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HomeMy WebLinkAboutAgenda - 04-11-2000-5cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 11, 2000 Action Agenda Item No. ~° ~,. SUBJECT: Affordable Housing Bond Program DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Status Report . Housing Bond Policy Long-Term Affordability Policy INFORMATION CONTACT: Tara L. Fikes, ext. 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501, Durham 688-7331 Mebane 336-227-2031 PURPOSE: To discuss the steps necessary for full implementation of the Affordable Housing Bond Program. BACKGROUND; In December 1999, based on the recommendation of the Band Project Review Committee, staff presented eight projects for funding from the 1997 Affordable Housing Bonds. In December 1999 and January 2000, the Board awarded bond .funding to EmPQWERment, Inc, Habitat for Humanity, and Scarlett Drive for time sensitive projects to be undertaken by these non-profit organizations. At that time, the Board indicated a need to discuss the evaluation criteria for potential bond projects and long-term affordability prior to awarding additional bond funding. To facilitate this discussion, the following items are included with this abstract: 1. Housing Bond Program Status Report 2. Housing Bond Policy including Evaluation Criteria 3. Long-Term Affordability Policy (dated April 4, 2000) FINANCIAL IMPACT: Housing Bond funds in the amount of $1,110,000 are available for affordable housing projects. RECOMMENDATION(S): The Manager recommends that the Board discuss the steps necessary for full implementation of the Affordable Housing Bond Program. SIRANC~E COUNTY HOUSING BOND PRQGRAM Status Report --April 3, 2000 I. Bond Approval November 1997 I. Bond Policy Committee Apri17, 199$ This committee establishes policies governing the expenditure of bond funds far pausing programs. Issues to be addressed include: Eligible Program Types; Income Targeting; Long-Term Affordability; and Project Evaluation Criteria including Maximum Leveraging. Task Foxce Representatives: EmPOWERment, Incorporated; Habitat for Humanity of Orange County, Inc.; Inter-Faith Council for Social Service; Joint Orange-Chatham Community Action Agency; Knolls Development Association; Northside Community Association; L. Lane Sarver, Incorporated; Orange Community Housing Corporation; Orange Congregations in Mission; Orange-Person Chatham Mental Health Agency; Orange County Disability Awareness Council; Orange County Manager's Office; Town of Chapel Hill Manager's Office; Town of Carrboro Manager's Office; Town of Hillsborough; UCC Living Centers, Inc.; Hillsborough Affordable Housing Corporation. Committee presents policy recommendations to BOCC. October 1998 (Board requested revisions.) BOCC approves Housing Bond Policy December 1998 II. Request for Proposals Interested persons, including non-profit organizations and private developers, interested in utilizing bond funding for specific housing projects were invited to submit a funding proposal to the County far review and approval. Request for Proposal Invitation Period/Submission May, June, July 1999 III. County Review of Proposals A County staff committee will evaluate project proposals and make funding recommendations to the County Manager. The Staff committee would include the: Assistant County Manager (Human Services); County Engineer; Finance Director; Housing and Community Development Director; and the Planning Director. Local planning department personnel in other county jurisdictions were invited to participate in reviewing proposed projects in their jurisdictions. August, September, October 1999 IV. Recommendations The Board of County Commissioners, must approve all pousing bond projects. Project proposals recommended for funding by the staff committee, with the concurrence of the County Manager, are placed on a regular Board of County Commissioners meeting agenda far consideration. November; December; January 1999 04/03/2000 V. Current Status Approved Projects Project Title Funding Number of Units Recommendation a. New Construction i. Orange Community Housing Corporation Scazlette Drive $140,000 14 townhouses b. Land Acquisition i. Habitat for Humanity - Efland/Cheeks $460,000 44 single family dwellings ii. EmPOWERment, Inc. - $90,000 4 condominiums Pine Hill Drive TOTAL $690,000 BOND FUND BALANCE $~. 110 000 Other Recommended Projects Project Title Funding Number of Units Recommendation b. New Construction i. Orange Community Housing Corporation Meadowmont $450,000 32 townhouses c. Existing Programs i. RentalPropertyAcq/Rehab a. EmPOWERment, Inc. $100,000 8 standazd, one-bedroom S kes/Gomains Street a artments b. Har ves Street $100,000 ~ 11 standazd a artments c. OPC Mental Health $ 80 000 2 condominiums ii. Ur ent Re air Pro $100 000 30 owner-occu ied dwellin s TOTAL $830,ODD BOND BALANCE $2$0,000 Delayed projects -further review by the Review Committee 1. Existing Programs a. EmPOWERment, Inc. Community Revitalization Program $270,000 2. New Construction/Acquisition a. Pines Community Center, Inc. Land Acquisition $279,000 04/03/2000 r o i B dP li Established: September 9998 Approved: December 75, 1998 This document outlines the policies governing the expenditure of ,1997 Affordable Housing Bond funds. Only non-profit entities will be eligible to apply for funding under the County's bond program. Non-profits may partner with ,for-profit entities to develop projects, however, in those cases, the non-profit must have the controlling majority in the project (more than 50% interest). A. Loan Program Types Developers and projects would be selected on a Request for Proposal basis subject to established evaluation criteria and targeting goals. The following programs would be implemented using funds from the voter-approved housing bonds and other available resources. Examples of other available resources include: the Community Development Block Grant (CDBG) Program, HOME Investment Partnerships Program, NC Housing Finance Agency Programs, as well as local general fund contributions. 