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HomeMy WebLinkAboutAgenda - 02-04-2003-7aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 4, 2003 Action Agenda Item No. SUBJECT: Orange County Consolidated Housing Plan Update DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes, ext. 2490 Executive Summary Application Form TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To receive comments from the public regarding the housing and non-housing needs to be included in the 2002-2003 Annual Update of the Consolidated Housing Plan for Housing and Community Development Programs in Orange County and proposed uses of 2002-2003 HOME funds. BACKGROUND: In May 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. Each year, local communities are required to reassess the needs of the community. This public hearing provides an opportunity for citizens, public agencies and other interested parties to provide input into the Annual Update. In addition, the public is asked to comment on proposed uses of approximately $695,000 in 2002-2003 HOME funds and $156,375 in match funding for a total of $851,375 in available funding. Eligible HOME Program activities include: acquisition; new construction; housing rehabilitation; and rental assistance. An application form has been designed for agencies interested in accessing HOME funds for local housing projects. A copy of the application is attached to this abstract for information. The deadline for completing this application form is February 21, 2003. The HOME Program Review Committee will then review the applications received and make recommendations regarding funding for consideration by the local elected officials in April 2003. In order to inform the general public of this opportunity and encourage participation, notices have been placed in the Chapel Hill Herald and sent to local non-profit agencies. FINANCIAL IMPACT: NONE RECOMMENDATION(S): The Manager recommends that the Board receive comments from the public as additional information. 3 Orange County, NC Consolidated Plan for 2000-2005 Executive Summary Background Located in North Carolina, Orange County includes not only the towns of Carrboro and Hillsborough, but also Chapel Hill, the home of the largest campus of the State university. The presence of university students, more affluent and transient than other county residents, has created an imbalance in terms of housing and community development needs. Orange County must, therefore, concentrate its efforts on serving a strong urban community and rural areas as well. The important housing issues in Orange County have not changed. The high cost of homeownership has left many families out of the housing market or sent them to surrounding counties to buy homes and commute into Orange County for work. The rental market, inflated by the ability of UNC-CH students able to pay higher rents, is beyond the means of families with incomes below 50% of the area median. For families in need of three or more bedrooms, very little housing stock exists. The number of women and children staying at the homeless shelter continues to increase dramatically, and transition from the shelter into permanent housing in Orange County is nearly impossible since no transitional housing exists. Housing for special interest groups such as the elderly, persons that are developmentally disabled, and persons with alcohol or drug addiction, is limited in Orange County. Community Profile Orange County, North Carolina includes the incorporated Towns of Carrboro, Chapel Hill, and Hillsborough, and is the home of the largest campus of the State university system - the University of North Carolina at Chapel Hill. The County is a part of the Raleigh-Durham- Chapel Hill Metropolitan Statistical Area (MSA) that comprises six counties in the Research Triangle Area with a population of 1.1 million people. The region is highly rated as a place to live and do business. In addition, Orange County, in particular, has the most expensive cost for new housing in the region and Chapel Hill is among a few larger cities in the state rated high on the cost of living index. Further, the County enjoys a low unemployment rate of approximately one (1) percent. These "firsts" present a challenge in addressing the housing needs of Orange County residents. In 2000, the population of Orange County is estimated to be 111,982. That represents a 19% population growth since 1990, with an anticipated growth of 8% through 2005. Of that number, approximately 77 percent were White, 16 percent were African American, and 7 percent were of other minority groups including American Indian, Asian, and Hispanic. The fastest growing segments of the population are of Asian and/or Hispanic descent whose population has more than doubled since 1993. 