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HomeMy WebLinkAboutAgenda - 04-11-2000-5dti ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 11, 2000 Action Agenda Item No. ~~ SUBJECT: Local Housing Trust Fund Creation DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Senate Bill 708 Tara L. Fikes, ext. 2490 Brochure TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 96$-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider the creation of a local housing trust fund that would be funded annually in an amount equal to the proceeds from one-cent on the current property tax rate. BACKGROUND: For the past several months, members of ABODE, the housing coalition in Orange County, have suggested to local elected bodies the establishment of a local Housing Trust Fund as a dedicated source of revenue for affordable housing. Further, the passage of Senate Bill 708 provides the clear authority for counties to appropriate and expend funds for residential construction purposes. A copy of the Bill is attached to this abstract. The source of revenue for this trust fund would be one penny of the property tax rate. Thus, the campaign is known as "A Penny for Housing". A copy of ABODE's promotional brochure is included with this abstract. Specifically, potential uses for the trust funds could be: 1. Revolving Loan Fund: Acquisition; Project Financing; etc. 2. Housing Rehabilitation/Urgent Repair 3. New Construction 4. Land Acquisition 5. Second Mortgage Assistance 6. Predevelopment Costs 7. Financing ABODE suggests that trust fund dollars could be allocated to local non-profit organizations that have extensive experience in providing affordable housing. At their April 4, 2000 meeting, the Board of Commissioners requested that the Manager develop preliminary recommendations that the Board could consider in responding to the proposed "A Penny for Housing" program. As a starting point far discussion, several options are outlined below: 1. The County appropriates the equivalent of '/4 cent on the Countywide tax rate each year for three years as a contribution to a Housing Trust Fund. 2. The County appropriates up to the equivalent of ~/4 cent on the Countywide tax rate each year for three years as a contribution to a Housing Trust Fund, to the extent those funds are matched by other local entities. 3. _ The, County appropriates the equivalent of ~/4 cent on the Countywide tax rate each year for three years as a contribution to a Housing Trust Fund, and, up to the equivalent of an additional'/ cent, to the extent those funds are matched by other local entities. A three-year time frame is suggested as a reasonable period during which to assess the degree to which the Housing Trust Fund is able to meet its objectives. FINANCIAL IMPACT; Based on preliminary estimates of the 2000 tax base, one quarter cent on the 200001 Countywide tax rate would generate approximately $175,000. RECOMMENDATION(S): The Manager recommends that the Board discuss the proposal for the creation of a local housing trust fund and provide appropriate direction to staff. Tlorth Carolina General.Assembly - [ S 708 vc ]SENATE BILL 708 http://www.ncgastate.nc.us/htm1199.../ra6fied/senatelsbi10708.fi GENERAL A55EMBLY OF NORTH CAROLINA SESSION 1999 SESSION LAW 1999-366 SENATE BILL 708 AN ACT ALLOWING COUNTIES TO PROVIDE AFFORDABLE HOUSING FOR PERSONS OF LOW AND MODERATE INCOME. The Genera]. Assembly of North Carolina enacts: Section 1. The General Assembly finds and declares that the purpose of this act is to provide authority for counties in North Carolina to ,provide funds for residential housing construction, new or rehabilitated, and to provide for the sale or rental of housing to persons and families of low and moderate income. The General Assembly finds and declares that there exists in counties in the State a serious shortage of decent, safe, and sanitary residential housing available at low prices ar rentals to persons and families of low and moderate income. This shortage is inimical to the health, safety, welfare, and prosperity of all residents of the State and to the sound growth of North Carolina communities.. Section 2. Part 5 of Article 18 of Chapter 153A of the General Statutes is amended by adding a new section to read: "~__-___.1.538-3.78_.. ,,,~Qw- and moderate-inc,~e housing programs. . In____addition to the p2wers granted ley G S. 153A-376 and ~._S ~5~~3_7_7 _ any noun y is, au hors zed tc ~~x_ercise,,,,~e_ fQ11 n~u;.ng nowers• r ~Z T a n to expend__,~i,}~yrLs for resident1,~,1 housing constr»ction, new ,~ x'e.htabilitated.,, for sa,~,e or rental to persons