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HomeMy WebLinkAboutAgenda - 11-22-1999 - 4ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 22, 1999 Action Agenda Item No. ~} SUBJECT: Housing Bond Program Awards DEPARTMENT: Housing/Comm. Development PUBLIC~HEARING: (Y/1~ No ATTACHMENT(S): Evaluation Criteria Project Summaries Complete Project Proposals (under separate cover) 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 approve projects .for the Orange County Housing Bond Program. BACKGROUND: In November 1997, Orange County voters approved a $1.8 million dollar housing bond issue. Funds are to be used for affordable housing initiatives in three.areas: land acquisition, housing development, and homeownership. programs. This is the first housing bond issue approved in the County. On Apri17, 1998, the Board of County Commissioners appointed a Housing Bond Policy Task Force with membership from a representative of the seventeen (17) local non-profit housing organizations and associations. The Task Force developed a proposed Housing Bond Policy which was approved by the Board on December 15, 1998. After the policy was completed, Request for Proposals were solicited from existing county housing non- profit housing agencies. Approximately, ten (10) proposals were received in July and August from interested organizations. The Project Review Committee has reviewed these proposals and offer the following recommendations. a. New Construction i. Orange Community Housing Corporation Meadowmont $ 450,000 Scarlett Drive $ 140,000 ii. Habitat for Humanity -Land Acq. - Efland $ .460,000 iii. EmPOWERment, Inc. Pine Hill Drive (Rental Acq.) $ 90,000 $1,140,000 2 b. Existing Programs. i. EmPOWERment, Inc. Sykes/Gomains Street (Rental Acq.) $ 100,000 Hazgraves Street (Rental Acq.) $ 100,000 ii. OPC Mental Health $ 80,000 iii. Orange Comm. Housing Corp. (Urgent Repair) $ 100,000 TOTAL $ 380,000- TOTAL ~ $1,520,000 A summary of each project is provided with this abstract. Full copies of all proposals aze available under separate cover. FINANCIAL IMPACT: The proposed projects total $1,520,000 and is leveraged by approximately $8,194,947.. This recommendation represents the commitment of all but $280,000 of.housing bond funds. RECOMII~NDATION(S): The Manager recommends approving the recommended projects for the Orange County Housing Bond Program within a time frame that allows these. expenditures to be .included in the bond sale scheduled for the Spring of 2000. Approval at the December 7, 1999 or Januaryl8, 2000 meeting should be adequate to meet the deadline for the bond sale. 3 A. ..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. Affordabili~ (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. 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. IL ~everaging_(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 4 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 60% of total project cost is financed by outside sources and 40% is financed by bond funds, 14 points will be awarded. - ~ If 50% of total project cos# is financed by outside sources and 50% is financed by bond funds,.42 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. - If a project is funded 100% with bond funds, 0 points will be awarded. ILL Desian (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 Attachmenf I for NCHFA Energy Standards) - If the project fits well into the surrounding area in terms of building style, design, and materials, 5 points will be awarded, - (BONUS) If the project meets .the accessibility needs of persons -with disabilities, 5 points will be awarded. 5 IV. Community Sponsorship/Support (10 points) 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. - 1f 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 whole 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 Feasibili~ (15 points) 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 points 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. 6 VI. Develo er~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. Protect Review and Selection 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, focal 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. Housing Bond Project Summary ~ Applicant: Habitat for Humanity. of Orange County, NC, Inc. ~ Project Title:. Efland-Cheeks Land Acquisition Program ~ Request for Bond Funds: $465,000 ~ Total Project Costs: $2,060,000 -Bond Fund Leverage: 18% bond funds; 82% other funding sources ~ Project Description: Habitat for Humanity proposes to use $465,000 in Orange County Housing Bond funds to purchase a 42 acre tract in the Efland-Cheeks area of Orange County. Bond funds would be used for the acquisition of the. property; engineering work necessary for approval of a 44 affordable home subdivision to be built on the tract as well as for approximately 50% of the infrastructure costs. The subdivision will be known as Richmond Hills. ~ Target Population/Projected Outcome: 44 first time homebuyers: 13 with incomes 51% - 80% of median income 31 with incomes at or below 50% of median income ~ Project Schedule' Begin infrastructure improvements Begin construction of seven (7) homes Begin construction of eight (8) homes Begin construction of fifteen (15) homes Begin construction ten (10) homes Project Completion - July 2000 - March 2001 - September 2001 - June 2002 - August 2002 - June 2003 Long Term Affordability Vehicle The two options under consideration by the Board of Directors of Habitat for Humanity of Orange County are: 1) have the land owned and held in trust by the newly formed Community Land Trust for Orange County, thus ensuring the permanent affordability of all homes; and 2) utilize deed restrictions to ensure affordability for homebuyers earning at or below 80% of area median income for 41-50 years on all homes. 