent survivors with disabilities • Landlords willing to • Support for aging in • Stability for accept rental community manufactured home assistance • Home repairs park residents • 24-hour bathroom and 7 day per week shower/laundry facilities in the south and north of County 21 24 Current resources available to assist qualifying populations, including congregate and non- congregate shelter units, supportive services, tenant-based rental assistance, and affordable and permanent supportive rental housing Orange County has several resources available to help people experiencing homelessness.The Housing Helpline is an in-person, phone, and email information and referral service for anyone in housing crisis that uses HUD coordinated entry practices to route people to the resources they need—including rent and utility assistance for people maintaining housing, homelessness diversion and eviction diversion for people at risk of homelessness, and emergency response (shelter and/or street outreach) and permanent housing referrals for people experiencing homelessness. Orange County has two congregate emergency shelters that serve men, women, and families operated by the Inter-Faith Council for Social Service. Compass Center operates a non-congregate shelter program for people fleeing domestic violence. In January 2022,the County currently operates non-congregate shelter for overflow cold weather cots and a hotel program for people experiencing homelessness who are Covid positive. The Orange County Street Outreach, Harm Reduction and Deflection (SOHRAD) program connects people living unsheltered with services and housing and helps to deflect law enforcement interactions. The Criminal Justice Resource Department (CJRD) administers the Local Reentry Council that provides case management and housing resources for people exiting jail and prison. CJRD also manages the Lantern Project, a deflection, diversion, and reentry program that connects people with histories of substance use who are justice involved with therapeutic supports as soon as possible,the Restoration Legal Counsel who provides pro bono legal assistance to individuals facing barriers due to a criminal record and/or driver's license suspension, and a Clinical Coordinator and Youth Behavioral Health Liaison who provide clinical services to people who are incarcerated.The Chapel Hill Police Crisis Unit assists people living unsheltered and others who have law enforcement contact. Orange County Outreach Court is a therapeutic court model that connects people with low-level charges with services—in exchange for engaging with service providers and housing plans, people have their court charges dismissed. The UNC Center for Excellence in Community Mental Health HomeLink program serves people who are experiencing or at-risk of homelessness with mental health, occupational therapy, housing, and employment and training resources.The Community Empowerment Fund works one-on-one with people to achieve goals like savings plans and housing. Freedom House provides behavioral health services including detox and crisis treatment. There are also many permanent housing programs in Orange County, including the Orange County Rapid Re-housing program, and Volunteers of America's Supportive Services for Veterans and their Families program.The Orange County Housing Authority partners with the Durham VA to provide HUD-VASH vouchers for veterans, and issues Housing Choice Vouchers (HCVs) and Emergency Housing Vouchers (EHVs)to people exiting homelessness.The Orange County Emergency Housing Assistance program (funded by the County and the Town of Chapel Hill, Town of Carrboro and Town of Hillsborough) provides security deposits and first month's rent for people exiting homelessness, in addition to ongoing rent and utility assistance payments for all people at or below 30%of Area Median Income . Compass 22 25 Center provides a housing program and rapid re-housing for people fleeing domestic violence.The Inter- Faith Council for Social Service operates a Permanent Supportive Housing program.The Orange County Homelessness Prevention and Housing Stability programs provides services and financial support for people at risk of homelessness.The Housing Access Coordinator works with landlords and property managers to make more units available for people exiting homelessness. Affordable housing in Orange County is provided by organizations including Community Home Trust, CASA, EmPOWERment,the Center for Community Self-help, Habitat for Humanity, PeeWee Homes, and DHIC. Gaps within the current shelter and housing inventory as well as the service delivery system Feedback from the online survey and community meetings revealed four major areas of unmet housing and service needs in Orange County: affordable housing supply, affordable housing access, supportive services, and shelter and bridge housing supply. Further detail on each of these four areas is below. Affordable Housing Affordable Housing Supportive Services Shelter and Bridge Supply Access Housing Supply • Affordable housing • Rental assistance • Housing navigation • Shelter beds in (particularly 30%AMI) (particularly for people and tenancy support general • Multifamily housing in who are • Language services • Low-barrier shelter general undocumented or have • Physical and mental • Domestic violence • Permanent supportive conviction histories) health services shelter housing • Utility assistance • Legal services for • Shelter for people on • Single occupancy units • Financial assistance eviction prevention sex offender registry PeeWee Homes with application fees and mediation • Units near transit, • Landlords willing to stores,etc. accept rental • Housing with Livable assistance Design to support • Landlords willing to aging population rent to people and/or people with currently experiencing disabilities homelessness • Policies to give tenants more power Characteristics of housing associated with instability and an increased risk of homelessness (if the Consortium will include such conditions in its definition of"other populations") Older housing units and manufactured housing are at great risk of redevelopment in Orange County. Residents in this housing and other naturally occurring affordable housing are at an increased risk of homelessness due to displacement. 23 26 Priority needs for qualifying populations Feedback from the online survey and community meetings revealed a preference among respondents to prioritize development of affordable housing. Prioritization ❑f eligible uses of HOME-ARP funds ■ 1st ■2nd ■3rd ■4th Development of Affordable Rousing Rental Assistance Acquisition/Development of Non-Congregate Shelter Units Services 0 5 "0 15 20 25 How the level of need and gaps in shelter and housing inventory and service delivery systems based on the data presented in the plan were determined The Orange County Partnership to End Homelessness has created a homeless gaps analysis annually starting in 2017 (https://www.ocpehnc.com/gaps-analysis). Staff used this data in addition to the 2021 Point-in-Time and Housing Inventory County, as well as the current shelter referral list (people waiting to get into emergency shelter) and coordinated entry lists (people experiencing homelessness who are connected with service providers and in housing search)to determine data presented in this plan. 24 27 HOME-ARP Activities Description of the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the