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HomeMy WebLinkAboutAgenda - 02-25-2025; 7-b - Longtime Homeowner Assistance (LHA) Program Report - 2024 Results 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 20, 2025 Action Agenda Item No. 7-b SUBJECT: Longtime Homeowner Assistance (LHA) Program Report — 2024 Results DEPARTMENT: Housing ATTACHMENT(S): INFORMATION CONTACT: PowerPoint Presentation Blake Rosser, Housing Director, 245- 2490 Aaron Cohen, Community Development Manager, 245-2490 PURPOSE: To receive a report on the results of the Calendar Year 2024 Longtime Homeowner Assistance (LHA) program, which provides assistance to longtime low-income Orange County homeowners on their property tax bill. BACKGROUND: For 2024, Housing staff again utilized the Orange County Board of Commissioners 2023 authorized updates to the program design for the Longtime Homeowner Assistance (LHA) program to: • Increase the baseline minimum award amount: a minimum award amount of$200 • Introduce a baseline maximum award amount: $1,500 • And 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. 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 2023. LHA media campaign efforts in 2024 included: • The Tax Office sent the LHA program information flyer alongside the 2024 Tax Bills that were mailed in August 2024. • County staff worked with community partners at the Jackson Center, Homeowners United, and Justice United to promote the LHA program. • Organized visits to local churches and the Rogers Road and Cedar Grove Community Centers to complete LHA applications and distribute LHA flyers. • Partnered with church congregations in Orange County, including in northern Orange, to share information. Unlike previous years, advertisements were not placed in area newspapers. This saved the County more than $10,000 in administrative costs and did not appear to impact the accessibility of the program (the number of applications increased from this year from 2023 by 11%). 2 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$200 or up to the full amount of the County portion of their tax bill if it was less than $200. • Award amounts were the County portion of the tax bill less 2% of the applicant's household income. Between August 1 and December 15, 2024, the County received 604 applications and awarded $323,824 (including $73,824 in Town of Chapel Hill supplemental funding) to 484 households for property tax assistance. The minimum award amount was $200. The average award amount for recipients was $498.01, and the median award amount was $369.77. LHA Applications Submitted 2023 2024 Number Percentage Number Percentage Eligible Applications 484 90% 502 83% Ineligible Applications 57 10% 102 17% TOTAL 542 604 LHA Award Amounts 2023 2024 Number Percentage Number Percentage $101-$200 123 25% 129 26% $201-$300 67 14% 54 11% $301-$500 127 26% 102 20% $501-$999 97 20% 112 22% $1,000+ 70 14% 105 21% TOTAL 484 502 The County received the highest number of LHA applications during August. 83% of all received applications were approved. The most common reason for application denial was applicants not including the property tax form in their final application, which indicates the specific property for which the applicant is requesting assistance. The demographics of LHA awardees is as follows: 3 Racial Demographics of LHA Awardees Age Demographics of LHA Awardees 2023 2024 2023 2024 Number Percentage Number Percentage Number Percent Number Percent White 273 56% 282 56% <_55 86 18% 86 17% Black 99 20% 101 20% 56-60 38 12% 37 7% Asian 40 8% 39 8% 61-65 58 12% 63 13% Other 12 2% 25 5% 66-70 81 17% 82 16% Undisclosed 60 12% 55 11% 71-75 78 16% 91 18% TOTAL 484 502 76-80 56 12% 69 14% 81-85 40 8% 36 7% 86+ 42 9% 38 8% No data 5 1% 0 0% TOTAL 484 502 A "Last Chance" award round of $20,000 was developed to address the number of applications that either: 1) Failed to submit a copy of their property tax; 2) Demonstrated difficulty in navigating the application process; or 3) Exhibited other extenuating circumstances. This ensured that the administrative burden did not prevent applicants from receiving needed funds. Cost savings from office supplies, administrative savings during the LHA process, and other pre-existing Housing budget savings were used to fund this award round. The award amounts are as follows: "Last Chance" Award Amounts Number Percentage $200 67 75% $201- 18 20% $300 $301- 2 2% $500 $501- 1 1% $999 $1,000+ 1 1% TOTAL 89 100% As a result of the Last Chance fund, a total of 591 people received support through the Longtime Homeowner Assistance program. This represents a 22% increase in recipients compared with the previous year. This data suggests that the program continues to address a critical need within the Orange County community, a conclusion substantiated by anecdotal evidence from community members who benefitted from the program. 4 The Housing staff is developing administrative changes to the program to prevent the need for this type of Last Chance fund in the future. The demographics of the Last Chance recipients are as follows: Age Demographics of LHA Last Racial Demographics of LHA Last Chance Awardees Chance Awardees Number Percentage Number Percentage >_55 11 12% White 44 49.4% 56-60 8 9% Black 18 20.2% 61-65 8 9% Asian 3 3.4% 66-70 11 12% Other 2 2.2% 71-75 13 15% Undisclosed 22 24.7% 76-80 12 12% TOTAL 89 100% 81-85 7 8% 86+ 4 4% No 15 17% data TOTAL 89 98% FINANCIAL IMPACT: There is no financial impact on the County associated with receiving this report. The LHA program has an expense of $250,000 annually, which has been renewed for three (3) consecutive years. The Town of Chapel Hill has contributed up to $75,000 in matching assistance, bringing total possible awards to $325,000. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 3: HOUSING FOR ALL OBJECTIVE 7. Expand resources and invest in housing designed for our aging and disabled residents. OBJECTIVE 8. Preserve existing housing stock from disrepair and avoid displacement. RECOMMENDATION(S): The Manager recommends that the Board receive the report regarding the results of the 2024 Longtime Homeowner Assistance (LHA) program and provide any comments and questions. ORANGE COUNTY � HOUSING DEPARTMENT Results of CY24 Longtime Homeowner Assistance (LHA) Program February 20, 2025 6 Program impact increased from 2023 604 applications received, 502 Awarded • $323,824 awarded ($73,824 from Chapel Hill ) Minimum Award amount : $200 Average Award amount : $498 1 Median : $369.77 Most common reason for denial : No property tax bill submitted with application ORANGECOUNTY � HOUSING DEPARTMENT 7 Side-by-side comparison, 2023-24 LHA Applications Submitted 2023 2024 Number Percentage Number Percentage ApplicationsEligible 484 90% 502 83% Ineligible •Applications57 10% 102 17% • 542 604 LHA Award Amounts 2023 2024 Number Percentage Number Percentage 123 25% 129 26% 67 14% 54 11% 0 00 127 26% 102 20% 0 • ' • 97 20% 112 22% 70 14% 105 21% • 484 502 ORANGE COUNTY HOUSING DEPARTMENT 8 Racial, Age pra demog hics remain similar across years JJW2023 2024 2023 2024 WNumber Percent Number Percent Number Percentage Number Percentage 86 18% 86 17% 273 56% 282 56% • • � 38 12% 37 7% 99 20% 101 20% • 58 12% 63 13% 40 8% 39 8% • • � 81 17% 82 16% • 12 2% 25 5% 78 16% 91 18% Undisclosed60 12% 55 11% • : � 56 12% 69 14% 484 502 40 8% 36 7% 42 9% 38 8% • • . 5 1% 0 0% • 484 502 ORANGE COUNTY HOUSING DEPARTMENT For any questions: Blake Rosser • brosser@orangecountync . gov 919- 245 -2492 aORANGECOUNTY 0 HOUSING DEPARTMENT