HomeMy WebLinkAboutAgenda - 06-20-2023; 6-c - 2022 Longtime Homeowner Assistance (LHA) Program Evaluation 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 20, 2023
Action Agenda
Item No. 6-c
SUBJECT: 2022 Longtime Homeowner Assistance (LHA) Program Evaluation
DEPARTMENT: Housing Department
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: 2022 LHA Program Data Corey Root, Director, Housing and
Community Development, 919-245-
2492
Nancy Freeman, Tax Administrator,
Orange County Tax Office, 919-245-
2735
Gary Donaldson, Chief Financial Officer,
Orange County Finance, 919-245-
2453
PURPOSE: To receive information about the results of the 2022 Longtime Homeowner
Assistance (LHA) program and consider options for program changes for a potential continuation
of the LHA program in 2023.
BACKGROUND: In the spring of 2022, the Orange County Board of Commissioners authorized
updates to the program design for the Longtime Homeowner Assistance (LHA) program to provide
property tax assistance to Orange County households at 80% Area Median Income (AMI) and
below who had lived in their home for at least five years. County staff worked with community
partners on a five-month media campaign to increase awareness about program eligibility and
how to apply with the goal of increasing the number of program applicants from 2021. LHA media
campaign efforts in 2022 included:
• The Tax Office sent the LHA program information flyer alongside the 2022 Tax Bills that
were mailed in August 2022.
• County staff worked with community partners the Jackson Center and Justice United to
promote the LHA program.
• Organized visits to local churches, Rogers Road and Cedar Grove Community Centers to
distribute LHA flyers.
• Staff partnered with church congregations in Orange County, including in northern Orange,
to share information.
• The County ran ads in The News of Orange & La Notica.
• The County spoke about the LHA program on WCHL Chapelboro radio.
• The County produced short LHA informational videos in English and Spanish — these
videos were distributed via social media, community partners, and email.
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Staff calculated award amounts using the following guidelines:
• All applicants were arranged in priority order
o FIRST: Tax Burden, largest to smallest
o SECOND: Length in Home, longest to shortest
o THIRD: Age, oldest to youngest
• Full awards were allocated to as many participants as possible using $75,000 of the
$250,000 available funding.
• Staff determined a multiplying factor for the remaining $175,000 in available funding and
used this to reduce all other awards by the same percentage.
• All eligible homeowners received a minimum award amount of$100 or up to the full amount
of the County portion of their tax bill if it was less than $100.
• Award amounts were the County portion of the tax bill less 2% of the applicant's household
income.
Between August 1 and December 1, LHA Applications Submitted
2022, the County received 500
applications and awarded $251,037.83 2022 2021
to 474 households for property tax Number Percentage Number Percentage
assistance (Attachment 1). The
minimum award amount was $100. The Eligible Applications 474 95% 91 70%
average award amount was $529.62, Ineligible Applications 26 5% 39 30%
and the median award amount was TOTAL 500 100% 130 100%
$338.56.
The County received a significant
volume of applications the first two LHA Award Amounts
weeks and then the last week of the
program. 95% of all received 2022 2021
applications were approved. The most Number Percentage Number Percentage
common reason for application denial $1-$50 (N/A for 2022) 0 0% 31 34%
was the household being over 80% AM
(12 denials), followed by households $51-$100 95 20% 16 18%
not owning their home for five or more $101-$200 53 11% 15 16%
years (10 denials), and the household
living outside of Orange County (2 $201-$300 59 12% 14 15%
denials). $301-$500 117 25% 9 10%
Of the 474 approved applicants, 67% $501-$999 104 22% 4 4%
were white, 21% were black, 4% were $1,000+ 46 10% 2 2%
multi-racial, 7% Asian, 1%were another TOTAL 474 100% 91 100%
race, and 5% chose not to disclose their
race. 67% of the approved applications were age 65 or over Of the 24 folks that received full
awards, 71% were White, 17% were Asian and 13% were Black.
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Racial Demographics of LHA Awardees Age Demographics of LHA Awardees
2022 2021 2022 2021
Number Percentage Number Percentage Number Percentage Number Percentage
White 317 67% 41 45% ?55 74 16% 11 12%
Black 99 21% 40 44% 56-60 40 8% 7 8%
Asian 33 7% 1 1% 61-65 60 13% 17 19%
Other 3 1% 4 4% 66-70 81 17% 17 19%
Undisclosed 22 5% 5 5% 71-75 84 18% 14 15%
TOTAL 474 100% 91 100% 76-80 54 11% 3 3%
81-85 37 8% 8 9%
86+ 43 9% 10 11%
No data 1 0% 4 4%
TOTAL 474 100% 91 100%
Recommended Program Design Changes for 2023
Staff from the three participating departments offer the following program design changes, should
the Board wish to continue the LHA program in 2023:
1) Increase baseline minimum award amount: a minimum award amount of $200
2) Introduce a baseline maximum award amount: $1,500 — Staff believes that this is a
generous award limit, as this amount is $351 more than the average full award before
adding the multiplying factor ($1,149). By establishing an award cap, the County would be
able to distribute more money to more people.