8 Housing Bond Project Summary Applicant: Orange Community Housing Corporation Project Title: Meadowmont Request for Bond Funds: $450,000 Total Project Costs: $3,739,250 Bond Fund Leverage: 12% bond funds; 88% other funding sources ,Project Description.: Orange Community Housing Corporation proposes construction of a 32 unit townhouse development in the Meadowmont development in Chapel Hill. Meadowmont is a mixed-use development located off Highway 54 in Chapel Hill.. In the approval process, the Town of Chapel Hill required the developer, East West Partners to provide land for 32 affordable townhouses.; The developer has agreed to donated the land to develop the townhouses. OCHC is proposing that bond funds be loaned to OCHC for construction and converted to second mortgages at $14,000 per unit in order to lower the cost of the first mortgage of the first time homebuyers. Target Population/Projected Outcome: 32 first time homebuyers with incomes at or below 80% of median income ~ Project Schedule Obtain building permits Groundbreaking Begin home sales Project Completion ~ Long Term Affordability Vehicle - Second Quarter 2000 - Third Quarter 2000 - Early 2001 - Late 2001- Early 2002 Second mortgages, deed restrictions and equity sharing arrangements will be used. to insure affordability for at least 40 years. Applicant: Orange Community Housing Corporation 9 Project Title: Scarlett Drive Request for Bond Funds: $140,000 Total Project Costs: $1,678,520 Bond Fund Leverage: 8% bond funds; 82% other funding sources ~ Project Description: Orange Community Housing Corporation (OCHC) proposes to develop fourteen townhouses on land currently owned by the Town of Chapel Hill at the corner of Legion Road and Scarlett Drive. The homes will be developed in cooperation with the Community Land Trust in Orange County and will be the first land trust project in Orange County. OCHC is asking that bond funds be granted to the development to be used for project construction costs. Target Popuiation/Projected Outcome: 14 first time homebuyers with incomes below 80% of median income ~ Project Schedule Groundbreaking Project Completion Long Term Affordability Vehicle - January 2000 - March 2001 The townhouses will remain affordable because .they will be in a land trust. The land trust will own the land and lease it to the homeowners who purchase the townhouse for a renewable 99 year term.. Included in the land lease is a resale formula which determines how much appreciation the homeowners will receive when they resell their homes. 10 " Ho ing Bond Project Summary Applicant: EmPOWERment, Inc. Project Title: Sykes/Gomain Street Apartments Request for Bond Funds: $100,000 Total Project. Costs: $409,803 Bond Fund Leverage: 24% bond funds; 76% other funding sources Project Description: EmPOWEltment proposes to use $100,000 in Orange County Housing Bond funds to purchase two (2) existing apartment buildings on Sykes and Gomains Street in Chapel Hill, renovate them and rent them to families earning less than 50% of median income. The buildings have eight (8) one bedroom apartment units. Target Population/Projected Outcome: 8 rental households with incomes at or below 50% of median income Project Schedule Project Completion - December 2000 Long Term Affordability Vehicle EmPOWERment, Inc. will own the property and will ensure that these units remain affordable for at least 40 years. ii $ou ing Bond Project Summary ~ Applicant: EmPOWERment, Inc. ~ Project Title: Hargraves Apartments ~ Request for Bond Funds: $100,000 Total Project Costs: $658,250 .Bond Fund Leverage: 15% bond funds; 85% other funding sources Project Description: EmPOWERment proposes to use $100,000 in Orange County Housing Bond funds to purchase two (2) existing apartment buildings at 103 Hargraves Street in Carrboro, renovate them and rent them to families earning less than 50% of median income. The buildings have eleven units: 10 two bedroom apartment units; and one (1) three bedroom unit. Target Population/Projected Outcome: 11 rental households with incomes at or below 50% of median income Project Schedule Project Completion - December 2000 Long Term Affordability Vehicle EmPOWERment, Inc. will own the property and will ensure that these units remain affordable for at least 40 years. i2 Housing Bond Project Summary Applicant: EmPOWERment, Inc. ~ Project Title: Pine Hill Drive ~ Request for Bond Funds: $90,000 ~ Total Project Costs: $420,424 ~ Bond Fund Leverage: 21% bond funds; 79% other funding sources ~ Project Description: EmPOWERment proposes to use $90,000 in Orange County Housing Bond funds. to purchase a tract of land on Pine Hill Drive in Carrboro that will be converted to second mortgages for the potential homebuyers. There are four condemned mobile homes at this site that will be demolished and EmPOWEltment will build four (4) new condominium units to sale to first time homebuyers. ~ Target Population/Projected Outcome: 4 first. time homebuyers with incomes between 52% and 58% of median income Project Schedule Project Completion - June 2000 Long Term Affordability Vehicle Bond funds will be secured by a 40 year Deed of Trust. If a family sells. their home within the 40 year period of affordability, they must repay both the entire principal balance of the second mortgage, plus 21% appreciation on their home. Mousing and Project Summary Applicant: OPC Area Program & Orange Person Chatham Foundation for Mental Health Project Title: Rental Housing Acquistion Program Proposal Request for Bond Funds: $160,000 reduced by the Review Committee to $80,000 Total Project Costs: $480,000 Bond Fund Leverage: 17% bond funds; 83% other funding sources. Project Description: The Orange Person Chatham Area Program and the Orange Person Chatham Foundation for Mental Health is seeking a deferred loan in the amount of $160,000 for acquisition and necessary rehab costs to provide rental property to persons with disabilities residing in Orange County including the Towns of Carrboro, Chapel Hilll, and Hillsborough Target Population/Projected Outcome: Acquisition of two condominiums for lease to families with incomes below 25% of the area median income. Project Schedule Project Completion - June 2000 Long Term Affordability Vehicle No Statement was provided by the applicant. 14 Housing Bond Project Summary Applicant: Orange Community Housing Corporation ~ Project Title: Orange County Urgent Repair Program ~ Request for Bond Funds: $100,000 ~ Total Project Costs: $268,700 ~ Bond Fund Leverage: 37% bond funds; 63% other funding sources ~ Project Description: Orange Community Community Housing Corporation (OCHC) requests a grant in the amount of $100,000 to provide support to their existing Urgent Repair Program (URP) during the next three years. Bond funds would be used for hard costs including materials and labor; and project management and administration costs. Target Population/Projected Outcome: 30 owner-occupied houses would be repaired under this program. The owner occupants would have incomes at or below 50% of area median income. 25% of the funds would be targeted to the incorporated areas of Carrboro and Chapel Hill; the remaining 75% would be targeted to the remaining areas of the County. Project Schedule Project Completion - June 2001 Long Term Affordability Vehicle No statement was provided by the