4 Further, it is estimated that approximately 12,280 of all households in Orange County (44,854) were considered very low income, with incomes between 0-50 percent of median family income (MFI). HOUSING AND COMMUNITY DEVELOPMENT NEEDS Conditions The high cost of homeownership has forced many families to purchase housing in other counties and commute into Orange County for work. The inflation of the rental market by University of North Carolina-Chapel Hill (UNC-CH) students has caused hardships for families with incomes below 50 percent of MFI. Larger rental units are particularly scarce. Market Conditions According to the Orange County Economic Development Commission, the average new home sales price in 1999 was $247,661, and for an existing home the price was $200,601. To purchase this new home a low income family of four persons would have to spend approximately 7.9 times their annual wages. For an existing home, the family would have to spend approximately 6.4 times their annual wages. In both of these instances, the low-income family needs to have more money than they earn and is certainly well above the HUD standard for affordable housing. (U.S. Department of HUD standards define affordable owner occupied housing as purchasable at 2.5 to 3.0 times total family annual income.) The rental housing market, inflated by the ability of University of North Carolina at Chapel Hill students able to pay market rents, is beyond the means of families with incomes below 50% of the area median. In 2000, it is estimated that rental units represent 43% of the county-wide housing market and approximately 67% of those rental households experience an extreme cost burden - paying between 30% to 50% of their income for rental housing. Each year, HUD publishes existing housing Fair Market Rents (FMRs) for metropolitan areas and non-metropolitan counties in the country. These FMRs are based on the fortieth percentile of standard quality rental units occupied by recent movers. Public housing units, newly constructed units, and substandard units are excluded from the calculations. FMRs are established by unit size (number of bedrooms) and include an allowance for utilities. Experience in Orange County has shown that local rents often run an average of 15 to 20 percent higher than those HUD published rates, which explains why such a high percentage (35%) pay more than 50% of their income for rental housing costs. For families earning 80% or more than the County median monthly family income of $4,022 renting a multi-bedroom apartment is relatively easy given that they are able to locate units with 3 or more bedrooms. Larger apartments are in relative scarcity because the rental market is oriented toward providing student rental housing. The most recent County data estimates that 24% of the County's rental properties contain three or more bedrooms. For families earning 50% or less than the median monthly income the primary concern is not finding a rental unit but rather affording one. In 2000, the upper level income limit for a low- income family of four was $29,740. For these families renting a three bedroom dwelling unit in 5 the County, or at a minimum, a two bedroom apartment in Chapel Hill the same set of families would have to spend at least 37% of their monthly income. In both instances, these families would have to spend more than 30% of their gross monthly income on rent. US HUD standards define affordable as occurring when a renter spends no more than 30% of their gross monthly income on total housing cost (rent & utilities). Affordable Housing Needs According to the 1990 census, Orange County had the highest percentage of very low- income households with housing problems in North Carolina; 77 percent of residents in this category cited cost burden and overcrowding as major issues. In 2000, the County has approximately 12,280 low-income households with a cost burden and overcrowdedness remaining the primary impediments to obtaining affordable housing. Further, according to a 1989 report from the North Carolina Rural Economic Development Center, 1,052 units in Orange County lacked indoor plumbing. The County considers this estimate to be a good approximation of the problem. The lack of affordable housing often times forces renters to live in substandard units. Housing problems were reported in 86 percent of very low-income households, and 97 percent of large families were forced to live in overcrowded, substandard units. The majority these families were also cost burdened. Homeless Needs The numbers of homeless persons in Orange County have increased dramatically. During fiscal year 1998-1999, the InterFaith Council Community House reported serving 801 individuals, 700 adults and 101 children. Of this number, 535 were African American, 198 were White, and 48 were Hispanic, and 20 of other race and ethnicity. The IFC Community House is the only emergency housing resource for families in Orange County. The greatest increase in the homeless population in Orange County continues to be women, children, and