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HomeMy WebLinkAboutAgenda 05-05-2026; 12-3 - Information Item - Memorandum - Update on Manager’s Work Group to Address Low-Barrier Housing Needs and Opportunities � 1 ORANGE COUNTY NORTH CAROLINA MEMORANDUM TO: Board of County Commissioners FROM: Cait Fenhagen DATE: May 5, 2026 SUBJECT: Update on Manager's Work Group to Address Low-Barrier Housing Needs and Opportunities In December 2024,the County Manager informed the Board of the formation of a Work Group to address low-barrier housing needs and opportunities in Orange County. Low-barrier housing is affordable, accessible housing that supports individuals with significant barriers such as those who are returning from incarceration, people impacted by criminal justice involvement, individuals who are unsheltered and individuals facing behavioral health issues who need supportive services to maintain housing.This type of housing includes, but is not limited to, bridge housing, reentry housing, permanent supportive housing,transitional housing, behavioral health housing programs and permanent homes. Orange County's Strategic Plan demonstrates the County's commitment to low-barrier housing: Priority 2: Healthy Community Increase equitable access to care and social safety net programming to promote the physical, social, and mental well-being of our community. Objective 1. Improve harm reduction, prevention, and therapeutic interventions for adults and children experiencing behavioral health issues, substance use disorder, and intellectual or developmental disability. Objective 3. Provide protective services for our most vulnerable community members with practices and resources that support reducing risk factors, ensuring safety, and achieving permanency. Objective S. Provide deflection, diversion, therapeutic interventions, and re-entry support, including housing for justice-involved children and adults. Priority 3: Housing for All Promote equitable and accessible housing and address housing disparities through policies, partnerships, and collaboration to create a thriving community. Objective 1. Use regular federal and local funds to build and/or acquire new affordable housing. Objective 2. Address the need and any policy barriers to increase access to emergency shelter beds and other low-barrier housing, including eviction diversion. Objective 3. Invest in permanent supportive housing and help residents achieve housing stability. 300 W.Tryon Street, Hillsborough, NC 27278 1 www.orangecountync.gov 1 919.732.8181 � 2 ORANGE COUNTY NORTH CAROLINA Objective 4. Prioritize and select County-owned land and/or facilities, including the Greene Tract, as part of an overall plan of facilities to create crisis, bridge, low barrier, affordable, and permanent housing. The goal of the Work Group is to identify and recommend immediate and long-range options and collaborations for developing evidence-based, low-barrier housing programs and accessible housing.The Work Group agreed to provide regular updates and address immediate opportunities as they arise.The Work Group will provide a final report in January 2027. The focused work group convened in January by the Manager includes the following representatives: Blake Rosser, Orange County Housing Director Danielle DiCaprio, Orange County Homeless Programs Manager Tiffany Bullard, Orange County Local Reentry Council Case Manager Cy Stober, Orange County Planning and Inspections Director Paul Slack, Orange County Office of Civil Rights and Civic Life Director Caitlin Fenhagen, Orange County Deputy Manager Henry ("Tommy') Green, Orange County Community Health Worker, FIT Program Ann Oshel, Alliance Health Senior V.P. for Community Health and Well-Being Emily Holt, Chapel Hill Interim Affordable Housing and Community Connections Director Ann-Marie Vanaman, Carrboro Housing and Community Services Director Matt Efird, Hillsborough Assistant Town Manager and Community Services Director Prior to the work group beginning their effort,the County and Alliance Health hosted a community forum in January 2025 to hear from a panel of providers, residents and stakeholders, particularly people with lived experience of housing barriers. Before leaving, all attendees were offered a survey to submit with their additional input.The feedback consistently indicated strong support in the community for providing housing options for vulnerable populations with housing barriers. Beginning in February 2025,the Work Group met monthly with the Manager for five 90-minute meetings with very good attendance from the members. As reported to the Board previously,these meetings involved presentations from experts in the field of low-barrier housing, including Everett McElveen, CASA's CEO, and Emila Sutton,the City of Raleigh's Housing and Neighborhoods Director. Sutton and McElveen shared examples of low-barrier housing efforts in Wake and Durham Counties and 300 W.Tryon Street, Hillsborough, NC 27278 1 www.orangecountync.gov 1 919.732.8181 � 3 ORANGE COUNTY NORTH CAROLINA emphasized that permanent housing with supportive services, both