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HomeMy WebLinkAboutAgenda - 06-29-2000-7bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 29, 2000 Action Agenda Item No. ~~ SUBJECT: FY 2000 Housing Development Grant Application ._ DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): Resolution Application Summary INFORMATION CONTACT: Tara L. Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 33fi-227-2031 o receive comments om t e pu is reg Ong a eve opment o a ousmg Development Grant Application; to approve a resolution authorizing the submission of the formal application document on or about July 7, 2000; and to authorize the Chair to sign the application document on behalf of the Board. BACKGROUND: In January 2000, the N.C. Department of Commerce announced the availability of Small Cities Community Development Block Grant (CDBG) funds for the eight counties, including Qrange County, receiving TANF Housing Grants late last year. Approximately $250,000 is available for each community. This funding set-aside by the N.C. Department of Commerce is intended to encourage communities that received TANF Housing Grants to incorporate CDBG into their local programs. The Housing Development Program is designed to facilitate the provision of single family homeownership or multi-family rental projects. Specific activities eligible for funding under this program include installation of public infrastructure; removal of hazardous waste; and acquisition of vacant land. The County held a public hearing on June G, 2000 to receive citizen comments prior to developing a grant application. At that time, the Executive Director of Habitat for Humanity asked for funds to assist in the development of a planned subdivision in Efland known as Richmond Hills. Subsequently, staff has proceeded with application development for this project. Specifically, the application requests $250,000 to assist in the construction of the necessary infrastructure for the project. An application summary is attached with more detail. Additionally, as a requirement of the grant, Habitat will commit to construction of 25 homes for low-income families within the thirty- month performance period. z A second public hearing is required after the grant application is prepared in order to receive additional comments prior to submission. This public hearing has been advertised in the local newspaper. Comments received will be incorporated into the application document prior to submission. FINANCIAL IMPACT: This grant provides the opportunity to apply for an additional $250,000 in CDBG funding for housing purposes. RECOMMENDATION(S): The Manager recommends that the Board: 1. Receive citizen comments as additional information; 2. Approve the resolution authorizing the submission of the formal application document an or about July 7, 2000; and 3. Authorize the Chair to sign the application document on behalf of the Board. RESOLUTION AUTHORIZING AN APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS NOW, THEREFORE BE IT RESOLVED by the Orange County Boazd of Commissioners, that an application .for FY 2000 Housing Development grant funds from the N.C. Department of Commerce is hereby authorized. Specifically, funds will be requested for the installation of public infrastructure for the subdivision known as Richmond Hills being developed by Habitat for Humanity of Orange County, Inc. in the Efland community. The amount of the request will be $250,000. The application will be submitted on or about July 7, 2000. FURTHERy the Orange County Board of Commissioners authorizes the Chair of the Boazd to sign the application document on the County's behalf. This the 29`~ day of June 2000. Moses Cazey, Jr., Chair 3G 6. APPLICATION SUMMARY 1. Applicant a. Applicant name: Orange County Address: P.O. Box 8181 Town Hillsborough Zip Code 27278 County: _ ___ Orange _ Contact Person: Tara L. Fikes Phone No.: 919-245-2490 Fax No.:919-644-3056 b. Preparer of application (if different from above-: Address: Phone No.: Fax No.: c. Developer: Habitat for Humanity of Orange County, NC, Inc. _ __ Address: P.O. Box 459 ; Hillsborough, NC 27278 _ Phone No: 919-732-6767 Fax No.: 919-732-2337 ~~~~~~~~~ 2. Project a. Name: Richmond Hills b. Street address: Richmond Road c. City and county: Efland Community, Or~_n_ge County 3. Funding Request ACTIVITY HD FUNDS REQUESTED Infrastructure (public) $250,000 Hazardous material removal Land acquisition Administration Total 5250,000 4. Certification statement: (a1 I certify that to the best of my knowledge and belief: 11- Data in this application is true and correct. 12) Opportunities have been provided for citizen participation and access to information concerning the proposed activities. 