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HomeMy WebLinkAboutAgenda - 05-04-2004-5gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 4, 2004 Action Agenda Item No. SUBJECT: Consolidated Housing Plan Annual Update/HOME Program DEPARTMENT: Housing/Community Dev PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolutions Annual Update Summary INFORMATION CONTACT: Tara L. Fikes, ext. 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To adopt resolutions approving the 2004 Consolidated Housing Plan Annual Update; the proposed HOME Program Activities for 2004-2005 and to authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. BACKGROUND: In 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. The Consolidated Plan is required for all communities receiving HOME funds (Orange County HOME Consortium) and CDBG entitlement funds (Town of Chapel Hill). Each year, local communities are required to submit an Annual Update to the Consolidated Plan to the State HUD Office by May 14`h. This Update includes the 2004-2005 Community Development Plan far the Town of Chapel Hill and the 2004-2005 HOME Program Action Plan for the Orange County HOME Consortium. Public hearings were held by the Chapel Hill Town Council an February 2 and March 24 and by the BOCC on February 3, 2004 to receive citizen comments regarding the Update prior to development and subsequent submission to HUD. The HOME Program Review Committee comprised of an elected official from each local elected board as well as the Manager or his representative reviewed applications for HOME Program funding and developed the proposed HOME Program Design for the 2004~~2005 Program Year. A total of 10 applications were received from local non-profit organizations and other local governmental units requesting approximately $900,000. There is approximately $831,431 available in HOME funds available far Fiscal Year 2004. The recommended program design is detailed in the attached resolution. A public comment period as required by HUD was established for April 12 -May 13, 2004 by notice in the Chapel Hill Herald. Copies of the Annual Update were made available at the Chapel Hill and Orange County Public Libraries.. Further, in accordance with the Orange County HOME Consortium Agreement approved in June 2002 the HOME Program Design for each year must be approved by all jurisdictions prior to submission to HUD. The Program Design is scheduled for approval by Chapel Hill on April 26th and by Hillsborough on May 10. The Town of Carrboro has already approved the program design. FINANCIAL IMPACT: The Orange County HOME Consortium is scheduled to receive approximately $739,050 in federal housing program funding. The required total local government match is $166,408. Orange County's share of the match is $66,515. RECOMMENDATION(S): The Manager recommends that the Board adopt resolutions approving the 2004 Consolidated Housing Plan Annual Update and the proposed HOME Program Activities for 2004-2005. Additionally, the Manager recommends that the BOCC authorize the Manager to implement the HOME Program as approved by the BOCC including the ability to execute agreements with partnering non-profit organizations after consultation with the County Attorney. RESOLUTION AUTHORIZING THE ORANGE COUNTY 2004-2005 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as a member of the Orange County HOME Consortium approve following activities for the 2004-2005 HOME Program. Property Acquisition Funds would be allocated to the Town of Chapel Hill to assist the Town Department of Housing purchase one dwelling unit to provide transitional housing for a public housing family transitioning to permanent housing. (Requested nmount: $125,000) $125,000 Funds would be allocated to Habitat for Humanity to purchase five (5) lots in the Winmore subdivision in Carrboro for future development of first-time homebuyer opportunities for first-time homebuyers with incomes at or below 50% of median income.. (Requested amount, $125,000) $125,000 Homeowner Assistance Funds would be allocated to Habitat for Humanity to provide four (4) deferred second mortgages to first- time homebuyers with incomes below 80% of median income in the Richmond Hills subdivision, (Requestedanrount: $80,000) $80,000 Funds would be allocated to Orange Community Housing and Land Trust to provide down-payment assistance for up to seven (7) newly constructed townhomes and condominiums in the planned Winmore subdivision in Carrboro. The dwelling units will be developed by the private sector, and then placed in the Land Trust. Eligible families would be first-time homebuyers with incomes below 80% of median income. (Req:res•ted amount.: $100,000) $70,000 Funds would be allocated to Orange Community Housing and Land Trust to provide down-payment assistance for up to seven (7) newly constructed townhomes and condominiums in the planned Pacifica subdivision in Carrboro.. The dwelling units will be developed by the private sector, and then placed in the Land Trust. Eligible families would be first-time homebuyers with incomes below 80% of median income.. (Requested nrnount: $7Q 000) $70,000 Funds would be allocated to EmPOWE.Rment to provide up to ten (10) deferred second mortgages to first-time homebuyers with incomes below 80% of median income.. Homebuyers would purchase existing housing located in various areas of the County. (Requested amount: $100,000) $100,000 New Construction Funds would be allocated to Habitat for Humanity to provide funding for infrashucture improvements (extension of'sewer line) to a lot owned by Orange Community Housing and Land Trust on Crest Sheet in Carrboro, The subsequent home built on the lot will be sold to a Habitat homeowner and the property will remain in the Land Trust. (Requested amount: $25,000) $25,000 Rental Assistance Funds would be provided for rental assistance for approximately 10-12 low-income families leasing standard property in Orange County, The program will operate in a similar manner to the Section 8 Program and provide rental subsidies for a period of two years to families at or below 50% of the area median income. $236,431 Program Administration TOTAL HOME PROGRAM FUNDS $ 73,905 $905,.3.36 American Dream Downnavment Initiative The American Dream Downpayment Initiative (ADDI) is a new program under the American Dream Downpayment Act designed to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. Funds can be used for downpayments, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. $54,145 BE IT FURTHER RESOLVED, that the Manager is hereby designated as the authorized representative of the County to act in connection with the submission of'this plan and to provide such additional information as maybe required by the U.S. Department of Housing and Urban Development.. This the 4th day of May 2004. 