HomeMy WebLinkAboutAgenda - 05-20-2003-9aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 20, 2003
Action Agenda
Item No. 9- Q
SUBJECT: Housing Bond Program
DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Tara L. Fikes, ext 2490
Proposal Summaries
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider awarding funding to the recommended affordable housing bond
projects and authorize the Manager to issue a Letter of Commitment to each funded agency
detailing the conditions of award.
BACKGROUND: Orange County voters approved the second Affordable Housing Bond issue
in November 2001 for affordable housing in the amount of $4 million dollars. Subsequently, the
Affordable Housing Advisory Board (ARAB) began review of the existing bond policy in
preparation of identifying projects to be financed from the 2001 bonds. AHAB's review has
yielded further recommendations for modifications and the revised bond policy was presented
to the Board of County Commissioners (BOCC) and approved on October 15, 2002.
On November 4, 2002, the County issued a Request for Proposals soliciting applications for the
first round of bond funding with total available funds of $1,040,000. Funding pools were
established in the following categories: Homeownership; Special Needs -Ownership or
Rentals; and Non-Special Needs Rental and Cooperative Housing.
Applications were due by the end of business on December 16, 2002, and five (5) applications
were received by the deadline date. The five (5) proposals requested a total of $1,267,000. A
summary of each application is provided with this abstract. Full copies of all applications are
available upon request from the Housing and Community Development Department.
The Project Review Committee met three (3) times to review applications and also invited each
applicant to meet with the Committee to discuss their applications. Members of the Project
Review and Selection (PRS) Committee included three Affordable Housing Advisory Board
members -Frances Douglas, Stephen Jenks and Tracey Dudley; and the following staff
persons -Assistant County Manager Gwen Harvey; Housing/Community Development Director
Tara L. Fikes; Planning Director Craig Benedict, Finance Director Ken Chavious, James Harris
of Carrboro; Loryn Barnes of the Town of Chapel Hill, Margaret Hauth of the Town of
Hillsborough. The BOCC appointed these members on December 2, 2002. The PRS
Committee funding recommendations are indicated in the chart below.
Project Type Requeste
d PRS Recommendation BOCC Decision
Homeownership _
EmPOWERment, Inc. $90,000 $90,000* _
Habitat for Humanity $170,000 $170,000
Special Needs _
OPC Foundation $260,000 Incomplete Application
Non-Special Needs Rental _
Affordable Rentals $364,000 Incom lete A licatior_i
Weaver Community Housing
Association $270,000 $270,000
_
TOTAL $1,267,000 $530,000
* Conditional funding is recommended for this project pending approval of the Development
Concept Plan by the Town of Chapel Hill by December 31, 2003.
As noted above, the PRS Committee recommends funding for three applicants and no funding
in this round for two others due to the incompleteness of their application. Local staff will work
with these applicants to develop complete applications to submit during the second funding
round. The second round will begin immediately after the BOCC approves this initial funding
round and extend for 60 days.
These funding recommendations are based on application review in accordance with the
Evaluation Criteria of the Housing Bond Policy (October 15, 2002 version). The Bond Policy
assigns points to each section of the Criteria. Projects that score above 60 points are
considered eligible for funding. This, however, should not be interpreted as an absolute since
final funding decisions are made at the discretion of the BOCC. The possible funding decisions
by the BOCC include full funding; partial funding; and no funding with a recommendation to
reapply.
FINANCIAL IMPACT: The recommended bond projects, if fully funded, will commit $530,000 in
Round One 2001 Affordable Housing bonds and is leveraged by approximately $1,024,513 in
other funds. There is approximately $510,000 remaining from the round one funding level of
$1,040,000 that would be available for another funding round.
RECOMMENDATION(S): The Manager recommends that the Board award funding as the
Board decides and authorize the Manager to issue a Letter of Commitment detailing the
conditions of award.
Housing Bond Project Summary
Applicant:
EmPOWERment, Inc.
Project Title:
Sykes Street Revitalization Program
Request for Bond Funds:
$90,000
Total Project Costs:
$380,000
Bond Fund Leverage:
24% bond funds; 76% other funding sources
Project Description:
EmPOWERment, Inc. proposes to utilize $90,000 of the Orange County Affordable
Housing Bond money to assist low-income first-time homebuyers to purchase three newly
constructed single-family homes in the Northside neighborhood of Chapel Hill. To implement
this project as designed, EmPOWERment must be successful in a rezoning request for one of the
identified building lots.