131 This document has been duly authorized by the governing body of the applicant, and the applicant will comply with the attached certifications if assistance is approved. Chief Elected Official Printed/typed name of chief elected official Date Title of chief elected official For DCA purposes only: Date received 4 C. PROJECT OVERVIEW 1. Funding Request a. Deferred payment loan funds S b. Amortizing loan funds S c. Grant 5 250,000 d. Will program income result? Yes x No How will program income be used? 2. Project description summary a. Total number of units in this phase of the project: 25 - Number in new construction 25 -Number in rehabilitation or conversion 0 b. Type of units - Number of single family detached: 25 -Number of single family attached: G. Total replacement cost (for all units, including land; should match line 4c. page 14) d. Anticipated start of site improvements 10/2000 Anticipated start of construction 03/2000 e. Anticipated occupancy date - First unit: 9/2001 - Last unit: 4/2003 3. Market Analysis and Plan (for projects with less than 20 units) No more than 3 pages. Not app/icab/e -more than 20 units. a. Justify the proposed number of units for the project. Explain why the units are needed and provide evidence that there is a demand for the units. le.g. previous sales, sales of similar homes in the market, waiting lists, community surveys, or overall market analysis.) b Describe how you will market the units. Consider the following questions: How will you ' reach a diverse group of people? How will you reach low and moderate income buyers? Currently, are there qualified homebuyers ready? Are potential buyers being counseled? Is there a waiting list of interested families? Are there homeownership classes being held? Do realtors, lenders, or other relevant agencies help with referrals? Do you have brochures or other literature to market the program? 4. Affordability a. Describe the procedures that will be used to ensure that the homes remain affordable to and occupied by low and moderate income households for20 years. Preference will be given to projects that include measures to keep the units affordable to low and moderate income households beyond20 years. 5 The twenty-five (251 homes will remain affordable to low/moderate income families for at least 99 years. The 99 year affordability period is a policy of the Orange County Board of Commissioners, the applicant for this project funding. A Declaration of Restrictive Covenants is recorded at closing with the buyer. This Covenant requires the buyer to sell their home to another low-moderate income buyer, and runs with the land far 99 years. HHOC is required by the County to monitor the affordability of the homes aver the 99 year period. b. Identify other parties involved in increasing affordability such as any federal, state or local government contribution to affordability. Include grants, loans, land, development concessions, utility extensions; mortgage subsidies, and all relevant terms of the assistance. Provide a letter confirming the availability of any contributions. Orange County, through its Affordab/e Housing Bond Program, has committed $460,000 to the project in the form of a loan to Habitat for Humanity (HHOCI which will convert to zero interest, deferred payment second mortgages for the buyers at the time of sale. Orange County also reimburses HHOC for impact fees paid on the homes. HHOC is applying for 5250,000 in Self-Help Homeownership Program (SHOP1 funds, which is a partnership between HUD and Habitat for Humanity /nternational. These funds are structured as a 75% grant, 25Ro loan at zero interest payable by HHOC over afour-year period. HHO.C has previously received SHOP funding of 5110,000 for infrastructure deve/opment far an a%ven home subdivision in Chapel Hill. Notification of funding awards is schedu/ed to take place in August 2000. HHOC will also app/y through a local bank, Hillsborough Savings Bank, in September 2000 for 5175,000 from the Federal Home Loan Affordab/e Housing Program. The balance of the funds for the project will come from HHOC's fundraising efforts among individuals, churches, foundations, and corporations. In addition, the Orange County School Board has granted an easement to HHOC to allow access to sanitary sewer from their property, and will allow a path to be constructed from their property to the Richmond Hills subdivision to give children a safe walkway to the adjacent elementary schoo% c. Income Targeting The percentage of LMI households that must benefit from each activity varies depending on the type of activity. Please contact Program Development staff with questions on benefit. - Number of units reserved for households between 71 % and 80% of the area median income - Number of units reserved for households between 61 °~ and 70% of the area median income - Number of units reserved for households between 51 % and 60% of the area median income - Number of units reserved for households at 50% of the area median income and below 100% Please note: HUD median income for a family of four in the Raleigh-Durham-Chapel Hill MSA is currently 562,800. Thus, 5096 of the area median income would be 531,150 for a family of four. Habitat is proposing that all potential homebuyers would be below 50 of the area median income. 