The URL can be used to link to this page

Home My WebLink AboutAgenda 05-05-2026; 6-b - HOME-ARP Allocation Plan Substantial Amendment 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 2025 Action Agenda Item No. 6-b SUBJECT: HOME-ARP Allocation Plan Substantial Amendment DEPARTMENT: Housing ATTACHMENT(S): INFORMATION CONTACT: HOME-ARP Substantial Amendment Blake Rosser, Housing Director, 919- #1 245-2492 February 7, 2023 Original HOME-ARP Allocation Plan Resolution Proposed Resolution Amending the HOME-ARP Allocation Plan Presentation PURPOSE: To consider approval of a resolution amending the HOME-ARP Allocation Plan to use the federal funds for Tenant-Based Rental Assistance (either Permanent Supportive Housing or Rapid Rehousing) instead of development of new affordable housing. BACKGROUND: The 2021 American Rescue Plan Act (ARPA) provided $5 billion in ARPA funds to be administered by the U.S. Department of Housing and Urban Development (HUD) through the HOME Investment Partnerships Program (HOME) to address the critical need for homelessness assistance and supportive services across the country. As a HOME program participating jurisdiction, Orange County was awarded $1,371,401 of HOME ARP funds to benefit the community's qualifying populations. HUD issued guidance for the utilization of the HOME ARP funds through CPD-Notice 21-10 on September 13, 2021. HOME ARP funds were a one-time allocation and must be spent by September 30, 2030. HOME-ARP funds may be used for the following activities: 1. Planning and administration of the HOME-ARP Program 2. Development of affordable rental housing 3. Tenant-based rental assistance 4. Provision of supportive services 5. Acquisition and development of non-congregate shelter 6. Nonprofit capacity building and operating assistance HOME ARP funds must be used to primarily benefit individuals or families in the following qualifying populations: 1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3) 2. At risk of homelessness, as defined in 24 CFR 91.5 At risk of homelessness 2 3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR 5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and 4. Other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a)would prevent a family's homelessness or serve those with greatest risk of housing instability. At the Business meeting on February 7, 2023, the Board of Commissioners approved the original Allocation Plan, which was to allocate $1,165,291 to the development of new affordable housing, with the remainder ($205,710) going to program administration. The HOME Consortium is now recommending that the Plan be amended to allocate $1,081,113 to Tenant-Based Rental Assistance, $194,290 to supportive services (case management), and $95,998 to program administration. The plan would be to request proposals for any Permanent Supportive Housing (PSH) or Rapid Rehousing (RRH) projects in the community, with hopes of increasing the number of service providers in the County. It is recommended that the amounts dedicated to rental assistance and supportive services could be altered somewhat according to the needs of service provider awarded the funds; however, the administrative portion could not change. Justification for Amendment Changes in policy and the economic environment since the original HOME-ARP proposal justify this amendment, including: 1. Local funding provides support for the development of affordable housing in excess of planned HOME-ARP allocation. 2. Emergency Housing Assistance has been significantly reduced, deepening the need for tenant-based rental assistance. 3. The most significant barrier to ending homelessness has been identified as inadequate medium-term, service-enriched support such as Permanent Supportive Housing (PSH) or Rapid Rehousing. 4. The development of new housing that serves primarily the HOME-ARP population is considered unfeasible by current County Housing staff. FINANCIAL IMPACT: The proposed amendment to the Allocation Plan has no financial impact on the County, as these funds are a federal grant. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 3: HOUSING FOR ALL OBJECTIVE 10. Support unhoused residents in obtaining temporary and permanent housing. • GOAL 2: HEALTHY COMMUNITY 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. RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the Chair to sign the resolution amending the HOME-ARP Allocation Plan to use the federal funds for Tenant-Based Rental Assistance (either Permanent Supportive Housing or Rapid Rehousing) instead of development of new affordable housing. 3 ORANGE COUNTY, NC SUMMARY HOME ARP ALLOCATION PLAN SUBSTANTIAL AMENDMENT#1 Orange County proposes to amend its HOME ARP Allocation Plan. The amendment will replace the planned activities (see Appendix A)with Tenant-Based Rental Assistance and Supportive Services.We will allocate $1,081,113 to Tenant-Based Rental Assistance and $194,290 to Supportive Services. The amended plan will allocate Orange County's HOME ARP grant as follows: Funding Amount Percent of Grant Statutory Limit Supportive Services $194,290 Acquisition and Development $0 of Non-Congregate Shelters Tenant-Based Rental $1,081,113 Assistance Development of Affordable $0 Rental Housing Nonprofit Operating $0 5% Nonprofit Capacity Building $0 5% Administration and Planning $95,998 7% IS% Total HOME-ARP Allocation $1,371,401 The activity Tenant-Based Rental Assistance (TBRA)will be subject to the limitation that it will prioritize the Qualifying Population (QP) "Homeless" as defined in 24 CFR 91.5 (definitions (1), (2), and (3)). Within this population, preference will be given for unsheltered people living in Orange County. The County will use the Orange County Partnership to End 4 Homelessness (OCPEH) and HOME Committee for referrals for TBRA. The OCPEH and HOME Committee prioritize housing resources forth e most vulnerable individuals experiencing homelessness in Orange County. One's ranking on the HOME Committee list is determined using the Vulnerability Index-Service Prioritization Decision Assistance Tool (VI-SPDAT), then whether someone is fleeing domestic violence, then length of time homeless, then housing status (sheltered vs. unsheltered). The task force obtains consent forms for each client on the list. For the purposes of HOME ARP programming, the Coordinated Entry program will give preference to unsheltered individuals experiencing homelessness. Service providers from across Orange County, including non-profits, the Department of Social Services and other County departments, UNC Hospitals, as well as veterans' organizations, law enforcement, private attorneys, and more are involved. The County will release a Request for Proposals in May 2026 seeking one or more providers to operate a program that combines Tenant-Based Rental Assistance and Supportive Services to provide a medium-term, low-threshold, service-enriched rental assistance program to assist unsheltered people to quickly access housing. Contracts for supportive services and TBRA will be separate, although they may be awarded to a single provider. Background The 2021 American Rescue Plan Act(ARPA) provides $5 billion in ARPA funds to be administered by the U.S. Department of Housing and Urban Development(HUD)through the HOME Investment Partnerships Program (HOME)to address the critical need for homelessness assistance and supportive services across the country. As a HOME program participating jurisdiction, Orange County was awarded $1,371,401 of HOME ARP funds to benefit our community's qualifying populations. HUD issued guidance for the utilization of the HOME ARP funds through CPD-Notice 21-10 on September 13, 2021. HOME ARP funds are a one-time allocation and must be spent by September 30, 2030. HOME-ARP funds may be used for the following activities: 1. Planning and administration of the HOME-ARP Program 2. Development of affordable rental housing 3. Tenant-based rental assistance 4. Provision of supportive services 5. Acquisition and development of non-congregate shelter 6. Nonprofit capacity building and operating assistance 5 HOME ARP funds must be used to primarily benefit individuals or families in the following qualifying populations: 1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or(3) 2. At risk of homelessness, as defined in 24 CFR 91.5 At risk of homelessness 3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking(as defined by HUD in 24 CFR 5.2003) or human trafficking(as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and 4. Other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a)would prevent a family's homelessness or serve those with greatest risk of housing instability. Justification for Amendment Changes in policy and the economic environment since the original HOME-ARP proposal justify this amendment, including: 1. Local funding provides support for the development of affordable housing in excess of planned HOME-ARP allocation. 2. Emergency Housing Assistance has been significantly reduced, deepening the need for tenant-based rental assistance. 3. The most significant barrier to ending homelessness has been identified as inadequate medium-term, service-enriched support such as Permanent Supportive Housing(PSH) or Rapid Rehousing. Local Funding Provides Necessary Affordable Housing Development Support At the June 8, 2023 Orange County 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$10 million for affordable housing development over ten years.The original allocation for the development of affordable rental housing through HOME-ARP will be covered by this local Capital Improvement expenditure. Emergency Housing Assistance Has Been Significantly Reduced 6 The Federal American Rescue Plan Act (ARPA) provided direct allocations to local governments. Orange County received approximately$28.8 million. The first drawdown of approximately$14.4 million was approved by the Board of Commissioners through a budget amendment on June 1, 2021. This allocation included $1,926,357 in Emergency Housing assistance funding. Significant reductions in this cash assistance program has deepened the need for medium-term tenant-based rental assistance in Orange County. We estimate that 26 residents from this pool, as well as up to 100 residents on the Orange County Housing Voucher wait list, could be eligible for HOME-ARP TBRA. Rental Assistance and Services are the Most Significant Barriers for People Experiencing Homeless in Orange County Rents spiked during the COVID-19 pandemic. Although they have since stabilized, they remain unaffordable for many residents (See Appendix B). The high cost of rent particularly burdens our residents who are experiencing homelessness. In 2024, Orange County saw a 17% rise of people experiencing homelessness in Orange County. Of the estimated 148 people experiencing homelessness in Orange County, 22% live unsheltered.Through community consultation, the County has determined that use of funds for Tenant-Based Rental Assistance, when combined with funds for supportive services,will be the most effective way to quickly assist people to exit unsheltered homelessness. Community Consultation The County updated its community and engaged in consultation in several ways: • Updates to service care providers and opportunities for feedback in August and September 2024. • Meetings with the Towns of Chapel Hill, Hillsborough, and Carrboro Housing Staff in August 2024. • Meetings with the Orange County Affordable Housing Advisory Board in September and October 2024. • Meeting with the Orange County Affordable Housing Coalition on HOME Consolidated Planning in October 2024. Public Participation Per Orange County's representative from U.S. Department of Housing and Urban Development (HUD), no public hearings are necessary. 