ATTACHMENT 1
MEMORANDUM
TO: Roger Stancil, Town Manager
FROM: J.B. Culpepper, Planning Director
Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT: Public Forum: Preliminary 2007-2008 Community Development
Program
DATE: March 28, 2007
PURPOSE
The purpose of tonight’s public forum is to receive citizen comments on a proposed plan for use of 2007-2008 Community Development funds.
The U. S. Department of Housing and Urban Development has informed us that the Town will receive $596,282 of Community Development funds in fiscal year 2007-2008.
· Due to a decrease in the Federal budget for the Community Development Block Grant Program, the Town’s 2007-2008 Community Development grant has been reduced slightly by approximately $2,000 from the 2006-2007 grant.
· We recommend reallocating a total of $44,026 of residual funds to this year’s allocation from previous year CDBG grants that have not been expended, bringing the total amount of available funds to $640,308.
· We will present a final recommendation to the Council for consideration of a Community Development Plan on April 23, 2007.
· The Town is required to submit an Annual Update to the Consolidated Plan to the U.S. Department of Housing and Urban Development by May 15, 2007.
INTRODUCTION
We propose the following use of Community Development funds for 2007-2008. The proposed plan is based on comments received at the January 31, 2007 public forum and applications submitted by agencies requesting funds.
1. Public Housing $197,000
Renovation of South Roberson Street Apts. $165,000
Refurbishing Program $ 30,000
Playground Equipment $ 2,000
2. Orange Community Housing and Land Trust $100,000
3. Comprehensive Housing Rehabilitation Program $ 70,000
4. Neighborhood Revitalization $ 95,808
5. Community Services $ 59,500
CH Police Dept. Youth Employment Program $30,000
Chapel Hill Training Outreach Project/
Family Resource Center After School Program $15,000
Chapel Hill-Carrboro YMCA $14,500
6. Administration $118,000
Total $640,308
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 (Durham, Orange, and Chatham counties) is $57,050. Please see Attachment 1 for the 2007 Durham MSA Median Family Income by Household Size.
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 Dobbins Hill II apartments, Meadowmont and Vineyard Square townhomes, two Habitat for Humanity subdivisions located off Rogers Road, neighborhood revitalization activities with EmPOWERment, Inc., and community service programs with the Town’s Police Department and local non-profit agencies such as the YMCA and the Chapel Hill Training Outreach Project. Please see Attachment B for a summary of the 2006-2007 Community Development program.
Relationship to the Consolidated Plan
Two years ago, 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 will include a 2007-2008 Community Development and HOME Program Plan, establish priorities for use of funds, and a description of housing and community development initiatives and programs in Orange County. The Community Development Plan is approved by the Council while 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. We will prepare a draft Consolidated Plan for the Council’s consideration on April 23, 2007.
Public Participation Process
On January 31, 2007, the Council held the first public hearing 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. The hearing represented the first step in the Community Development planning process for 2007-2008.
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 proposed projects or programs, including goals, timetables, budgets, and funding. 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 2005 Consolidated Plan. 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 C for a summary of Community Development-related comments and requests received at the January 31, 2007 public hearing, and a summary of applications received.
Federal regulations require that Community Development funds be spent in a timely fashion. We propose reallocating funds from former grant allocations that have not yet been expended and for which there are not plans for spending in the near future.
The largest reallocation proposed is a 2005-2006 award to Inter-Faith Council for $25,000 for predevelopment costs for the development of a Men’s Residential Center. We received communication from the Inter-Faith Council that the project has not yet secured property for the facility, and request that the Town continue to reserve funds. We do not believe that there is an immediate need for the funds and we recommend reallocating funds to projects that are further along in the development process. If the Inter-Faith Council requires funds during the program year, the Council could amend the Community Development program and reallocate funds from an existing activity for this expense. Otherwise, we recommend that the Council consider future grants to the Inter-Faith Council project when it has progressed to a point where the funding could be used within a reasonable time frame.
We also propose reallocating the balance of funds remaining in former grants for a completed sewer connection program and community service programs for which there are no future plans for expenditures, totaling $19,026. The total combined amount of funds we are proposing be reallocated to this year’s grant cycle is $44,026.
DISCUSSION
Preliminary 2007-2008 Community Development Plan
We propose the following activities for the 2007-2008 Community Development grant:
1. Renovation of Public Housing: $197,000
· Renovation of Public Housing: $165,000
We recommend that the Council budget $165,000 to renovate the South Roberson Street public housing community. Funds would be used along with Public Housing Capital Grant funds and previously allocated Community Development funds to renovate seven (7) of the fifteen (15) apartments in the development. 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 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, and plumbing and electrical upgrades. 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.
