HomeMy WebLinkAboutAgenda 04-07-2026; 5-a - Public Hearing on the Draft 2026-27 HOME Investment Partnership Annual Action Plan (AAP) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 7, 2026
Action Agenda
Item No. 5-a
SUBJECT: Public Hearing on the Draft 2026-27 HOME Investment Partnership Annual
Action Plan (AAP)
DEPARTMENT: Housing
ATTACHMENT(S): INFORMATION CONTACT:
Draft 2026-27 AAP Blake Rosser, Housing Director, 919-
Presentation 245-2492
Alex Rubenstein, Comm. Development
Manager, 919-245-2491
PURPOSE: To receive public comment on the Draft 2026-27 HOME Investment Partnership
Annual Action Plan (AAP).
BACKGROUND: The HOME Consortium Local Government Affordable Housing Collaborative
(LGAHC) is made up of elected officials from all four (4) participating jurisdictions: Carrboro,
Chapel Hill, Hillsborough, and Orange County. The Collaborative reviews staff recommendations
on strategy and policy around HOME federal funding, and makes recommendations to the Boards
and Councils of each jurisdiction for final approval.
The Annual Action Plan shares how Orange County plans to use HOME funding in a given year.
The Orange County Board of Commissioners is conducting this public hearing on behalf of the
HOME Consortium at the Whitted Building (300 W. Tryon St., Hillsborough NC 27278) to receive
public input about priorities for the Draft 2026-27 Annual Action Plan. All members of the public
are welcome, and Spanish interpretation will be provided.
• The 2025-29 HOME Consolidated Plan is carried out through Annual Action Plans. The
Consolidated Plan describes the jurisdiction's community development priorities and
multiyear goals based on an assessment of housing and community development needs,
an analysis of housing and economic market conditions and available resources. The
Annual Action Plans provide a concise summary of the actions, activities, and the specific
federal and non-federal resources that will be used each year to address the priority needs
and specific goals identified by the Consolidated Plan.
The public comment period is open from March 23, 2026 to April 23, 2026. Comments may be
submitted in writing by mail or email, or by telephone to:
Alex Rubenstein, Community Development Program Manager
919-245-2490 1 arubenstein(o)-orangecountync.gov
300 W. Tryon St., Hillsborough, NC 27278
2
Housing staff issued a request for proposals (RFP) in January 2026, with a deadline of February
27, 2026. Two (2) applications were submitted — one (1) from Habitat for Humanity of Orange
County for its Rehabilitation program, and one (1) from the Orange County Partnership to End
Homelessness (OCPEH) for tenant-based rental assistance (TBRA). Both applications align with
the 2025-29 Consolidated Plan priorities of Repair/Rehab and Tenant-Based Rental Assistance.
Last year, the HOME Consortium received a federal funding award of approximately $375,000.
Over the last four (4) years, the award amount has varied from a low of $367,000 to a high of
$411,000. The U.S. Department of Housing and Urban Development(HUD)announces the award
amounts around June of each year, and until then staff is using an estimate/placeholder of
$375,000 for the County's award amount.
Given the above factors, plus an estimated match amount of approximately $84,000, the LGAHC
recommendation for the 2026-27 HOME Award is to award Habitat's full funding request at
$180,000, and to award the remaining funds of $256,239 to OCPEH for TBRA.
Based on all comments received, the 2026-27 HOME Investment Partnership Annual Action Plan
(AAP) will be presented at an upcoming Board Business meeting for final approval.
FINANCIAL IMPACT: There is no financial impact associated with the public hearing. The federal
grant in question provides approximately $375,000 in annual funding to the Housing Department,
and the County's match commitment, shared with the three (3) municipalities, is approximately
$32,000.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 2: HOUSING FOR ALL
OBJECTIVE 1. Allocate predictable funding sources to contribute or support adding to
affordable housing stock.
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 hold the public hearing for
the Draft 2026-27 HOME Investment Partnership Annual Action Plan. The Annual Action Plan will
be presented at an upcoming Board Business meeting for final approval.
3
Orange County, North Carolina
HOME Consortium
FY 2026 — 2027
Annual Plan
Orange County, Town of Carrboro, Town of
Chapel Hill, and Town of Hillsborough
ORANGE COUNTY
NORTH CAROLINA
•
TOWN OF
HILLSBOROUGH
Annual Action Plan 1
FY 2026-2027
4
Table of Contents
AP-05 Executive Summary.........................................................................................................................3
PR-05 Lead & Responsible Agencies..........................................................................................................7
AP-10 Consultation....................................................................................................................................8
AP-12 Participation..................................................................................................................................15
AP-15 Expected Resources...................................................................................................................16
AP-20 Annual Goals and Objectives ........................................................................................................18
AP-35 Projects.........................................................................................................................................19
AP-38 Project Summary...........................................................................................................................20
AP-50 Geographic Distribution................................................................................................................23
AP-55 Affordable Housing.......................................................................................................................24
AP-60 Public Housing...............................................................................................................................25
AP-65 Homeless and Other Special Needs Activities...............................................................................26
AP-75 Barriers to Affordable Housing.....................................................................................................28
AP-85 Other Actions................................................................................................................................30
AP-90 Program Specific Requirements....................................................................................................32
Annual Action Plan 2
FY 2026-2027
5
AP-05 Executive Summary
Introduction
The Orange County, North Carolina HOME Consortium is a Participating Jurisdiction in the U.S.
Department of Housing& Urban Development's (HUD) HOME Investment Partnerships Program
(HOME). Under the HOME Program, local governments join to form a consortium to receive HOME
funding for affordable housing.The Orange County HOME Consortium is made up of four(4) members:
Orange County,the Town of Carrboro, the Town of Chapel Hill, and the Town of Hillsborough, with
Orange County serving as the lead entity.The Town of Chapel Hill also receives Federal Community
Development Block Grant (CDBG)funds each year.
Orange County is required to submit an annual plan for the use of HOME funds to HUD called the Annual
Action Plan.The Annual Action Plan is a guide to how the County will allocate its resources for specific
activities that support the Goals and Objectives of the Orange County HOME Consortium's Five-Year
Consolidated Plan.This is the HOME Consortium's first Annual Action Plan of the 2025-2029 Five Year
Consolidated Plan.The Consolidated Plan describes the housing and non-housing needs of County
residents and presents a five-year strategy to address those needs.
This Annual Action Plan outlines how Orange County will use HOME funds to address the goals and
priorities in the Consolidated Plan and which activities the County will undertake using HOME funds
during the upcoming program year.The Orange County HOME Program Year aligns with the County
Fiscal Year, beginning July 1 and ends June 30 of each year.This Annual Action Plan addresses funds for
Fiscal Year(FY) 2026-2027,which begins July 1, 2026 and ends June 30, 2027.
The FY 2026-2027 Annual Action Plan outlines the actions to be undertaken with the Orange County
HOME Consortium's HOME funds.This plan excludes the Town of Chapel Hill's CDBG program.The Town
has completed a separate Annual Action Plan for its CDBG allocation,which Orange County has
submitted on the Town's behalf.
Orange County HOME Consortium expects it will receive $375,940 in funds for FY26-27, as well as
$13,306 in HOME program income and $84,587 in local match funding. Orange County will use 10% of
awarded funds for administration—$37,594. In total,Orange County projects to have$436,239 available
to award for FY 2026-2027.
