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HomeMy WebLinkAboutMinutes 05-19-2026-Business Meeting 1 APPROVED 6/16/26 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING May 19, 2026 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday, May 19,2026,at 7:00 p.m. at the Southern Human Services Building in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and Clerk to the Board Laura Jensen (All other staff members will be identified appropriately below.) Chair Hamilton called the meeting to order at 7:00 p.m.All commissioners were present. 1.Additions or Changes to the Agenda A motion was made by Commissioner Portie-Ascott,seconded by Commissioner Carter,to add the viewing of a video on the Impact of Property Tax Changes from the Executive Director of the North Carolina Association of County Commissioners (NCACC), Kevin Leonard, as item 4-a. VOTE: UNANIMOUS Chair Hamilton read the public charge and reviewed the instructions for making public comment. She noted that comments on printed agenda items would be taken when those specific matters come before the board. 2. Public Comments(Limited to One Hour) a. Matters not on the Printed Agenda LaTarndra Strong said she has attended several Board meetings recently and heard from many residents about how budget recommendations will impact them. She said she could not help but notice that those most deeply affected were often not present in the room and not speaking for themselves. She said she is concerned about the trend of Black families leaving Orange County, and she is also aware that Black teachers, staff, and service professionals are leaving Orange County Schools.She asked the Board to do more with less and urged commissioners to remember that property ownership and property taxes represent a point of privilege that many residents will never experience. She said there are community members who have been balancing their household budgets simply to access basic resources, and that this financial crunch is driving people out of the county. She specifically mentioned transportation as a barrier in Northern Orange County, noting that residents there essentially need a car to access services, and that families are migrating from Northern Orange to Southern Orange because of greater access to resources there. She said families should not have to leave simply because there is no viable option for them to stay. b. Matters on the Printed Agenda These matters will be considered when the Board addresses that item on the agenda below. 2 3.Announcements, Petitions,and Comments by Board Members Commissioner McKee had no comments. Commissioner Portie-Ascott provided context for the property tax conversation. She said the General Assembly is actively discussing legislation that could place limits on how counties raise property tax revenue, and that this conversation is moving very quickly through legislative committees.She said the discussion is driven by widespread community concern about the impact of rising property taxes on housing stability. She said the Board is simultaneously hearing from residents who want continued investment in schools, housing, and emergency services, and from residents who feel they simply cannot afford higher taxes. She said both concerns are real and that the Board sits in the middle of those competing realities. She said the purpose of the video was to inform the public about what is being discussed at the state level and how those decisions could affect Orange County's future. Vice-Chair Fowler expressed gratitude to all those who came to the previous public hearing to advocate for schools and libraries. She announced that she co-sponsored an amendment with Commissioner Bedford to reinstate supplemental funding to the Chapel Hill Public Library that was cut in the proposed budget. She said that in the current environment at both the state and federal levels,where critical thinking and access to books are being constrained, it is important to support and strengthen libraries and community meeting spaces. She said she had also submitted a budget amendment to add more Pay-Go funding to support healthy school environments, noting the county has a long-standing deficit in school repair funding. She said she was still waiting to hear the impact of the North Carolina Legislature's proposed teacher raises before considering an additional amendment to increase K-12 operational funding. Vice-Chair Fowler said she is aware that this is a difficult budget year with many pressures to minimize tax increases, but that she also wants to be responsive to the people who have advocated for teachers. She shared that she attended the Climate Council meeting recently, and heard a presentation from Mary Tiger of OWASA about the current drought conditions.She said as of last Thursday, OWASA's water supply was at 84% capacity, just under usual water conservation conditions, and that a stepped approach to water conservation may be required if levels continue to decrease. She said the Climate Council also heard from women who lead the Hillsborough Climate Challenge, noting growing community engagement each year.She said the collaborative Heat Action Plan was also discussed and that messaging would run throughout the summer to educate outdoor workers to find shade, rest, and hydrate frequently.She said cooling centers would also be identified on a day-to-day basis as staffing allows. Finally, she shared that the Tax Work Group met yesterday with consultants David Barnett and Josh Myers from GAR and JVG Consulting,who will review the county's tax policy, procedures, and organizational structure to make recommendations aimed at improving both vertical and horizontal equity as well as public communication regarding taxes. She said the Work Group also met with Janice Jackson from Developmental Associates,who will facilitate the hiring of the new tax administrator. Commissioner Greene shared that she visited the Hillsborough Library earlier today and noticed an SUV with an LED sign from the Governor's Highway Safety Program displaying an outdoor temperature of 96.7 degrees Fahrenheit and an interior vehicle temperature of 136 degrees. She said this was a powerful public service demonstration about the danger of leaving children or pets in hot vehicles. She said she attended an affordable housing seminar in Marion, North Carolina on May 7th, sponsored by the School of Government. She said the day-long workshop, led by Tyler Milligan, focused on county funding strategies for privately owned affordable housing. She said she plans to consult further with Tyler