5 RESOLUTION AUTHORIZING THE SUBMITTAL OF THE 2004-2005 ANNUAL UPDATE TO THE 2000 - 2005 CONSOLIDATED PLAN BE IT RESOLVED that the Orange County Board of Commissioners authorizes the submission of the 2004-2005 Annual Update to the 2000- 2005 Consolidated Plan to the U.S. Department of Housing and Urban Development for the County's Housing and Community Development Programs including all understandings, assurances, and certifications required therein by May 14, 2004. BE IT FURTHER RESOLVED that the Manager is hereby designated as the authorized representative of the County to act in connection with submittal of the 2004 - 2005 Annual Update to the Consolidated Plan and to provide such additional information as maybe required.. This the 4`h day of May, 2004. s 2004-2005 Annual Update Summary FY 2000-2005 Consolidated Plan for Housing and Community Development Programs in Orange County, N.C. including the..... Town of Carrboro Town of Chapel Hill Town of Hillsborough May 4, 2004 Orange County Consolidated Plan for 2000-2005 Annual Update 2004-2005 Summary BACKGROUND In an effort to streamline several programs, the U.S. Department of Housing and Urban Development now requires all jurisdictions that receive federal Community Development Block Grant (CDBG) funds, federal HOME Program funds, Emergency Shelter Grants (ESC) and grants far Housing Opportunities for People with AIDS (HOPWA) to submit a Consolidated Plan for Housing and Community Development Programs. The Town of Chapel Hill receives federal Community Development Black Grant funding each year and the Orange County HOME Consortium receives HOME funding each year.. Since the Town of Chapel Hill is a member of the Orange County HOME Consortitm, the County is permitted tc submit one plan that details the housing needs and activities of the entire County including Chapel Hill, The Consolidated Plan not only serves as an application for each of the four programs, but also seeks to further the statutory goals of these programs through a collaborative process whereby a community establishes a unified vision of housing and community development actions to address identified housing needs.. The Orange County HOME Consortium submitted the 2000- 2005 Consolidated Plan to HUD on May 15, 2000 that was approved in .July 2000, Each year, the Consortium is required to submit an annual update to the 2000- 2005 Consolidated Plan to the U,S. Department of Housing and Urban Development by May 15th each year, Prior to beginning to developing the 2004-2005 Annual Update, public hearings were held to hear citizen comments regarding housing and community development needs and proposed activities that should be included in the Plan, A public hearing was held by the Chapel Hill Town Council on February 2, 2004 and March 24, 2004 to receive citizen comments regarding housing needs and the proposed use of $711,000 in CDBG funds Chapel Hill will receive in the 2004-2005 fiscal year, and $739,050 (plus a local match of $166,286) that the Orange County HOME Consortium will receive in the 2004- 2005 fiscal year, The Orange County Board of County Commissioners held a public hearing on February 3, 2004 regarding housing needs and the proposed use of $739,050 in HOME funds the County HOME Consortium will receive in fiscal year 2004- 2005. After the public hearings, the HOME Program Review Committee comprised from each member of the consortium as well as the Manager or his representative reviewed applications for the HOME Program to develop the proposed HOME Program Design for the 2004-2005 Program Year, A total of nine (9) applications were received from local non-profit organizations and other local governmental units requesting approximately $900,000. s Town staff reviewed applications received far Community Development Block Grant (CDBG) in a similar manner. A total of eight applications were received from non-profit organizations and the Town requesting approximately $1,108,170. After both spending plans were developed and a draft Annual Update was completed, citizens were allowed to review the document and provide comments to local staff during the official public comment period of April 12, 2004 to May 13, 2004. Each jurisdiction approved the Update prior to submission to HUD. 9 Housing Priorities The Consolidated Plan for Orange County identified the following housing priorities for 2000-2005. 1, Provide rehabilitation assistance far very low and low-income homeowners and renters. 2, Reduce the number of owner-occupied and rental housing units without indoor plumbing. 3, Provide assistance to households at less than 80 percent of median family income to connect existing public water and sewer systems. 4, Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 60% of the area median income. 5. Facilitate the construction of up to 50 new units of rental housing affordable to very low and low-income families, 6, Create transitional housing units for shelter residents who can live independently. 