families, frequently victims of domestic violence. Thus, the opening of Project Homestart last year was welcomed into the community. Project Homestart is a transitional housing program for homeless families that provides a structured setting for families to receive support before they live independently. Public and Assisted Housing Needs Orange County's only conventional public housing program consists of 336 units. The majority of Chapel Hill's public housing units are two- and three-bedroom units and is located in Chapel Hill except for one community in Carrboro. The county's Section 8 program, administered by the Orange County Housing and Community Development Department, included 623 vouchers. There are an additional 543 other assisted housing units in the County that have benefited from the HUD Section 202 Program; the Low Income Housing Tax Credit Program; the Farmers HOME 515 Program; the HUD Section 236 Loan Management Program; the Section 8 New Construction Program; and the HUD Section 811 Program.. 6 Barriers to Affordable Housing The Consolidated Plan for Orange County identifies the following barriers to affordable housing: High cost of public improvements. In most of southern Orange County, there is virtually no vacant land available that is served by public utilities. In unincorporated Orange County, although land accessible to urban services is available, the cost of extensions is expensive. Also, many existing residences lack adequate plumbing facilities due to the high cost of public utility connections. Lack of adequate transportation. While the public transportation system in the Chapel Hill-Carrboro urban area is comprehensive, access to jobs and facilities outside the urban area are limited by a lack of transportation. Many of the people who work in Orange County live in neighboring counties, partly by choice and partly as a result of an inability to find affordable housing in the County. High cost of rental housing. The rental housing market, particularly in Southern Orange County continues to be inflated by the university students. High cost of homeownership. The average new detached home in Orange County sold for nearly $247,661 in 1999. That is approximately $100,000 more than what a family of four at 100 percent of median income could afford. Fair Housing Analysis of Impediments/Action Plan Impediments: The Sale or Rental of Housing Public Policies Administrative Policies Residential Segregation Fair Housing Education Based on the analysis, the following recommendations are offered to promote fair housing within the jurisdiction. ? Providing one-on-one consultation to landlords to encourage participation in the Section 8 Housing Assistance Program. ? Working with the university to promote development of adequate campus housing in order to free-up local rental units and make them more affordable. 7 ? Working with HUD to ensure that fair market rents reflect actual market rents in Orange County. ? Meeting with local bank executives to formalize participation in public-private partnerships that further housing opportunities. ? Creating public policies that link public deposits to financial institutions that commit to meeting community reinvestment needs of the County. ? Developing reasonable evaluative criteria and producing an annual report for the Board of County Commissioners on lending practices by financial institutions and ceasing to do business with institutions failing to employ inclusive lending practices. ? Building incentives and proscriptions into Orange County regulations for planned unit developments that promote affordable, non-segregated housing. ? Studying and promoting other land use strategies that encourage development of affordable housing. ? Increasing educational opportunities through fair housing workshops, forums and presentations. ? Adding source of income, (e.g. elimination of any differentiation between wages or Social Security or disability benefits, etc.) to the list of protected classes under the Orange County Civil Rights Ordinance. ? Conduct fair housing testing to ensure compliance with the Ordinance. Lead-Based Paint According to the 1990 census, 22,653 very low- and low-income housing units in Orange County built between 1960 and 1979 were contaminated with lead-based paint. Of this number, 10,236 were rental units and 12,417 were owner occupied. (No new data is available at this time.) Evaluations of the prevalence of lead-based paint in housing units will be conducted through Orange County by project, and lead abatement will be prescribed for all dwellings targeted for rehabilitation. In addition, all assisted-housing tenants will be informed of the hazards of lead based paint. The Orange County Health Department provides ongoing consultation to local housing staff. Community Development Needs Orange County has identified the need for increased economic development opportunities for low and moderate-income citizens and revitalization of businesses serving low-income neighborhoods in Chapel Hill. 8 Anti-Poverty Strategy In a recent update to the County's Work First Plan, a subcommittee of the Welfare Reform Task Force, Strengthening Independence, was charged with identifying strategies and resources for Work First families that will enable them to increase their income and to become self-sufficient. As a part of their work, this committee identified the lack of affordable housing for those in the lowest income ranges as a major impediment to building self-sufficiency. They identified the following strategies to address this situation. 