Milligan before sharing her notes with the Board. She shared that she attended the Piedmont Food Processing Program board meeting last Friday and that the entity is in the black for the first quarter of 2026. She said the organization is being contacted two to three times a week by potential new clients and is being selective in accepting new business, partly due to limited space,which she said is a good problem to have. Commissioner Bedford said she and other commissioners attended the Pauli Murray Awards on Sunday and that the event was rewarding and warm, particularly seeing youth receive awards. She said 3 the Board of Social Services met yesterday and reported that the implementation of a new child case management system is going well. She said Orange County is the last of eleven counties to go live but the first to use the system for child case management.She said the Continuum of Care group also met virtually to review the charter, which had been or is being posted for public comment. She said she also attended the Climate Council meeting and noted that two items from the Heat Awareness Week proclamation on the consent agenda stood out to her. First, certain medications can affect how the body responds to heat, and second,older adults are more vulnerable.She said the guiding mantra for summer heat safety is water, rest, and shade. Commissioner Carter said she also attended the Tax Assessment Work Group meeting and is pleased that the consultant's review of tax operations is underway,that the process for hiring a permanent tax administrator has begun, and that positive changes are being made under the Interim Tax Administrator. She called attention to the Emergency Medical Services Week proclamation on the consent agenda, marking the 52"d celebration since President Gerald Ford established it in the 1970s.She said first responders save lives every day through rapid response, expert decision-making, and compassion, and that they deserve recognition. She said that as budget discussions proceed, it is important to remember that counties are mandated by state law to provide certain services, including administering Medicaid, SNAP, housing programs, and public education, and that the federal government and state have been pushing unfunded mandates downward. She said she would be advocating for a budget amendment to reinstate step plan pay increases for emergency services professionals. She said she remains committed to engaging with the National Association of Counties and the North Carolina Association of County Commissioners to ensure that Orange County's voice is heard alongside other counties. She said the tensions arising from these pressures can divide communities but can also unite them through mutual understanding and collaboration, and that she looks forward to Orange County choosing unity. Chair Hamilton said she also attended the Pauli Murray Awards and congratulated the student contest winners and the Pauli Murray Award winners. She said the youth award was presented to Nitya Sharma, the adult award went to Molly Luby, and the business award was given to E3 Camp's Anissa McClendon. She said keynote speaker Jesse Huddleston gave a strong presentation and thanked the One Human Family Choir and county staff for putting together the event. She said she attended the Advisory Council on Aging at Central Pines Regional Council today and noted that senior Tar Heel Legislators for the region will be holding an advocacy day at the General Assembly tomorrow. She said she appreciated her colleagues' comments about the tension inherent in this budget season and said the Board will continue to share the realities of balancing tax rates with service delivery. She then offered a petition to the Board to consider having the Tax Administrator, who is appointed by the Board of County Commissioners, be exempt from the county's personnel ordinance and subject to a review process by both the Board and the County Manager. 4. Proclamations/ Resolutions/Special Presentations a. Impact of Property Tax Changes Video This item was added at the beginning of the meeting. The Board watched a video from the North Carolina Association of County Commissioners (NCACC) explaining the impact of state property tax changes. The video is available at the following link: https://www.facebook.com/reel/1527932805417932. In the video, Kevin Leonard explained the concept of a property tax levy limit. He said a levy limit caps the total amount of property tax revenue a local government can collect each year but does not account for the actual cost of providing services. He said county governments face the same inflationary pressures as individual households—paying more for patrol cars, bulletproof vests, ambulances, school buildings,jails,and the operations that support them—and that most of those expenditures are mandated 4 by the state and federal government. He said a levy limit does not reduce those obligations; it simply restricts the abilityto pay for them. He said the predictable results include pressure to cut services,delayed investments, and cost-shifting to other revenue sources such as fees. He said a constitutional levy limit treats the symptom but not the root cause,does not address rising costs or affordability, and risks creating new challenges without delivering the relief people are asking for. 5. Public Hearings None. 6. Regular Agenda a. Adoption of the Final Financing Resolution Authorizing the Issuance of 2026A Installment Purchase Financing for Various Capital Investment Plan Projects The Board adopted the final financing resolution authorizing the issuance of up to $32,000,000 in 2026A installment financing for capital investment projects and equipment for the fiscal year. BACKGROUND: At the May 5, 2026 Business meeting, the Board of County Commissioners conducted a public hearing and received preliminary information on capital projects and equipment financing for up to approximately $60.8 million. The Board made a preliminary determination to finance project, equipment and financing costs by the use of an installment financing, as authorized under Section 160A- 20 of the North Carolina General Statutes. The County routinely uses installment financing as the vehicle for the annual spring financing.The County has divided the total financing into two(2)installments:2026A and 2026B.This proposed action approves the issuance of the first installment identified as 2026A. With approval of the attached resolution, the Board gives final approval for the 2026A financing (up to $32,000,000). It approves substantially final