3) Use the HOME Investment Partnerships Program (HOME) and Housing Trust Fund (HTF)
Homeownership Value Limits ("95% limits") as the maximum home value eligible for the
Longtime Homeowner Assistance program. The U.S. Department of Housing and Urban
Development (HUD) calculates these metrics annually, here are the current limits:
1 bedroom 2 bedroom 3 bedroom 4 bedroom
$363,000 $465,000 $563,000 $698,000
If implemented, applicants will indicate the number of bedrooms in the home on their
application.
Assuming all other eligibility components including income are met, staff can make exceptions
to these value limits for homeowners who meet one or more of these criteria:
• Anyone in the home age 70 (the average life expectancy for American Indian /Alaskan
Native people who are documented nationally as the racial demographic with the lowest
life expectancy) or older
• Anyone in the home has a documented disability, as defined by the U.S. Department
of Housing & Urban Development (HUD), "to include any (1) individual with a physical
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or mental impairment that substantially limits one or more major life activities; (2)
individual with a record of such impairment; or (3) individual who is regarded as having
such an impairment."
• Homeowners with property tax increases of 50% or more from the tax assessment in
2020 to taxes owed in 2023.
FINANCIAL IMPACT: There is a potential financial impact of$250,000 for 2023 should the Board
reauthorize the program.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board receive information about
the results of the 2022 Longtime Homeowner Assistance (LHA) program, discuss and consider
proposed design changes, and consider approving some or all of the design changes for the
Longtime Homeowner Assistance program — if the Board wishes to continue the program in 2023.
2022 LHA Program Evaluation 5
2022 Orange County Longtime Homeowner Assistance (LHA) Program Evaluation
Applications Submitted
2022 2021
Number Percentage Number Percentage
Eligible Applications 474 95% 91 70%
Ineligible Applications 26 5% 39 30%
TOTAL 500 100% 130 100%
Number of Applications Reviewed
2022 2021
Week 1 (8/1 -8/7) 46
Week 2 (8/8- 8/14) 68
Week 3 (8/15- 8/21) 39
Week 4 (8/22- 8/28) 42
Week 4 (8/29-9/4) 32
Week 5 (9/5- 9/11) 13
Week 6 (9/12- 9/18) 26
Week 7 (9/19- 9/25) 22
Week 8 (9/26- 10/2) 20
Week 9 (10/3- 10/9) 17
Week 10 (10/10- 10/16) 16
Week 11 (10/17- 10/23) 14
Week 12 (10/24- 10/30) 24 Week 1 (10/25- 10/31) 6
Week 13 (10/31 - 11/6) 18 Week 2 (11/1 - 11/7) 8
Week 14 (11/7- 11/13) 9 Week 3 (11/8-11/14) 10
Week 15 (11/14- 11/20) 23 Week 4 (11/15-11/21) 10
Week 16 (11/21 - 11/27) 22 Week 5 (11/22-11/28) 0
Week 17 (11/28- 12/1) 49 Week 6 (11/29-12/5) 11
Week 7 (12/6-12/12) 7
Week 8 (12/13-12/15) 73
TOTAL 500 125
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2022 LHA Program Evaluation 6
2022 2021
Minimum Award Amount $100.00 $1.51
Maximum Award Amount $7,303.73 $1,334.63
Average Award Amount $529.62 $96.98
Median Award Amount $338.56 $179.83
Reason for Ineligibility
2022 2021
Number Percentage Number Percentage
Taxes didn't increase (N/A for 2022) 30 77%
Over Income 12 46% 3 8%
Has not owned home for appropriate amount of time 10 38% 6 15%
Lives outside of Orange County 2 8% 0%
Tax bill was covered by Homestead Exemption 1 4% 0%
Duplicate Application 1 4% 0%
TOTAL 26 100% 39 100%
Award Amounts
2022 2021
Number Percentage Number Percentage
$1-$50 (N/A for 2022) 0 0% 31 34%
$51-$100 95 20% 16 18%
$101-$200 53 11% 15 16%
$201-$300 59 12% 14 15%
$301-$500 117 25% 9 10%
$501-$999 104 22% 4 4%
$1,000+ 46 10% 2 2%
TOTAL 474 100% 91 100%
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2022 LHA Program Evaluation 7
Racial Demographics of Program Participants
2022 2021
Number Percentage Number Percentage
White 317 67% 41 45%
Black 99 21% 40 44%
Asian 33 7% 1 1%
Other 3 1% 4 4%
Undisclosed 22 5% 5 5%
TOTAL 474 100% 91 100%
2022 2021
Undisclosed Undisclosed
4.6% 5.5%
Asian Other
7.0% 4.4% White
Black
45.1
20.9%
White Black
66.9% 44.0%
3/1/2023 3
2022 LHA Program Evaluation 8
Age Demographics of Program Participants
2022 2021
Number Percentage Number Percentage
>_55 74 16% 11 12%
56-60 40 8% 7 8%
61-65 60 13% 17 19%
66-70 81 17% 17 19%
71-75 84 18% 14 15%
76-80 54 11% 3 3%
81-85 37 8% 8 9%
86+ 43 9% 10 11%
No data 1 0% 4 4%
TOTAL 474 100% 91 100%
3/1/2023 4