1. Build, renovate, or designate existing affordable housing and rental units for which preference is given to families who are engaged in a self-sufficiency program that provides job skills, employment counseling, entrepreneurship training, money management, and other social supports. 2. Increase availability and access to affordable rental housing and to special incentives and home mortgage loans in the primary market at rates attractive to buyers in this income group. 3. Advocate among policy makers, housing organizations, and funding sources to limit undue analysis of the need and to place emphasis on action. Coordination of the Strategic Plan Through the Orange Community Housing Corporation, Habitat for Humanity, EmPOWERment, Inc., and other non-profit organizations, Orange County, Chapel Hill, Carrboro, and Hillsborough work in collaboration to implement the plan, as follows: 1. The Chapel Hill Planning Department administers the CDBG program. 2. The Orange County Housing and Community Development Department administers Section 8 program and serves as the lead agency for the Orange County HOME Consortium, which includes Orange County, Carrboro, Chapel Hill, and Hillsborough, and administers the County-wide Housing Rehabilitation Program. 3. The Chapel Hill Department of Housing operates public housing in Chapel Hill and Carrboro. 4. The Town of Carrboro administers the Carrboro CDBG Small Cities program. 5. The Hillsborough Planning Department is responsible for planning and policy development for the town, including the recently adopted 2010 plan. Orange Community Housing Corporation, Habitat for Humanity, EmPOWERment, Inc., and other non-profit organizations carry out direct housing activities, i.e. new construction, rehabilitation, etc.. HOUSING AND COMMUNITY DEVELOPMENT STRATEGY Housing Priorities 9 The Consolidated Plan for Orange County identified the following housing priorities for 2000- 2005. • Provide rehabilitation assistance for very low- and low-income homeowners and renters. • Reduce the number of owner-occupied and rental housing units without indoor plumbing. • Provide assistance to households at less than 80 percent of MFI to connect to existing public water and sewer systems. • Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 80% of the area median. • Facilitate the construction of rental housing affordable to very low and low-income families. Priority will be given to projects participating in the Low Income Housing Tax Credit Program, with at least three bedrooms. • Create transitional housing units for homeless individuals and families. • Assist local nonprofit human service agencies to provide a continuum of housing options for special populations, including older adults, disabled, mentally ill, and persons with AIDS. Non-housing Community Development Priorities The Consolidated Plan for Orange County identified the following community development priorities: Provide economic development opportunities to low- and moderate-income citizens in Chapel Hill. Revitalize the business areas serving low-income neighborhoods of Chapel Hill. 10 Application for 2003 -2004 Community Development Block Grant Funds and HOME Program funds Town of Chapel Hill 306 North Columbia Street Chapel Hill, NC 27516 (919) 968-2728 Orange County Department of Housing and Community Development 300 W. Tryon Street Hillsborough, NC 27278 (919) 245-2490 CDBG / HOME Program Application January 2003 11 INSTRUCTIONS FOR COMPLETING THE 2003-2004 APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND HOME PROGRAM FUNDS Introduction The U.S. Department of Housing and Urban Development has informed the Town of Chapel Hill that it may receive approximately $725,000 of Community Development Block Grant (CDBG) Fund, and that the Orange County HOME Consortium may receive up to $752,000 of HOME Program funds. HOME Program funds require a local match; therefore a total of $849,375 HOME Program funds may be available. Eligible Applicants Non-profit organizations, for profit entities, individuals and neighborhoods are eligible to apply for funding under the Community Development or HOME Program. Eligible Activities Please see page 12 of the application packet for a summary of eligible Community Development activities and page 13 