financing documents, and authorizes staff to complete the closing. Staff anticipates receiving the required approval of the Local Government Commission on June 2, 2026, establishing the final bond amount and financing terms on June 10, 2026, and then closing the financing by the end of June 2026. As the process continues, staff will work with other financing team members to confirm final details of the funding and County payment arrangements, allowing staff to complete the remaining blanks in the documents.This process is consistent with past practice. The Board will be asked to give final approval of the 2026B issuance at the July 9, 2026, Business meeting. That issuance will primarily fund construction costs for the Crisis Diversion Facility. Notes regarding certain projects: - The Blackwood Farm Park project pertains to re-graveling and drainage work.There is no financing associated with this item for the proposed disc golf course. The Affordable Housing project pertains to Habitat East Village (funding for site infrastructure and development for East Village at Meadowlands 76 new units (2, 3, and 4-bedroom) of which 64 will be affordable Habitat homes for first-time homebuyers earning between 30% and 80%of area median income (AMI).The remaining 12 units (15%) in East Village will be market-rate homes. Pee Wee Homes pertains to construction of three (3) new affordable rental homes ("tiny homes") at 106 Hill Street in Carrboro. The 510 Meadowlands Phase 2 project pertains to remediation costs. COLLATERAL: In this type of County installment financing, the County secures its obligations to the bondholders by a mortgage-type interest in some or all the property being acquired or improved through the financing. The County plans to secure this 2026A financing through a pledge of several County 5 facilities, including the Justice Center, North Campus, Southern Campus, and the Emergency Operations Center on Meadowlands Drive in Hillsborough, as well as the Crisis Diversion Facility site. The County has flexibility to release individual portions of the collateral from financing liens when the release will advance other County priorities. No schools are being used as collateral for the 2026 financings, although schools remain as collateral for other County financings. As part of this financing process, the County will release Ephesus Elementary from all financing liens to simplify the Chapel Hill Carrboro City Schools Board's evaluation of the future of that school. Bondholders generally require that the County offer collateral equal to at least 50% of the loan amount (for example, at least $5 million of collateral for a $10 million loan). The prospective collateral package has an approximate value of$90.0 million. The current issue will take the total amount secured by this collateral package to approximately$122.3 million, providing a collateral ratio of approximately 73.4%. Gary Donaldson, Chief Financial Officer, made the following presentation: Slide#1 ORANGE COUNTY NORTH CAROLINA Limited Obligation Bonds, Series 2026A Final Financing Resolution Gary Donaldson,Chief Financial Officer May 19, 2026 6 Slide#2 Purpose := Obtain Board Approval of Resolution to Proceed with Series 2026A Final Financing Resolution Bonds will price and close in June Annual Budget Ordinance includes a reimbursement resolution hence$16.5 million of the bond funds will be reimbursing capital project expenditures already incurred this fiscal year r Funds obtained for our FY 2025-26 Capital Investment Plan through the Series 2026A Limited Obligation Bonds are secured by a 2018 Deed of Trust, with a security interest in various County facilities. The existing 2018 Deed of Trust pledged certain County property as collateral to help secure repayment of those earlier bonds. y The new 2025A financing is being added to the 2018 Deed of Trust which has sufficient Collateral capacity. y The Series 2026A Limited Obligation Bonds will fund various County projects including the Crisis Diversion Facility as well as the Durham Technical Community College Academic Building ORANGE COUNTY NORTH CAROLINA Gary Donaldson provided an overview of the 2026A installment purchase financing. He said bond counsel was in attendance and authored five attachments included in the agenda packet, including the resolution, the bond purchase agreement between the county and the underwriters, the deed of trust establishing the county's collateral security, and the official statement to be communicated to investment banks. He said the county plans to price and close the bonds in June. He said $16.5 million of the $29 million in projects being financed have already incurred expenditures, which will be reimbursed at the time of closing through the annual reimbursement resolution passed each year as part of the budget process. He said the deed of trust dates to 2018 and carries over additional available collateral capacity for the projects secured under the 2026A bonds. He said the anchor project is the Durham Tech building, for which the county has already received a guaranteed maximum price. He said a range of other projects carry useful lives of five years for vehicles and equipment up to a twenty-year maturity for the Durham Tech building. He said the Orange Grove Fire District promissory note will remain blank until the bonds are priced and will return to the manager and other signatories for execution. 7 Slide#3 FY 2026 Projects A 0 C 1 Vehicle Replacements County Vehicles $ 379,815 2 Information Technologies Infrastructure County 419,8.34 3 911 Com puter Aided Dispatch(CAD)Replacement County 302,534 4 Emergency Seances Renewal&Replacement County 484,92'r 5 Electric Vehicle Charging Stations for County Vehicles County 402,069 6 HVAC Projects County 2,130,047 7 Behavioral Health Crisis Diversion Facility(Land&Design) County 3,569,656 8 510 Meadowlands Phase 2 County 291,647 9 Board of Elections Expansion for Storage County 107,582 10 Parking Lot Improvements County 467,399 11 Facades County 911,648 12 Electrical Upgrades County 74,805 13 Fire Alarm,Fire Suppression System Replacements County, 261,488 14 Interior Finish Replacements County 357,105 15 Affordable Housing County 966,500 16 Blackwood Farm Park County 61,039 17 Efland Cheeks Community Center County 150,000 18 Generator Projects County 17,154 19 Orange County Bidirectional Anten na(BDA)Upgrade County 1,264,317 20 Durham Technical CC Academic Building College 11,275,000 21 Orange Grove Fire District OGFD 1,700,000 22 Solid Waste vehicles&Equipment Solid Waste 3,834,632 23 Sportspl- Sportsplex 126,581 24 Limited