7, Assist local non-profit human service agencies to provide a continuum of housing options for special populations, including older adults, the disabled, the mentally ill, and persons with AIDS. 8, Facilitate the purchase of new and existing housing units by first-time homebuyers with incomes 80% and below of the area median income. (NEW) 9. Provide rental assistance to families earning less than 50% of median family income (NEW) Non-Housing Community Development Priorities 1, Provide economic development opportunities to low and moderate income citizens in Chapel Hill. 2, Revitalize the business areas serving low-income neighborhoods of Chapel Hill. 3. Provide funds to activities that support other Community Development objectives and activities or serve public housing residents. (NEW) to Description of Key Projects The 2000-2005 Consolidated Plan for Orange County identifies the following key projects: ^ Land acquisition, rehabilitation, and public services for children in the Pine Knolls and Northside neighborhoods. ^ Rehabilitation and reftarbishment of public housing in the Lindsay Street and Airport Garden neighborhoods. ^ Housing rehabilitation deferred loans to low-income owner and renter households. ^ Acquisition and rehabilitation of rental units for lease by severe, persistently mentally ill county residents. ^ Capitalization of a Gammunity Revitalization Fund to support the purchase/rehabilitation of existing structures for resell to low-income families. ^ Construction of a 32-unit townhouse development in the Meadowmont subdivision in Chapel Hill. ^ Second mortgage assistance to first-time homebuyers for purchasers of housing developed and/or sponsored by local non-profit organizations at scattered locations in the County. ^ Public service activities that compliment Neighborhood Revitalization activities or serve public housing residents including after-school programs and summer work programs. ^ Funding for acquisition of land for future development by area non-profit organizations. ^ Acquisition and rehabilitation of rental units for lease by low-income families and individuals. ^ Property acquisition and construction of housing for persons with developmental disabilities. ^ Construction of detached single-family housing and rental housing in the Rusch Road area of Chapel Hill. CITIZEN PARTICIPATION On February 2, 2004 and March 24, 2004, the Chapel Hill Town Council held public hearings to receive citizen comments about how 2004-2005 Community Development, HOME and Capital Fund (formerly the Comprehensive Grant) funds could be spent. The Orange County Board of Commissioners held a public hearing on Febniary 3, 2004 to receive citizen comments regarding housing needs in the community and the possible expenditure plan for 2004-2005 HOME Program funding. All comments received at the public hearings and applications submitted for funding are summarized below, Summary of Comments and Community Development Requests The Chapel Hill Town Council received the following citizen comments at public hearings held an February 2, and March 24, 2004. Applications far funding are also summarized below. We note that all agencies that requested funding were required to submit an application. Affordable Housing Requests Activities eligible far Community Development funding must meet one of three National Objectives: Benefit low- and moderate-income persons; or • Aid in the prevention or elimination of slums and blight; or • Treat urgent needs posing an immediate threat to public health and welfare. Examples of eligible activities include acquisition and /or renovation of property, second mortgage assistance, and site development. The fallowing comments and applications were considered: 1. Chapel Hill Department of Housing The Chapel Hill Department of Housing requests $455,000 of Community Development Program funds for the following purposes: $313,000 to pay a portion of the cost to renovate twenty-six apartments in the Airport Gardens public housing community; $76,000 to continue the Five-Year Refurbishing Program to refi~rbish about thirty-eight apartments; $60,000 and to replace the roofs on the buildings at the Oakwood public housing community and the South Estes Drive Community Center, and $6,000 to install and repair playground equipment. Town Staff Comment: The plan includes $150,000 to ftmd a portion of the renovation of Airport Gardens, $50,000 for refurbishing apartments and $6,000 for playground 12 equipment. The Town's public housing is an important source of affordable rental housing and the Town's investment in this property should be maintained. The $150,000 would help with the cost of renovating the eight remaining units at Airport Gardens, and includes $15,000 for a portion of the Assistant Housing Director's salary for oversight of the renovation work, We propose to use current year (2003-2004) Community Development Neighborhood Revitalization funds to replace the roofs on the buildings at the Oakwood public housing community and the South Estes Drive Community Center, The renovation of public housing units is an eligible Community Development activity, 2. Chapel Hill Department of Housin~c -Transitional Housing The Chapel Hill Department of Housing requests $125,000 of Community Development funds to purchase a home for the Transitional Housing Program. Funds would be used to acquire and renovate a house, The Transitional Housing Program provides a supportive environment that fasters a transition to private market housing far public housing residents, Town Staff Comment: The Community Development plan does not include funds for this program, The recommended 2004-2005 HOME Program Plan includes $125,000 far the acquisition of a house for the Town's Transitional Housing Program. 