HomeMy WebLinkAboutAgenda 04-14-2026; 2 - Discussion on 2026 Longtime Homeowner Assistance Program 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 14, 2026
Action Agenda
Item No. 2
SUBJECT: Discussion on 2026 Longtime Homeowner Assistance Program
DEPARTMENT: Housing
ATTACHMENT(S): INFORMATION CONTACT:
Presentation Blake Rosser, Housing Director, 919-
245-2130
PURPOSE: To discuss potential program changes for the 2026 cycle of the Longtime Homeowner
Assistance (LHA) program, which assists low-income Orange County homeowners with a
discount or rebate on their property tax bill.
BACKGROUND: The LHA program has completed its 5th year of assistance for Orange County
homeowners. In its first year the program assisted 91 households with the difference between
their 2020 and 2021 tax bills, for a total of $16,364 allocated by Orange County. This past year,
the program assisted 806 households with a formula-calculated amount based on over $500,000
in funding from Orange County, Chapel Hill and Carrboro.
Over time, the program has not only grown but also changed in its emphasis, consistently looking
for ways to tweak the funding formula so that the most vulnerable households are prioritized. Staff
recommends the Board further refine the program policy to ensure that limited resources get to
the households who most need it.
To that end, staff is recommending that the Board discuss and consider raising the eligibility
threshold of the program from five (5) years of homeownership to ten (10) years, with exceptions
allowed for family transfers (which would be automatically granted eligibility regardless of period
owning the home as long as the new family member demonstrates income eligibility).. This policy
change, if it had been in effect, would have impacted 137 households in the 2025 cycle, lowering
the amount of assisted households from 806 to 669, and would have allowed the program to
distribute almost $62,000 more dollars to households that bought their homes prior to 2016.
It should also be noted that Commissioner Earl McKee suggested at the Board's April 7, 2026
Business meeting that the Board consider a "hold harmless" provision for Orange County taxes
on properties owned by residents aged 70 or older who have been in their homes for at least 20
years and earn less than 30% area median income (AMI).
Based on the 2025 LHA recipients, this would impact approximately 100 households. This change
could be accomplished by ensuring that these households are awarded enough LHA assistance
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each year to equal the total amount paid in the prior year (totalling tax paid minus LHA received),
in perpetuity. Staff would have to identify new households that meet these criteria for each
successive year, and establish a baseline tax payment for each of those households. It is difficult
to estimate how many more households would become eligible for this status in coming years, as
there will be attrition in addition to new homeowners that "age in" to the status.
As a supplement to this discussion, Board members asked staff various questions during the
presentation of the annual LHA report at the February 17, 2026 Business meeting. Those
questions with answers are presented here as follows:
• What accounts for the 225 "No Data" on the age demographics table, compared to last
year's zero?
o Last year two (2) staff members met with every applicant who had not fully
completed their application in order to assure they were complete. This year, with
the increased volume of applicants, this was not possible. That number serves as
an indicator of the percentage of applications that are submitted incomplete and
required intensive follow-up from staff.
• Income/Home Values
o 2025 Income Limits are below full AMIs can be found at this link .
Persons In 1 2 3 4 5 6 7 8
Family
Low (80%) 64,750 74,000 83,250 92,500 99,900 107,300 114,700 122,100
Income Limits ($)
o 2024 Home Value Limits are below full limits can be found at this link).
House Size 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
Home Value Limit $403,000 $515,000 $624,000 $773,000
• Does the application reference the exception listed on the website for elderly and disabled
households?
o No. Because staff does not request home value on the application (that information
is accessed directly from tax records based on the Parcel ID number provide),
possible exceptions to the home value limit are not listed.
• Average/Median tax bill, as compared to 2024:
2024 2025 Increase Percentage
Average Orange $1,883.28 $1,967.86 4.5%
County Tax Bill
Median Orange $1,740.47 $1,855.22 6.6%
County Tax Bill
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• Request to track home valuation by number of years owned:
Years Owned Number of Med ian Home Averag a Home
(Purchased Year) Households Value Value
5-9
(2016-2020) 137 $306.360 $315A61.59
10-14
(2011-2015) 101 $314.360 $339.097.06
15-19
(2006-2010) 79 $316-300 $336.839
2 0-24
(2001-2005) 81 $363.560 $365.834
25-29
(1996-2000) 102 $322_800 $362_644
30+
(before 1995) 285 $317.950 $345.019
• Breakdown of the amount of assistance and number of recipients of LHA by municipality
and in the unincorporated parts of the County:
Chapel Hill Carrboro Hillsborough Mebane Orange Count
Number of 149 84 224 107 242
Households
Amount of $241,215.41 $86,606.50 $105,257.13 $39,748 $67,441.61
Assistance
FINANCIAL IMPACT: Discussion of this item has no financial impact on the County. The 2025
LHA program had an expense of $408,269, an increase from $250,000 in 2024. The Towns of
Chapel Hill and Carrboro contributed up to $87,000 and $45,000 in matching assistance in 2025,
respectively, bringing total possible awards to $540,268.65.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 3: HOUSING FOR ALL
OBJECTIVE 7. Expand resources and invest in housing designed for our aging and
disabled residents.