Obligation Bonds,Series 2026A Total $29.565,781 25 Behavioral Health Crisis Diversion Facility(Construction) Co urn y 29,929,352 26 Limited Obligation Bonds,Series 2026B Total $29,929,352 271 Limited Obligation Bonds,Series 2021 Grand Total $59,495,133 1 Note:Series 202SA&B LOBs do not include debt financing for school capital projects, �A Currentschool capital projects are anticipated to be funded from reactivated 2019 ORANGE COUNTY Bond Proceeds,increased Capital Reserves,and Pay Go NORTH CvAAROLINA Slide#4 Key Financing Terms Limited Obligation Bonds,Series 2026A&B ➢ Security Pledge-County assets serve as collateral,with payments subject to annual County appropriations ➢ Maturity Term-5-20 Year maturities matches the useful life of the assets ➢ April 1 and October 1 Repayment Dates to Bank Trustee;First Interest Payment on October 1,2026,and First Principal Payment on April 1,2028,consistent with the Debt Model ➢ Estimated Interest Rates- Between 4.5%-5.5%subject to market conditions ➢ Maximum Annual Debt Service-Estimated to be$6.395 million in FY 2028 ➢ Source of Repayment-Property Taxes,Solid Waste Fees,Sportsplex Fees,and OGFD Repayment ➢ Because Limited Obligation Bonds are not secured by a direct pledge of the County's taxing power,they are usually rated one notch below the County's general obligation bonds ➢ Current Limited Obligation Bonds-Aa1/AA+/AA+from Moody's,Standard&Pool and Fitch Ratings �1 ORANGE COUNTY NORTH CAROLINA 8 Gary Donaldson said the planning interest rate is estimated at between 4.5% and 5.5%, and that market conditions are more stable than the previous year, when tariff volatility impacted the municipal bond market. He said there have been no canceled municipal bond sales, and that the Orange County credit, along with North Carolina credits under LGC oversight, is well-received in the marketplace. He said the actual debt service sources for the Sportsplex and Solid Waste projects will come from their respective user fees, while property taxes will fund the county and Orange Grove Fire levy portions. He said the county's debt service as a percentage of general fund revenues and debt to assessed value remain within policy limits. He noted that Fitch has recently changed its methodology for rating municipal issuers and that the ratings will be shared with the Board once all three credit presentations are complete. He said the county's general obligation bonds carry a double-A rating and that the expectation for the limited obligation bonds is AA-plus from Fitch and AA1 from Moody's. Slide#5 Limited Obligation Bonds Collateral Overview Security Pledge- County assets serve as collateral, with payments subject to annual County appropriations Lenders generally require that the value of the collateral be equal to at least 50% of the financing amount (for example, at least $10 million of collateral for a $20 million loan) 9 The collateral for the Series 2025A&B Bonds will include the County's Northern and Southern Campuses, the County Justice Facility, and the new Crisis Diversion Facility.The value of this collateral will comfortably exceed lender requirements 9 Pursuant to the County's financing document, the County can continue to borrow money against this same collateral pool as long as a meaningful portion of the amount financed is used to improve property in the collateral pool ORANGE COUNTY NORTH CAROLINA 9 Slide#6 Debt Service Model Metrics All CIP Projects (Tax-Supported Debt) Debt Ratios ID-year Payout Debt to AV DS to GF Revenues 2026 63.55% 1.11% 11.42% 2027 58.82% 1.58% 12.78% 2028 57.55% 1.90% 13.64% 2029 61.14% 1.85% 17.31% 2030 63.36% 1.66% 18.61% 2031 62.29% 1.81% 16.30% 2032 62.87% 1.85% 18.60% 2033 65.59% 1.73% 19.71% 2034 68.13% 1.49% 19.51% 2035 95.47% 1.38% 18.63% 2036 97.51% 1.28% 17.71% ORANGE COUNTY NORTH CAROLINA Slide#7 Questions ORANGE COUNTY NORTH CAROLINA 10 Commissioner Carter asked how the recent movement in U.S. Treasury rates affects the county's bond timing and long-term debt service projections. Gary Donaldson responded that the planning rate of 5% has been retained and that the county's financial advisors are closely monitoring the market. He said there has not been nearlythe level of concern felt last year and that the county's strong credit profile means there is no significant budgetary impact anticipated from Treasury rate movements. A motion was made by Vice-Chair Fowler, seconded by Commissioner Bedford, to approve the final 2026A financing resolution,which authorizes the steps to complete the financing of the stated capital projects and equipment, in the form presented. VOTE: UNANIMOUS b. Discussion of Funding Request from Hope NC to Alliance Health to Support Acquisition of Units at Weaver's Grove for Supportive Housing for Adults with Intellectual/Developmental Disabilities at 30% AMI or Below The Board approved and authorized the Manager to sign a Memorandum of Agreement with Alliance Health to allocate$100,000 in funds earmarked for Orange County and held by Alliance Health to support the acquisition of four (4) townhomes at Weaver's Grove for Hope NC's affordable, supportive housing program for adults with Intellectual/Developmental Disabilities (I/DD). BACKGROUND: In April 2026, Alliance Health contacted Orange County regarding a request Alliance received from Laura Wells, Executive Director of Housing Options for People with Exceptionalities, Inc. (Hope NC). The request from Hope NC proposed $100,000 in financial assistance to support the final funding needed for the Phase 1 purchase in May 2026 of four(4)recently built townhomes at the Weaver's Grove development in Chapel Hill,North Carolina.Significant funding support for Phase 1 has already been provided to Hope NC from the North Carolina Housing Finance Agency ($569,000), a loan from the Town of Chapel Hill ($185,000) and from Hope NC's capital campaign and cash reserves ($106,000). Hope NC's mission is to create and expand safe,affordable and supportive housing options for people with I/DD. The four (4) Weaver's Grove units will be leased to eight (8) adults with I/DD at or below thirty percent (30%) of area median income (AMI) for Orange County that have supportive housing service needs.The residents will be supported by onsite Community Facilitators who will ensure their connection to critical supports in the neighborhood and the wider community. The majority of residents would be Alliance Health members and Hope NC will strive to ensure a minimum of 50% of the residents are from Orange County. Hope NC currently operates two (2) successful affordable housing programs for I/DD