1. Exis~ng_Housing Programs - Target Funding: 33% or $594,000 All Existing Housing Program activifies should be complefed wifhin three years of funding award. Bond fund recipienfs will be required fo submif a status report to the County each year during project imp/emenfation. Any requests for time extensions will be granted at the discretion of the Board of County Commissioners and must be submifted of least six monfhs prior to fhe deadline date.. a. Affordable Housing Loan Program The focus of this homeownership program would be direct assistance to eligible borrowers. An eligible homeowner is one that has not owned a home.in the past three (3) years. Income-eligible borrowers would be pre- qualified for first and second mortgages by a local housing non-profit agency with the cooperation of local lenders. All prospective homebuyers would have to complete acounty-approved homebuyer education program prior to receiving approval to participate in the program. The County would provide a "pre-commitment" letter to the .borrower, who could then purchase a standard home available on the market that they could afford and that sold for less than the FHA maximum sales price for this area. The eligible borrower must provide a minimum of $750 cash contribution to this transaction. - b. Rehabilitation of Substandard Housing -Second .Mortgage This program would provide direct assistance to eligible homeowners and 501(c)(3) non-profit organizations which own rental property for rehabilitation of units with code violations. c. Community Revitalization Loan Program This program would provide assistance with the purchase and rehabilitation of existing properly by first-time homebuyers. The guidelines governing this program will be in accordance with the existing County and Town of Chapel HiII Programs with the same name. d. Acquisition for Low Income Rental Housing Funds would be used to assist Ioca1501(c)(3) organizations purchase and, if necessary, renovate available property far lease to low income Orange County residents. e. Urgent Repair Program The program would be used to provide funds for home repairs that eliminate potential life or safety threats to low-income homeowners and/or enable the elderly and disabled to remain in their homes by providing essential accessibility modifications. 2. New Construction,Programs - Target Funding: 67% or $1,206,000 All New Construction program activities should begin within three years of funding award. Bond fund recipients will be required to submit a status report to the County each year during project implemenfation. Any requests for time extensions will be granted at the discrefion of the Board of County Commissioners and must be submitted at least six months prior tp the deadline date. a. New Construction -Second Mortgage Assistance may be provided to non-profit housing developers of new construction projects for first-time homebuyers and/or renters. A Builder Participation Agreement would set aside a funding allocation for second mortgages to developers/homebuyers in a specific project: For rental projects, the use of federal income tax credits and Section 8 certificates and vouchers must be utilized if available. b. Land Acquisition This program would enable a local 501(c)(3) non-profit organization to acquire and hold available land suitable for affordable housing development. The land would subsequently by developed by any non- profit organization with a sound, site-specific, development proposal within eighteen months. Actual construction must begin within three (3) years of the original application date. The bond money investment for land 2 01 /19/00 purchase would remain with the land as a second mortgage with deed restrictions. B. Income Targeting The recommended income categories include: a, Families with incomes below 25% of area median income; b. Families with incomes below 2fi-50% of area median income; c. Families with incomes below 51-80% of area median income; C. Evaluation Criteria The evaluation criteria below will be used in reviewing and ranking housing bond fund proposals. Additional guidelines may need to be added to these in the actual solicitation package depending upon the location and nature of the project. I, Affordability (30 points) The degree to which the proposed project would serve those with incomes below the maximum and the period of time over which the project would remain afFordable to that income group. a. Income targeting - 20 points - If the project is designed to serve households earning less than 50% of the area median income, the full 20 points will be awarded. - If the project serves household earning less than 60% of the area median income, 15 points will be awarded. - If the project serves household earning less than 70% of the area median income, 10 points will be awarded. - . If the project serves household earning less than 80% of the area median income, 5 points will be awarded. - (BONUS) If 100% of the units in a project serves. households earning less than 25% of the area median income, 5 points will be awarded, 3 01 /19/00 b, Affordability -10 points - If the project is designed to remain affordable for over 40 years, the. full 10 points will be awarded. The period of affordability will be reinforced by deed restrictions. - If a project is designed to remain affordable for 31 - 40 years, five points will be awarded. The period of affordability will be reinforced by deed restrictions. II. Leveraging_(20 points) The degree to which the proposed project includes funding from other sources and minimizes County Bond funds required, given the income groups served. All outside funding sources must be committed within six (6) months of the date of the project proposal. - If 90% of total project cost is financed by outside sources and 10% is financed by bond funds, the full 20 points will be awarded. - If 80% of total project cost is financed by outside sources and 20% is financed by bond funds, 18 points will be awarded. - If 70% of total project cost is financed by outside sources and 30% is financed by bond funds, 16 points will be awarded. - If GO% of total project cost is financed by outside sources and 40% is financed by band funds, 14 points will be awarded. - If 50% of total project cost is financed by autside sources and 50% is financed by bond funds, 12 points will be awarded. - If 40% of total project cost is financed by outside sources and 60% is financed by bond funds, 10 points will be awarded. - If 30% of total project cost is financed by outside sources and 70% is financed by bond funds, 8 points will be awarded. - If 20% of total project cost is financed by outside sources and 80% is financed by bond funds, 6 points will be awarded. - If 10% of total project cost is financed by outside sources and 90% is financed by bond funds, 4 points will be awarded. D If a project is funded 100% with bond funds, 0 points will be awarded. 