for a summary of eligible HOME Program activities. If you have questions about eligibility of an activity please contact one of the following: Community Development Program: Loryn Barnes Community Development Coordinator Town of Chapel Hill (919) 968-2728 HOME Program: Tara Fikes, Director Orange County Housing and Community Development (919) 245-2490 Public Participation Process A schedule for adoption of the Community Development and HOME Programs is attached. Public hearing dates are also included on this schedule. You may attend any or all of the public hearings of the Chapel Hill Town Council and Board of Orange County Commissioners. Submission Procedures We recommend that applicants submit an application for funding. CDBG / HOME Program Application 7nnnnrv 2001 12 The application consists of two parts: the Standard Application; and Project Detail for Affordable Housing Projects. Please do not skip any sections of the Standard Application. If you believe that a section does not apply to your project or your organization, please indicate "not applicable". Please be sure to attach the narrative requested in the Project Description (Section IV) and Applicant Experience (Section VI). Section IV, Project Description requests information on the proposed project. Responses should be clear and concise. Please answer each question and submit the requested attachments. Attachments must be clearly identified so that a reviewer may easily access the necessary information. If additional space is required for any section, attach additional pages, clearly marking the section to which they relate. Submission Deadline All applications must be received by Friday, February 21, 2003 at 5:00 pm. Please submit one original and one copy of the application and all attachments to: CDBG Loryn Barnes, Community Development Coordinator, Town of Chapel Hill, 306 North Columbia Street, Chapel Hill, NC 27516 HOME Tara Fikes, Director, Orange County Housing and Community Development, 300 W. Tryon Street, Hillsborough, NC 27278 If your agency is applying for both Community Development and HOME Program funds, please submit applications to both entities. No facsimile submissions will be accepted. For further information please contact the Town of Chapel Hill Planning Department at (919) 968-2728 or the Orange County Department of Housing and Community Development at (919) 245-2490. Evaluation of Applications Community Development Block Grant applications will be evaluated by Town staff, the Town's Housing and Community Development Advisory Board and considered by the Chapel Hill Town Council on April 28, 2003. HOME Program Applications will be reviewed by the HOME Program Review Committee consisting of one elected official and staff person from Chapel Hill, Carrboro, Hillsborough and Orange County. A 2003-2004 HOME Program Plan will be approved by each local government. CDBG / HOME Program Application _Tanuarv 2003 13 Application for 2003-2004 Town of Chapel Hill Community Development Block Grant (CDBG) Program and / or Orange County HOME Program PART 1 STANDARD APPLICATION 1. REQUEST AMOUNT OF REQUEST: SOURCE: PURPOSE: S ?Community Development Block Grant ?Land Acquisition ?Acquisition and Rehabilitation ?Second Mortgage Assistance ?Public Infrastructure Improvement ?Other: (specify) H. APPLICANT INFORMATION A. TYPE OF APPLICANT (Check all that apply) ? Applicant is an existing entity ? Corporation ? General Partnership ? Limited Liability Company ? Joint Venture ? For-Profit ? Municipality ? Individual(s) ? Limited Partnership ? Non-Profit ? Local Housing Authority ? CHDO ? Current Owner ? Proposed Owner ? Developer ? Contractor ? Other: (specify) If a non profit organization please submit a copy of your 501 (c)(3) documents and a current list of all Board members. ?HOME ?Property Acquisition ?Rehabilitation Only ?Economic Development ?Community Service CDBG / HOME Program Application Januarv 2003 14 II. APPLICANT INFORMATION (continued) B. NAME AND ADDRESS OF APPLICANT Organization Contact: (name) Address (no P.O. boxes): Suite #: Mailing Address (if different): City: State: Zip: County: Federal LD # E-mail address: ) Phone: ( ) Fax:( III. PROJECT NAME AND LOCATION Proj ect Name: Proj ect Address: City: County: Zip: Census Tract Tax Map Number (if applicable): Target geographic area of project (if applicable): IV. PROJECT DESCRIPTION For all projects, please attach to this page a thorough description of the project including: population served, geographic area served, schedule for completing the project, and how Community Development / HOME funds will be used. In addition, please provide details about the goals of the project, timeline for completion, benchmarks for determining success of the project, partnerships with other agencies, how the project meets the priorities of the Consolidated Plan, and how the project meets the CDBG National Objectives and / or goals of the HOME