FY 2026-2027 Budget:
Orange County proposes to undertake the following activities with FY 2026-2027 HOME funds:
• HOME 25-03—Repair, Rehabilitation&CHDO Set Aside: $180,000
• HOME-25-02-Tenant-Based Rental Assistance: $256,239
• HOME-25-04-Administration: $37,594
Expected Total: $473,833
Annual Action Plan 3
FY 2026-2027
6
Summarize the objectives and outcomes identified in the Plan
This could be a restatement of items or a table listed elsewhere in the plan or a reference to
another location. It may also contain any essential items from the housing and homeless needs
assessment, the housing market analysis or the strategic plan.
The goals of Orange County's HOME Program are to retain and increase the supply of affordable housing
units for both owner occupants and renters. Additionally, the program aims to assist low-income
individuals and families through rental assistance programming.
The Consolidated Plan is a five-year guide that the Orange County HOME Consortium uses to address its
housing and community development initiatives. Based on the Housing Needs Assessment, Market
Analysis, and community and stakeholder input received during the Consolidated Planning process,the
Strategic Plan portion of the Plan establishes the following priorities:
• Expand Affordable Rental Housing for Individuals Experiencing Homelessness,as well as Very-
Low, Low-and Moderate-Income Households (Tenant-Based Rental Assistance, Repair and
Rehabilitation)
• Preserve, Rehabilitate,and Expand Existing Affordable Housing Stock to Prevent Displacement
(Tenant-Based Rental Assistance, Repair and Rehabilitation)
• Increase Permanent Supportive Housing and Housing for Special Needs Populations (Tenant-
Based Rental Assistance)
During FY 2026-2027 HOME Program Year,the County proposes to address the following priority need
categories identified in the 2025 Consolidated Plan:
• Expand Affordable Rental Housing for Low-Income Households(Tenant-Based Rental Assistance)
• Preserve and Rehabilitate Existing Affordable Housing Stock to Prevent Displacement(Repair
and Rehabilitation)
Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or
projects.
The HOME Consortium strives to operate its HOME program in a timely manner and in accordance with
applicable regulations and match requirements. Orange County regularly works with HUD
representatives and technical assistance to improve outcomes for residents and ensure compliance.
The County prepares a Consolidated Annual Performance and Evaluation Report (CAPER) each year.
Typically,this report is submitted within ninety(90) days after the start of the new program year. An
electronic copy of the CAPER is available for review at the Orange County Housing and Community
Development Department website www.orangecountVnc.gov/Housing. Hard copies are available upon
request.
Annual Action Plan 4
FY 2026-2027
7
The funds shown in the following chart were expended during the time period of July 1, 2024 through
June 30, 2025.The only expenditures from Program Year(PY) 2023 funds were for administration; all
other funds expended were prior program year funds that had not been drawn down until this time
period.
HOME Required Match
PY 2023 $8,822.50 $0
PY 2020 $89,058.36 $22,264.59
PY 2019 $39,216.00 $9,804.00
Total $137,097.40 $32,068.59
Orange county was able to support a total of 26 families with HOME funds this year.The data collected
shows that we supported 12 White households, 13 Black or African American households, and one
American Native during this CAPER period. No households identified as Hispanic or refused to provide
demographic information. Orange County experienced significant staff turnover during the Program
Year. While this turnover slowed progress, it has also laid the foundation for long-term compliance and
program success.
Summary of Citizen Participation Process and consultation process
Summary from citizen participation section of plan.
All HOME-funded activities benefit low-and moderate-income residents of Orange County. Orange
County has an approved Citizen Participation Plan,as required by HUD,which is available on the Orange
County Department of Housing and Community Development website
(www.orangecountync.gov/Housing) or in hard copy upon request.The County has followed its Citizen
Participation Plan in the preparation and development of the FY 2026-2027 Annual Action Plan.
The Orange County HOME Consortium solicited feedback from local agencies and organizations in
January and February 2026.The Collaborative met to review the applications on X and developed a
funding plan to be approved by each of the governing boards of the four(4) member jurisdictions of the
Consortium.
The Collaborative's funding plan was the basis for drafting the FY 2026-2027 Annual Action Plan.This
section will be revised after the completion of our citizen participation process.
Summary
The FY 2026-2027 Annual Action Plan for the Orange County HOME Consortium outlines which activities
the County will undertake using HOME funds during the program year beginning July 1, 2026 and ending
June 31, 2027.This is the County's second year of the 2025 Five-Year Consolidated Plan.
During the FY 2026-2027 program year,the Orange County HOME Consortium anticipates the following
Federal financial resources:
Annual Action Plan 5
FY 2026-2027
8
• FY 2026-2027 HOME Funds: $375,939.67
• HOME Program Income:$13,306
• Total:$389,245.67
During the FY 2026-2027 HOME program year,the Orange County HOME Consortium proposes to
address the following priority need categories from the 2025 Consolidated Plan:
• Housing for People Experiencing Homelessness: Provide affordable rental housing for
households experiencing homelessness.
o Priority Level: High
o Associated Goals: Rental Assistance, Housing Rehabilitation/Preservation,Grant
Administration
• Preserve and Rehabilitate Existing Affordable Housing Stock to Prevent Displacement: Provide
affordable housing for owner-occupied households with moderate and low incomes, especially
those with extremely low incomes.
o Priority Level: High
o Associated Goals: Housing Rehabilitation/Preservation,Grant Administration
Annual Action Plan 6
FY 2026-2027
9
PR-05 Lead & Responsible Agencies
Agency/entity responsible for preparing/administering the Consolidated Plan
The following are the agencies/entities responsible for preparing the Consolidated Plan and
those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
Lead Agency Orange County, NC
HOME Administrator Orange County, NC Department of Housing
Table 1—Responsible Agencies
Consolidated Plan Public Contact Information
Blake Rosser, Housing Department Director
Orange County, NC Department of Housing
Phone: 919-245-4329
Email: brosser@orangecountync.gov
Office Address: 300 W.Tryon Street, Hillsborough, NC 27278
Mailing Address: PO Box 8181, Hillsborough, NC 27278
Annual Action Plan 7
FY 2026-2027
10
AP-10 Consultation
Introduction
Consultation with community stakeholders was a critical component in developing the 2025-2029
Consolidated Plan. Consultation helped the Orange County HOME Consortium identify and prioritize
community needs, develop strategies, and coordinate subsequent action plans.This process also
facilitated information sharing regarding community resources and promoted coordination within the
Consortium and its member jurisdictions.
During development of the Consolidated Plan in late 2024 and early 2025,the Consortium consulted
with social services agencies, service providers,community-based organizations, housing providers, local
government agencies and boards, neighborhoods leaders, and elected officials.
Community Input and Feedback
Orange County held five community engagement and input sessions across the County at community
centers throughout February. Staff engaged over 50 residents through the public input process and
guided conversations around HOME eligible uses, County needs, and resident issues.Additionally,the
County distributed a resident survey to understand the needs and funding priorities of community
members. 133 survey responses were received and 55 people attended in-person community feedback
sessions.
Engagement Session Feedback
The community engagement sessions highlighted critical housing challenges in Orange County,
particularly for low-income homeowners and renters.Across all meetings, concerns revolved around
housing affordability, home repairs,displacement, infrastructure, and access to program funding. Below
is a summary of key themes and takeaways, contextualized within the broader housing landscape.
• Housing Preservation
o Home repair programs are essential to prevent displacement and maintain affordable
homeownership.
o Targeted funding for repairs, particularly for low-income and elderly homeowners,
should be prioritized.
o Simplifying application processes and providing technical assistance can improve
program accessibility.
o Contractors in low-income neighborhoods should be included in bids for repair work.
o Landlord engagement is needed to ensure rental properties are maintained,as renters
lack access to home repair funding.
