C. 2006-2007 Community Development Grant

The purpose of this hearing is to receive citizens' comments on how the Town should use federal Community Development grant funds in 2006-2007.

All citizens' comments received in writing and at public hearings will be compiled and addressed in a Community Development plan to be submitted to the Department of Housing and Urban Development in May.

Purpose

The Town receives a federal grant each year to benefit low- to moderate-income families through projects such as:

• Housing repairs;
• Property acquisition;
• Neighborhood revitalization;
• Capital improvements; and
• After school programs.

Attachment 4 provides a summary of the ways in which Community Development grants can be used.

2006-2007 Funding

The U.S. Department of Housing and Urban Development has informed us that $598,300 will be available in Community Development funds for 2006-2007.  The 2005-2006 Community Development grant was $666,400.  A decrease in funding had been anticipated.

Current 2005-2006 Program

On May 9, 2005, the Council adopted a plan for using 2005-2006 Community Development funds. The 2005-2006 plan focuses on public housing rehabilitation, community services activities and affordable housing initiatives with Orange Community Housing and Land Trust and Habitat for Humanity.

Please see the Attachment 5 for a summary of the Town’s 2005-2006 Community Development program.  

2005-2010 Consolidated Plan

In May 2005, the Orange County HOME Consortium consisting of the Town, Orange County, Carrboro and Hillsborough submitted a new Consolidated Plan to the U.S. Department of Housing and Urban Development covering fiscal years 2005-2006 thorough 2009-2010.  The purpose of the Plan is to identify and prioritize the housing and community development needs for Chapel Hill and Orange County, and to suggest how the Town and the County will address the needs over a five-year period.   The Plan includes a 2006-2007 Community Development and HOME Program Plan, establishes priorities for use of funds, and also includes a description of housing and community development initiatives and programs in Orange County. 

As the lead entity of the HOME Consortium, Orange County hired a consultant to develop the Plan.  The consultants held four focus group meetings to receive input from affordable housing and community service providers, citizens, and government staff on how to prioritize the affordable housing and community development needs in the County.  Comments from these sessions are incorporated into the Consolidated Plan. 

Next Steps

On March 28, 2006, the Town’s Housing and Community Development Advisory Board will review comments from the forum and provide its recommendations for Council consideration.

On April 24, 2006, we plan to recommend that the Council consider a 2006-2007 Community Development Plan.