Program. Information about the Consolidated Plan and the CDBG and HOME Programs are attached. CDBG / HOME Program Application Januarv 2003 15 I V. INCOME TARGETING I Please indicate the number and percentage of units set aside for each income category in the table below. Description # of Units / Individuals % of Total Activity will serve households at 60-80% of median income Activity will serve households at 30-59% of median income Activity will serve households earning below 30% of median income Total Units Units VI. APPLICANT EXPERIENCE Please attach a description of the mission, management structure, and staffing of your organization. Explain your organization's experience and ability to implement, administer and manage the project for which you have applied for funding. The description should include a description and status of current projects utilizing federal, state and local funds. VII. PROJECT DETAIL Applicants proposing affordable housing projects should complete Part 2 of this application. Applicants proposing non-housing projects only need to complete the Standard Application. All applicants must sign the attached Certifications. CDBG / HOME Program Application January 2003 16 PART 2 PROJECT DETAIL FOR AFFORDABLE HOUSING PROJECTS 1. DESCRIPTION OF HOUSING PROJECT A. TYPE (Check all that apply) ? Detached Single Family Residences on One Lot ? Detached Single Family Residence Subdivision ? Multifamily Rental ? Residential Condominium ? Residential Cooperative ? Townhouse Units ? Scattered Sites ? Duplexes ? Elderly Housing ? Transitional Housing ? Other: (specify) B. LONGTERM AFFORDABILITY Please briefly describe a long term affordability mechanism that will be used for this project. (Note: Projects funded with HOME Program funds must remain affordable for at least 99 years) Attach additional sheets if necessary. C. SITE DESCRIPTION Size: acres square feet Is the property zoned for intended use? ? Yes ? No Is the present use of the property non-conforming under existing zoning restrictions? ? Yes ? No Is the property in the process of rezoning? ? Yes ? No Current zoning (or describe permitted uses): Flood Zone Designation: Describe Topography: Mark all proposed or existing off-site facilities ? Electric ? Gas ? Storm Drains ? Water - public ? Water - private ? Sidewalks ? Street Lights ? Fire Hydrants ? Sewers-public ? Sewers- private ? Paved Streets ? Concrete Curbs ? Rolled Curbs ? Well ? Septic Expected date of availability: CDBG / HOME Program Application January 2003 17 II. VALUATION INFORMATION A. APPRAISED VALUE Land Only: $ Date of Valuation: Existing Building (as is):$ Date of Valuation: Proposed Building (as completed): $ Date of Valuation: Appraiser: Address: City: State: Zip: Phone: ( ) If the property has been appraised, please include a copy of with your application. B. ASSESSED VALUE Land: $ Assessment for the Year of: Building: $ Valuation by: Total Assessed Value:$ III. OTHER SOURCES OF FUNDS Please describe all other sources of funds. If additional space is necessary, attach information directly behind this page. 1. Source: Contact: Address: City: State: Zip: Phone: ( ) Type of Loan (use appropriate letter(s) from chart below): Principal Amount: $ Committed Applied for Interest Rate: % A mortization: yrs. Term: yrs. Payment Amount: $ Priority of Lien: Commitment Date: II. Source: Contact: Address: City: State: Zip: Phone: ( ) Type of Loan (use appropriate letter(s) from chart below): Principal Amount: $ Committed Applied for Interest Rate: % A mortization: yrs. Term: yrs. Payment Amount: $ Priority of Lien: Commitment Date: CDBG / HOME Program Application Januarv 2001 18 III. Source: Contact: Address: City: ) Phone:( Principal Amount: $ Zip: Type of Loan (use appropriate letter(s) from chart below): Committed Applied for Interest Rate: % Amortization: Payment Amount: $ Commitment Date: yrs. Term: yrs. -Priority of Lien: Designations for "Type of Loan" Entries A. Conventional Construction B. Conventional Permanent C. Conventional Gap D. Conventional Mini-Perm E. FHA F. HOME Program G. Private Funds H. CDBG Funds 1. Other State Funds: (specify) J. Other Federal Funds: specify): K. Local Government Funds: (specify) IV. DEVELOPMENT CONSULTANT A consultant on behalf of the applicant prepared this application. 