residents in Wake and Durham counties. This new program at Weaver's Grove will be the only available supportive affordable housing program of its kind in Orange County. Caitlin Fenhagen, Deputy County Manager, made the following presentation: 11 Slide#1 i ORANGE COUNTY NORTH CAROLINA Discussion of Funding Request for Hope NC's Purchase of Affordable, Low-Barrier, Supportive Housing at Weaver's Grove for Adults with I/DD May 19, 2026 BOCC Business Meeting Caitlin Fenhagen introduced Ann Oshel, Senior Vice President of Community Innovation and Impact at Alliance Health, and Laura Wells, Executive Director of Hope NC. Slide 2 BACKGROUND • In March 2026, Alliance Health received a request from Hope NC to provide $100,000 in funds to complete acquisition of 4 new housing units at Weaver's Grove that will support 8 adults with Intellectual/Developmental Disabilities (I/DD) • In April, Alliance Health requested that Orange County authorize the use of existing Cardinal realignment funds held by Alliance to support this funding request • These funds are earmarked for Orange County priorities and the existing fund balance is approximately $1 .2 million • The Cardinal fund balance has been discussed for support of the Crisis Diversion Facility z ORARN HE COUNTY CAROLINA Caitlin Fenhagen said that in March,Alliance Health received a request from Hope NC to consider providing$100,000 in funding to complete the acquisition of four new housing units at Weaver's Grove, a Habitat for Humanity development near Sunrise Road in Chapel Hill. She said the four duplexes will serve 12 eight adult individuals with intellectual and developmental disabilities (IDD). She said in April, Alliance Health contacted the county to request authorization for use of existing Cardinal Innovation transition realignment funds held by Alliance and earmarked for Orange County priorities. She said the remaining balance of those funds, approximately $1.2 million, is planned to support the county's crisis diversion facility. Slide#3 Hope NC Proposal • Hope NC is seeking $100,000 for the remainder of their Phase 1 acquisition cost for 4 new duplexes at Weaver's Grove for their supportive housing program serving 8 adults with I/DD • The units will be leased to eligible residents with VDD earning at or under 30% AMI • The supportive services will include on-site Community Facilitators to address independent living skills, referrals to vocational and employment services and integration with the community ORANGE COUNTY NORTH CAROLINA Caitlin Fenhagen said Hope NC's proposal is part of a Phase 1 acquisition expected to close this month. She said all other funding for the purchase is secured and that the $100,000 represents the final piece needed. She said eight applications for residency have already been received, with six applicants being existing Alliance Health members and three being current Orange County residents. She said the units will be leased to eligible residents with IDD earning at or below 30%AM I.She said supportive services will include on-site community facilitators to assist with independent living skills, referrals to vocational supports, and community integration at Weaver's Grove. She said Empowerment NC will serve as the property manager. 13 Slide#4 Additional Information • Hope NC expects to close on these units in May; all other funding for the Phase I purchase has been secured • 8 resident applications have been received; 6 are Alliance Health members and 3 of these individuals are currently Orange County residents • Residents will be eligible for Project-Based Vouchers from the Housing department ORANGE COUNTY NORTH CAROLINA Slide#5 The Homes MN MIN ORANGE COUNTY NORTH CAROLINA 14 Slide#6 The Community r , NO f. t . ii �1 ORANGE COUNTY NORTH CAROLINA Slide#7 Manager Recommendations • Receive the information and authorize the Manager to recommend to Alliance Health that $100,000 in Cardinal funds earmarked for Orange County be used to support Hope NC's purchase of the 4 duplexes • Authorize the Manager to sign an MOA with Alliance Health that restricts the use of this funding to housing serving adults with IIDD at or below 30% AMI and that the restriction is maintained for the 30-year Period of Affordability attached to the property ORANGE COUNTY NORTH CAROLINA Caitlin Fenhagen said the request before the Board is to authorize the County Manager to recommend to Alliance Health that the $100,000 from the Cardinal allotment be used to support Hope NC, and to authorize the Manager to sign a Memorandum of Agreement with Alliance Health restricting the use of the funding to housing serving adults with IDD at or below 30%AMI. She noted that a 30-year period of affordability is already in place for the units through other agreements. 15 Slide#8 Questions? ORANGE COUNTY NORTH CAROLINA Commissioner Portie-Ascott asked what the rental amount would be. Caitlin Fenhagen said there will be project-based vouchers that will cover the rent. She said Blake Rosser,Orange County's Housing Director, has confirmed that residents will be eligible for those vouchers. Commissioner Portie-Ascott asked about the prioritization of Orange County residents and how many approved residents currently reside in Orange County. Caitlin Fenhagen said that three of the eight approved residents currently live in Orange County. She said residents were selected before Orange County was involved in helping with the funding, but going forward,they are committed to maintaining 50%of the units for existing Orange County residents. Commissioner Carter asked if there are any remaining slots for Orange County residents. Laura Wells said that the tenant selection process was already completed before the county was involved in securing the final funding.She said Hope NC received 47 applications for eight slots, conducted an intensive selection process including interviews and a formal tenant selection plan, and ultimately selected all eight residents.She said six of the eight are existing Alliance Health members,one had recently returned from homelessness in Pennsylvania and is Alliance-eligible, and one is awaiting SSI approval but will also be Alliance-eligible. She said Hope NC is committed, with the county's funding agreement, to prioritizing Orange County residents for future unit turnover with a goal of maintaining at least 50%Orange County residency over time. Commissioner Carter said she appreciates the program and is excited about the step forward it represents for a community in great need of this type of support. However,she said that she is somewhat disappointed that