3, Habitat for Humani~ of Orange County Habitat for Humanity requests $200,000 of NOME and/or Community Development funds for predevelopment costs (surveying, engineering and design) and infrastructure costs for the development of a 17-acre vacant tract of land on Sunrise Road, Habitat also made a request for these funds at the February 2, 2004 public hearing. Town Staff Comment: The plan does not include funding for this project. Federal Regulations do not allow Community Development funds to be used for pre- development costs for new construction projects, Using funds far architectural design costs for new construction projects is not an eligible Community Development activity.. We do not recommend allocating finds for the infrastructure costs because Habitat has informed us that infrastructure funds would not be spent during the 2004-2005 fiscal year, We recommend that the Council consider funding for this portion of the project using future year Community Development funds, 4. Orange Community Housing and Land Trust At the February 2, 2004 Public Hearing, Orange Community Housing and Land Trust requested $100,000 of Community Development funds to subsidize ten tawnhomes in the Vineyard Square development. The funds are requested as a permanent grant to the Land Trust, Funds would be used to reduce the sales price of three-bedroom 13 townhomes from $115,000 to $105,000. Townhomes would be sold to first time homebuyers earning less than 80% of the area median income, In addition, once subsidized, the homes could not be sold to households earning more than 80% of the median income. According to the application submitted by the Land Trust, the townhomes are scheduled to be completed in August 2004. Town Staff Comment: The plan includes $100,000 for this request. Providing funds far second mortgage assistance will assist with increasing affordable housing opportunities in the community, 5. Rogers Road Neighborhood Mr, Tom Tucker spoke on behalf of residents in the Rogers Road neighborhood. Mr. Tucker explained that residents were requesting extension of sewer service to Purefoy Road, Town Staff Comment: An application was not submitted for this project, One of the Council's proposed goals is to complete a Small Area Plan for the Rogers Road area in 2005, We recommend that this request be reconsidered in future years after more planning has been completed. A combination of Community Development and HOME Program funds may be appropriate. Community /Public Service Requests The use of funds for public service activities is eligible under federal Community Development regulations, Examples of public service activities includes programs concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, homebuyer down payment assistance or recreational needs, The amount of Community Development funds used for public services cannot exceed 15% of the Town's Community Development grant ($106,650 in 2004-2005), In addition to meeting one of the National Objectives listed above, community or public service activities must provide: (1) a new service; or (2) a quantifiable increase in the level of an existing service than what was provided over the last fiscal year. In the past, the Council has funded public service projects that support other Community Development objectives and activities, especially public housing and Neighborhood Revitalization, Some emphasis has also been placed an jab training for low-income residents, We evaluated the following applications in terms of previous performance and their relationship to other Community Development objectives. In general, we are recommending that some funding be set aside for community services, but that the Council emphasizes housing objectives as contained in the Consolidated 1 d~ Plan. The following agencies submitted applications for Community /Public Service activities: 1. Chapel Hill Police Department The Chapel Hill Police Department requests hands for three programs: • $31,900 to continue the Youth Work Program for youths ages 14-17 living in the Pine Knolls, Northside and public housing communities. During the summer, approximately thirty youths would twenty hours per week in various Town Departments and local non-profit organizations, During the school year, ten of these children would continue to work approximately ten hours per week. Youths would also be required to participate in workshops focusing on financial education, career development, and improving interview skills, • $2,600 for a variety of programs for youths living in Pine Knolls, Northside or public housing communities, Programs would be coordinated with the Town's Housing and Parks and Recreation Departments, and would provide structured activities and emphasize components that will improve academic skills, prevent drub abuse and drug-related crime, leadership development, and career planning. • $5,500 for the Career Explorers Program. This program is designed far high school aged youth who reside in Northside, Pine Knolls, or public housing neighborhoods. Six youths will be placed in work sites in the business community. Youths would work thirty-six hours per week and spend an additional four hours sharing work experiences, learning financial skills, and participating in career exploration experiences. Funds would be used to supplement funds paid by the local businesses, Town Staff Comment: The plan includes $40,000 for these programs. Based on our on-going monitoring reports received, the program met the goals established in the 2003-2004 Performance Agreement. Twenty youths participated; both supervisors and youths reported that it was a positive educational experience, In addition, the program supports the Town's current neighborhood revitalization efforts in the Northside, Pine Knolls and public housing communities. 2. Chapel Hill -Carrboro YMCA The Chapel Hill -Carrboro YMCA requests $13,000 of Community Development funds to continue operation of After School Programs for children living in the Pine Knolls and South Estes Drive Family communities. Town Staff Comment: The plan includes $13,000 to the YMCA to continue its after school program for youths living in the Pine Knolls and South Estes Drive public 15 housing communities. Funds would be provided in the form of scholarships for eligible children. Since 1994, the Town has provided Community Development funds to the YMCA far its After School Program at the Pine Knolls Community Center. In 1999, the YMCA established a similar program for youths living in South Estes Drive public housing community, In the current year, three children from Pine Knolls and fourteen children from South Estes are being served by these programs, The YMCA continues to operate a program that meets the goals and objectives established by the Performance Agreements. 