Consortium will administer eligible activities directly The Consortium will accept applications for HOME-ARP funding from developers and other housing and service providers beginning in December 2022.The Local Government Affordable Housing Collaborative, made up of one elected official from each of the four jurisdictions that make up the Consortium (Orange County,the Towns of Carrboro, Chapel Hill, and Hillsborough), is the group locally tasked with allocating the Consortium's HOME funds. Similar to the annual award process for the Consortium's regular HOME funds,the Collaborative will develop a scorecard with which to review HOME-ARP applications and then make funding recommendations to be approved by the governing boards of each jurisdiction. Use of HOME-ARP Funding The Orange County, NC HOME Consortium must indicate the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. Funding Amount Percent of Grant Statutory Limit Supportive Services TBD Acquisition and Development TBD of Non-Congregate Shelters Tenant-Based Rental TBD Assistance Development of Affordable $1,165,691 Rental Housing Nonprofit Operating TBD 5% Nonprofit Capacity Building TBD 5% Administration and Planning $205,710 15% 15% [Total HOME-ARP Allocation $1,371,401 How shelter and housing inventory characteristics, service delivery system, and the needs identified in the gaps analysis provided a rationale for the plan to fund eligible activities 25 28 Funding of eligible activities will be determined via the application process, currently scheduled for spring 2023. 26 29 HOME-ARP Production Housing Goals Estimate of the number of affordable rental housing units for qualifying populations that the Consortium will produce or support with its HOME-ARP allocation We estimate five or six affordable housing units can be built with allocated HOME-ARP funds. This number is based on current market prices and other recent local affordable housing projects. Specific affordable housing rental production goal that the Consortium hopes to achieve and how it will address the Consortium's priority needs Funding of eligible activities will be determined via the application process, currently scheduled for spring 2023. 27 30 Preferences Identify whether the Consortium intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project • Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a) • The Consortium is not required to describe specific projects to which the preferences will apply Orange County plans to implement a qualifying population preference for those experiencing Homelessness. The Orange County Partnership to End Homelessness (OCPEH) collaborates with public and private agencies in Orange County to help people find a safe place to stay using Coordinated Entry (CE) —a single point of entry, homelessness diversion, and program referral system. Coordinated Entry helps service providers determine quickly, consistently, and effectively which resources will best help people in housing crisis. Coordinated Entry streamlines the processes for diversion, shelter referral, and housing program referrals. This process formalizes prioritization, prioritizing households with higher service needs over households with lower service needs. Coordinated Entry is guided, maintained, and updated by two Committees, the HOME Committee and CE Planning Committee, and one workgroup, the Data & Grants Workgroup, comprised of Coordinated Entry stakeholders and coordinated by the Orange County Partnership to End Homelessness (OCPEH). (If a preference was identified) How the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the Consortium's needs assessment and gaps analysis The use of this preference will allow more people experiencing homelessness to access affordable housing units. The Orange County Partnership to End Homelessness has created a homeless gaps analysis annually starting in 2017 (https://www.ocpehnc.com/gaps-analysis) and update this report annually with input from people experiencing homelessness, service providers, state and national level experts, and community feedback. Staff used this data in addition to the 2022 Point-in-Time and Housing Inventory Count, as well as the current shelter referral list (people waiting to get into emergency shelter) and coordinated entry lists (people experiencing homelessness who are connected with service providers and in housing search) to determine what unmet homeless service needs exist in Orange County. The community's current prioritization reflects an emphasis on serving people with the 28 31 highest service need, as determined by the VI-SPDAT, then households fleeing DV, and then households with the longest time experiencing homelessness.There are currently about 170 households each month who are experiencing homelessness who are connected to a community service provider that is providing support to obtain housing.This preference will enable households with the highest barriers to obtaining housing with access to additional permanent housing options. (if a preference was identified)How the Consortium will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference The Orange County Partnership to End Homelessness considers all qualifying populations in its process of coordinated entry. 29 32 HOME-ARP Refinancing Guidelines If the Orange County, NC HOME Consortium intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being refinanced with HOME-ARP funds, the Consortium must state its HOME- ARP refinancing guidelines in accordance with 24 CFR 92.206(b). The guidelines must describe the conditions under which the Consortium will refinance existing debt for a HOME-ARP rental project. Minimum level of rehabilitation per unit or required ratio between rehabilitation to refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity The Consortium does not intend to use HOME-ARP funds to refinance existing debt. Required review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified population for the minimum compliance period can be demonstrated The Consortium does not intend to use HOME-ARP funds to refinance existing debt. State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both The Consortium does not intend to use HOME-ARP funds to refinance existing debt. Required compliance period(whether it is the minimum 15 years or longer) The Consortium does not intend to use HOME-ARP funds to refinance existing debt. State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal programs, including CDBG The Consortium does not intend to use HOME-ARP funds to refinance existing debt. HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal programs, including CDBG. Other requirements in the guidelines, if applicable N/A 30 33 RES-2023-011 Attachment 2 RESOLUTION AUTHORIZING THE SUBMISSION of the HOME-ARP ALLOCATION 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 approve the following activities for the HOME-ARP Program: Development of Affordable Rental Housing- $1,165,691 Program Administration - $205,710 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, 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 , 2023 Seal Jamezetta Bedford, Chair Orange County Board of Commissioners 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 , 2023. I, Laura Jensen, County Clerk for Orange County, 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 12023. WITNESS my hand and seal of said County, the day of _, 2023. Laura Jensen, County Clerk