only three of the eight incoming residents are current Orange County residents. She added that there is expected to be low turnover in permanent supportive housing. Vice-Chair Fowler noted that some of the 47 applicants who are not from Orange County may have previously lived in the county but been priced out or displaced. She said she has listened to Hope NC's meetings over the past several years and thinks it is wonderful that a$100,000 investment is helping to secure roughly $860,000 in already-committed funding. She said the Weaver's Grove setting is ideal, given it is a mixed-income, mixed-ability community, and highlighted the extreme difficulty of providing housing at 30%AMI to individuals with IDD. Commissioner McKee raised a question about the 30-year affordability period. Laura Wells said Hope NC is committed to maintaining affordability for people below 30% AMI indefinitely. She said the 30-year term reflects the requirements of specific funders, including the NC Housing Finance Agency and the Town of Chapel Hill.She said Habitat's ground lease ensures affordability at or below 80% AMI for the full 99-year term. She said if the Board desired, Hope NC would have no 16 problem signing an agreement to maintain 30% AMI affordability for the entire 99-year ground lease period. Commissioner McKee said he would prefer to see the affordability period match the ground lease when public money is involved, and that he wants the program to serve the population it is intended for as long as possible. Commissioner Greene praised this project. She said she does not necessarily agree with tying the formal affordability requirement to the full 99 years, noting that organizations like DHIC maintain their properties far beyond the 30-year LIHTC requirements as a matter of practice and mission. She said the real significance of the initiative lies in the partnership forged between Habitat for Humanity, Hope NC, and Empowerment NC, describing it as exactly the kind of collaborative, highly leveraged project the county wants to support for this population. Chair Hamilton raised a concern about the Memorandum of Agreement's language regarding the 50%Orange County residency requirement. She said the MOA as drafted indicates that the restrictions on affordability and Orange County residency apply for a term of five years, not 30, and that after five years there would be no enforceable guarantee that any beds would be reserved for Orange County residents. She said this inconsistency is concerning given the language about a 30-year affordability period elsewhere. Caitlin Fenhagen acknowledged the discrepancy.She said Alliance Health's attorney had reviewed the MOA and, upon the county attorney's original proposal of a 30-year term, Alliance struck it back to five years.She said their reasoning was that the$100,000 represents a five-year grant agreement and that the broader affordability is already protected through other funding agreements. She said she and John Roberts can attempt to renegotiate the language and offered to go back to Alliance Health to attempt to extend the restriction to 30 years. Commissioner Bedford said this is one of the Board's first examples of project-based vouchers.She asked how the Medicaid waiver for people with IDD works to support housing. Laura Wells said the Medicaid waiver does not cover housing. She said that is why Hope NC has tried to make partnerships with LME/MCOs to collaborate on inclusive housing. Commissioner Bedford said that is especially discouraging, given that there are 17,000 North Carolinians on the waitlist for a waiver and it wouldn't even help them with housing costs. She said she is very supportive of this project and appreciates all the work that was done to make it happen. She acknowledged the effort Habitat went through for 20 years to get this off the ground considering the neighbors opposing it. She said to be aware that EmPOWERment may not have training on supporting folks with IDD and encouraged training if needed. She said she hopes to get beyond the 30-year affordability period, and said she believes this is a model that can be replicated. Commissioner Portie-Ascott asked where the Orange County residents that were selected reside currently. Laura Wells said that she believes one is a Chapel Hill resident and the other two are from other parts of the county. John Roberts clarified the legal position offered by Alliance's attorney. He said Alliance's attorney indicated that having a 30-year affordability restriction in the MOA would require Alliance Health to record restrictive covenants on the property and to serve as the enforcer of those covenants for the entire period. He said Alliance is not willing to take on that long-term monitoring responsibility for what they view as a five-year grant agreement. Chair Hamilton said she does not understand their point about a five-year grant. John Roberts clarified that he is only conveying the other attorney's position, but that Alliance intends to issue the $100,000 grant for a five-year term. Chair Hamilton said that she does not agree with Alliance's position. 17 Commissioner McKee agreed with Chair Hamilton. He said the position seems designed to avoid long-term responsibility and expressed concern about what happens to residents five years from now if conditions change. Commissioner Bedford proposed that the county could have an MOU with Hope NC to ensure that there is prioritization for Orange County residents. She said she has good faith that Orange County residents would get some priority. Vice-Chair Fowler asked for clarification on why a fourth Orange County resident wasn't identified initially. Laura Wells shared again that the tenants were selected before approaching Alliance about funding. Ann Oshel offered a clarifying overview of Alliance Health's involvement. She said upon approval of the funding release,Alliance will issue a capital investment grant to Hope NC,outlining the terms of the tenant selection plan, requiring that all tenants have an IDD diagnosis and access to services.She said this would be Alliance's 17th capital investment in this type of model.She said the five-year period reflects the term of Alliance's monitoring responsibility fortheir grant,and that their standard capital investment grant language now requires grantees to follow the affordability requirements of other primary funders. She said if Hope NC defaults on another loan, Alliance reserves the right to require repayment. She said Alliance will continue to monitor compliance with tenant eligibility and fair housing practices