4 01/19/00 III. Design (10 points) The quality of the design of the site plan and housing units, with respect to attractive appearance, functionality, and compatibility with the surrounding area. - If the project is designed to be energy efficient according to the NC Housing Finance 'Agency Energy Efficiency Criteria, 5 points will be awarded. (See Attachment I for NCHFA Energy Standards) - If the project fits well into the surrounding area in terms of building style, design, and materials, 5 paints will be awarded. - (BONUS) If the project meets the accessibility needs of persons with disabilities, 5 points will be awarded. IV. Comm~anity~ponsot'~hi~gDOrt (10 paints) The degree to which the sponsoring organization demonstrates plans for strong community participation throughout the development of a project. - If the applicant coordinated its application with other organizations to compliment and/or support the proposed project, 4 points will be awarded. - If the applicant involved the intended beneficiaries of the project in the development of the application, 2 points will be awarded. - If the applicant demonstrates that it has been actively involved, or if not currently active, the steps it will take to become actively involved in the Community's Consolidated Planning process to identify and address a housing need /problem that is related in whale or part, directly or indirectly to the proposed project, 2 points will be awarded. - If the applicant developed or plans to develop linkages with other activities, programs or projects related to the proposed project (i.e. support services) to coordinate its activities so solutions are holistic and comprehensive, 2 points will be awarded. - (BONUS) If the applicant will involve persons with disabilities in the development and operation of the project, 2 points will be awarded. V. Project,~~asibility (15 points) 5 01/19/00 The degree to which the project has the following characteristics: cohesiveness; timeliness with regard to construction scheduling; zoning requirements; innovation; and completeness of the proposal submitted for review. - Minimum requirements include site control and a complete application. - If everything is in place (commitment letter, proper zoning, site control, complete project proposal, the full 15 points will be awarded. - If all.funding is in place, 10 paints will be awarded. - If proper zoning is in place, 5 points will be awarded. - (BONUS) If the applicant has. contractor commitments and necessary building permits, 5 bonus points, will be awarded. VI. ~elop~ Experience (15 points) The scope, extent and quality of the Sponsor's experience in housing or related services to those proposed to be served by the project and the scope of the proposed project (i.e. number of units, services, relocation costs, development, and operation) in relationship to the Sponsor's demonstrated development and management capacity, as well as its financial management capability. This includes the Sponsor's utilization of minority and women-owned businesses, and other allied small businesses in the planning and development of the project. Partnerships by local organizations will be encouraged. The amount of experience of the project sponsor -and the proposed development team in carrying out similar projects in a successful fashion, particularly with respect to reasonably meeting project budgets and timetables on such projects. This would include review of the organization's track record in handling projects which used town or county local funds and/or funds awarded to the local governments in Orange County by the federal or state government. In the case of rental projects, the amount of experience the project sponsor and management company have in managing low income housing including an adequate management plan for dealing with special population needs and special community needs. The minimum acceptable number of points is 60 with points awarded from five of the six evaluation categories. 6 01/19/00 -o D, Protect Review and Seiection A County Committee will evaluate project proposals and make funding recommendations to the County Manager. The County Committee would include the: Assistant County Manager (Human Services); County Engineer; Finance Director; Housing and Community Development Director; and the Planning Director. In addition, local planning department ,personnel from the ,planned project's jurisdiction will be invited to review proposals, as well as a member of the Orange County Housing Coalition who is unassociated with any existing housing non-profit organization. All housing bond projects must be approved by the Board of County Commissioners. Project proposals recommended for funding by the staff committee, with the concurrence of the County Manager, will be placed on a regular Board of County Commissioners meeting agenda for their consideration. E. Program Monitoring and Reporting ABODE, the Coalition for Housing Diversity in Orange County will review the bond program at least semi-annually to monitor the hausing bond program, raise policy issues with staff, and receive information. At the end of each year of program implementation, an Annual Report will be prepared detailing a review of the past year's bond program activities. The review of past activities will be conducted by local staff and members of -the Orange County Housing Coalition Steering Committee. The annual report will include a review of past year activities, a current market analysis and recommended program priorities for the coming year. This information would be made available to all County residents and formally presented to the Orange County Board of Commissioners during a regularly scheduled meeting. 