3. Orange County Family Resource Centers The Orange County Family Resource Centers requests $15,000 of Community Development funds to continue to operate an after school program at the South Estes Drive public housing community, The Center would provide free after school care for about thirteen children. Town Staff Comment: The plan includes $15,000 for this project. We believe that the provision of after school services is an important activity and supports the Town's efforts in providing services to public housing residents. This would be the second allocation of funds for this agency. To date, the after school program funded by 2003-2004 fiords has met the goals and objectives established by the Town's Pertormance Agreement. 4. North Carolina Cooperative Extension Service Orange County Center NC Cooperative Extension and the Orange on the Move Coalition requests $13,700 to develop a 10-week interdisciplinary program for overweight youth, or those who are at- risk for becoming overweight and their parents. The program would focus on nutrition, physical activity, and psychosocial skills for thirty over weight youth and their adult caregivers, with specific focus on low income and minority youths. Town Staff Comment: The preliminary Community Development plan includes $13,700 far this new project. Community Development funds would be used to support only kids living in Chapel Hill who lived in households earning less than 80% of the area median income, We believe that this program would support the Town's current neighborhood revitalization efforts in the Northside, Pine Knolls, and public housing communities. Funds would be used to provide scholarships to Chapel Hill residents, 16 Summary of Comments and Applications for 2004-2005 HOME Program Funding The following comments were received at public hearings held by the Council on February 2 and March 24, 2004 and the County Commissioners February 3, 2004: 1, Robert Dowling, Executive Director of Orange Community Housing and Land Trust requested second mortgage funds for two projects in Carrboro -Winmore and Pacifica (approximately $10,000 per unit for fourteen units). Mr, Dowling stated that it would take approximately $40,000 to make each unit in Winmore affordable, and that he would ask for Orange County Affordable Housing Bond funds for the balance. Mr, Dowling also stated that he supported Habitat for Humanity's request far funds for Sunrise Road, Staff Comment: Orange Community Housing and Land Trust submitted an application for this project. 2, Alex Asbun, Executive Director of Affordable Rentals Inc, stated that the agency would request funds to purchase permanently affordable rental housing. Staff Comment: Affordable Rentals did not submit an application for funding, 3, Susan Levy, Executive Director of Habitat for Humanity stated that the organization planned to apply for HOME funds for development at Sunrise Road, Staff Comment: Habitat for Humanity submitted an application for this project. 4. Tam Tucker spoke on behalf of residents in the Rogers Road neighborhood, Mr. Tucker explained that residents were requesting extension of sewer service to Purefoy Road. Town Staff Comment; An application was not submitted for this project, One of the Council's proposed goals is to complete a Small Area Plan far the Rogers Road area in 2005, We recommend that this request be reconsidered in future years after more planning has been completed, A combination of Community Development and HOME Program funds may be appropriate, The following agencies submitted applications for 2004-2005 HOME Program funding. 1. Chapel Hill Department of Housing The Chapel Hill Department of Housing requests $125,000 of HOME Program funds to purchase a house for its transitional rental housing program for public housing residents. The program is a stepping-stone for families between public housing and the private housing market. Funds would be used to purchase a house in Chapel Hill that would be rented to a family currently residing in public housing. 17 Staff Response: The Review Committee recommends allocating $125,000 to the Chapel Hill Housing Department, The Town has purchased one home on Merritt Mill Road using 2001-2002 HOME Program funds. In addition, the Town is in the process of identifying a second house for the program using $75,000 of 1997 Orange County Affordable Housing Bond funds, $28,117 of 2002-2003 HOME funds, and $32,000 of 2003-2004 HOME funds, 2. EmPOWERment, Inc EmPOWERment requests $100,000 for second mortgage assistance for first time homebuyers earning less than 80% of the area median income, EmPOWERment estimates that these funds could assist ten homebuyers, and the funds would be converted into deferred second mortgages to the buyers, Staff Response: The Committee recommends allocating $100,000 for this activity. In 2002, the Consortium allocated $100,000 far this activity to be used by any qualified non-profit organization, Though funds have not yet been spent, EmPOWERment has identified properties to utilize a portion of these funds. In addition, in 2003 the Consortium allocated $75,000 to EmPOWERment for a Second Mortgage Assistance Program; funds have not yet been spent. 