• Affordability
o Rising rents and lack of affordability are displacing long-term residents and low-income
renters.
o The current definition of"affordable" (80%AMI) may be too high—suggestions to
redefine affordability for households at 60%or even 30%AMI.
Annual Action Plan 8
FY 2026-2027
11
o Stronger tenant protections and incentives for affordability restrictions could mitigate
displacement.
o Down payment assistance programs should be expanded to help renters transition to
homeownership.
o Infrastructure improvements should be prioritized for low-income areas, ensuring
equitable access to essential utilities.
• Community
o Ongoing community engagement is essential to build trust and ensure programs reflect
community needs.
o Smaller organizations that provide impactful community-driven housing solutions
should not be overlooked.
o Public meetings should be more accessible, including evening and weekend scheduling,
virtual options, and multilingual support.
o Transparent reporting on housing initiatives and funding utilization can improve
accountability.
o Funding allocation should balance large-scale development with community-driven
initiatives.
The Orange County Local Government Affordable Housing Collaborative (the Collaborative),which
consists of one (1) elected official from each of the governing boards of Orange County,the Town of
Carrboro,Town of Chapel Hill, and Town of Hillsborough, was the key entity consulted on funding
recommendations for the FY 2026-2027 HOME Program and thereby the development of the FY 2026-
2027 Annual Action Plan.
Provide a concise summary of the jurisdiction's activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health
and service agencies (91.215(I)).
Orange County works with the following agencies to enhance coordination:
• Orange County Housing Authority: Housed within the Department of Housing,the Housing
Authority operates the Section 8 Housing Choice Voucher Program for Orange County.
• Town of Chapel Hill Office of Housing and Community:The Town of Chapel Hill manages public
housing communities in Chapel Hill.
• Orange County Partnership to End Homelessness(OCPEH): Housed within the Department of
Housing, OCPEH acts as the Continuum of Care (CoC) lead for Orange County and coordinates
among local governments and service providers (including those providing health services)to
meet the housing and services needs of housing insecure Orange County residents.
• Social Services Agencies:The County provides funds to improve services to low-and moderate-
income people.
• Housing Providers:The County provides funds to rehabilitate and develop affordable housing
and provide housing options for low-and moderate-income households.
Annual Action Plan 9
FY 2026-2027
12
Each year, as part of the HOME and CDBG application planning process, local agencies and organizations
are invited to submit proposals for HOME and CDBG funds for eligible activities.These groups
participate in the planning process by attending informational meetings, receiving technical assistance
from the Consortium, and attending public hearings.The outreach process facilitates communication
around affordable housing in Orange County and how public and private agencies and organizations can
help address the most urgent needs.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families,families with
children,veterans, and unaccompanied youth) and persons at risk of homelessness.
The Orange County HOME Consortium coordinates extensively with the Orange County Partnership to
End Homelessness(OCPEH),which serves as the Continuum of Care(CoQ for Orange County.The four
(4)jurisdictions participating in the Orange County HOME Consortium—Orange County and the Towns
of Chapel Hill, Hillsborough and Carrboro—fund OCPEH, sharing costs based on population. Elected
officials from each jurisdiction serve on the CoC board, and staff from the two jurisdictions that have
Public Housing Authorities also have ex officio board seats with full voting privileges. In this way,the
jurisdictions direct all efforts to end homelessness, including funding decisions and policy priorities.
OCPEH staff meet weekly with Orange County Housing and Community Development staff. The two
entities are also co-located in the Orange County Housing and Community Development department.
OCPEH staff meet regularly with all jurisdiction staff and present annually to the four elected boards on
the work of OCPEH.
Starting in 2016, OCPEH created a system map and gaps analysis of homeless services in Orange County,
and has updated this document annually with the latest update issued in 2023. OCPEH staff also serve
with staff from the four jurisdictions on the Orange County Affordable Housing Coalition, a group of
affordable housing developers,funders, advocates, and staff seeking to collaboratively increase
affordable housing units in Orange County. OCPEH staff contribute information and ideas to the
Consolidated Plan and to the Annual Action Plan updates.
OCPEH leads efforts, in conjunction with the HOME Consortium,to end homelessness in Orange County.
OCPEH directs the work of the bi-annual Plan to End Homelessness and ongoing coordination among
service providers through seven monthly standing meetings. In addition to the CoC board, HOME
Consortium members participate regularly in these CoC workgroups, including care coordination using a
by-name list.
OCPEH operates coordinated entry for people in housing crisis by directing people to appropriate
resources including homelessness diversion, shelter/emergency response referrals, and permanent
housing resources. Coordinated entry prioritizes permanent supportive housing for people experiencing
chronic homelessness. OCPEH has a standing monthly meeting with veteran service providers to
Annual Action Plan 10
FY 2026-2027
13
particularly address ending veteran homelessness, including care coordination using a veterans-only by-
name list.
As part of the gaps analysis, OCPEH seeks to increase the quality and availability of Rapid Rehousing for
all people experiencing homelessness, including families. OCPEH coordinates the annual Point-in-Time
count in conjunction with HOME Consortium members and has not found unaccompanied youth in any
year. OCPEH works closely with youth services providers and LGBTQ service providers and advocates to
ensure no youth are going uncounted. One of the current system gaps is a youth homeless program to
serve youth experiencing homelessness. Overall, OCPEH coordinates with HOME Consortium members
to continue to fill system gaps and make updates to the homeless gaps analysis.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
HOME Consortium members serve on the OCPEH Leadership Team.The CoC board that determines ESG
allocations each year. HOME Consortium members also serve on the CoC Project Review Committee
that determines program performance standards, evaluates program outcomes, crafts funding
priorities, and creates recommendations for CoC and ESG funding for Leadership Team approval. Project
Review Committee members look at program data each quarter to keep eyes on program outcomes and
help with funding decision-making during application periods.The Project Review Committee
determines funding policies and procedures annually during the CoC and ESG grant competitions.The
CoC contracts with the statewide Coalition to End Homelessness to serve as HMIS lead, and administers
HMIS in consultation with the Leadership Team, as CoC board, inclusive of HOME Consortium members.
In 2016-2017 the Orange County Partnership to End Homelessness (OCPEH)gathered people with lived
experience of homelessness, homeless service providers, community leaders, and state homeless
experts to map the homeless service system in Orange County.This process created the Orange County
homeless system map and the homeless system gaps analysis. OCPEH staff typically update the gaps
analysis each year;the last update was completed in 2023.
Agencies, groups, organizations and others who participated in the process and consultations
Annual Action Plan 11
FY 2026-2027
14
Table 2—Agencies,groups,organizations who participated
1 Agency/Group/Organization CASA
Agency/Group/Organization Type Housing
Services—Housing
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the OC solicited an application.
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
2 Agency/Group/Organization Habitat for Humanity of Orange County
Agency/Group/Organization Type Housing
Services - Housing
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the Habitat for Humanity of Orange County
Agency/Group/Organization was consulted. What applied for FY 2026-2027 HOME funds.
are the anticipated outcomes of the consultation or
areas for improved coordination?