· Refurbishing Program: $30,000
We recommend that the Council appropriate $30,000 of Community Development funds to continue the public housing refurbishing program. This program includes repainting and minor repairs of public housing units.
· Playground Equipment: $2,000
We recommend that the Council budget $2,000 for the replacement of playground equipment in the public housing neighborhoods.
2. Orange Community Housing and Land Trust – Homebuyer Assistance Program: $100,000
We recommend that the Council budget $100,000 to the Orange Community Housing and Land Trust for its Homebuyer Assistance Program for existing Land Trust homes and for homes that will be brought into the Land Trust in the Culbreth Park/Tandler neighborhoods. The Land Trust intends to combine Community Development funds with HOME Program funds and funds from the Town’s Revolving Acquisition Fund to address the affordability and maintenance issues it is facing with its existing inventory of homes. Funds will also be used to purchase and make necessary repairs and improvements to homes in the Tandler and Culbreth neighborhoods and then resell them as Land Trust properties to lower-income households.
3. Comprehensive Housing Rehabilitation Program: $70,000
We recommend that the Council allocate $70,000 for the Comprehensive Housing Rehabilitation Program to renovate owner-occupied housing in the Northside and Pine Knolls neighborhoods. The Council has previously allocated a total of $250,000 to this program. To date, four homes have either been renovated or are in the final stages of renovation. We continue to market the program and qualify applicants.
4. Neighborhood Revitalization: $95,808
We recommend that the Council budget $95,808 of Community Development funds to continue neighborhood revitalization activities in the Northside, Pine Knolls, and public housing neighborhoods. Activities must serve households earning less than 80 percent of the HUD published area median income. Funds could be used for the following activities: property acquisition, demolition, renovation; public and neighborhood improvements such as sidewalks, curb and gutter improvements or parks and recreation facilities; second mortgage assistance; or community service activities.
We recommend that the Council continue to authorize the Manager to approve specific projects for use of these funds. We also recommend that the Council continue to authorize the Manager to approve converting Neighborhood Revitalization funds into grants to non-profit organizations for housing projects that achieve long-term affordability.
5. Community Services: $59,500
We recommend that the Council allocate funds for two community service programs that meet the Community Development regulations:
· Chapel Hill Police Department Youth Employment Program: $30,000
The Youth Employment Program provides job skills training, employment experience, and economic opportunities to youth aged 14-18 living in the Pine Knolls, Northside and public housing communities whose families earn less than 80 percent of area median income. During the summer, approximately 35 youth would work up to 20 hours per week for seven weeks in various Town Departments and local non-profit organizations. The youth would also participate in training on financial education and job interviewing skills. Work-site supervisors and the youth employees will fill out evaluations at the end of the program to help determine the success of the program.
· Chapel Hill Training Outreach Project (CHTOP) After School Enrichment Program: $15,000
The After School Enrichment Program operates at the Family Resource Center in the South Estes public housing community, serving approximately 14 elementary school-aged children.
· Chapel Hill Carrboro YMCA After School Outreach Program: $14,500
Funds would be used to continue operation of an after school program for children living in the Pine Knolls neighborhood and the South Estes Drive and Airport Gardens public housing communities. Funds would be used to provide scholarships to eligible children.
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. Funds would be used for oversight of the Community Development program and related affordable housing programs, as well as coordination 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 salaries of the Housing and Neighborhood Services Planner and the Housing and Neighborhood Services Coordinator, and the salary for the part-time Community Development Program Monitor. In addition to salaries, funds would be used for overhead costs such as advertising expenses, business meetings and training, supplies and professional services.
NEXT STEPS
The plan under consideration tonight is a preliminary recommendation. All comments received during and after tonight’s public forum will be summarized and submitted with the Consolidated Plan to the Department of Housing and Urban Development.
We will submit a final recommended Community Development plan to the Council for consideration on April 23, 2007. A final Consolidated Plan will be submitted to the Department of Housing and Urban Development by May 15, 2007.
ATTACHMENTS
A. 2007 Median Household Income Chart (p. 18).
B. Summary of 2006-2007 Community Development Program (p. 19).
C. Summary of Comments and Community Development Requests (p. 20).
D. National Objectives of Community Development Legislation (p. 24).