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HomeMy WebLinkAboutAgenda 12-09-2025; 6-a - Longtime Homeowner Assistance (LHA) Program – Potential Addition of Funds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 9, 2025 Action Agenda Item No. 6-a SUBJECT: Longtime Homeowner Assistance (LHA) Program — Potential Addition of Funds DEPARTMENT: Housing ATTACHMENT(S): INFORMATION CONTACT: Blake Rosser, Housing Director, 919- 245-2490 Aaron Cohen, Community Development Manager, 919-245-2490 PURPOSE: To receive an update on application numbers and percent tax relief for the calendar year 2025 Longtime Homeowner Assistance (LHA) program, which assists low-income Orange County homeowners with a discount or rebate on their property tax bill; and consider a potential increase in funding for the current year LHA program. BACKGROUND: The LHA Program was initiated in 2022 to assist longtime Orange County residents with assistance for potentially burdensome property tax bills. Since then, the program has expanded with annual contributions from both Chapel Hill and, newly this year, Carrboro. In 2025, the Orange County property tax revaluation raised property values significantly for many Orange County residents, and the anticipated increase in LHA applications and approvals has manifested, with nearly 60% more applications submitted than 2024, and approximately 70% more approvals. In the table below, the "eligible" row is still an estimate, as staff have yet to complete final processing of all applications: LHA Applications Submitted 2024 2025 Number Percentage Number Percentage Eligible Applications 502 83% 850* 90% Ineligible Applications 102 17% 92 10% TOTAL 604 942 2 Staff has calculated award amounts using the following guidelines (parameters below are from 2024 and using 2024 amounts, these steps would remain the same for 2025 although the values would change): • 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. Staff currently estimates that there will be 850 approved LHA applications, with a total County property tax burden of $1 ,894,000. The exact property tax burden is difficult to calculate, as the Tax Office continues to process data for a significant number of residents. Last year, with $250,000 allocated, LHA covered 25% of the County property tax burden for qualified applicants. Given the current County budget allocation is $377,805, staff estimates the allocation will cover about 19.9% of County property tax burden for the estimated recipients. The County has two potential options in order to close the gap between 2024 and 2025 cost shares: • Option 1: Using the remaining funds in the Social Justice account (approximately $76,000) would increase the cost share to 24%. • Option 2: In order to achieve the same cost share proportion as last year (25%), the County would need to allocate an estimated $95,726. Staff plans to share a more definite amount at the meeting. The difference between the Social Justice account and this figure would require a transfer from the County Capital Reserve Fund. The County Capital Reserve was seeded in FY 2023 with $2,500,000 in surplus sales tax and has been used over four fiscal years to address unanticipated capital and non-recurring needs. A transfer of that difference ($19,726) would result in a remaining balance in the County Capital Reserve Fund of $21,470. It should be noted that while staff is estimating both the total number of qualified applicants and the exact County property tax burden at the time of this agenda abstract publication, the final figures will be available and shared by the meeting date. It is also relevant to note that using the remainder of the Social Justice fund in January would leave the County without an unallocated reserve to meet emergencies through the end of the 2025-26 fiscal year. FINANCIAL IMPACT: This item provides information for discussion on a potential increase in funding for the FY2025 LHA program; therefore any decision on an increase will have a corresponding financial impact to the County. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 3: HOUSING FOR ALL 3 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 information, consider the options and make a determination regarding any allocation of additional funds.