E. HOME Program

The forum tonight provides an opportunity for citizens to comment on how to use 2006-2007 federal HOME program funds in Chapel Hill and Orange County.

Purpose

Congress established the HOME program in 1992 to fund various housing services to benefit low-income families. HOME funding is in addition to Community Development grants, federal rental assistance, and grants for public housing operations and improvements. 

Attachment 6 provides a summary of the ways under which HOME Program funds can be used.

2006-2007 Funding

The U.S. Department of Housing and Urban Development award the HOME Consortium $665,560 for 2006-07.  There is a local match requirement for these funds.  As in past years, we propose to use funds from the Housing Loan Trust Fund for the Town’s portion of local match.  This year the Town’s share of the match is $61,400. 

Orange County Local Governments' Consortium

In 1992, the governing boards of Carrboro, Hillsborough, Chapel Hill and Orange County formed a consortium to receive HOME funds. Orange County is the lead agency in administering the HOME program.

Current 2005-2006 HOME Program and Funding

In 2005-2006, the HOME program in Orange County totaled $978,900.  This amount includes the grant award ($707,950), the local matching funds and funds reallocated from previous years. 

In accord with an agreement signed in 2002, the local matching funds requirements (in accordance with 2000 Census population figures) are as follows:

Locality Share

• Chapel Hill            41%
• Orange County     40%
• Carrboro              14%
• Hillsborough           5%

This year HOME funds have been budgeted primarily for property acquisition, homeownership assistance, new construction, rental assistance and second mortgage assistance.  Please see Attachment 7 for a summary of the 2005-2006 HOME Program Plan. 

Next Steps

In 2000, the participating governments established a HOME Program Review Committee that consists of elected officials and staff representatives from Orange County, Chapel Hill, Carrboro and Hillsborough.  This Committee has prepared a proposed plan for using HOME funds. The 2006-2007 HOME program must be approved by the Town Council, the Orange County Commissioners, and the Hillsborough and Carrboro Boards of Aldermen prior to submission to the U.S. Department of Housing and Urban Development on May 15, 2006.

We recommend that the Council refer this program to the Town’s Housing and Community Development Advisory Board for comments and recommendations at its March 28, 2006 meeting.

On April 24^th, we will ask the Council to consider a plan for use of these funds.