5. Related Services a. Homeownership Counseling Describe any project features such as home ownership counseling, and financial/credit counseling that will be available to potential homebuyers and successful occupants. Provide an estimate of the number of households ar persons who have been served and will be served by this service. Also identify how the homeownership counseling will be/is funded. HHOC provides a series of workshops for potential homebuyers. Topics far these workshops include budget counseling, mortgages and predatory lending, basic home maintenance and repair, and home c/osings and wills. b. Other services to families Describe any other services available to the homebuyers such as a daycare program, employment counseling, afterschool programs, public transportation, or home maintenance classes. HHOC Homebuyers who are TANF-eligib/e are encouraged to attend workshops sponsored through the ACH/EVE! Curriculum, which include financial management and planning, job seeking and keeping, and conflict resolution. c. Special Needs Populations Identify any project features designed to serve populations with special housing needs including persons with disabilities, the elderly, or large families (families that require homes with 4 or more bedroomsl. This could include design features, occupancy preferences, transportation, etc. Include an estimate of the number of households to be served by such features. HHOC has .worked c/osely with the NC State Center for Universal Design to deve/ap and build house p/ans that are designed for peop/e with disabilities and for the elderly. We will incorporate universal design features in all of the 25 homes, and will adapt homes to meet the needs of specific househo/ds with disabilities. HHOC a/so builds homes for /arge families, and will build 4-5 bedroom homes as necessary to serve the families that have been approved to purchase homes in Richmond Hills. We estimate that two homes will be built for househo/ds with disabilities and five or more homes will be build for /arge families. 6 D. UNIT and SITE CHARACTERISTICS 1, Unit Size and Bedroom Mix Number Number of Size of Units Bedrooms 1 1080 sq.ft. 20 units 3 2 1288 sq.ft. 5 4 3 sq.ft. 4 sq.ft. 2. Unit Features a. Idehtify items that are included in the unit purchase price. Range x Trash Compactor Carpeting x Refrigerator x Drapes Air Conditioner x Disposal Other items: b. Describe any additional features in the project such as recreation areas, common facilities, etc. The subdivision is located within easy walking distance of a new county-owned and developed recreational facility; which includes soccer and baseball playing fields, basketball courts, picnic facility, awalking/running track, and future nature trails. The subdivision itself will have approximately 5.5 acres of dedicated park/and within its boundaries, in addition to another 16.7 acres in common area open space. c. Describe project features that will enhance overall energy efficiency. Be specific regarding rating standards met, insulation factors, HVAC systems, building design, etc. All homes will meet the NC Housing Finance Agency's Energy Efficiency Requirement. See attached. 3. Site Characteristics a. Site and lot size: Number of sites: 43 Site 5ixelsl: 41 acres Average lot size: 14,000 sq.ft. b. Current use: ' Vacant/unused x Residential Other Specify c. Utilities currently available for the project: Sewer x Electricity x Water x Telephone x Natural gas If the project includes new sewer or water lines or street, who will own and maintain the infrastructure? 8 Public water lines will be owned and maintained by Orange-Alamance Water; public sewer by Orange County. Roads will be public and will meet NCDOT standards. They will be maintained by HHOC until such time as they are accepted for maintenance by NCDOT. 9 E. Installation of Public Infrastructure Complete and submit as part of the application only if requesting CDBG funds for public infrastructure. a) Briefly describe the public infrastructure (public water or sewer, streets, drainage) to be installed for the housing project. Public roads meeting NCDOT standards will be constructed. The three streets, Alice Miller Court, Midvale Drive, and Boundbrook Drive, will have a 50'right of way with 5' utility easements on each side. HHOC will submit an erosion control plan for approval by the Orange County Erosion Control Division prior to disturbance of the site. Community sewer service will be provided either by a system composed of a gravity wastewater col%ction main network and a central community pumping station, ar by a STEP system composed an individual septic tank and pump tank at each home and a small diameter force main wastewater col%ctor network. The Board of County Commissioners will determine at their June 29f6 meeting which of the two sewer service options will be required. Water lines will constructed in accordance with requirements of Qrange-Alamance Water System, lnc., the public water system that serves the site.. b) Why are CDBG funds needed for