3. EmPOWERment, Inc, EmPOWERment also requests $75,000 to purchase three condominiums in Orange County to use as affordable rental housing for three low-income households earning less than 80% of the area median income, Staff Response: The Committee does not recommend allocating funds for this activity, EmPOWERment has an outstanding allocation from the FY 2001 HOME Program that remains unspent to date. 4. Habitat far Humanity Habitat requests $25,000 to extend sewer service to a lot owned by Orange Community Housing and Land Tn~st on Crest Street in Carrboro, Habitat will build a home on the lot once the sewer extension has been completed, The home will be sold to a Habitat homebuyer using the land trust model, and the property will remain affordable for 99 years, Staff Response: The Committee's recommendation includes $25,000 for this project, 18 5. Habitat for Humanity Habitat for Humanity requests $80,000 of HOME Program funds provide four second mortgages; three of the homes are located in the Richmond Hills Subdivision in Efland; and the fourth home is located on Cain Drive in Efland Estates where Habitat has previously built eight homes, Homes will be sold to first time homebuyers earning less than 50% of the area median income. In addition, buyers must live and/or work in Orange County for one year prior to purchasing the home. Staff Response: The Committee recommends allocating $80,000 for this project. 6. Habitat for Humanity Habitat requests $125,000 to purchase five lots in the Winmore Subdivision in Carrboro. The funds would convert into second mortgages of $25,000 each to five low income first-time homebuyers when they purchase their homes, Households who have lived and/or worked in Orange County far at least one year prior to applying, and who earn less than 50% of the area median income would purchase the homes, Staff Response: The Committee's recommendation includes $125,000 far this activity, 7, Habitat for Humanity Habitat for Humanity requests $200,000 of HOME and/or Community Development funds for surveying, engineering and design, and infrastructure costs for the development of a 17 acre vacant tract of land on Sunrise Road. Staff Response: The Committee does not recommend funding for this project at this time due to the lack of a proposed development plan with a projected number of units as well as the anticipated number of HOME-eligible beneficiaries. 8. Orange Community Housing and Land Trust Orange Community Housing and Land Trust regtests $70,000 for Downpayment Assistance to reduce the prices of seven Townhomes and condominiums in the Pacifica development in Carrboro, The townhomes and condominiums, which are being developed by the private sector, would be placed in the Land Trust, Eligible applicants must be first time homebuyers, currently living or working in Orange County who earn less than 80% of the area median income. Staff Response: The Committee recommends allocating $70,000 for this request, 19 9. Orange Community Housing and Land Trust The Land Trust also requests $100,000 to reduce the prices of seven Townhomes in the Winmore development in Carrboro. The townhomes, which are being developed by the private sector, would be placed in the Land Trust, Eligible applicants must be first time homebuyers, currently living or working in Orange County who earn less than 80% of the area median income, Staff Response: The Committee recommends budgeting $70,000 for this project. 20 B. Available Resources The following federal resources are expected to be available during the coming Fiscal Year to address the priority needs and specific objectives identified in the strategic plan. Federal Programs CDBG funds $711,000 Town of Chapel Hill HOME funds $739,050 Orange County HOME Consortium Local Resources (Local General Fund) Town of Chapel Hill Housing Loan Trust Fund 40,963 Second Mortgage Assistance Town of Chapel Hill $68,177 HOME Program Match Town of Carrboro $23,280 HOME Program Match Town of Hillsborough $ 8,314 HOME Program Match Orange County $66,51,5 HOME Program Match TOTAL RESOURCES $1,657,299 zt C. Planned Activities TOWN OF CHAPEL HILL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM JULY 1, 2004 THROUGH JUNE 30, 2005 The U.S. Department of Housing and Urban Development has informed us that the Town of Chapel Hill will receive $711,000 of Community Development funds in fiscal year 2004-2005. Priority: Provide rehabilitation assistance for very low- and low-income homeowners and rental housing serving very low and low-income tenants. Public Housing Activities 1. Renovation of Airport Gardens Approximately $150,000 will be budgeted to fund a portion of the renovation of the Airport Gardens public housing community. Funds would be used along with Public Housing Capital Grant funds and previously allocated Community Development funds to renovate the twenty-six-unit community. We also recommend that $15,000 of this amount be used to pay a portion of the Assistant Housing Director's salary for oversight of the renovation project. Proposed renovation work would include the abatement of lead-based paint and asbestos, replacement of water and sewer lines to OWASA standards, installation of new washer and dryer hook-ups, replacement of wall and base cabinets and cotantertops to include new range hoods and sinks, replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces including air conditioning and water heaters, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting. Funds will also be used for site improvements including replacement of asphalt driveways and parking lots; planting new shrubs, and replacement of storm drainage systems and retaining walls. Due to the extent of building improvements, the relocation of residents will be required and the work will have to be scheduled in phases. 