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HomeMy WebLinkAboutAgenda - 06-17-2003-9aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 17, 2003 Action Agen a Item No. ~_ SUBJECT: Housin Bond Pro ram NT: Housing/Community Dev. PUBLIC HEARING: (YIN) No DEPARTME ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes, ext 2490 Proposal Summaries Bond Applications (Previously Provided T FliEsboOrough 732 8881 Under Separate Cover) Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider awarding funding to affordablended Iagen~y detailing then onditions of the Manager to issue a Letter of Commitment to each fu 9 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. 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 Spe oat Needs InOwnership or established in the S llec al Needs Rental and Cooperatipe Housing. Rentals; and Non p Applications were due by the end of business on December 16, 2002, and five (5) applications ro osals requested a total of $1,267,000. A were received by the deadline date. The five (5) p p p lications is summary of each application is provided with this abstract and a full co y of the app provided under separate cover. times to review applications and also invited each The Project Review Committee met three (3) applicant to meet with the Committee to discuss their a Affordable Hous ng Advisory Board Review and Selection (PRS) Committee included three members -Frances Douglas, Stephen Jenks and Tracey Dudley; and the following staff persons -Assistant County Manager Gwen HarveYna ° e Dgect rr Ken'Chav'ouspJame DHarr sr Tara L. Fikes; Planning Director Craig Benedict, Fi of Carrboro; Loryn Barnes of the Town of Chembersl on De ember 2h2002e The PRS Hillsborough. The BOCC appointed these m Committee funding recommendations are indicated in the chart below. 2 Requested PRS Recommendation BOC5 ~ 103sion Project Type Homeownership 000 $90 $80,000 $90,000 EmPOWERment, Inc. , 000 $170 $170,000 $170,000 Habitat for Humanity , Special Needs OPC Foundation $260,000 Non-Special Needs Rental Affordable Rentals Weaver Community Housing $364,000 $270,000 $270,000 Association TOTAL $1,267,000 530,000 ~ $260,000 These recommendations were submitted to the BOCC for consideration and approval at the May 20, 2003 meeting. At that time, the Board approved bond funding for EmPOWERment, Inc. and Habitat for Humanity, Inc. The Board asked es nAddi Tonally, t e BoaOrd asked staff to and Affordable Rentals to correct application defortive Services Plan contained in the Weaver obtain additional information regarding the Supp Community Housing Association application. County staff has worked with the three applicants and has received additional information for each application. This information has been reviewed and staff provides the following assessment. Weaver Community Housing Association There was a request for evidence of formal cola{ onr ntltherfoam of folpmalr~ontraats rather than Supportive Services Plan of the original applic support letters. Staff Response: The applicant has submitted copies of Memorandums or D ervices tol be with: i. InterFaith Council (IFC) detailing the referral process and supp provided to IFC referrals; ii: Good Work, Inc. detailing services to b Tpust and the Women~s Center outlining the iii. Orange Community Housing and Land referral process. A copy of the "Agency Referral Form" to be used to make referrals to the project was also submitted to County staff. OPC Foundation g lication and allow The Board agreed to suspend the process outlined in the Housin Bond App this organization to provide additional information to supplement the original application. Staff Response: OPC Foundation provided the following information to address the original application deficiencies: i. Project Design Narrative ii. Project Feasibility Narrative including a letter confirming Zoning Compliance. iii. Full Description of Developer Experience iv. Support Services Plan The Foundation was not able to provide evidence of a to that the have been successful ~n d funds in the project. Nevertheless, the Foundation sta Y acquiring private mortgages for similar projects in the pmendsdthat f theoBoard awardsebond h securing private financing for this project. Staff recom funds to the project, then the Foundation must provide a Letter of Financial Commitment before entering into a Development Agreement with the County. Affordable Rentals lication and allow The Board agreed to suspend the process outlined in the lement the or~ napapplication. this organization to provide additional information to supp 9 Staff Response: Affordable Rentals has provided the following information to address the original application deficiencies: i. Complete Property Rehabilitation Plans and Estimates ii. An updated Project Feasibility Section to include a letter from a local financial institution pledging project support and evidence of unit availability in Abbey Court over the last year in lieu of purchase contracts iii. Additional information regarding Board and Staff expertise All final funding decisions are made at the discretion of the Board of County Commissioners. The possible funding decisions by the BOCC include full funding; partial funding; and no funding with a recommendation to reapply during the next funding round. Additionally, feedback from the Board of County Commissioners, the Housing Bond Review and Selection Committee, and bond applicants after the first 2001 funding round has indicated a need for further revision of the County Housing Bond Policy. Sufficient time was not available to prepare and complete the policy revisions for consideration at this meeting. The policy revisions in ablack-line/strikeover format will be presented at the first BOCC meeting in August. FINANCIAL IMPACT: There is approximately $780,000 available for award in Round One bond funding. The remaining requests total $894,000, 13% more than is available. As additional information, unit cost data is provided in the proposal summaries attached to this abstract. 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 Subsidy Per Dwelling Unit: $30,000 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 nt must be su ~ essful n a~ ezonmglregluest forgone of the this project as designed, EmPOWERme 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 Project 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: Subsidy Per Dwelling Unit: $14,167 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 - llecember 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. un»cinu Bond Proiect Summary Applicant: Weaver Community Housing Corporation Project Title: Cedar Rock Cooperative Request for Bond Funds: Subsi~~ PPr Dwelling Unit: $22,500 $270,000 Total Project Costs: $682,253 Bond Fund Leverage: 39% bond funds; 61% other funding sources Project Description: The Weaver Community Housing Association (W reensborosStreetg n narrboro~rThis purchase of the Cedar Rock Apartments at 703 and 705 N. G property contains six (6) three-bedroom apartments thot at He esidential tclommun ty fporr lol~'- model by converting these six apartments into a co p income families and individuals. For clarification, a "coope inin bath,lkit henland comamunhty includes private sleeping space and shared access to living, d g, facilities. Specifically, WCHA will provide 12 cooperative units (bedrooms): eight for individuals and four for families and one apartment will be commumtiesp counsel ng,e and gUet care, co-op meetings, skill development workshops, soda 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 wfor at least 99 yearslthrough he se of deed County Commissioners and guarantee affordability restrictions. Housing Bond Project Summary Applicant: Affordable Rentals, Inc. Project Title: Abbey Court Condominiums Request for Bond Funds: $364,000 Subsidy Per Dwelling Unit: $28,000 Total Project Costs: $682,666 Bond Fund Leverage: 53% bond funds; 47% other funds Project Description: 000 to assist in the acquisition of 13 rental Affordable Rentals, Inc. is requesting $364, 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 Proiect Summary Applicant: OPC Foundation for Mental Health Project Title: Property Acquisition Program Request for Bond Funds: $260,000 Subsidy Per Dwelling Unit: $65,000 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 $260,00(1 in Orange County Housing Bond funds to assist in the acquisitionovated and leased to disabled adults1riTwo (2) of the four purchase, the apartments. would be ren (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.