3 Agency/Group/Organization EmPOWERment, INC.
Agency/Group/Organization Type Housing
Services - Housing
Services-Employment
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the OC solicited an application
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
4 Agency/Group/Organization Orange County Partnership to End
Homelessness
Agency/Group/Organization Type Services-homeless
Other government-County
Other government- Local
Annual Action Plan 12
FY 2026-2027
15
What section of the Plan was addressed by Housing Need Assessment
Consultation? Homeless Needs -Chronically homeless
Homeless Needs-Families with children
Homelessness Needs-Veterans
Homelessness Needs- Unaccompanied
youth
Homelessness Strategy
Briefly describe how the OCPEH applied for FY 2026-2027 HOME
Agency/Group/Organization was consulted. What funds.
are the anticipated outcomes of the consultation or
areas for improved coordination?
5 Agency/Group/Organization Orange County Housing Authority
Agency/Group/Organization Type Other government-County
Other government- Local
What section of the Plan was addressed by Housing Need Assessment
Consultation? Homeless Needs -Chronically homeless
Homeless Needs-Families with children
Homelessness Needs-Veterans
Homelessness Needs- Unaccompanied
youth
Homelessness Strategy
Briefly describe how the They shared existing programming and
Agency/Group/Organization was consulted. What services for vulnerable populations,
are the anticipated outcomes of the consultation or including those experiencing
areas for improved coordination? homelessness.
6 Agency/Group/Organization Town of Chapel Hill Office of Housing and
Community
Agency/Group/Organization Type Other government- Local
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the They are partners in the 2026-2027 HOME
Agency/Group/Organization was consulted. What Consortium.
are the anticipated outcomes of the consultation or
areas for improved coordination?
7 Agency/Group/Organization Town of Carrboro Department of Housing
and Community Services
Agency/Group/Organization Type Other government- Local
Annual Action Plan 13
FY 2026-2027
16
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the They are partners in the 2026-2027 HOME
Agency/Group/Organization was consulted. What Consortium.
are the anticipated outcomes of the consultation or
areas for improved coordination?
8 Agency/Group/Organization Town of Hillsborough Department of
Community Services
Agency/Group/Organization Type Other government- Local
What section of the Plan was addressed by Housing Need Assessment
Consultation?
Briefly describe how the They are partners in the 2026-2027 HOME
Agency/Group/Organization was consulted. What Consortium.
are the anticipated outcomes of the consultation or
areas for improved coordination?
Identify any Agency Types not consulted and provide rationale for not consulting
All Agency Types were consulted in the development of the 2025-2029 Consolidated Plan,which lays out
the goals and strategies upon which this Annual Action Plan is based.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name Lead Organization How do the goals of your
Strategic Plan overlap with
the goals of each plan?
Orange County Partnership to End
Continuum of Care The goals are compatible.
Homelessness
Table 3—Other local/regional/federal planning efforts
Narrative
The Orange County HOME Consortium is a cooperative venture of Orange County and the Towns of
Carrboro, Chapel Hill, and Hillsborough. There is an excellent working relationship between all the
jurisdictions. In addition, there is an excellent rapport with the Continuum of Care and its member
organizations.
Annual Action Plan 14
FY 2026-2027
17
AP-12 Participation
Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal-setting
The FY 2026-2027 Annual Action Plan has many components that include citizen participation.These
components included:soliciting plans and feedback from local agencies and organizations; meeting with
agencies/organizations to provide technical assistance on how to complete the HOME application;
review of applications by elected officials from the County and the Towns (the Local Government
Affordable Housing Collaborative), and a public hearing on the proposed funding plan for FY 2026-2027
HOME funds and draft Annual Action Plan. The HOME Consortium held a AAP public hearing on April 7,
2026.
Annual Action Plan 15
FY 2026-2027
18
AP-15 Expected Resources
Introduction
The Orange County HOME Consortium expects to receive$375,940 in 2026 HOME funds, including
$13,306 in HOME Program Income for the FY 2026-2027 program year.The program year is from July 1,
2026 through June 30, 2027.
Anticipated Resources
Program Source Uses of Funds Expected Amount Available Year 1
of Annual Program Total:
Funds Allocation:$ Income:$ $
HOME public- Repair and
federal Rehabilitation
TBRA
Acquisition $375,940 $13,306 $389,246
Table 2-Expected Resources—Priority Table
Explain how federal funds will leverage those additional resources (private, state and local
funds), including a description of how matching requirements will be satisfied
The Orange County HOME Consortium leverages resources, including private, state, and local funds,to
fulfill and enhance the impact of federal HOME funds. For Fiscal Year(FY) 2026-2027, the estimated
Match contribution is$84,587.This local Match represents a strategic leveraging of additional funds to
augment federal investments in affordable housing projects.
To meet the federal matching requirements,the total amount of local Match contributed must equal
25% of the HOME funds allocated to direct project costs.This calculation is based on 90%of the total
HOME Entitlement amount awarded by the U.S. Department of Housing and Urban Development(HUD),
considering that 10% is dedicated to administrative expenses.Therefore,the local Match requirement
effectively translates to 25%of 90%of the total HOME funds received.
The distribution of the Match amount among the jurisdictions within the Orange County HOME
Consortium reflects a coordinated approach to leveraging local resources. Each jurisdiction's
contribution is proportionate to its capacity and agreed upon percentage, ensuring a fair and equitable
investment towards meeting the match requirements.The breakdown of the Match amount from each
jurisdiction—Orange County, Chapel Hill,Carrboro, and Hillsborough—is calculated below to ensure that
the collective contributions meet the federal matching requirements:
• Orange County(39%):$32,989
• Chapel Hill (41%): $34,681
• Carrboro(15%): $12,688
• Hillsborough (5%):$4,229
Annual Action Plan 16
FY 2026-2027
19
• Total:$84,587
In addition, Orange County leverages other funds from a variety of sources to address the needs
identified in the plan, including but not limited to:
• Home Repair and Rehabilitation: Orange County has received funds for home repair and
rehabilitation under the North Carolina Housing Finance Agency's 2027 Urgent Repair Program
($165,000) and 2028 Essential Single-Family Rehabilitation Loan Pool program ($185,000).
• Affordable Housing Bond Program:At the June 8, 2023 Budget Work Session,the Board of
County Commissioners approved $5 million for affordable housing development be allocated
from the Capital Investment Plan (CIP)funding for FY 2023-2024.The CIP also includes$5 million
allocations in FY 2026-27 and FY 2029-30 for a total of$15 million for affordable housing
development over ten years.
• Emergency Housing Assistance: Orange County leverages local funds from the County and
Towns, as well as CDBG and CDBG-CV funds from Chapel Hill and CDBG-CV funds awarded by
the North Carolina Department of Commerce to the Towns of Hillsborough, Carrboro, and
Orange County,to operate the Emergency Housing Assistance (EHA) program. EHA provides
financial assistance for eviction and homelessness prevention through emergency rent,
mortgage, and utility payments, as well as security deposits,application fees, and other costs to
help households experiencing homelessness move into housing.
• Rapid Rehousing Program:Orange County uses HOME funds as well as ESG and ESG-CV funds
from the North Carolina Department of Health and Human Services to operate a Rapid
Rehousing program that provides short-to mid-term rental assistance, depending on the
tenant's needs,to people experiencing homelessness,through the local Continuum of Care
(COC).
• Other Local Funds for Affordable Housing:A variety of other local funding sources are used for
affordable housing activities, including: Outside Agency/Human Services Funding, Carrboro
Affordable Housing Fund, Chapel Hill Affordable Housing Development Reserve, Chapel Hill
Affordable Housing Fund, and Chapel Hill Affordable Housing Bond.