7 01 /19/00 ATTACHMENT I NCHFA ENERGY STANDARDS ~a NORTH CAROL]NA HOUSING' STAN CE AGEI~,TCY ~. - HOUSING REHA~3ILTTATION PRQGRAMS - A~ Energy Standards - (For the rehabilitation of housing in buildings of ono to four dwelling units) (Effective May 1, 1199 introduction. ~ There is no doubt about the need to reduce household energy use. Houses accouzit for over one-sixth .of our national energy consumption. We have been exposed to countless facts and figures illustrating the need for and possibility of cutting this fraction in half. We have heard haw many thousands of tons of polluting chemicals and particulates cpuld be avoided, how many do2ens of nucleaz power plants we would not have to build, -how many millions of barrels of foreign oil we would not have to import if all our homes were as energy-eff cient as we know how to make them. And, there is no doubt that our housing rehabilitation prograttis' 'targeted betieficiaries are among the hazdest hit by borne energy casts. Nationally, the poorest 20% of households spend almost 15°!0 of their income for home energy, while the next 40% of Americans spend about d% of income for home energy. Ta those with incomes below half the state's median, to the elderly and disabled on low, fixed incomes, and to single-parent families struggling tv break the cycle of poverty, a saving of even $30 or $40 per month in energy costs is very significant. There is no doubt about that. . However, what is not so cleaz-cut is which specific ,measures should be taken on a given dwelling unit to improve its energy-efficiency, Every house we wank on is unique, and many of them were "homemade" to no set standazds. Plus, the burgeoning field of building science gives us new diagnostic techniques, new sets of priorities and new energy-saving products at such a pace that few can keep up. What follows, then, is an attempt to guide qualified and experienced rehabilitation specialists in providing the most appropriate measures with available funding to save money for low- and moderate-income clientele, and to save energy resources far posterity. • $ackground. The first edition of these standards was developed in 1990 to govern rehabilitation funded by the North Catalina Housing Trust Fund's Rehabilitation Incentive Program. A set of standazds developed by the North Carolina Alternative Energy Corporation (AEC) was used as a guide, as were documents from low-income housing rehabilitation programs in other states. The first edition was reviewed by AEC, the Energy Division (of the North Cazalina Department of Commerce) and the North, Carolina Solar Center. Their comments lead to several important improvements. In developing 'two subsequent editions feedback from many others, including rehabilitation specialists representing Rehabilitation Incentive Program recipient organizations, was responsible for additional improvements. ~3 NCHFA HOUSING REHABII.,fTA'I'ION PROGRAMS -- Energy Standards This, the fourth edition, was reviewed in draft by many interested parties, including the - membership of the North Carolina Residential Energy Forum. Comments were received- from representatives of AEG, the Energy Division, Duke Power, Carolina Electric Cooperatives, ' and the Solar Center, as well as from Harry J. Bondy of the firm Energy Innovations by Hany~Boody. Collectively, their feedback was invaluable and greatly appreciated. Users of this edition are encouraged to comment on their experiences and/or recommend further improvements. General Guidelines. When determining the feasibility of rehabilitation for a given. dwelling unit and the prioritization of optional rehabilitation work items, recipients should be guided by these general principles: 1) Do not "throw good money after bad." That is, if a unit cannot be made ' standard (decent, safe, sanitary and affordable) with the funds available for the purpose, do not treat the unit. A utut rehabilitated with program assistance should be capable, with reasonable maintenance, of providing standard housing for at least 3Q more years. 2) Do not leave "bad apples." Whenever possible avoid leaving dilapidated units in close proximity of treated units. Such structures contribute to neighborhood disinvestment and can ultimately undermine the work you have done, ' 3) When in doubt about the appropriateness of an optional energy-related rehabilitation work item, consider whether the proposed improvement will pay for itself over its expected useful life. If it will not, it may be best not to do it. 4) Remember that home energy conservation is a year-round process. ]:n addition to winter heat-loss, attention should be paid to summer heat-gain, ventilating, shading, drainage, etc. 5) Where local utility companies offer discount rates to homes meeting certain energy standards, every effort should be made to qualify each dwelling unit for the discount. - 6) The use of a blower door to diagnose air sealing needs is recommended. By depressurizing ar pressurizing a dwelling unit with a blower door, a trained operator can pinpoint leaks that might be quite significant, though not immediately obvious. ` Potential sr~urces of indoor air pollution can also be revealed by the blower door. In addition, it can be used to ensure that minimum ventilation standards are met (per ASHRAE standard 62-1989). Many public utilities can refer you to a blower door contractor, or you may contract i ~- NCHFA HOUSING REHABILITATION PROGRAM5 -- Energy Standards with the local Community Action Agency or other entity funded under the DQE Weatherizadon Assistance Program, (In some locations, the Cooperative Extension Service may be able to help.) -The actual cost of blower door diagnostics up to $100 per test or $200 per unit is ari,eligible program improvement or "hard cost" expenditure. x.0 General Requirements. 1.1 Au rehabilitation work funded. by the Program must meet or exceed N.C. State Building Code standards, .and meet all local permitting aril inspections requirements. 