0 Yes ? No If yes, will the consultant also administer the proposed activity on behalf of the applicant? ?Yes ? No Name of Consultant: Phone: ( ) Address: City: State: Zip: Please attach the consultant's resume. State: CDBG / HOME Program Application Januarv 2003 19 V. SOURCES AND USES OF FUNDS SUMMARY SUMMARY OF SOURCES TYPE OF FINANCING AMOUNT SOURCE 1 2 3 4 5 6 7 TOTALSOURCES $ SUMMARY OF USES CATEGORY AMOUNT SOURCE 1 Acquisition Costs 2 Construction/Rehabilitation Costs 3 Fees Related to Construction/Rehabilitation 4 Financing Fees & Charges 5 Other 6 Other 7 Other TOTAL USES VI. DEVELOPMENT TIMETABLE ACTIVITY ACTUAL DATE SCHEDULED DATE Project Startup Funding Commitments Local Permits Marketing Infrastructure Building Permits Construction/Rehabilitation Beginning Project Completion Project Sales Completion Project Lease-Up CDBG / HOME Program Application Januarv 2003 20 VII. CERTIFICATIONS The undersigned applicant hereby makes application to the Town of Chapel Hill or Orange County and agrees to the following certifications: The undersigned applicant certifies that activities undertaken with Community Development or HOME Program funds will be made available to eligible households within the income and occupancy limits set by the Town / County for the specific program for a specified period. The undersigned applicant agrees he/she will not discriminate against any person on the basis of race, color, national origin, sex, marital status, affectional preference, physical or mental handicap or age in any aspect of the project and to comply with all federal, State and local laws regarding discrimination and equal opportunity in employment, housing and credit practices, including, but not limited to, Titles VI and VII of the Civil Rights Act of 1964 and regulations pursuant thereto, Title VIII of the Civil Rights Act of 1968, as amended, the Town of Chapel Hill Fair Housing Ordinance (Article Il, Chapter 10, Chapel Hill Code of Ordinances) and the Orange County Civil Rights Ordinance and will comply with the County's Minority Business Enterprise Program (HOME Program applicants), if applicable. Copies of the MBE Program Guidelines will be provided to the applicant upon request. The undersigned applicant certifies that no tenant living in any residential unit in the property to be rehabilitated has been forced to move by the applicant without cause in the twelve month period preceding the submission of this application and that no tenants will be forced to move without cause prior to award of the capital assistance except to rehabilitate the project in compliance with an approved relocation plan. Applicant further agrees to comply with the relocation requirements of the Department if any residential tenant is required to be temporarily or permanently displaced as a result of the rehabilitation undertaken pursuant to this financial assistance application. Copies of the County Relocation Policies will be supplied upon request. The undersigned applicant represents and certifies that the project can be completed within the time schedule set forth herein. The undersigned further certifies that the information contained in this application and in any attachments in support hereof is true, correct and complete to the best of the applicant's knowledge and belief and agrees to notify the Town / County promptly in writing of any changes in this information, including any changes in the sources and uses of funding for the project. The undersigned agrees to immediately notify the Town / County of a cancellation of the project, or if the project will not be completed within the proposed time schedule. The Town / County intends to make available to the public certain information regarding projects recommended for funding. By signing and delivering this application to the Town / County, you hereby AGREE TO WAIVE ANY RIGHTS TO OBJECT TO OR PREVENT THE DISCLOSURE TO THE PUBLIC OF THE FOLLOWING INFORMATION: applicant's name; name and location of the project, financing amount and terms; amount and source of other financing; public purpose of the financing; a description of the project including the number of units and number of units set aside for the public purpose. CDBG / HOME Program Application January 2003 21 The undersigned applicant authorizes the Town / County to obtain credit information for the purpose of evaluating this application and to obtain verification of any of the information contained in this application from any source named herein. The undersigned applicant agrees to at all times indemnify and hold harmless the Town / County against all losses, costs, damages, expenses and liabilities of any nature or kind (including, but not limited to attorney's fees, litigation and court costs, amounts paid in settlement, amounts paid to discharge judgment, and any loss from judgment) arising out of, or related to acceptance, consideration, approval or disapproval of this application. The undersigned applicant hereby certifies that the project proposed in this application can be developed in accordance with the development budget set forth herein and operated in accordance with the operating budget set forth herein. IN WITNESS WHEREOF, the undersigned, being duly authorized, has caused this document to be executed in its name on this day of 2003. (Legal Name of Applicant) By: By: (Signature - Chair of Board) (Signature - Executive Director) By (Print Name) (Print Name) CDBG / HOME Program Application January 2003 22 Consolidated Plan for Housing and Community Development Programs in Orange County