If appropriate, describe publicly owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
Some of the Consortium's member jurisdictions own surplus land and regularly evaluate their inventory
to identify sites suitable for affordable housing activities, including the Town of Chapel Hill's public
housing communities. All member jurisdictions actively collaborate with private and public entities to
assist them in acquiring property for projects that address the needs identified in this plan. For example,
the jurisdictions are involved in the Northside Neighborhood Initiative, a land bank in historically black
neighborhoods in Chapel Hill and Carrboro that is funded in part by the University of North Carolina,the
Center for Community Self-Help, and the Oak Foundation.
Discussion
Annual Action Plan 17
FY 2026-2027
20
Although there are limited resources available to address the needs identified in the Consolidated Plan,
the Town and the Consortium member jurisdictions are continuously collaborating to maximize what
resources are available and develop new ones.
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort Goal Name Start End Category Geographic Area Needs Funding Goal
Order Year Year Addresse Outcome
d Indicator
1 Repair and 2026 2027 Affordable Hillsborough Housing $180,000 Repair or
Rehabilitation Housing for Low- Rehabilitation
and of 15 units.
Moderate
-Income
Househol
ds
2 Tenant Based 2026 2027 Affordable Orange County Housing for $256,239 Rental
Rental Housing People Assistance for
Assistance Experiencing 20
Homelessness Homelessnes households.
s
Table 3—Goals Summary
Goal Descriptions
1 Goal Name Repair and Rehabilitation
Goal Repair and Rehabilitation for owner-occupied units,prioritizing units at 50%AMI or
Description below
2 Goal Name Tenant Based Rental Assistance
Goal Tenant Based Rental Assistance for twelve currently homeless households.
Description
Annual Action Plan 18
FY 2026-2027
21
AP-35 Projects
Introduction
The Orange County HOME Consortium proposes to undertake the following activities with FY 2026-2027
HOME funds:
# Project Name
1 Habitat For Humanity—Repair and
Rehabilitation,CHDO Set Aside
2 OCPEH -TBRA
3 Administration—2026
Table 4—Project Information
Annual Action Plan 19
FY 2026-2027
22
AP-38 Project Summary
Project Summary Information
1 Project Name Habitat for Humanity—Repair and Rehabilitation, CHDO Allocation
Target Area County-Wide
Goals Supported Repair and Rehabilitation
Needs Addressed Preserve and Rehabilitate Existing Affordable Housing Stock to Prevent
Displacement
Funding Total: $180,000
Description Funds will be allocated to Habitat for Humanity to repair and
rehabilitate approximately 12 units.The funds may not be used for
homes whose after-rehabilitation value exceeds 95%of the median
purchase price. HOME program requirements allow for assistance to
homeowners up to 80%of the Area Median Income.
Orange County will prioritize homes at or below 50%of the Area
Median Income.
Currently, up to$2 million in repair and rehabilitation projects have
been identified across Orange County, all in owner-occupied units.
Orange County will collaborate with the Orange County Home
Preservation Coalition, administered by the University of North Carolina
Chapel Hill's Community Practice Lab,to identify the applicants who
may be the best fit for this program.
Target Date 06/2027
Estimate the number 12 families at or below 80%AMI
and type of families
that will benefit from
the proposed activities
Location Description Scattered sites in Orange County
Planned Activities • Repair
• Rehabilitation
Annual Action Plan 20
FY 2026-2027
23
2 Project Name OCPEH—Tenant Based Rental Assistance
Target Area County-wide
Goals Supported Tenant Based Rental Assistance
Needs Addressed Housing for Low-income households, Housing for individuals
Experiencing Homelessness
Funding Total: $256,239
Description Funds will be allocated to the Orange County Partnership to End
Homelessness for Tenant Based Rental Assistance for fifteen currently
homeless households.This project targets people currently experiencing
homelessness in Orange County, with priority given to households with
zero income and with heads of household who have multiple disabling
conditions.
Target Date 06/30/2026
Estimate the number 20 households at or below 30%AMI
and type of families
that will benefit from
the proposed activities
Location Description Scattered sites in Orange County
Planned Activities Rental/utility assistance
3 Project Name Administration—2026
Target Area County-wide
Goals Supported Rental Construction
Tenant Based Rental Assistance
Needs Addressed Housing for People Experiencing Homelessness
Housing for Low-and Moderate-Income Households
Funding Total:$37,594(10%of 2026 HOME Award)
Description Funds for administration of the HOME Program will be allocated to the
Orange County Housing and Community Development Department.
Total funds will equal ten percent(10%)of the 2026 HOME award.
Target Date 6/30/2027
Annual Action Plan 21
FY 2026-2027
24
Estimate the number Administration will support HOME-funded housing activities.
and type of families
that will benefit from
the proposed activities
Location Description N/A
Planned Activities Administration
Annual Action Plan 22
FY 2026-2027
25
AP-50 Geographic Distribution
Description of the geographic areas of the entitlement (including areas of low-income and
minority concentration) where assistance will be directed
The Orange County HOME Consortium relies on program partners to identify geographic areas of need
and direct assistance to those areas. For the FY 2026-2027 program, HOME funds will be directed
County-wide (through OCPEH—Tenant Based Rental Assistance and OCCD—Repair and Rehabilitation)
and to Carrboro (CHDO Set-Aside,Affordable Housing Acquisition).
Geographic Distribution
Target Area Percentage of Funds
County-wide 100%
Table 5-Geographic Distribution
Rationale for the priorities for allocating investments geographically
The Consortium affirms the importance of addressing homelessness and housing needs county-wide. It
is crucial to ensure that assistance reaches all corners of the county, including rural and low-income
areas, not just affluent portions.
Annual Action Plan 23
FY 2026-2027
26
AP-55 Affordable Housing
Introduction
Orange County will use its HOME funds for repair and rehabilitation, tenant based rental assistance, and
affordable housing acquisition. The one-year goals for affordable housing in Orange County for FY 2026-
2027 are as follows:
One Year Goals for the Number of Households to be Supported
Homeless 10
Non-Homeless 15
Special-Needs 0
Total 25
Table 6-One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through
Rental Assistance 10
The Production of New Units 0
Rehab of Existing Units 15
Acquisition of Existing Units 0
Total 25
Table 7-One Year Goals for Affordable Housing by Support Type
Discussion
Orange County will fund the following projects with the FY 2026-2027 HOME funds:
• HOME-25-01—Habitat for Humanity—Repair and Rehabilitation: Funds will be allocated to
Habitat for Humanity for the repair and rehabilitation of 12 owner-occupied homes in
Orange County, with a preference for individuals earning less than 50%of the Area Median
Income.
• HOME-25-02—OCPEH—Tenant Based Rental Assistance: Funds will be allocated to the Orange
County Partnership to End Homelessness, supporting households experiencing homelessness
and earning less than 30%of the area median income.
• HOME-25-03—Administration 2026: Funds for administration of the HOME Program will be
allocated to the Orange County Housing and Community Development Department.Total funds
will equal ten percent (10%) of the 2026 HOME award, which is estimated to be $36,701.
Annual Action Plan 24
FY 2026-2027
27
AP-60 Public Housing
Introduction
Public housing in Orange County is provided by the Town of Chapel Hill's Office of Housing and
Community.The Orange County Department of Housing and Community Development, OCHA, provides
tenant-based assistance and has been allocated 687 Housing Choice Vouchers (HCV, commonly known
as Section 8), of which 640 are being actively administered.The 640 vouchers include 20 HUD-VASH
Vouchers and four(4) Homeowner Vouchers. OCHA does not manage any public housing units. OCHA is
overseen by a seven (7) member Board.