OBJECTIVE 8. Preserve existing housing stock from disrepair and avoid displacement.
RECOMMENDATION(S): The Manager recommends that the Board discuss potential changes
to the Longtime Homeowner Assistance (LHA) program for 2026 in order to best target assistance
to the neediest and longest-time homeowners. The Board will need to make any final decisions
on any potential changes at a Board Business meeting before summer.
ORANGE COUNTY
Q HOUSING DEPARTMENT
Discussion of CY26 Longtime
Homeowner Assistance (LHA) Program
April 14, 2026
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LPN Completed 5th year
From 2021 to 2025, number of assisted households
grew from 91 to 806
Total program funds: $16,364 4 $509,805
• 2021 assistance based on simply the difference
between 2021 and 2020 tax bill, no
minimum/maximum
• 2025 assistance based on need-based formula with
minimum of $200 and target cost-burden reduction of
25%
ORANGE COUNTY
� HOUSING DEPARTMENT
6
Potential increase to eligibility threshold
Staff recommends increasing eligibility threshold from 5
years to 10 years
• In 2025, 137 households would have been ineligible (i.e.
owned home between 5 and 10 years)
• Approximately $62,000 in assistance
Change would prioritize longest-tenured residents with
higher assistance amounts
- Exceptions for family transfers that have taken place more
recently
Residents that bought homes since 2016, when home
prices were high, may not have been originally intended
program demographicORANGE COUNTY
� HOUSING DEPARTMENT
Potential "hold harmless" for most
vulnerable residents
• Commissioner suggestion to hold harmless effective
tax increases for certain households :
At least 70 years of age
Owned home for at least 20 years
30% Area Median Income (AMI) or less
• In 2025, 100 households would have been eligible
under these terms
Policy mechanism : LHA amount each year could be
calculated for these households so that total amount paid
(Tax minus LHA) = baseline amount set in CY26.
ORANGE COUNTY
� HOUSING DEPARTMENT
S
Outstanding questions from 2/17/26
• What accounts for 225 "No Data" under age
demographics, compared to last 2024's zero?
Increased volume of applications meant staff did not have
time to follow up with each incomplete application
Does application reference exception listed on website
for elderly/disabled households?
No. Because staff does not request home value on the
application, we do not list possible exceptions to the limit.
ORANGE COUNTY
� HOUSING DEPARTMENT
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Outstanding questions, cont'd
• 2025 Income Limits
Persons In
Family
Low 0' , 64,750 74,000 83,250 92,500 99,900 107,300 114,700 122,100
Income
• 2025 Home Value Limits
House Size 2 Bedroom 4 Bedroom
FRI A — L�A
Home Value Limit $403,000 $515,000 $624,000 $773,000
) ORANGE COUNTY
0 HOUSING DEPARTMENT
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Outstandinguestions cont'd 2q
• Average/Median Tax Bill, Compared to 2024
N
w
-
rq Percentage
Average OC Tax = $1 ,883.28 $1 ,967.86 4.5%
MedianOC Tax = $11740.47 $1 ,855.22 6.6%
Number and Amounts of Assistance by Municipality
Number149 84 224 107 242
AmountHouseholds
$ 241,215.41 $86,606.50 $105,257.13 $39,748 $67,441.61
Assistance
ORANGE COUNTY
HOUSING DEPARTMENT
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Outstanding questions, cont'd (3)
Home valuation by number of years owned
Years Owned Number of Median Home Average Home
(Purchased Year) ____,_ Households Value Value
5-9 137 $305,350 $315,462
(2016-2020)
10-14 101 $314,350 $339,097
(2011-2015)
15-19 79 $315,300 $336,839
(2006-2010)
20-24 81 $363,550 $365,834
(2001-2005)
25-29 102 $322,800 $362,644
(1996-2000)
30+ 285 $317,950 $342,019
(before 1995)
r ORANGE COUNTY
� HOUSING DEPARTMENT
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For any questions:
Blake Rosser
• brosser@orangecountync. gov
919-245-2492
ORANGE COUNTY
0 HOUSING DEPARTMENT