The Department of Housing and Urban Development (HUD) requires jurisdictions to submit a Consolidated Plan for Housing and Community Development Programs along with their applications for funding. The purpose of the Consolidated Plan is to analyze and propose solutions to the most pressing housing and community development issues of the community. Each year the plan is updated by the Orange County Consortium. The FY 2000-2005 Consolidated Plan for Housing and Community Development Programs in Orange County, N.C. identifies the following priorities: Housiniz Priorities • Provide rehabilitation assistance for very low- and low-income homeowners and renters; • Reduce the number of owner-occupied and rental housing units without indoor plumbing; • Provide assistance to households at less than 80 % of MFI to connect to existing public water and sewer systems; • Facilitate the construction of new or substantially rehabilitated housing units that are affordable to families below 80% of the area median; • Facilitate the construction of rental housing affordable to very low- and low-income families. • Create transitional housing units for homeless individuals and families; • Assist local nonprofit human service agencies to provide a continuum of housing options for special populations, including older adults, disabled, mentally ill, and persons with AIDS; • Facilitate the purchase of new and existing housing units by first-time homebuyers with incomes 80% and below the area median income. Non Housing Community Development Priorities • Provide funds to activities that support other Community Development objectives and activities or serve public housing residents. • Provide economic development opportunities to low- and moderate-income citizens in Chapel Hill; and • Revitalize the business areas serving low-income neighborhoods of Chapel Hill. CDBG / HOME Program Application Januarv 2003 23 The Community Development Block Grant (CDBG) Program Congress established the Community Development Program in 1974 by consolidating a number of grant programs into one "block grant." The primary objective of the Community Development Program is the "development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." (Housing and Community Development Act of 1974). To qualify for Community Development Block Grant funding, an activity must comply with at least one of the following "national objectives": • Benefit low- and moderate-income families; • Aid in the prevention or elimination of slums or blight; • Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. Eligible activities include: • Acquisition of property; • Disposition of property; • Public facilities and improvements; • Clearance, demolition and removal of buildings; • Some public services (subject to some limits in regulations); • Housing rehabilitation, preservation and code enforcement; • Economic development activities; and • Planning and administrative costs. Alternatives that are generally not eligible include: • Buildings used for the general conduct of government; • General government expense; • New construction; • Political activities; • Purchase of equipment and personal property; and • Operating and maintenance expenses of public facilities, improvements and services. CDBG / HOME Program Application Januarv 2003 24 The HOME Program In 1990, Congress enacted the HOME Investment Partnerships Act, better known as the HOME Program, in an effort to provide a new approach to housing assistance at the federal level. This federal housing block grant would afford state and local governments the flexibility to find a wide range of housing activities through creative and unique housing partnerships among states and localities, private industry, and nonprofit organizations. In order to receive future HOME Program funds, each housing activity must fall in line with the following goals of the HOME Program: To expand the supply of decent, safe, sanitary and affordable housing, with emphasis on rental housing, for very low- and low-income citizens; 2. To strengthen the abilities of state and local governments to design and implement strategies for achieving adequate supplies of decent affordable housing; and 3. To encourage public, private and nonprofit partnerships in addressing housing needs. Eligible activities for HOME Program funding include (from the Federal Regulations): • Acquisition of property (including assistance to homebuyers); • New construction; • Reconstruction; • Conversions; • Moderate rehabilitation of non-luxury housing with suitable amenities; • Tenant-based rental assistance; • Relocation of displaced persons, families, businesses, or organizations; • Site improvements, acquisition of vacant land and demolition (under special conditions); • Project soft costs; • Administration / planning; and • Operating expenses for community housing development organizations. CDBG / HOME Program Application January 2003