Actions planned during the next year to address the needs to public housing
The Orange County HOME Consortium is undertaking the following to address the needs of HCV holders:
• In partnership with the Towns and local nonprofits,work to increase the number of landlords
willing to participate in the HCV Program. A full-time Housing Access Coordinator was hired in
2020 to foster relationships with landlords in the community and increase participation in HCV
and other housing subsidy programs.
• Work to streamline the design and administration of the housing stabilization funds (designed to
help low-income renters, including HCV holders, secure and maintain stable housing) offered by
the County and each of the Towns
• Ensure units in which households in the HCV Program live are safe and healthy, by conducting
Quality Control inspections on a subset of units
• Implement a "Move On" program, in which people with Permanent Supportive Housing
Vouchers(PSHVs)whose service needs have lowered considerably and/or who no longer need
services are transitioned to HCVs, freeing up PSHVs for individuals with higher service needs
Actions to encourage public housing residents to become more involved in management and
participate in homeownership
OCHA does not own any public housing units. However, OCHA has HCV holder involvement on its Board
and encourages HCV holders to become homeowners.
If the PHA is designated as troubled, describe the manner in which financial assistance will be
provided or other assistance
OCHA is designated as a high-performer. It received a score of 90% in its 2024 SEMAP rating.
Discussion
Orange County lacks housing affordable to households with very low incomes. Rental assistance
programs like the HCV Program are essential in creating affordability for these households within the
private market. OCHA continues to engage landlords in order to create access to more units for HCV
holders, and works to maximize federal and local resources for housing access and stabilization.
Annual Action Plan 25
FY 2026-2027
28
AP-65 Homeless and Other Special Needs Activities
Introduction
The Orange County Partnership to End Homeless (OCPEH) coordinates the Orange County Continuum of
Care (CoC).The organization is jointly funded by four local governments: Orange County and the Towns
of Carrboro, Chapel Hill, and Hillsborough.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness
including:
Reaching out to homeless persons(especially unsheltered persons)and assessing their
individual needs
OCPEH's HOME Committee (no relation to the HOME Investment Partnerships Program) consists of 20
housing and service providers that interact with people who are experiencing chronic and/or particularly
vulnerable homelessness, many of whom have disabilities.Service providers involved include nonprofits,
DSS and other county departments, UNC Hospitals,veterans' organizations, law enforcement, private
attorneys,and more.The Committee meets monthly to collaborate on finding housing and services (e.g.,
medical, mental health, substance use, and legal services) for these people.The CoC uses its
Coordinated Entry system to assess people's needs, score their level of need, and prioritize them for
permanent supportive housing, and conducts a street outreach program to reach people who are living
unsheltered. However, OCPEH has identified street outreach as an area in the County's homeless
services system in need of more funding.
Addressing the emergency shelter and transitional housing needs of homeless persons
Orange County's only emergency shelter is run by the Inter-Faith Council for Social Service (IFC). IFC also
offers a transitional housing program for men.The Freedom House Recovery Center provides residential
mental health and substance use services for men, women, children, and families (in addition to
outpatient and crisis services), and there are several Oxford Houses in the County that provide
transitional housing for people in recovery from substance use disorder.The County does not have a
domestic violence shelter.
Helping homeless persons(especially chronically homeless individuals and families,families
with children, veterans and their families, and unaccompanied youth)make the transition to
permanent housing and independent living, including shortening the period of time that
individuals and families experience homelessness,facilitating access for homeless individuals
and families to affordable housing units, and preventing individuals and families who were
recently homeless from becoming homeless again
OCPEH identified Rapid Rehousing as a gap in need of increased funding and better alignment with best
practice (i.e.,flexible, individualized mix of services,financial assistance, and housing navigation). In May
2020, OCPEH launched a Rapid Rehousing program (funded with HOME and state ESG)that works
through the CoC's HOME Committee to provide short-to mid-term rental assistance to the community's
most vulnerable people experiencing homelessness.The CoC also operates a Rapid Rehousing program
Annual Action Plan 26
FY 2026-2027
29
for veterans with state ESG money.
Service providers, such as IFC, Community Empowerment Fund (CEF), and Cardinal Innovations (the
LME/MCO for Orange County), provide case management services to clients experiencing homelessness
and can help connect them to housing. Orange County has also seen success in implementing a
homeless diversion program, and currently diverts about 25%of households presenting for a shelter bed
using a mix of strengths-based guided conversation plus flexible funding.
However,there is a great need for affordable housing units in the County, particularly subsidized,
income-based rental units that can be accessed by people experiencing or at risk of homelessness. This
gap presents a continuous challenge for connecting people experiencing homelessness with permanent
housing.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: being discharged from publicly
funded institutions and systems of care (such as health care facilities, mental health facilities,
foster care and other youth facilities, and corrections programs and institutions); or, receiving
assistance from public or private agencies that address housing, health, social services,
employment, education, or youth needs.
The CoC partners with UNC Hospitals and the Orange County Department of Social Services (DSS) Foster
Care division.The CoC has also developed discharge policies with local and regional institutions and
assisted in the creation of the Outreach Court, now known as the Community Resource Court (CRC),
North Carolina's first specialty court for people experiencing homelessness. In the CRC, people
experiencing homelessness are offered mental health evaluations and treatment plans in lieu of going to
jail for misdemeanor crimes. CRC is a collaboration between the UNC Center for Excellence in
Community Mental Health and the 15B District Court Judge's Office. Defendants are typically referred to
CRC by their attorney or by the district attorney's office, although anyone can make a recommendation
for a referral. Court requirements include monthly attendance at a therapeutic court session and
compliance with recommended mental health or substance use treatment. Upon graduation from the
court,the participant is given some type of legal benefit such as dismissal of criminal charges.
The County, in partnership with the Towns,also administers the Emergency Housing Assistance program
for people who apply directly, come through Coordinated Entry(called the Orange County "Housing
Helpline"), or are referred by service providers and are experiencing housing insecurity.The fund can
assist with pay for rent, mortgage, and utility payments, security and utility deposits, and certain other
one-time expenses to help households at risk of or currently experiencing homelessness become or
remain stably housed.
Annual Action Plan 27
FY 2026-2027
30
AP-75 Barriers to Affordable Housing
Introduction
In 2020,the Orange County HOME Consortium worked with the Center for Urban and Regional Studies
at the University of North Carolina Chapel Hill to conduct an Analysis of Impediments to Fair Housing
Choice (AI).The Al includes an analysis of Orange County laws, regulations, and administrative policies,
procedures, and practices that affect the location, availability, and accessibility of housing.The Al also
includes an assessment of conditions, both public and private,that affect fair housing choice.
The Al identified the following impediments to fair housing:
• A lack of affordable housing has resulted in severe rent burdens among many renters,
especially those with low and moderate incomes. More than half of renters in the county are
rent-burdened—spending over 30%of household income toward rent and utilities.This figure
exceeds 85%for households earning below$35,000 and is still over half for households earning
$35,000—$49,999.
• African Americans and Hispanics face difficulties receiving conventional mortgage loans.The
denial rate for first-lien,conventional mortgages for African Americans is consistently over four
times that of Whites, and the denial rate for Hispanics is between two and four times that of
Whites as well.The most common reasons for denial, as noted in the HMDA data, are credit
history for African Americans (33%of all denial reasons) and debt-to-income ratio for Hispanics
(49%of all denial reasons).
• Based on the number of fair housing complaints filed,disabled persons face difficulties
accessing fair housing. Nearly half of all fair housing complaints filed in the 2010-2018 period
were filed due to discrimination based on disability. Given that the county's population with a
disability is approximately 12,500, and over a quarter of the elderly are also disabled, disabilities
are a significant barrier to fair housing.