throughout and expressed confidence that Hope NC would maintain the prioritization of Orange County residents and IDD-eligible individuals indefinitely. Commissioner Bedford asked who the property would revert to in the circumstance that Hope NC dissolves. Laura Wells said that Habitat has the right of first refusal. Chair Hamilton said she would like to see if Alliance Health would agree to include the 30-year affordability and eligibility period in the agreement. Caitlin Fenhagen supported Ann Oshel's explanation. She said because it is Alliance's grant and they have certain monitoring responsibilities,they are only interested in a five-year period.She reiterated that the affordability is preserved through other mechanisms. Chair Hamilton clarified that her current concern is not about the affordability period, but the prioritization period for Orange County residents in the event of an opening. Caitlin Fenhagen cautioned that Alliance Health may not be interested in monitoring for 30 years, but said she could see if they were willing. Commissioner Carter said she is supportive of the concept, but feels it is important to be able to show Orange County residents that the program has a path for 50% residency for them and for a future Board to not be confronted with that question down the road.She supported adding language to the MOU to ensure that will happen. Caitlin Fenhagen said the language in the MOU ensures that for five years, but some Commissions want to extend the 50% residency priority and affordability restriction to the full 30-year period in the MOA.She offered to go back to Alliance Health's attorney to attempt that revision,and suggested that the County Manager be authorized to sign once a resolution is reached. Commissioner Bedford restated the option of a secondary direct MOU between the county and Hope NC, without funding attached, committing Hope NC to maintain the Orange County preference. Caitlin Fenhagen said that is a possibility. Commissioner McKee said he doesn't want to hold up the process because they are closing this month on the properties, but said he thinks it is important to get some assurances in place. Commissioner Bedford said she is willing to vote for the item as currently written.She said she has good faith that Hope NC will continue to prioritize Orange County residents, but the word "strive" in the MOA does not represent a guarantee in any event, and given the desperate need for IDD housing, she 18 doesn't want to hold up the project due to geography. She said her own daughter is in Harnett County because that was the closest group home that was available at the time, and as a parent of a person with IDD, people will try to get the closest appropriate fit at the right level of service for their child or adult child. Commissioner Greene said she also wants to move forward with the motion as written. She said she found Ann Oshel's explanation of the five years convincing and thinks Commissioner Bedford has raised important points. She said this housing is needed, and Orange County is part of a region. Vice-Chair Fowler said the 30-year affordability period is part of Hope NC's agreement with Chapel Hill, so she is confident that it will not be an issue. She said she has trust in Hope NC and has seen what they've done with their projects in Grosvenor Gardens and Durham's North Street. She said she is wholeheartedly in favor of moving forward. A motion was made by Commissioner Greene, seconded by Vice-Chair Fowler, to authorize the Manager to request the allocation of$100,000 from Alliance Health to support the purchase of the four (4) Phase 1 units at Weaver's Grove for affordable,supportive I/DD housing, and to approve and authorize the Manager to sign a Memorandum of Agreement with Alliance Health memorializing the understanding that Alliance Health will contract with Hope NC to provide these funds and will ensure the restrictions on affordability and eligibility are maintained for the existing 30-year Period of Affordability. Commissioner McKee said he is not going to vote against the item,but was disappointed the Board was not willing to take a few additional days to resolve the five-year versus thirty-year issue more definitively. VOTE:Ayes,4(Commissioner Bedford,Commissioner Greene,Vice-Chair Fowler,Commissioner McKee); Nays, 3 (Commissioner Carter, Chair Hamilton, Commissioner Portie-Ascott) MOTION PASSES c. HOME 2026-27 Annual Action Plan (AAP)Approval The Board approved the 2026-27 HOME Investment Partnership Annual Action Plan, a resolution authorizing the Orange County FY 2026-27 Home Design Program and authorized the Chair to sign said resolution, and a resolution authorizing the submission of the FY 2026-27 Annual Action Plan for Orange County, North Carolina. 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 municipality for final approval. The Annual Action Plan shares how Orange County plans to use HOME funding in a given year. At the Business meeting on April 7, 2026, the Orange County Board of Commissioners held a 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 2026-27 Annual Action Plan.The public comment period was open from March 23,2026 to April 23, 2026,and no comments were received at the hearing or during this period. 19 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 newly developed 2025-29 Consolidated Plan priorities of Repair/Rehab and Tenant-Based Rental Assistance. Given the above factors, plus the announced award amount of$381,456.81,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$271,981.33 to OCPEH for TBRA. Blake Rosser, Housing Director, made the following presentation: Slide#1 HOME 2026-27 Annual Action Plan (AAP) May 5, 2026 ORANGE COUNTY NORTH CAROLINA Blake Rosser said the purpose of the agenda item is to formalize the plans discussed during the previous month's public hearing regarding the HOME funding annual action plan for fiscal year 2026-27. He apologized for the late addition of two required resolutions to the agenda packet, noting that the documents had been placed at the dais by staff. He said he reviewed last year's submission and found he had provided them in August, adding that he is improving on timeliness and is confident the materials will be included in the packet on time next year. 20 Slide#2 Available funds for 2026-27 HOME 26-27 HOME Award Amount $381,456.81 Match Amount $95,364.20 Program Income* $13,306 Administration ($38,145.68) TOTAL $451,981.33 'Annual payments made by Community Home Trust for previous assistance to The Landings at Winnmore i-' ORANGE COUNTY NOM-I I C:AROLINA Blake Rosser