7 APPENDIX A: PREVIOUS BUDGET for HOME-ARP i Funding Amount Percent of Grant Statutory Limit i Supportive Services $0 Acquisition and Development $0 of Non-Congregate Shelters Tenant-Based Rental $0 Assistance Development of Affordable $1,165,691 Rental Housing Nonprofit Operating $0 5% i Nonprofit Capacity Building $0 5% Administration and Planning $205,710 15% 15% Total HOME-ARP Allocation $1,371,401 8 APPENDIX B Average Rent Prices in Orange County, NC (2015-August 2024) ai c cn U 0 coo F&40 "1 ,z ll°b 1 IS, � 1:&11-1 PAL�� .Ss1 PAL�� 1:&le PAL�� eye e"1 1 1:& •�IS,tea' em'0�a�PAL�a' ��w•�PAL$a' ��?e4�1 1p RES-2023-011 ' , J Attachment 2 9 RESOLUTION AUTHORIZING THE SUBMISSIONof the ALLOCATION L for ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, that the Commissioners approve the following activities for the HOME-ARP Program: Development of Affordable Rental Housing-$1,165,691 Program Administration - $205,710 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of these plans, to act in connection with the HOME Program, and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is thel} day of W6s a-' 2023 Jartfezetta Bedford, hair Orange County Board of Commissioners NOW THEREFORE BE -,AINED by the Orange County Board of Commissioners that this resolution is effective upon approval. Upon motion of Commissioner a,m�W f) , seconded by Commissioner the foregoing resolution was adopted this the _ day o0 2023. I, Laura Jensen, County Clerk for Orange County, North Carolina, DO THEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held oriti 2023. WITNESS my hand and seal of said County, the' day of rAaLv,,,(t 2023. y Laura Jense unty Clerk 10 RES-2026-029 RESOLUTION AUTHORIZING THE AMENDMENT of the HOME-ARP ALLOCATION PLAN for ORANGE COUNTY, NORTH CAROLINA BE IT RESOLVED, by the Orange County Board of Commissioners, as a member of the Orange County HOME Consortium, that the Commissioners approve the following activities for the HOME-ARP Program, with the allowance that the first two amounts may be altered according to the needs of the service provider, but must total $1,275,403: Development of Affordable Rental Housing- $1,081,113 Supportive Services- $194,290 Program Administration - $95,998 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of these plans, to act in connection with the HOME Program, and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the 5th day of May, 2026 Seal Jean Hamilton, Chair Orange County Board of Commissioners NOW THEREFORE BE IT ORDAINED by the Orange County Board of Commissioners that this resolution is effective upon approval. Upon motion of Commissioner seconded by Commissioner , the foregoing resolution was adopted this the day of , 2026. I, Laura Jensen, County Clerk for Orange County, North Carolina, DO THEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on 12026. WITNESS my hand and seal of said County, the day of , 2026. Laura Jensen, County Clerk ORANGE COUNTY Q HOUSING DEPARTMENT HOME - ARP Substantial Amendment May 5, 2026 12 Background 2021 American Rescue Plan Act (ARPA) provided extra funding for the HOME program Orange County awarded $1,371,401 in HOME-ARP funds ORANGE COUNTY 0 HOUSING DEPARTMENT 13 Background, continued • Funds may only be used to assist residents exiting homelessness • Funds may be used for development, acquisition, supportive services, capacity building, and tenant-based rental assistance ORANGE COUNTY � HOUSING DEPARTMENT 14 Original plan was for development February 7, 2026, BOCC approves plan • Allocate $1, 165,291 for development of new affordable housing • $205, 710 for administration ORANGE COUNTY 0 HOUSING DEPARTMENT 15 HOME Consortium wants to shift funding October 2025, HOME Consortium voted to recommend amendment • Allocate $1,081,113 for tenant-based rental assistance (TBRA) $194,290 to supportive services • $95,998 to program administration Specific allocation amounts for TBRA and Supportive Services are tentative, according to needs of service provider ORANGE COUNTY � HOUSING DEPARTMENT 16 Reasons for amendment Staff considers it financially unfeasible to develop new housing geared specifically toward residents experiencing homelessness OC has larger pools of local funds geared towards development • Emergency Housing Assistance has been reduced • There is not enough Permanent Supportive Housing or Rapid Rehousing in the county ORANGE COUNTY � HOUSING DEPARTMENT 17 Next Step Pending BOCC approval, staff will request proposals for Permanent Supportive Housing (PSH) and Rapid Rehousing (RRH) projects in Summer 20260 • Staff hopes to award funds by late Summer 2026 ORANGE COUNTY 0 HOUSING DEPARTMENT 18 Questions Blake Rosser, Housing Director • brosser@orangecountync. gov • 919-245-2492 ORANGE COUNTY 0 HOUSING DEPARTMENT