• There exists a lack of subsidized rental properties outside the Towns of Chapel Hill and
Carrboro.The only public housing in the county is in Chapel Hill, and the vast majority of other
subsidized properties are located in either Chapel Hill or Carrboro. Six subsidized developments
exist in Hillsborough, one exists in the Orange County portion of Mebane, and only one
subsidized property exists in unincorporated Orange County.
• Zoning throughout the county largely restricts the development of denser, more affordable
housing. Only a handful of areas in the county are zoned for moderately dense residential
development(over four lots or units per acre), and resident opposition can complicate or inhibit
the development of denser housing in those areas. Given the high cost of land in service-rich
neighborhoods of Chapel Hill and Carrboro, low-density zoning can prevent the construction of
affordable housing.
Actions it planned to remove or ameliorate the negative effects of public policies that serve
as barriers to affordable housing such as land use controls,tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
Annual Action Plan 28
FY 2026-2027
31
return on residential investment
Based on the impediments above,the Al makes the following recommendations. Details on these
recommendations are explained more fully in the Al.
• Seek more funds for subsidized housing. Low-and moderate-income households are
disproportionately rent-burdened, and recently, rents have increased faster than wages.
• Encourage development of some subsidized housing outside of Chapel Hill and Carrboro.
• Educate landlords, property managers, and other housing providers about fair housing law and
reasonable accommodation, especially as they pertain to persons with disabilities.
• Offer educational courses on mortgage lending and building credit scores that are geared
toward African American and Hispanic borrowers.
• Encourage cooperation and coordination between the affordable housing advisory boards in the
county.
• Explore funding options for a best-practices Rapid Rehousing program to serve homeless
individuals and families in Orange County.
• Identify ways to protect residents of mobile home parks who may be under threat of
displacement.
• Consider areas to strategically up-zone to promote the development of affordable housing.
Annual Action Plan 29
FY 2026-2027
32
AP-85 Other Actions
Introduction
The Orange County HOME Consortium has developed the following actions to address obstacles to
meeting underserved needs,foster affordable housing, reduce lead-based hazards, reduce the number
of families living in poverty, develop institutional structures, and enhance coordination between public
and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs
Despite efforts by the County,Towns, and other affordable housing actors and service providers,there
remain significant obstacles to meeting the needs of underserved people and communities.
Previously, the Consortium identified about$114,000 in HOME funds from 2016 that were allocated to
the County for single-family rehabilitation but were never spent.The County reallocated those funds for
tenant-based rental assistance through the Rapid Rehousing program to better address resident needs.
The County also scaled up and secured significant federal and state funding(about$4 million in calendar
year 2020)for emergency housing assistance, both through the local Emergency Housing Assistance
(EHA) program,the statewide HOPE program, and federal American Rescue Plan Act(ARPA) and CDBG-
CV funds,to help stabilize households who are experiencing or at risk of experiencing homelessness so
they can lower their exposure to COVID-19 by having a safe, non-congregate place to stay. Since 2020,
the County has disbursed over$18,000,000 in funds toward the EHA program. After the expiration of all
state and federal pandemic funds,the County now funds EHA locally at approximately$500,000
annually, which is enough to assist about 150 households at risk of eviction.
Actions planned to foster and maintain affordable housing
Using FY 2021-2022 HOME funds,the Consortium will help local nonprofit agencies undertake the
following projects to foster affordable housing:
• CASA—Rental Construction: Funds will be allocated to CASA for the pre-development and
construction costs of 22 units for households at or below 80%of the Area Median Income.
• Pee Wee Homes—Rental Construction: Funds will be allocated to Pee Wee Homes to finance
construction of three (3) rental units at 106 Hill Street in Carrboro. Units will be leased to
households experiencing homelessness and earning less than 30%AMI
• Administration—2026:Administration, planning, and policy setting for HOME funds.
Actions planned to reduce lead-based paint hazards
The Consortium ensures that County rehabilitation staff and the contractors they work with are
knowledgeable and up-to-date on lead-based paint(LBP) requirements of all federal housing programs,
distributes information on LBP hazards to all households that participate in County housing programs,
conducts LBP inspections and assessments as necessary, and implements environmental control or
abatement measures for LBP hazards as applicable in all federally-funded projects.This strategy allows
Annual Action Plan 30
FY 2026-2027
33
Orange County to: remain in full compliance with all applicable LBP regulations; control or reduce,to the
extent feasible, all LBP hazards in housing rehabilitated with federal funds; and reduce the number of
incidences of elevated blood lead levels in children.
Actions planned to reduce the number of poverty-level families
The Orange County Family Success Alliance (FSA), modeled after proven national programs such as the
Harlem Children's Zone and the Promise Neighborhoods Institute, is founded on the understanding that
no one organization or individual can single-handedly change the way poverty harms our children and
our communities. FSA is dedicated to building a comprehensive system of engagement on education and
health, with built-in family and community support. It is staffed by the Orange County Health
Department and supported by work groups made up of staff members of participating advisory council
organizations. Initial funding for FSA was awarded by the Orange County Board of County
Commissioners through the Discretionary Fund.
FSA's 2019-2022 Strategic Plan outlines three goals: (1) children are healthy and prepared for school, (2)
children and youth are healthy and succeed in school, and (3)families, neighborhoods, and institutions
support the healthy development of children.These goals are approached through four strategic areas.
The first is family empowerment. Over the 2019-2022 period, FSA is evolving its current "navigator"
model, in which peer leaders build trusting relationships with families living in poverty, into a more
comprehensive family empowerment model that will bring families together to learn, build on strengths
and knowledge, and together work to better navigate systems and to uncover their personal and
collective power to affect systems change.
The second strategic area is partnership. FSA collaborates with cross-sector agencies to center parent
expertise and priorities and aims to shift more power into the hands of parents to co-create programs
and initiatives in the community.
The third area is systems change, by involving community members whose lives are most directly and
deeply affected by poverty in leadership and decision making.-The final strategy area is foundational
work.This means building internal infrastructure in FSA to support strategic goals.
Actions planned to develop institutional structure
OCPEH has thoroughly analyzed the institutional structure and service delivery system for homelessness
in Orange County, identified ten gaps in the system, and calculated the costs of filling those gaps.OCPEH
has either identified existing programs and partners or developed the infrastructure to fill most of these
gaps. Of the estimated $1.7 million yet to be secured, OCPEH has approached Orange County and the
Towns of Carrboro, Chapel Hill, and Hillsborough to ask each jurisdiction to contribute a portion of the
funds. In addition to filling the homeless system gaps, OCPEH also aims to improve existing projects and
processes and improve the quality of homeless service delivery.
Annual Action Plan 31
FY 2026-2027
34
AP-90 Program Specific Requirements
Introduction
The Orange County HOME Consortium receives an annual allocation of HOME funds.The questions
below related to the HOME program are applicable to the Consortium. Questions related to the CDBG
program are applicable only to the Town of Chapel Hill and are addressed separately in Chapel Hill's
Annual Action Plan.
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(I)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is
as follows:
The Orange County HOME Consortium use general revenue funds as its local match for HOME funds.
Orange County also provides funds for additional administrative costs to operate the program above
the 10%allowable cost that may be pulled from the HOME award.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used
for homebuyer activities as required in 92.254, is as follows:
HOME funds used for homeownership assistance require an Affordability Period based on the
amount of HOME assistance.The Orange County HOME Consortium will use resale provisions to
enforce the HOME Affordability Period for all homeownership projects, including those in which
direct assistance is provided to the buyer and homeownership unit development. Under the resale
provisions, if homebuyers assisted with HOME funds choose to sell their HOME-assisted property
within the HOME Affordability Period, they must sell to qualified low-income buyers and the resale
price will be determined according to a formula that ensures affordability to the new buyer and a
fair return on investment to the original HOME-assisted buyer.