said the HOME award amount is $381,456, and that when the match amount and program income are added, and the 10% administration allowance is subtracted, the consortium has approximately$450,000 to work with for the year. Slide#3 Proposed funding allocation Habitat for Humanity Repair& Rehabilitation $180,000* OC Partnership to Tenant-Based Rental $271,981.33 End Homelessness Assistance (TBRA) Administration $38,145.68 TOTAL $490,127.01 *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. • �� ORANGE COUNTY • • **^I NORTH CAROLINA y FARO,' Blake Rosser said the recommendation from the Home Consortium and the local government affordable housing collaborative is to fund Habitat for Humanity's full request of$180,000 and to fund the 21 remaining balance of$271,981 to the Partnership to End Homelessness for tenant-based rental assistance. He said these were the only two applications received and that both align perfectly with the new consolidated plan priorities of repair and rehabilitation and tenant-based rental assistance. Slide#4 Next Steps • May 2026—Towns and County approve final plan • June —Staff submits plans to HUD • June/July—Staff executes Development Agreements with OCPEH and Habitat for Humanity oµ� �l d �1 • ORANGE COUNTY • oRr•• s`z NORTH CAROLINA F/CAQ Blake Rosser said the plan has already been through all partner boards for approval and was being considered by the final council that same evening. He said pending approval by the Board,the plan will be submitted to HUD in June, after which development agreements with Habitat for Humanity and the Partnership to End Homelessness will be executed so that fund disbursement can begin. A motion was made by Vice-Chair Fowler, seconded by Commissioner Carter, to approve the Annual Action Plan,a resolution authorizing the Orange County FY 2026-27 Home Design Program, and to authorize the Chair to sign said resolution, and a resolution authorizing the submission of the FY 2026-27 Annual Action Plan for Orange County, North Carolina. VOTE: UNANIMOUS 7. Reports None. 8.Consent Agenda A motion was made by Vice-Chair Fowler, seconded by Chair Hamilton, to approve the consent agenda. VOTE: UNANIMOUS 22 a. Minutes for April 16, 2026,April 21, 2026, and April 30, 2026 The Board approved the minutes for the April 16, 2026, April 21, 2026, and April 30, 2026 Board of Commissioners Meetings. b. Updated Tax Collector's Partial FY 2025-26 Settlement for July 1, 2025 through March 31, 2026 The Board: 1) Received an updated Tax Collector's partial settlement on current and delinquent taxes for Fiscal Year 2025-2026 through March 31, 2026, based on the retirement of Tax Administrator Nancy Freeman as of March 31, 2026; and 2) Considered approving and authorizing the Chair to sign the resolution for the accounting thereof. c. Refund Request for Overpayment of Excise Tax for Attorney Kendall Page's Office The Board approved a refund for overpayment of excise tax in the amount of $1,458, with the refund check, if approved, being issued to Alexandra Elder based on the funds originally coming from her personal account. d. Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center The Board approved a renewal of the Health Services Agreement with Southern Health Partners for medical services at the Orange County Detention Center. e. Emergency Medical Services (EMS)Week Proclamation The Board approved a proclamation recognizing the week of May 17-23, 2026, as EMS Week in Orange County, highlighting First Responders for their amazing work throughout the year. f. Heat Awareness Week Proclamation The Board approved a proclamation declaring May 18-22, 2026, as "Orange County Heat Awareness Week." g.Approval of Household Hazardous Waste Contract The Board approved the Department of Solid Waste Management entering into a Household Hazardous Waste Contract with Tradebe Environmental Services, LLC for an initial five-year term and two (2)optional two-year extensions. h. Fiscal Year 2025-26 Budget Amendment#10 The Board approved budget, grant, and capital project ordinance amendments for Fiscal Year 2025-26. i. Declaration of Easements and Restrictive Covenants for the Crisis Diversion Facility The Board approved a Declaration of Easements and Restrictive Covenants between Orange County and Capkov Ventures, Inc.for the Crisis Diversion Facility,and authorized the Chair to sign the document upon final review by the County Attorney. j. Emergency Access Easement to Connect Lake Orange Road with Lake View Drive The Board approved an emergency access easement that permits Emergency Services vehicles to cross a property that connects Lake Orange Road with Lakeview Drive, and authorized the Chair to sign the easement document upon final review by the County Attorney. k. Boards and Commissions—Appointments The Board approved the Boards and Commissions appointments as reviewed and discussed during the May 12, 2026 Work Session. 9. County Manager's Report Travis Myren provided a reminder of upcoming budget work sessions. He said the May 21, 2026 budget work session will cover fire districts, public safety, and human services, and will also include information on the education funding implications of the state's proposed 8% teacher raises, assuming that legislation moves forward, as well as approximately six staff budget amendments reflecting new information received since the budget was introduced. He said the May 26, 2026 work session will cover support services, general government, and community services, and that the May 28, 2026 session will 23 include the Budget and Capital Investment Plan public hearing and a review of upcoming Boards and Commissions appointments. 10. County Attorney's Report John Roberts said several legislative bills are still coming in and he will provide a report later in the week. He said a regulatory reform bill appears to be moving through the General Assembly and that it has prompted enough concern among county attorneys statewide to convene a working group to discuss its implications. He said a meeting of county attorneys is scheduled for Friday, and he will send a report to the Board once he has more details. 11.Appointments None. 12. Information Items • May 5, 2026 BOCC Meeting Follow-up Actions List • Memorandum Regarding Orange County Food System Assessment • Memorandum Regarding Financial Report- FY 2025-26 Third Quarter 13. Closed Session None. Adjournment A motion was made by Vice-Chair Fowler, seconded by Commissioner Bedford, to adjourn the meeting at 8:15 p.m. VOTE: UNANIMOUS Jean Hamilton, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board