2. Refurbishing Program Additionally approximately 50,000 of Community Development funds will continue the public housing refurbishing program„ This program includes repainting and minor repairs of public housing units. z~ 3, Installation and Repair of Playground Equipment Approximately $6,000 of Community Development funds will be used to repair and replace playground equipment at various public housing sites. These activities are located in an existing public housing community which is in an area of both low/moderate and minority concentration, This is a continuation of the Town's efforts to renovate existing public housing communities. Anticipated Beneficiaries 336 households earning less than 80% of the Accomplishments: 65 renovated public housing apartments Anticipated Completion Date; December 31, 2005 $206,000 Priority: Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families earning less than 80% of the median family income. Funds will be used for the renovation of owner occupied housing in the Northside neighborhood. We estimate that these funds could be used to rehabilitate four houses and provide for contract staff support, Funds would be provided as deferred loans to qualified homeowners that could be forgiven over time (typically twenty years, depending on the amount of the loan), The funds would be repaid to the Town if home was sold or conveyed to heirs that do not meet the income guidelines of the program within the affordability period (typically twenty years), Anticipated Benetlciaries: Accomplishments: Anticipated Completion Date: 4 Households earning median income 4 Housing Units September 30, 2005 less than 80% of the area $100,000 Priority: Facilitate the purchase of new and existing housing units by first time homebuyers with incomes 80% and below of the area median income. Funds will be budgeted to enable Orange Community Housing and Land Trust to reduce the prices of ten (10) townhomes in the Vineyard Square Development. Funds would be provided as a grant to the Land Trust. Funds would be used to reduce the sales price of three-bedroom townhomes from $115,000 to $105,000. Townhomes 23 would be sold to first time homebuyers, earning less than 80% of the area median income. In addition, once subsidized, the homes could not be sold to households earning more than 80% of the median income. Anticipated Beneficiaries: 10 Households earning less than 80% of the area median income Accomplishments.° t 0 first-time homebuyers earning less than 80% of the area median income Anticipated Completion Date: September 30, 2005 $100,000 Priority: Provide funds to activities that support other Community Development objectives and activities, especially activities that compliment Neighborhood Revitalization activities or serve public housing residents. Funds will be budgeted to continue neighborhood revitalization activities in the Northside, Pine Knolls, and public housing neighborhoods. Activities must serve households earning less than 80% of the HUD published area median income. Funds could be used for the following activities: second mortgage assistance; property acquisition and/or renovation; code enforcement; demolition; public improvements such as installation of sidewalks, curb and gutter improvements or parks and recreation facilities; or community service activities. This year, we recommend that the funds be used primarily for public improvements in the Northside neighborhood. Anticipated Beneficiaries: Households earning less than 80% of the area median income Accomplishments; Public improvements (curb and gutter and sidewalk improvements), acquisition and renovation of properties Anticipated Completion Date: September 30, 2005 $121,700 Approximately $40,000 will be available to the Chapel Hill Police Department to fund the following youth programs: • $31,900 to continue the Youth Work Program for youths ages 14-17 living in the Pine Knolls, Northside and public housing communities. During the summer, approximately thirty youths would work twenty hours per week in various Town Departments and local non-profit organizations. During the school year, ten of these children would continue to work approximately ten hours per week. Youths would also be required to participate in workshops focusing on financial education, career development, and improving interview skills. 24~ • $2,600 for educational programs for youths living in the Northside, Pine Knolls, or public housing communities including an academic awards program, a mentoring and leadership program for young men, a support program for parents of young children to help them to begin teaching their children to read, and trips to college campuses. Programs would be coordinated with the Town's Police, Housing and Parks and Recreation Departments, and would provide structured activities and emphasize components that will improve academic skills, prevent drug abuse and drug- related crime, leadership development, and career planning. • $5,500 for the Career Explorers Program. This program is designed for high school aged youth who reside in Northside, Pine Knolls, or public housing neighborhoods. Six youths will be placed in work sites in the business community.. Youths would work thirty-six hours per week and spend an additional four hours sharing work experiences, learning financial skills, and participating in career exploration experiences. Funds would be used to supplement funds paid by the local businesses. Anticipated Beneficiaries: 45 youths of households earning less than 80% of the area median income Accomplishments: 45 youths will receive job training skills Anticipated Completion Date: June 30, 200,5 $40,000 Funds would be provided to the Chapel Hill Training Outreach Project /Orange County Family Resource Center to continue to operate acommunity-based after school enrichment program at the South Estes Drive Family Resource Center located in the South Estes Drive public housing community. Anticipated Beneficiaries.• 13 children of households earning less than 80% of the area median income Accomplishments.