Target Population/Projected Outcome:
Three (3) families with incomes at or below 80% of median income
Project Schedule
Project Completion forecasted for six (6) months after funding commitment.
Long Term Affordability Vehicle
EmPOWERment, Inc. will certify that the property will remain. affordable for 99 years
through the use of deed restrictions.
Housing Bond Proiect Summary
Applicant:
Habitat for Humanity of Orange County, NC, Inc.
Project Title:
Rusch Road
Request for Bond Funds:
$170,000
Total Project Costs:
$1,239,000
Bond Fund Leverage:
19% bond funds; 81 % other funding sources
Project Description:
Habitat for Humanity proposes to use $170,000 in Orange County Housing Bond funds to
assist in building twelve (12) single-family dwelling units on Rusch Road in Chapel Hill. This
property is in the Rogers Road community and is also near the recently completed Habitat
subdivision of New Covenant Place.
Target Population/Projected Outcome:
Twelve (12) families with incomes at or below 50% of median income
Project Schedule
Begin infrastructure construction - January 2004
Begin house construction - September 2004
Complete house construction - December 2005
Long Term Affordability Vehicle
Habitat for Humanity will follow the guidelines adopted by the County Commissioners
and guarantee affordability for at least 99 years through the use of deed restrictions.
Housing Bond Proiect Summary
Applicant:
Weaver Community Housing Corporation
Project Title:
Cedar Rock Cooperative
Request for Bond Funds:
$270,000
Total Project Costs:
$682,253
Bond Fund Leverage:
39% bond funds; 61 % other funding sources
Project Description:
The Weaver Community Housing Association (WCHA) is seeking funding for the
purchase of the Cedar Rock Apartments at 703 and 705 N. Greensboro Street in Carrboro. This
property contains six (6) three-bedroom apartments that WCHA seeks to utilize the cooperative
model by converting these six apartments into a cooperative residential community for low-
income families and individuals. For clarification, a "cooperative unlit" is a habitable space that
includes private sleeping space and shared access to living, dining, bath, kitchen and community
facilities. Specifically, WCHA will provide 12 cooperative units (bedrooms): eight for
individuals and four for families and one apartment will be community space to be used for child
care, co-op meetings, skill development workshops, social activities, counseling, and guest
accommodations.
Target Population/Projected Outcome:
Renters with incomes at or below 60% of median income
Project Schedule
Property acquisition - March 2003
Begin membership selection - Apri12003
Lease-up - May -November 2003
Long Term Affordability Vehicle
Weaver Community Housing Corporation will follow the guidelines adopted by the
County Commissioners and guarantee affordability for at least 99 years through the use of deed
restrictions.
Housing Bond Proiect Summary
Applicant:
Affordable Rentals, Inc.
Project Title:
Abbey Court Condominiums
Request for Bond Funds:
$364,000
Total Project Costs:
$682,666
Bond Fund Leverage:
53% bond funds; 47% other funds
Project Description:
Affordable Rentals, Inc. is requesting $364,000 to assist in the acquisition of 13 rental
units at Abbey Court Condominiums. After purchase, the property would be rehabilitated if
necessary and leased to low-income families.
Target Population/Projected Outcome:
Thirteen (13) families that are in the 30% to 50% of median annual income category
Bond Committee Recommendation
The Bond Committee does not recommend this project for funding at this time due to the
incompleteness of the submitted funding proposal.
Housing Bond Project Summary
Applicant:
OPC Foundation for Mental Health
Project Title:
Property Acquisition Program
Request for Bond Funds:
$260,000
Total Project Costs:
$282,000
Bond Fund Leverage:
92% bond funds; 8% other funding sources
Project Description:
OPC Foundation for Mental Health proposes to use $260,000 in Orange County Housing
Bond funds to assist in the acquisition of two duplexes on Johnson Street in Chapel Hill. After
purchase, the apartments would be renovated and leased to disabled adults. Two (2) of the four
(4) units would be used for crisis/short-term housing for disabled adults who were recovering
from hospitalization or attempting to prevent hospitalization.
Target Population/Projected Outcome:
Four (4) families with incomes at or below 50% of median income
Bond Committee Recommendation
The Bond Committee does not recommend this project for funding at this time due to the
incompleteness of the submitted funding proposal.
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