ATTACHMENT 3

Community Development Staff Report

Summary of Comments and Community Development Application Requests

The citizen comments received at the January 25 and March 22, 2006 public forums and applications for funding are summarized below.  All agencies that requested funding were required to submit an application. 

Affordable Housing / Public Improvement Requests

Activities eligible for Community Development funding must meet one of three National Objectives:

• Benefit low- and moderate-income persons; or
• Aid in the prevention or elimination of slums and blight; or
• Treat urgent needs posing an immediate threat to public health and welfare.

Examples of eligible activities include acquisition and /or renovation of property, second mortgage assistance, and site development. 

The following comments and applications were considered:

1. Chapel Hill Department of Housing

The Chapel Hill Department of Housing requests $232,500 of Community Development Program funds for the following purposes:  $165,000 to pay a portion of the cost to renovate 11 apartments in the North Columbia Street public housing communities; $60,000 to continue the Five-Year Refurbishing Program to refurbish about thirty-eight apartments; $7,500 to install playground equipment. 

Staff Comment:  The recommended plan includes $165,000 for the renovation of the North Columbia Street public housing community, $40,000 for the refurbishing program, and $5,000 to purchase playground equipment.    The Town’s public housing is an important source of affordable rental housing and the Town’s investment in this property should be maintained.  The $165,000 would help with the cost of renovating the North Columbia Street apartments.  This amount also includes $15,000 for a portion of the Operations and Special Projects Coordinator’s salary for oversight of the renovation work.  The refurbishing program is spending about $40,000 per year, and our preliminary recommendation maintains this level.

2.  EmPOWERment , Inc.

EmPOWERment requested $250,000 of Community Development or HOME Program funds to purchase properties in the Northside and Pine Knolls neighborhoods to build two new homes and renovate one home for first time homebuyers.   At the March 22, 2006 public forum, Executive Director Delores Bailey requested that the Council provide a total of $150,000 to EmPOWERment to be able to purchase two houses. 

Staff Comment:  The recommended plan includes $75,809 for this request.  We believe that this amount will allow EmPOWERment to purchase one property to create an affordable homeownership opportunity.

3.  Orange Community Housing and Land Trust / The Affordable Housing Group

At the January 25, 2006 public hearing, Orange Community Housing and Land Trust requested funds for acquisition costs related to the Dobbins Hill II low income housing tax credit project.   An application was also submitted for this request by The Affordable Housing Group.  At the public hearing, the Land Trust also stated that it might request funds to purchase properties in the Northside neighborhood for first time homebuyers. 

Staff Comment:  The recommended plan includes $120,000 for the request to purchase property for Dobbins Hill II.   The Land Trust did not submit a request for funds to purchase property in the Northside neighborhood. 

Community / Public Service Requests

The use of funds for public service activities is eligible under federal Community Development regulations. Examples of public service activities includes programs concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, homebuyer down payment assistance or recreational needs.  The amount of Community Development funds used for public services cannot exceed 15% of the Town’s Community Development grant ($89,746 in 2006-2007). 

In addition to meeting one of the National Objectives listed above, community or public service activities must provide:

(1) a new service; or

(2) a quantifiable increase in the level of an existing service than what was provided over the last fiscal year.

In the past, the Council has funded public service projects that support other Community Development objectives and activities, especially public housing and Neighborhood Revitalization.  Some emphasis has also been placed on job training for low-income residents.  We evaluated the following applications in terms of previous performance and their relationship to other Community Development objectives.  In general, we are recommending that some funding be set aside for community services, but that the Council emphasizes housing objectives as contained in the Consolidated Plan. 

The following agencies submitted applications for Community / Public Service activities:

1.  Chapel Hill Police Department

The Chapel Hill Police Department requests funds for two programs:

• $44,000 to continue the Youth Work Program for youths ages 14-17 living in the Pine Knolls, Northside and public housing communities.  During the summer, approximately thirty youths would twenty hours per week in various Town Departments and local non-profit organizations.  During the school year, ten of these children would continue to work approximately ten hours per week. Youths would also be required to participate in workshops focusing on financial education, career development, and improving interview skills. 

• $1,000 for a variety of programs for youths living in Pine Knolls, Northside or public housing communities.  Programs would be coordinated with the Town’s Housing and Parks and Recreation Departments, and would provide structured activities and emphasize components that will improve academic skills, prevent drub abuse and drug-related crime, leadership development, and career planning.

Staff Comment:  The recommended plan includes $44,000 for the youth work program.  Based on our on-going monitoring reports received, the program has continued to meet the goals established in the 2005-2006 Performance Agreement.  Thirty-two youths participated in the 2005-2006 program; both supervisors and youths reported that it was a positive educational experience. In addition, the program supports the Town’s current neighborhood revitalization efforts in the Northside, Pine Knolls and public housing communities.  The plan also includes $1,000 for the youth programs. 

2. Chapel Hill – Carrboro YMCA

At the January 25 and March 22, 2006 public forums, the Chapel Hill – Carrboro YMCA requested $14,500 of Community Development funds to continue operation of an After School Program for children living in the Pine Knolls and South Estes Drive Family communities.   The program is held at the Chapel Hill – Carrboro YMCA facility on Airport Road. 

Staff Comment: The recommended plan includes $14,500 to the YMCA to continue its after school program for youths living in the Pine Knolls and South Estes Drive public housing communities.    Funds would be provided in the form of scholarships for eligible children.

Since 1994, the Town has provided Community Development funds to the YMCA for its After School Program at the Pine Knolls Community Center.  In 1999, the YMCA established a similar program for youths living in South Estes Drive public housing community. The program has merged with the YMCA’s existing after school program held at the YMCA facility.  In the current year, twelve children are being served by the program.  The YMCA continues to operate a program that meets the goals and objectives established by the Performance Agreements.

3.  Orange County Family Resource Centers

The Orange County Family Resource Centers requests $15,000 of Community Development funds to continue to operate an after school program at the South Estes Drive public housing community.  The Center would provide free after school care for about thirteen children. 

Staff Comment:  The recommended Plan includes $15,000 for this project.  We believe that the provision of after school services is an important activity and supports the Town’s efforts in providing services to public housing residents.  This would be the third allocation of funds for this agency.  The 2005-2006 after school program has met the goals and objectives established by the Town’s Performance Agreement.  Sixteen children from the South Estes Drive public housing community are served by this program.