° Free childcare for 13 children Anticipated Completion Date: June 30, 2005 $15,000 Approximately $13,700 will be awarded to the North Carolina Cooperative Extension to operate aten-week program far thirty overweight youths and their families. The program would focus on nutrition, physical activity, and psycho-social skills to promote a healthier lifestyle. The program would be held at the Chapel Hill -Carrboro YMCA. Recruitment for the program will target residents of public housing, as well as other lower income areas of Chapel Hill and Carrboro. Fund would be used to provide scholarships to Chapel Hill residents.. z~ Anticipated Beneficiaries: 30 children of households earning less than 80% of the area median income Accomplishments: Improved health and nutrition education for 30 children Anticipated Completion Date: June 30, 2005 $13,700 Approximately $13,000 will be budgeted to the Chapel Hill-Carrboro YMCA to continue operation of after school programs for children living in the Pine Knolls neighborhood and the South Estes Drive public housing community. Anticipated Beneficiaries: i2 children of households earning less than 80% of the area median income Accomplishments: Free childcare for 12 children Anticipated Completion Date: June 30, 2004 $13,000 Program Administration $101,600 TOTAL $711,000 26 HOME INVESTMENT PARTNERSHIP PROGRAM July 1, 2004 through June 30, 2005 Priority: Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 60% of the area median. I, Funds would be allocated to the Town of Chapel Hill to assist in the purchase of one dwelling unit to provide transitional housing for a public housing family transitioning to permanent housing. Anticipated Beneficiaries: One (1) family earning less than 50% median income Accomplishments; One (1) housing unit Anticipated Completion Date: June 30, 2005 Development Schedule: Identify dwelling unit for purchase, 12/2004 Rehabilitate the house if necessary, 03/2005 Complete leasing. 06/2005 $125,000 II, Funds would be allocated to Habitat for Humanity to provide four (4) deferred second mortgages to first-time homebuyers with incomes below 80% of median income in the Richmond Hills subdivision, Anticipated Beneficiaries,° Four (4) families earning less than 50% median income Accomplishments.° Four (4) housing units Anticipated Completion Date: June 2005 Development Schedule: Begin house constrtaction (two homes) 04/2004 Complete construction (two homes); Sale homes 09/2004 Begin construction of remaining two homes 09/2004 Complete construction; sale homes 04/2005 $80,000 III, Funds would he allocated to Habitat for Humanity to purchase five lots in the Winmore subdivision in Carrbora, The funds will convert to second mortgages of $25,000 each to five low-income first-time homebuyers when they purchase their homes, z~ Anticipated Beneficiaries: Accomplishments.° Anticipated Completion Date: Development Schedule: Purchase lots Five (5) families earning less than 50% median income Five (5) housing units June 2005 Begin house construction (Builders' Blitz) Complete construction (two homes); Sale homes 12/2004 12/2004 - 03/2005 04/2005 $125,000 IV. Funds would be allocated to Orange Community Housing and Land Trust to provide down-payment assistance for up to seven (7) newly constructed townhouses and condominiums in the planned Winmore subdivision in Carrboro. The dwelling units are being developed by the private sector, and then placed in the Land Trust. Eligible families would be first-time homebuyers with incomes below 80% of median income. Anticipated Beneficiaries, Accomplishments: Anticipated Completion Date: Development Schedule: Begin construction Project completion 06/2004 06/2005 $70,000 V, Funds would be allocated to Orange Community Housing and Land Trust to provide down-payment assistance far up to seven (7) newly constructed townhouses and condominiums in the planned Pacifica subdivision in Carrboro, The dwelling units are being developed by the private sector, and then placed in the Land Trust, Eligible families would be first-time homebuyers with incomes below 80% of median income. Anticipated Beneficiaries: Accomplishments: Anticipated Completion Date. Development Schedule: Begin construction Project completion Seven (7) families earning less than 80% median income Seven (7) housing units December 31, 2005 Seven (7) families earning less than 80% median income Seven (7) housing units December 31, 2005 01/2005 12/2005 $70,000 28 VL. Funds would be allocated to EmPOWERment to provide up to ten (10) deferred second mortgages to first-time homebuyers with incomes below 80% of median income. Homebuyers would purchase existing housing located in various areas of the County. Anticipated Beneficiaries: 10 families earning less than 80% median income Accomplishments: i0 first-time homebuyers Anticipated Completion Date: December 31, 2005 $100,000 VII. Funds would be allocated to Habitat for Humanity to provide funding for infrastructure improvements (extension of sewer line) to a lot owned by Orange Community Housing and Land Tnast on Crest Street in Carrboro. The subsequent home built on the lot will be sold to a Habitat homeowner and the property will remain in the Land Trust. Anticipated Beneficiaries: One (1) family earning less than 50% median income Accomplishmenfs: One housing unit Anticipated Completion Date.° February 2006 Development Schedule: Receive bids for sewer extension 07/2004 Complete construction of sewer extension 10/2004 Begin construction of home 07/2005 Complete construction; sale home 02/2006 $25,000 VIII. Funds would be provided for rental assistance for approximately 10-12 low- income families leasing standard property in Orange County. The program will operate in a similar manner to the Section 8 Program and provide rental subsidies for a period of two years to families at or below 50% of the area median income. Anticipated Beneficiaries: Accomplishmenfs.° Anticipated Completion Date: Program Administration: 10-12 families earning less than 50% median income 10-12 families receive rental subsidies for two ,years. .tune 20, 2006 Total Funds Available: (includes 25% match calculation) $236,431 $ 73,905 $905,336 29 American Dream Downpayment Initiative Program The American Dream Downpayment Initiative (ADDI) was signed into law by President Bush on December 16, 2003 under the American Dream Downpayment Act (Public Law 108-186) (ADDI Statute). The goal of the program is to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. The Orange County HOME Consortium will receive $54,145 under this program in FY 2004 - 2005. Funds can be used for down payment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase, Under this program, assistance cannot exceed $10,000 or 6% of the purchase price of the home, whichever is greater. These funds will be used far a County-wide Second Mortgage Program. The HOME Program Council will develop specific program guidelines,