AGENDA #9a
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended 2006-2007 Community Development Program
DATE: April 24, 2006
PURPOSE
The purpose of this memorandum is to present to the Council a recommended 2006-2007 Community Development Program Plan.
The attached Resolution would:
(1) Approve a plan for use of $598,310 of 2006-2007 Community Development funds; and
(2) Authorize the Town Manager to incorporate the Community Development Plan into the Consolidated Plan developed with Orange County, Hillsborough and Carrboro for submittal to the U.S. Department of Housing and Urban Development on May 15, 2006.
SUMMARY
At the March 22, 2006 public hearing, we presented to the Council a preliminary proposal for the 2006-2007 Community Development program. We recommend no changes to that proposal.
The U. S. Department of Housing and Urban Development has informed us that the Town will receive $598,310 of Community Development funds in fiscal year 2006-2007.
RECOMMENDED PLAN
The recommended plan is based on applications for funding submitted by agencies and comments received at public forums held by the Council on January 25 and March 22, 2006.
|
1. Public Housing |
|
$210,000 |
|
Renovation of North Columbia Street |
$165,000 |
|
|
Refurbishing Program |
$ 40,000 |
|
|
Playground Equipment |
$ 5,000 |
|
|
2. EmPOWERment, Inc. |
|
$ 75,810 |
|
3. Orange Community Housing and Land Trust |
|
$120,000 |
|
4. Community Services |
|
$ 74,500 |
|
Chapel Hill Police Department Youth Programs |
$45,000 |
|
|
Chapel Hill Training and Outreach/ Family Resource Center After School Program |
$15,000 |
|
|
YMCA After School Program |
$14,500 |
|
|
5. Administration |
|
$118,000 |
|
Total |
|
$598,310 |
The Town of Chapel Hill has received Community Development grants since 1975 under the federal Housing and Community Development Act of 1974. This legislation provides funds to cities and counties to carry out activities that benefit low- and moderate-income families including: housing repair, public improvements, acquiring land for housing and economic development.
The primary objective of the Community Development program is to develop viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities for low- and moderate-income households. Federal regulations define low-income as up to 50 percent of the median income and moderate-income as up to 80 percent of the median family income. According to the U.S. Department of Housing and Urban Development (HUD), 80 percent of the current median income for a family of four in the Durham Metropolitan Statistical Area is $57,050. Please see Attachment 1 for the 2006 Median Family Income by Household Size. This year, Chapel Hill has been incorporated into the Durham Metropolitan Statistical Area in the Triangle region. Though the 100 percent median family income figure has decreased from $69,800 in 2005 to $61,700 in 2006, there is little change to the median income figures due to HUD’s adjustments to the median income calculations for high housing costs in this area.
Since the mid-1980s, the Council has used a significant amount of Community Development funds for the renovation of public housing communities, affordable housing projects and neighborhood revitalization. Funds have been used to rehabilitate and refurbish the interior and exterior of public housing apartments and for drainage improvements. Over the past several years, the Council has also budgeted funds for affordable housing developments such as the Legion Road and Meadowmont and Vineyard Square Townhomes, two Habitat for Humanity subdivisions located off Rogers Road, neighborhood revitalization activities with EmPOWERment, Inc., and community service activities programs with the Town’s Police Department and local non-profit agencies such as the Chapel Hill-Carrboro YMCA and the Orange County Family Resource Center. Please see Attachment 2 for a summary of the 2005-2006 Community Development program.
Relationship to the Consolidated Plan
Last year, 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 Plan identifies and prioritizes the housing and community development needs for Chapel Hill and Orange County, and suggests how the Town and the County will address the needs over a five-year period.
The Annual Update to the Consolidated Plan includes a 2006-2007 Community Development and HOME Program Plan, establishes priorities for use of funds, and describes housing and community development initiatives and programs in Orange County. The Community Development Plan is approved by the Council and the HOME Program Plan is approved by the governing bodies of the HOME Program Consortium: the Council, the Orange County and Hillsborough Commissioners, and Carrboro Board of Aldermen. A draft Consolidated Plan is on tonight’s agenda for the Council’s consideration.
Public Participation Process
On January 25, and March 22, 2006, the Council held public forums to receive ideas from citizens about how funds could be spent in five areas: the Town Budget, Capital Improvements Program, the Community Development Program, the HOME Program and the Capital Fund Grant for public housing activities.
Agencies requesting Community Development and/or HOME Program funding were asked to submit a standardized application. The application requested detailed information about the agencies requesting funds and the projects, and asked agencies to develop performance measures for the proposed project. The application also included a list of eligible Community Development activities, as well as a list of the housing and community development priorities from the Consolidated Plan adopted by the Council in May 2005. We believe that this process allowed agencies to more clearly understand the criteria by which the projects would be evaluated. This application process, along with our on-going monitoring procedures (including site visits to each agency to evaluate progress), is designed to improve overall Community Development performance.