7..2 No unit rehabilitated with Program funds shall retain inuninent threats to the health or safety of the occupants or to the structural integrity of the unit. . I.3 All treated units must meet the more stringent of HUD's Housing Quality Standards or local minimum housing code standards. ]..4 It is imperative that close attention be paid to manufacturers' installation instntctions and the workmanship applied to energy-related rehabilitation items. 1.5 It is the recipient organization's responsibility to advise clients of proper care . , and maintenance of equipment and materials installed with Program funds. Examples include when and how to change HYAC filters, how to set thermostats, when and how to use bath and kitchen exhaust fans, when and how to clean and/or replace range hood filters, how to test and reset ~GFCI breakers ar outlets, when to have HVAC equipment cleaned and tuned, etc, 2.p Insu.Iation 2.I Insulation of Ceilings. All ceilings (attic floors) over conditioned space shall be insulated to the maximum extent feasible up to R-3l. - 2,2 Insulation of Walls. 2.2.1 New exterior walls constructed as part of the Program-funded rehabilitation project shall be insulated to R-l8 rating (including R-I3 in cavities and R-3 exterior sheathing) with continuous 6-mil poly vapor retazder (or alternative vapor retarder material with perm raring no greater than one) installed between the studs and the wall boazd. 2.2.7 New interior walls separating unconditioned space from conditioned space (e.g., garage, etc.) shall be insulated to R-13 with continuous 6-mil poly 1S NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards vapor retarder. 2.2.3 Tf interior surfaces of exterior walls, yr interior walls separating unconditioned space from conditioned space, are to be replaced, cavities shall be insulated with R-13 unfaced bans and continuous 6-mil poly vapor retazder. 2.2.4 If exterior siding is to be removed and replaced, cavities shall be insulated to R-13 with kraft- ar foil-faced hafts and sheathed with R-3 (minimum) rigid foam board. If exterior siding is to be covered with new siding, cavities shall be insulated with blown-in dense-pack cellulose or approved alternative. 2.2.5 Uninsulated masonry block exterior walls should be treated by installing pressure-treated one-by (min.imum) nailing strips vertically, no more than 24" o.c., on interior block surfaces, with 3/4" foam baazd insulation between Hailers. Tif space and funds permit, it is preferable to construct a stud wall inside the existing exterior block wall and insulate with R-13 bans.) A continuous polyethylene moisture barrier must be stapled to the Hailers prior to installation of finished wall material (sheetrock or paneling). 2.3 Insulation of Floors. Kraft- or foil-faced R-19 insulation or approved alternative shall be installed between floor joists (with facing up)~ of all conditioned areas over basements, cantilevers or crawlspaces with 1$" cleazance or more. To include mudsill/band azeas and through cross bridging. 2.4 Insulation of Windows and Doors. 2.4.1 When windows or exterior doors are to be installed in new locations, 1/2"-1" rigid foam insulation board should be sandwiched betweeH two-bys of headers. 2.4.2 When window casings are to be removed and/or replaced for any reason, all voids shall be filled with non-expanding insulating foam sealant or an approved alternative and a continuous S-mil poly vapor retarder installed between framing and jambs. 2S. Insulation of Ducts. 2.5.1 After sealing (see 2.5.3, below), all accessible heating and air conditioning ductwork shall be insulated to R-8 in unconditioned space or R-6 in conditioned space. Vertical clearance of (1$" or more shall be deemed "accessible" in attics or crawlspaces. _ 4 I~ NCHFA HOUSING REHABILITATION PROGRAMS -- Energy Standards 2.5.2 Duct insulation shall include a vapor barrier on the outside surface, have aflame-spread rating not greater than 25, and have a smoke density not greater than 5q. Do dot use haft insulation (commonly used far walls, ceilings and floors) as duct insulation. 2.5.3 Staples used to secure duct insulation shall ba minimum I/2 inch outwazd-clinching heavy duty staples. Prior to insulating, duct system yearns and joints shall be sealed with vapor-barrier mastic or appzoved equally-durable alternative. 2.6 Insulation of Water Supply Pipes. All water supply pipes in unconditioned spaces shall be insulated with 1/2 inch (minimum) preformed foam insulation or . equivalent insulation material labeled far use on pipes and meeting minimum requirements as in Federal Standazds ASTM C592-$0. and ASTM E84. Lnsulation shall be installed such that na gaps exist and be securely fastened. 2.7 Insulation of S'Vater Heaters. Electric water heaters in accessible unconditioned spaces shall be insulated to R-6 (minimum) using commercial kits or. foil- or vinyl-Faced hafts (with facing outside). Access plates to heating elements and thermostat controls shall not be covered with insulation; nor shall junction boxes, cover plates, or pressure-relief or drain valves be covered. Da not insulate below tank level if the water heater has a dry element. Stop blankets one inch above floor, level. 2.8 Insulation Certification. An insulation certification cazd shall.be furnished by the contractor and posted at a conspicuous location within the structure. This certif cation shall indicate the R-Value, minimum thickness, maximum coverage and minimum weight per square foot of the insulation installed for the walls, ceiling and floor. Preferred locations far the certification card are the inside surface of a crawlspace access door or stapled to a roof truss or stiffknee within S feet of an attic access door. 3.0 Windows . 3.1 Existing prime windows shall be sealed against infiltration to the maximum . practicable extent. Cracked, Ioose and/or brittle putty shall be replaced with new ,glazing compound. All cracks, holes and gaps around interior and exterior casing and jambs shall be caulked. Operable sash shall be weatherstripped as appropriate to the type of sash. Do not use felt strip or open-cell foam types of weatherstripping. Do not paint weatherstripping. 