aD,r~.famili,ws of ,low, an~_ moderate income. Any board of ,commissioners max c_oA.tract_with„~ny__nerg associa _7 nor cornoraticD,., to implemer}t„_~~e provisions Qf this , ~~divis~,r~n _ ~ To acQt~~,~eal p~Qperty~y volun~~~xv purchase fro,, the own~rs_ to be dev~?lc~~p_r~ ~y~~e coLntZr or t~ _ bQ us~:~,~y the_ county to p~c'Zpide af__~,~ ad~ble ,,,~.ousinq„_ to __ p~,,gQns of low arld mo_ d_ er P_ 3n~cme . ~~. r established by„ the_ cO~y1-~~J conveyr DrOp~,~t~Y~y ,_Briva _? sale ,;,,_,>r:Q~~y ,_„g~lic or private entry t<~~-~prdv; des afforda}l~~ housing to ~Arssnns Qf low or moderate ingpme. The county, ,,,tea a]~,~rlclude_,~s part' of any_,.,, .such Q_ nv yang _ _ fi~Qv~D,~ts _or s~nditiorl., that,,,_;assurP the pro~~.rty will be developed by the entity f,~~ sales nr le~,,~_e to persons of low or moderate, ncome. 141. 1 r _y~~ocedur~s arl,~, stan,~ es_t.ablisl~,~r~ by the „coup y,, to convey__res~ ~Pnti~.~nrop~~y bv. _ .private sale,,,,, to ersons of low or moderate _,~ncomQ„ in ac~Qr~,ance with G. S . „160A-267 and fly terms, ,and c ditions _ _ th~~ the board of comrr~~sion,~rs may determi~g~" .Section 3. G.S. 153A-149(c) is amended by adding a new subdivision to read: "1.5b) ~ 1 ing __-_- To undg~~~ke_ hQ~,~,sina ~arolina General Assembly - [ S 708 vc ]SENATE BILL 708 http://www.ncga.state.nc.us/htm1199.../ratified/senate/sbi10708.full.ht 4 _~,~~cgrams ~Q~1_o~- and moderate-income persons as provi d in G.S. 153A-378." Section 4. G.S. 159-48(c) reads as rewritten: "(c) Each county is authorized to borrow money and issue its bonds under this Article in evidence of the debt for the purpose of, in the case of subdivisions (1) through (4a) of this subsection, paying any capital costs of any one or more of the purposes and, in the case of ~ubdivisions__ _L5)_ and ,561 of this subsectian, to finance the cost of the purpose: (1) Providing community college. facilities, including without limitation buildings, plants, and other facilities, physical and vocational educational buildings and facilities, including in connection therewith classrooms, laboratories, libraries, auditoriums, administrative offices, student unions, dormitories, gymnasiums, athletic. fields, cafeterias, utility plants, .and garages. , (2) Providing courthouses, including without limitation offices, meeting rooms, court facilities and rooms, and detention facilities. (3) Providing county homes for the indigent and infirm. (4) Providing school facilities, including without limitation schoolhouses, buildings, plants and otherr facilities, physical and vocational educational buildings and facilities, including in connection therewith classrooms, labaratories, libraries, auditoriums, -.administrative offices, gymnasiums, athletic fields, lunchrooms, utility plants, garages, and school buses and other necessary vehicles. (4a') Providing improvements to subdivisions and residential streets pursuant to G.S. 153A-205. (5) Providing for the octennial revaluation of reap property for taxation. S~1 E~QzL; ~; ng _housing pia j,~~~s for _ ps~-,~on,g Qf .~y.~ or moderate ,>,~eo~, including_ or~n~atr,~c~,a.nn or i i n - ----- - redeve~ npment ~ommission.,,_ Qr housing authority____~;Bd the gr~r,v~,sion of_~oans, grants, inter~~~„_s~, ~ments,__ and _other m i i _ ~ project may p~o_vide__housinq ~c~,r`pgrsons of other than a,,,r,~or m m _in the g~,~js~rtar_e exclusiv_~~,y~~y~~rved for persons of 1Qyy nraceeds_._" Section 5.. This act is effective when it becomes law. In the General Assembly read three times and ratified this the 19th day of July, ].999. , s/ Dennis A, wicker President of the Senate s/ James B. Black Speaker of the House of Representatives s/ James B. Hunt, Jr. 4-05-200 3:43PM FROM P. 3 9lSLZ ]N'll!H lade] an!ad ap!sa~e~.5 ^^aN i~OG 30~8'd ~/a uo!~leo] ploy xsru~, 6u!snvW A = L .. 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Q ~ ~ 4l .~ ~ A ~ ~ R '~ O ~ -p R ~++ C ~ . a 4 L ~ ~ ti ~ ,~ a~ c ~ „ ~, L ~~O G • C ~~ ~ ~O R i a C O '~ ~ ~ ~ ~ ; a~~ ~o a ~ my ~ c ~,6 ~.~' ,~ ~s °~ ~ . 0~ R O ~ ~ N E '~-' ~ pp ~ d y'Ga- ~ ~~~ ~+ t7 ~ a7'A A ~ C •7 • ~ >V ~ CC.Ay~~q,~~.~4 ~ o . x ou.a~~n i ` = aS fc a ~ ~~ +, ~~~y0 ~3~~~ cps a~c o ~¢, R ~ ~ m ~+~+ d ~ +L+ t r- ~ R y ~ i ~+ ifF :.. ~ vi u~ +~ C 1 support the proposal to promote affordable housing in Orange County by dedicating one penny of our property tax ta.create a Housing Trust Fund. a individual ^ argani CITY: STATE: ZIP: PHONE: SAX: E-MAIL: Please return to: Nous/ng gust Fund coalition c% AI3Dp~• 104 New Stateside Drive • Chapel Hill, NC .27516 For more information, contact Chris Brown at 942-2803 or Myles Presley at 967-8779.