Please see Attachment 3 for a summary of Community Development related comments and requests received at the January 25, and March 22, 2006 public forums, and a summary of applications received.
DISCUSSION
Recommended 2006-2007 Community Development Plan
We propose the following activities for the 2006–2007 Community Development grant:
1. Renovation of Public Housing: $210,000
We recommend that the Council budget $165,000 to assist in renovating the North Columbia Street public housing community. Funds would be used along with Public Housing Capital Grant funds and previously allocated Community Development funds to renovate the North Columbia Street apartments. We also recommend that $15,000 of this amount be used to pay a portion of the Operations and Special Projects Coordinator’s salary for oversight of the renovation project.
Proposed renovation work would include the abatement of lead-based paint and asbestos, replacement of water and sewer lines to OWASA standards, installation of new washer and dryer hook-ups, replacement of wall and base cabinets and countertops to include new range hoods and sinks, replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces including air conditioning and water heaters, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting. Funds will also be used for site improvements including replacement of asphalt driveways and parking lots; planting new shrubs, and replacement of storm drainage systems and retaining walls. Due to the extent of building improvements, the relocation of residents will be required and the work will have to be scheduled in phases.
We recommend that the Council appropriate $40,000 of Community Development funds to continue the public housing refurbishing program. This program includes repainting and minor repairs of public housing units.
We recommend that the Council budget $5,000 to purchase playground equipment for public housing communities.
1. Property Acquisition - EmPOWERment, Inc.: $75,809
We recommend that the Council budget $75,809 to EmPOWERment to purchase property in the Northside or Pine Knolls neighborhoods. EmPOWERment would either demolish an existing structure on a property and rebuild one new home, or rehabilitate one existing house on a property. EmPOWERment would sell the home to a first time homebuyer earning less than 80 percent of the area median income. Once a project is identified, prior to entering into a Performance Agreement and distributing funds, we would work with EmPOWERment to develop a mechanism for the long term affordability of this project.
3. Property Acquisition – The Affordable Housing Group: $120,000
We recommend that the Council budget $120,000 to the Affordable Housing Group to purchase 2.44 acres of property for the Dobbins Hill II Apartments. This project would be in partnership with Orange Community Housing and Land Trust and would use low-income housing tax credits to develop thirty-two permanently affordable rental units. The application for low-income housing tax credits is a competitive, state-wide process. There is no assurance that tax credits for this project will be awarded. If tax credits are not awarded to The Affordable Housing Group, we would recommend that the Council reprogram these funds for another eligible activity.
4. Community Services: $74,500
We recommend that the Council allocate funds for three community service activities that meet the Community Development regulations:
$45,000 for two projects: 1) $44,000 to continue the Youth Employment Program for youths ages 14-17 living in the Pine Knolls, Northside and public housing communities. During the summer, up to 35 youths would work up to 20 hours per week in various Town Departments and local non-profit organizations. Youths would also be required to participate in training focused on financial education, career exploration, and resume writing, CPR and interview skills; and 2) $1,000 for an ongoing youth services program.
$15,000 to the Chapel Hill Training Outreach Program to continue to operate an after school enrichment program for elementary school age children at the South Estes Family Resource Center located in the South Estes Drive public housing community.
$14,500 to the Chapel Hill–Carrboro YMCA to continue operation of an after school program for children living in the Pine Knolls neighborhood and the South Estes Drive public housing community. Funds would be used to provide scholarships to eligible children to attend the YMCA’s after school program held at the facility on Martin Luther King Jr. Boulevard.
5. Program Administration: $118,000
We recommend that the Council allocate $118,000 for administration of the Housing and Neighborhood Services division of the Planning Department. Currently, the Housing and Neighborhood Services staff administers the Community Development Program and the Housing Loan Trust Fund, coordinates efforts with non-profit organizations that receive Community Development funding from the Town, coordinates activities with the HOME Program Consortium, monitors compliance with performance agreements and federal regulations, administers housing loans and grants provided by the Town over time, and coordinates with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations.
We propose to continue to use funds for a portion of the salary of a Housing and Neighborhood Services Planner, a part-time Community Development Program Planner, and a portion of the salary of the Housing and Neighborhood Services Coordinator. These costs total approximately $114,400. The balance of funds, approximately $3,600, would be used for costs such as advertising expenses, business meetings and training, supplies and professional services.
RECOMMENDATION
That the Council adopt the attached resolution authorizing submittal of the 2006-2007 Community Development Plan to the U.S. Department of Housing and Urban Development.
ATTACHMENTS