this project? CDBG funds are needed to help fund the infrastructure for this project. Without these funds, which are requested as a grant, the project will not be financially feasible for the non-profit developer, HHOC. The total estimated cost far infrastructure construction for the site, exclusive of design and engineering and construction management, is 5665,850. c) Public water and/or sewer Attach, if applicable, an engineering report that describes the need for public water and/or sewer and gives an itemized listing of casts to be attributed to the project. The report should state the size and length of the lines. A report must also be submitted for any on-site public improvements. See Attached. d) Streets and/or drainage Attach, if applicable, a cost estimate for street and drainage improvements. The estimates should be on letterhead of the company who provided the estimates or attached with a cover letter from this company or individual. JLN. ~ 19' 00 (LION) 11 ~ 08 KINLEY-HORN TEL. 919 6 i'r ?050 P. 00? io ^~~ IGmley-Hom ~ and Associates, Inc. June 19, 2000 Wiliam McNeil, Director Division of Community Assistance NC Department of Cr*..~ P 1307 Glenwood Avenue Raleigh, NC 27605 Re; Habitat For Humanity Orange County, NC, Inc. Cost Opinion far proposed Richmond Hills Subdivision Dear Mr. McNeil: Attached to this lettu is the cost opinion prepared by Kirnley-Horn & Associates, Ir-C. for the proposed Richmond Hills Subdivision. The subdivision is proposed to be constructed is tlaee phases sod the asst opinion provided is far all three phases. We believe this opinion accurately reflects the site improveensat costs needed for development of the Richmond Hills Subdivision Flan as prepared by our office and submitted to Orange County, NC for approval. If you have any questions, please contact me. Sincerely, KIMLEY-HORN AND ASSOCIATES, INC. saou O. Railway, AICF Senior Project Manager SOFJs cc: Susan Levy, Habitat Far Humanity Orange County, NC, Inc. "tars Filres, Housing 8c CD Director, Orange County, NC ^ P.O.9os 930 Raleigh, Nardi Cardlne 2763b30fiA ra s+s en zaoo FAk A19 677 2050 JUN.-19'DD~MON) 11.08 KIMLEY-HORN TEL:919 677 X050 P.D03 ii Klmky-Hom and Asaoclate9 pl~~d F11119 Subdlvlelon 8fland, North Carolina Qrange CauMy prellminary Conatru¢lon Cast Oplnlon Phase 1, II, 111 Project p~riptlon: Car+struct-on of 43 parry subdivision with 8' shoulder typical seatlon, water, end sewer. Subdivision to to built in three phas~• Constnralon cost given for Phase I, 11, Ili (43 parcels), NQ1"E: posts are based an assumed design conditions and the current understanding of the work Involved. Casfs do net include the engineering design, surveying, or Preparation of construction plane. The Engineer has no control over the cost of labor, materials, a'r equipment, or over the Corrtraptor's methods of drorminin~g a ~a of °~ ~ pstruaopan Frosts will nowt vary irom candrtionS. The Engineer cannot end does net guarantee that p pose opiniane of probable va:~ p,~pared far the t]wner. riohrnontl hlgs second ~eplnbn 6f1ef00 St~tal 5 6'fl1,037.Oq 1591, t.ondnl~-cY l~O~ aFal S 681,19255 12 Habitat for Humanity, Orange County, NC, Inc. PRELIMINARY BUDGET For Phases I &II, Richmond Hills Subdivision (construction of subdivision infrastructure and first 25 homes) Proposed Sources of Funds Orange County Housing Bond Funds 460,000 @$18,400 per unit (second mortgage) Habitat for Humanity of Orange County Partnership Funds 625,000 Habitat for Humanity, Orange County 620,850 (Millenium Fund, other Fundraising) North Carolina CDBG/TANF funds 250,000 (grant) Habitat for Humanity International/HUD Self-Help Opportunity Program (SHOP) (75% grant, 25% loan) 250,000 Federal Home Loan Bank Affordable Housing Program 175,000 @ $7,000 per unit (third mortgage) Total Sources of Funds $ 2,380,850 H= for house construction costs I = for infrastructure costs L= for land purchase L, I H H,I I I H C:\W INDOW S\TEMP\RevRich Ldce 13 HABITAT FOR HUMANITY OF ORANGE COUNTY PRELIMINARY BUDGET For Richmond Hills Subdivision Phase I-land acquisition; infrastructure construction for subdivision (431ots) Phase II-construction and sale of 25 homes Proposed Uses of Funds Land Acquisition 210,000 (41 acres, 431ots) Closing Costs (appraisal, legal, environmental rev.) 5,000 Design, Engineering, and Surveying 75,000 Construction Management (infrastructure) 50,000 Infrastructure Costs Fees, Bonds, Permits 5,000 Roadwork, including Clearing,Grading 224,000 Storm Drainage 31,500 Water 130,500 Sewer Lines 118,000 Sewer Pump Station 50,000 Landscaping/Recreation 20,000 Sub-Total, Infrastructure Costs 579,000 15 % Contingency 86,850 Total infrastructure construction costs 665,$50 Total Land and Infrastructure Costs 1,005,$50 Construction of 25 single family homes @ $55,000 per home 1,375,000 Total Development Cost, Phase I and Phase II $2,3$0,$50 C:\W INDOWS\TEMPRevRich Ldce ~~ VICINIT7 MAP `Fp . ~ ,9 'Ian ~ i I I Imo' ~ ` ~r LI 1 ~I(~ LL1 i~~ r~~a Ih-i ----~ ~w ~. 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