3.2 If existing prime windows are deemed dilapidated (beyond cost-effective rehabiIitation), they shall be replaced with new double-glazed units (whether or not S i~ NCHFA HOUSZIVG REHABILITATION PROGRAMS -Energy Standards starmwindaws.aze to be installed). Replacement windows should have a maximum infiltration of .37 cfm per linear foot of edge of operable sash (See manufacturer's specifications for compliance.) Double weatherstripping is recommended. 3.3 When windows are proposed for new locations they should confann to sections 2.4 and 3.2, above. Where feasible, new windows should be minimized on east and west sides. South-facing windows should be shaded in sununer by overhangs, awnings, etc. 3.4 Starmwindows with •screens shall be installed if existing single-glazed prime windows are sound and weatherized per 3.1, above. (Stormwindows over dauble- glazed prime windows are eligible, but optional.) X1.0 ~ Doors. 4.1 All exterior doors and openings between conditioned and unconditioned spaces shall be treated as appropriate to achieve minimal air infiltration and are to include thresholds, weatherstripping and storm doors, as practicable. Where new doors or replacement doors aze indicated, R-7 (minimum) insulated doors with double silicone weatherstripping and energyefficient thresholds are preferred. All lights (windows in doors) shall be double-glazed. 4.2 1411 exterior doors shall have thresholds if feasible. Defective thresholds shall be repaired, if practicable, ar replaced. New/replacement thresholds shall be either of the following types: 1) A metal body with a vinyl insert that contacts the bottom of the door for the entire length of the threshold or width of the door; or, 2) A metal saddle with a door shoe on the bottom of the door. (The.second option is preferred.) 5ea1 base and, edges of threshold with •caulk or foam. 4.3 Door shoes shall be used on exterior doors if threshold installation is not practicable or when a threshold alone will not stop air infiltration, Door shoes and thresholds shaIl.be installed on interior doom separating conditioned space from unconditioned areas, 4.4 Ta promote warm-weather ventilation as well as cold weather comfort and economy, combination storm/screen doors should be installed at mast exterior doors, regazdless of the R-value and tightness of the prime door. 4S All holes, cracks and gaps around exterior door jambs, casings and sills, both inside and outside, shall be caulked: Siliconized acrylicllatex caulk is preferred. 6 -g NCHFA HOUSZI~TG REHABILITATION PROGRAMS -- Energy Standards 5.D HVAC Systems. 5.]. Jf installation of a new heating and/or cooling system is indicated, the choice of a system must be based on efficiency of the. system and its appropriateness to the dwelling unit. The keys.to efficiency are ratings of systems (HSPF, AFLTE, SEER, etc.), groper sizing (number of BTUs per hour, etc.) and the quality of installation. New central heating systems must be sized in accordance with ACCA Manual J specifications and must never exceed the Manual ]' calculated size:. A copy of the sizing calculations shall be retained in client's case f le. 5.2 All central heating units installed with Program funds must have Annual Fuel Utilization Eff ciency (AFUE) ratings meeting the minimum efficiency levels set by the National Appliance Energy Conservation Act of 1987. 'I'kaese include: 1. Ducted Central Heating Equipment .................... 78% AFi7E 2. Mobile-Home Furnaces ..........:................. 7S% AFiJE 3. Wall Furnaces,,e 42,000 Btu/hr input .................. 73% AFLTE 4. Wall Furnaces, ~ 42,000 Btulhr input .......... . ....... 74% AFUE 5. Room Heaters, c 18,000 Btu/hr input .................. 57% AFUE 6. Room Heaters, 18,000-20,000 Btu/hr input ............... 58% AF'[JE 7. Room Heaters, 20,000-27,000 Btu/hr input ............... 63% AFUE 8. Room Heaters; 27,000-44,000 Btu/hr input ........ _ ..... 64% AFUE 9. ~ Room Heaters, ~ 46,000 Btu/hr input ... , .... ~ .......... 65% AFUE A11 new space/room heaters should be of the direct vented type. 5.3 Central air conditioners installed with Program funds must have a ~ minimum SEER (rating) of 9.7 far single package systems or 10.0 far split systems. 5.4 Heat pumps installed with Program funds must have a minimum HSPF of 6.8 from Raleigh east or 8.0 west of Raleigh and minimum SEER of 9.7 for single package systems or 10.0 for split systems. 5.5 New heat pumps and outside cooling units should be located in areas not subject to direct sunlight or heat buildup. 5.6 The delivery system ductwork should be designed in accordance with ACCA Manual D standazds ta: 1) avoid "spider system" design by use of a supply ~ - .. trunk/plenum; 2) size the return air duct far minimum noise; 3) Iocate intake centrally, near front door if possible; 4) strap all ductwork as needed to eliminate crimping or sharp bends in ducts; S) locate registers at perimeter portions of house; 6) use radius elbows or turning vanes in all supply trunks with 40 degree turns and not diminish the i~ NCHFA HpUSI1VG REHABII,Z'I',4,'I'ZpN PROGRAMS -Energy Standards cross-sectional area or throat; and, 'n allow for insulating supply and return ductwork per Section 2.5, above, Metal ductwork with exterior insulation is preferred. •A •copy of the duct design calculations and drawings shall be retained in the clients case file. In no case should the building envelop or framing be used as part of the duct system. 5.7 No dwelling rehabilitated with Program assistance shall retain any unvented combustion appliance after rehabilitation. 5.8 Any existing woad-burning space heater should be replaced unless it is: 1) certified by the U.S. Environmental Protection Agency (EPA) to meet 1990 emissions regulations; or, 2) air-tight and equipped with athermostatically-controlled damper/air intake (e.g., Rite-way, Ashley, etc); or, 3) air-tight and equipped with a secondary combustion chamber and/or a catalytic combustor (e.g., Jotul, Country Comfort, etc.). 5.9 If it is the owner's preference that an existing space heater be replaced with a wood-burning space heater, the new unit must be certified by EPA. The Recipient must retain a copy of the EPA label in the client's case file. Any installation of a wood-burning heater should include direct piping of combustion aix into the stove, essentially decoupling the combustion air/combustion products from the air inside the house. 