single-site and scattered, has the most promise for long-term success. In addition, there have been group discussions about potential properties and land in Orange County that could present opportunities for low-barrier housing.These opportunities include a 12-acre forfeiture property in Cedar Grove now owned by Orange County that had been designated for affordable housing, as well as former group homes in Carrboro and downtown Hillsborough that are vacant and under HUD designation.The non-profits that own these homes have expressed willingness to discuss a collaboration with Orange County Housing stakeholders to support low-barrier supportive housing needs.The Work Group has also received a presentation from member and Planning Director Cy Stober about zoning restrictions and barriers to developing low-barrier housing in significant portions of the County. When Tropical Storm Chantal hit in July of 2025,the Work Group shifted to quarterly meetings to accommodate the needs of Town and County Housing staff working to support those displaced or impacted by the storm. As a result of these continued meetings and presentations received, the following upcoming projects and priorities have been identified: • Orange County Housing is expected to issue an RFP for$1.3 million in available HOME ARP funds in the next month that will prioritize Permanent Supportive Housing and/or Rapid Rehousing expansion. • Hope NC has approached Alliance Health and Orange County regarding a request for$100,000 of Orange County's reserve Cardinal funds to support the acquisition of 4 supportive housing duplexes for 8 adults with Intellectual and Developmental Disabilities (IDD) at or below 30%AMI in Habitat's Weaver's Grove development in Chapel Hill.The requested amount is the remainder of funding needed by Hope NC after funding was awarded by the NC Housing Finance Agency ($569,000) and from the Town of Chapel Hill ($185,000).This proposal will be coming before the Board for consideration on May 19, 2026. • Orange County Housing will be issuing an RFP early next FY in conjunction with the 12-acres in Cedar Grove that the County owns and was designated for affordable housing.The RFP will seek applications from non-profit, affordable housing developers for the purpose of building low- barrier, permanent supportive housing at the location. Specifically,the expectation would be to serve up to 15 residents with behavioral health diagnoses with incomes at 30%AMI or less.The County would commit to ensuring the availability of 15 Project Based Voucher's for the units.A portion of the total FY 27-28 affordable housing development CIP funds ($5 million)would be considered by the Board for this development after the property transfer is approved and a detailed housing proposal is presented. Orange County has met several times with a developer/provider who has assessed the location for suitability and offered proposals for consideration. A soil study is now underway. 300 W.Tryon Street, Hillsborough, NC 27278 1 www.orangecountync.gov 1 919.732.8181 � 4 ORANGE COUNTY NORTH CAROLINA • Orange County is in the process of contracting with Clutch Consulting Group with existing FY 26 County Manager Strategic Planning contract funds. Clutch provides expertise and strategic planning for communities seeking to reduce unsheltered homelessness in particular zones and encampment sites by connecting people directly to housing with supportive services. Clutch has worked with communities across the country, including Wake County,to advise them on how to address particular sites with an approach that involves a multi-disciplinary team and focused resources to provide immediate housing. This consulting and strategic planning work will commence with County,Towns, UNC and housing leadership stakeholders this summer. • Orange County and Alliance Health have been communicating with the Arc of NC about a vacant, move-in ready HUD-designated property they own at 202 N. Nash Street in Hillsborough. ARC-NC's CEO, Lisa Poteat, has expressed interest in seeing this property be utilized by Orange County for low-barrier housing to serve adults with disabilities and little to no income in need of transitional housing with supportive services. On April 28th,three members of the Work Group met with Ms. Poteat and a potential provider at the home and received a tour of the property. Discussion will continue in earnest to develop a proposal. • Orange County's current budget process, including the Outside Agency and MOE funding priorities, are being informed by the County commitment to addressing low-barrier housing needs. The Work Group continues to meet quarterly to discuss the priorities outlined above and to hear from speakers about low-barrier housing needs and opportunities. In addition, Blake Rosser and I met with Justice United leadership in April to provide an update on the Work Group's efforts. I look forward to the Group's ongoing work and sharing information with the Board as it is ready to be considered. 300 W.Tryon Street, Hillsborough, NC 27278 1 www.orangecountync.gov 1 919.732.8181