The HOME Affordability Period for homeownership assistance is based on the level of assistance
provided to fund a unit or as direct assistance to a buyer(see the chart below). Direct assistance to
the homebuyer is defined as HOME funding that reduces the purchase price below fair market value
and includes any down payment or subordinate financing provided on behalf of the purchase. Direct
assistance does not include HOME funds provided to a developer to cover the unit production costs
that do not reduce the purchase price below fair market value.
HOME Funds Provided HOME Affordability Period
to a unit or as direct assistance to buyer
<$15,000 5 years
$15,000—$40,000 10 years
>$40,000 15 years
Resale provisions are enforced with a Deed of Restrictive Covenants signed by the homebuyer at
closing.The Deed of Restrictive Covenants will specify:
A. The length of the HOME Affordability Period (per the chart above);
Annual Action Plan 32
FY 2026-2027
35
B. The home must remain the owner's principal residence throughout the HOME Affordability
Period; and
C. The conditions and obligations of the owner should the owner wish to sell before the end of the
HOME Affordability Period, including;
1. The owner must contact the Orange County HOME Consortium or its designated
representative in writing if intending to sell the home prior to the end of the HOME
Affordability Period;
2. The subsequent purchaser must be low-income as defined by HOME regulations,and
occupy the home as their primary residence for the remaining years of the HOME
Affordability Period (however, if the new purchaser receives HOME direct assistance,
the HOME Affordability Period will be re-set according to the amount of assistance
provided); and
3. The sales price must be affordable to the subsequent purchaser; affordable is defined as
limiting the Principal, Interest,Taxes and Insurance (PITI) amount to no more than 30%
of the new purchaser's monthly income.
(continued below)
3. A description of the guidelines for resale or recapture that ensures the affordability of units
acquired with HOME funds?See 24 CFR 92.254(a)(4) are as follows:
(continued from above)
Fair Return on Investment
The Consortium must ensure the owner receives a fair return on their investment and that the
home will continue to be affordable to a specific range of incomes.To calculate the fair return on
investment to the homeowner, the Consortium will:
A. Determine the amount of market appreciation, if any, realized over the ownership term by
calculating the difference between the initial appraised value at purchase and the current appraised
value at resale.This figure represents the basis for calculating the fair return on investment. In
declining markets, it is possible that the homeowner may not realize a return.
B. Multiply the basis by the Federal Housing Finance Agency's Housing Price Index(HPI)to
determine the fair return to the homeowner:
https://www.fhfa.gov/DataTools/Tools/Pages/HPICalculator.aspx
To calculate the resale price to the next homebuyer,the Consortium will add the fair return on
investment to the homeowner to the original affordable price of the home at purchase by the
original buyer.
Example#1:
• Appraised (Fair Market)Value at Purchase: $210,000
• Affordable Price at Purchase: $190,000•Appraised Value at Resale: $240,300
• Increase in Market Appreciation:$240,300-$210,000=$30,300
• Average Appreciation in the Raleigh-Durham MSA(per the HPI Calculator): 29.4%
Annual Action Plan 33
FY 2026-2027
36
• Fair Return on Investment: $30,300 x 0.294=$8,908
• Resale Price: $190,000+$8,908=$198,908
Affordability to a Range of Buyers
The Consortium will ensure continued affordability to a range of buyers, particularly those whose
total household incomes range from 60 to 80%of area median income (AMI) as calculated by HUD
for the HOME Program. Sales price will be set such that the amount of principal, interest,taxes, and
insurance does not exceed 30%of the new buyer's annual income.
In the event the resale price required to provide a fair return exceeds the affordability to a range of
LMI buyers, additional HOME funding will be provided to the subsequent buyer based on the level of
funds required to make the unit affordable.
Principal Residency Requirements
Households receiving HOME-funded homeownership assistance will be required to occupy the home
as their principal residence throughout the HOME Affordability Period.
In the event the original HOME-assisted homebuyer no longer occupies the unit as their principal
residence (i.e.,the unit is rented or vacant),the homeowner will be in violation of the terms of the
HOME assistance. In cases of noncompliance,the Consortium will enforce the terms of the HOME
written agreement to require repayment of any outstanding HOME funds invested in the housing.
The amount subject to repayment is the total amount of HOME funds invested in the housing(i.e.,
any HOME development subsidy to the developer plus any HOME direct assistance provided to the
homebuyer) minus any HOME funds already repaid (i.e., payment of principal on a HOME loan).
Noncompliance with principal residency requirements by a homebuyer is not considered a transfer
and is not subject to resale provisions.
The Consortium will enforce these requirements through a HOME written agreement executed with
the organization receiving the HOME award for homeownership activity to protect its investment
and minimize its risk in HOME-assisted homebuyer projects in the event the homebuyer is in
noncompliance.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is
rehabilitated with HOME funds along with a description of the refinancing guidelines required
that will be used under 24 CFR 92.206(b),are as follows:
The Orange County HOME Consortium does not intend to refinance any existing debt for multifamily
housing that will be rehabilitated with HOME funds.
Discussion
The Market Analysis found that Orange County has high housing costs and insufficient units for low-
income households, particularly extremely low-income households earning below 30%AMI—only 5%of
rental units in the County are affordable to households at this income level.As such,the Consortium has
identified the need for tenant-based rental assistance and has used HOME funds and local Match funds
to fill this gap.
Annual Action Plan 34
FY 2026-2027
37
HOME Public Hearings —2026-27
Annual Action Plan (AAP)
April 7,, 2026
ORANGE COUNTY
NORTH CAROLNA
38
Estimated available funds for 2026-27
HOME Award Amount $375,940
Match Amount $84,587
Program Income* $13,306
Administration ($37,594)
TOTAL $436,239
*Annual payments made by Community Home Trust
for previous assistance to The Landings at
Winnmore
• tis 'QROG ��
00
s ORANGE E lJNTY
T *����� NORTH CAROLINA
C A�
39
Proposed fundingallocation
'w
IHOME 26-27
Habitat for Humanity Repair & $180,000*
Rehabilitation
OC Partnership to End Tenant-Based Rental $256,239
Homelessness Assistance (TBRA)
Administration $37,594
TOTAL $473,833
*Includes required 15% set-aside for Community Housing
Development Organization (CHDO); by regulation 15% of
HUD funds must be allocated to such a designated
organization. Habitat qualifies as a CHDO.
OD
00 (C
s I AN E lJ�
NORTH AR LINA
C A�
40
Next Steps
• Board holds public hearing and offers any comments of
its own
• Public comment period ends April 23rd, 2026
• May - Staff presents AAP final draft to LGAHC for
approval and recommendation to Boards/Councils
• May - Towns and County approve final plan ( May BOCC
meeting), contingent on notification of final allocation
amounts from HUD
• July/August - Staff submits plans to HUD (July/August,
once final allocation amounts announced )
tisQR�U
.� —
s � , ORANGE COUNTY
T *5 �� NORTH CAROLINA
C A�
41
Questions?
• Blake Rosser
• brosser(cOorangecountync.gov
• 919-245-2492
• • �SB0Rp�
`C G ��
00 ORANGE COUNTY
",' IT �5 " NORTH CAR LINA
� c A