6.0 Ventilation Systems. 6.]. AlI units rehabilitated with Program funds must be ventilated per ITC State Residential Building Code, at a minimum. Each unit should be evaluated individually to determine potential need for additional ventilating. A minimum c,f one square foot (S~ of free vent area per 150 SF attic floor area is recommended. Where new roof covers are indicated, continuous ridge-and-soffet vent systems should be considered. Powered attic ventilation systems should be installed only as a last resort. When the installation of foundation vents is indicated, thermostatically-controlled "automatic" foundation vents are preferred. 6.2 Units being "wrapped" in vinyl ar aluminum siding as part of their rehabilitation may need increased soffit/attic ventilation to compensate for the . increased tightness of the unit's envelope. Use continuous perforated siding under all soffits. 6.3 Where practicable, all bathrooms and kitchens in units rehabilitated with Program funds shall be f fled with exhaust fans which are vented to the exterior and equipped with backdraft dampers, Four-inch insulated vent ducts are recommended for bath exhaust fans. Kitchen vent ducts should also be insulated. Combustion appliances in conditioned space should be tested for carbon monoxide NCIiFA HOUSING REHABILXTATXQN PROGRAMS -- Energy Standards leakage/backdrafting during operation of kitchen and bath exhaust fans. 7,0 Appliances and Fixtures 7.T Where installation of new or replacement water heaters with Program funds is indicated, the following ,,,;,,i*num Energy Factors (EF) are required (by tank size and fuel type): ~ . Tank _ ,~ .:.. Energy Factor_~E~F ,, ~ Size ~ mil ,, . Electric 30 gallons 0.56 0.53 0,g 1 40 gallons 0.54 0.53 0.90 50 gallons 0.53 •0.50 O.g$ 60 gallons o.51 0.4$ 0.87 Recipienw must retain in case files documentation of the brand, model number and Energy Factor for each water heater installed in aerogram-assisted dwelling unit. Unless otherwise indicated,. water heater thermostats should be set at 120°F. 7.2 If any of the following appliances are installed in conjunction with Program- . funded rehabilitation, only energy-efficient models should be selected: refriaeratar, dishwasher, range,, washer and dryer. _ Energy-efficient appliances aze defined as those listed in The Most Energ'3--Efficient Appliances, published by the American Council for an Energy Efficient Economy ($3.00 each, plus $2.00 shipping fee, from: ACEEE, 2140 , Shattuck Ave., Suite 202, Berkeley CA 94704.), ar those models with predicted annual energy costs, as shown an their yellow EnergyGuide labels, falling below :the level determined by the faxmula: COST cJ LOW + ((HIGH - LOW) X 0.34), Where, COST =the yeaxly energy -cost for the model under consideration, LOW =the cost for the model with the lowest annual energy cost, and HIGH =the cost for the model with the highest annual energy cost as shown on the EnergyGuide label. 7.3 Condenser coils on existing refrigerators and freezers should be inspected and vacuumed as necessary to remove accumulated dust. 7.4 If the scope of work includes the installation of a new bathroom or replacement of existing bathroom fixtures, all fixtures must mcet or exceed the water usage standards given at Volume VII, section P-2413 of the N.C. State Building Code. aI NCHFA HOUSING REHABILITATION PROGRAMS -_ Energy Standards S.0 MisceIlaneaus Requirements S.1 To the maximum practicable extent, excessive moisture in crawlspaces or basements shall be eliminated, Remedial measures may include faundation/footing drainage systems, sealing plumbing penetrations, water proofng foundations below grade, gutter systems, and/or sump pumps. All accessible crawlspace area must have continuous 6-10 mil poly ground cover, wall to wall. $.2 If exterior pole lighting installation is 'indicated (as in the case of multi-unit rental projects) metal halide, mercury vapor or Iow- ar high-pressure radium lighting should be used. (Note: ~ This is not a erogram-eligible expenditure.) S.3 Where accessible, all electrical, .mechanical and plumbing penetrations through floors, ceilings, exterior walls and plates shall be sealed with siliconized acrylicllatex caulk, polyurethane foam sealant ar approved alternative. Electrical outlets and switches should be sealed with foam gaskets under the cover plates or rubber inserts inside the box. Gaps around power lines where they enter boxes should be caulked. S.d All attic stairs, attic access scuttles and other access openings to unconditioned space shall be treated as needed to minimize radiant and infiltration heat-loss. Attic . doors should be framed such that R-30 insulation can be blown up to and azound the hole. ~ Doors should be weatherstripped and insulated as practicable. A Styrofoam "box" over folding stair frames: is recommended. A latch may `be necessary to hold folding stair door snugly against the weatherstripping (closed cell foam weatherstripping is recommended.) $.S Z:F the scope of rehabilitation work includes installation of new interior lighting fixtures, compact fluorescent bulbs should be used in.lieu of incandescent bulbs if feasible. eaagysrdlluxe l5. 1991 ~: 10 L n -Term "n Affor a 'li Polic Purpose: This policy establishes the acceptable strategies for ensuring long-term affordability in all affordable housing programs supported by County financial resources. Target Pop ati?n: Homeownership programs are targeted to families with incomes at or below SO% of the HUD published area median income. Rental housing programs are targeted to families with incomes at or below 60% of the HUD published area median income. De itio Affordable Housing - is defined as (l) owner-occupied housing which can be purchased for no more than 2.5 times to 3.0 times the total annual family income, or (2) rental housing for which the occupant pays no more than 30% of gross income far all housing costs including utilities. First-time homebuyer/Qualified buyer - A first-time homebuyer for the purposes of this program is any low income household that has not owned a home within the past three (3) years including households living in manufactured housing not permanently aff xed to a foundation, or owner-occupants of homes not feasible for renovation. I. Impact Fee Rei ursement_P~gram (existing policy last revised March 4, 1998.) A. - ccu ' H usin Any organization requesting impact fee reimbursement must certify in writing, that, for owner occupied housing, it will remain affordable to the anticipated beneficiary or beneficiaries far a period of a minimum of ninety-nine (99) years or longer depending upon the funding source. This requirement will be secured by a Declaration of Restrictive Covenants. B. Rental Ho~~in~ An organization requesting impact fee reimbursement for rental housing must certify that the property will remain affordable for ninety-nine (99) years. The rental housing certification must be secured by a Declaration of Restrictive Covenant requiring repayment to Orange County of the impact fee if the rental housing does not remain affordable during the period of affordability, which covenant will be further secured by a note and deed of trust. Evidence must be provided that agency and/or program guidelines are in place to assure affordability compliance. a3 u. and Tr t Model The Land Trust model utilizes anon-profit, community based organization known as a Community Land Trust (CLT) whose purpose is to acquire land and make it available to individual families and others, such as cooperatives, through along-term lease for a term up to 99 years. The leaseholders or homebuyers do not hold title to the land -the title is retained by the CLT -they own the improvements or housing units/structures on the land. The benefits of this model include the ability of the CLT to provide first-time homeownership opportunities for the initial buyer as well as protection of affordability for future residents in the sale of buildings and other improvements on the land. The land lease gives the CLT the first option to purchase the home, when and if it is sold, at an affordable price set by a resale formula. The resale formula gives homeowners a fair return for their investment, while keeping the price of the housing units/structures affordable for future residents. III. Nev~an~Existing First-Time Homel~~ver Programs A. Period of Affordability All properties supported by County financial resources for the purpose of facilitating homeownership must remain affordable to families at or below 80% of median income for a minimum of ninety-nine (99) years from the date of initial assistance. B. Right of First Refusal A right of first refusal or right to purchase is accomplished by means of a Declaration of Restrictive Covenants on the property purchased by the first-time homebuyer. Any assignment, sale, transfer, conveyance, or other disposition of the Property or any part thereof whether voluntarily or involuntarily or by operation of law ("Transfer") shall not be effective unless and until the below-described procedure is followed. If the original homebuyer or any subsequent qualified homebuyer ("Buyer") contemplates a Transfer to a non low-income household as defined herein, Buyer shall send to Orange County and/or the sponsoring non-profit organization, not less than 90 days prior to the contemplated closing date of the Transfer, a "Notice of Intent to Sell." This Notice of Intent to Sell shall be accompanied by a copy of a completed, fully executed bona fide offer to purchase the Property on the then current North Carolina Bar Association "Offer to Purchase and Contract" form. If Orange .County and/or the sponsoring non-profit organizations elects to exercise its said right of refusal, it shall notify the Buyer of its election to purchase within 30 days of its receipt of the Notice and shall purchase the Property or portion thereof within 90 days of the receipt of the "Notice of Intent to Sell." As between the County and the sponsoring non-profit organization, if both wish to and have the means to exercise the right of first refusal, the sponsoring non- profit organization shall have priority. If neither Orange County nor the sponsoring non-profit organization advise the Buyer in a timely fashion of an intent to purchase the Property, then the Buyer shall be free to Transfer the property in accordance with the Equity Sharing subsection of this policy. a~- B. Equity Sharing All financial contributions provided by the County will be provided as a deferred second loan secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Property; subordinate only to -private construction financing or permanent first mortgage financing. The 99 year period of affordability for each individual housing unit will be secured by a Declaration of Restrictive Covenants that will incorporate a right of first .refusal that may be exercised by a sponsoring non-profit organization and/or Orange County. The non-profit organization and/or the County as applicable retains full responsibility for compliance with the affordability requirement for assisted units throughout the. term of affordability, unless affordability restrictions are terminated due to the sale of the Property to anon-qualified buyer. If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e., slow-income household, one whose combined income does not exceed $0% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the transfer, to use as their principal residence. However, if the property is sold during the term of affordability to anon-qualified homebuyer to be used as their principal residence, the net sales proceeds (sales price less selling costs and 1g` mortgage payoff] or "equity", after repayment, if required by the Note and Deed of Trust, of the initial County contribution, will be divided 50/50 by the seller of the Property and the County. If the initial County contribution does not have to be repaid because the sale occurs more than forty years after the County contribution is made, then the seller of the Property and the County will divide the entire equity realized from the sale. IV. Policy Review This policy will be reviewed by County staff and officials within two (2) years of the original approval date to ensure continued congruency with local affordable housing programs. Effective Date: Apri13, 2000