ATTACHMENT 3
MEMORANDUM
TO: Roger L. Stancil, Town Manager
FROM: J.B. Culpepper, Planning Director
Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT: Public Forum: Preliminary 2007-2008 HOME Program
DATE: March 28, 2007
PURPOSE
The purpose of tonight’s public forum is to receive citizen comments on a proposed plan developed by the HOME Program Review Committee for use of HOME Program funds for fiscal year 2007-2008. The Committee is comprised of one elected official and the Manager or his designee(s) from each participating jurisdiction.
Funding
The U.S. Department of Housing and Urban Development has awarded the Orange County HOME Consortium $661,229 for fiscal year 2007-2008. In addition, the participating municipalities are required to contribute a 25 percent match of the grant funds after subtracting administrative costs of $66,122. The total match requirement is $148,776. The Town’s contribution to the matching funds is 41 percent of the total match or $60,998. As in previous years, funds are available in the Housing Loan Trust Fund for the Town’s match contribution. Orange County, Carrboro, and Hillsborough will contribute $59,510, $20,829, and $7,439 respectively. In addition to these funds, the HOME Program Review Committee proposes to reallocate funds from former grant awards totaling $560,027 from Fiscal Years 2004, 2005, and 2006. Therefore, including the 2007-2008 grant funds allocated to the Orange County HOME Consortium ($661,229), the required local match ($148,776), and the proposed reallocation ($560,027), the Consortium would be planning activities for a total of $1,370,032.
On October 23, 2000, the Council adopted a resolution to participate in a HOME Program Review Committee along with Orange County, Carrboro and Hillsborough. The purpose of this Committee is to allow elected officials to have more involvement in the development of the annual HOME Program plan and to review the progress of HOME funded activities on a regular basis. On February 13, 2006, the Council appointed Council Member Laurin Easthom to represent the Town Council.
SUMMARY
Proposed Reallocation of Funds
Federal regulations require that HOME funds be spent in a timely fashion. Organizations with unspent funds from Fiscal Years 2004, 2005, and 2006 were asked to report on the status of their projects and whether there were plans to spend the funds in the upcoming year. After reviewing the responses, the HOME Program Review Committee proposes to reallocate funds from the former grant allocations that have not yet been expended and for which there are not specific plans for spending in the near future. The Committee does not propose to reallocate funds from activities with specific plans. The total of the proposed reallocation is $560,027.
HOME Program
The HOME Program Review Committee proposes the following use of 2007-2008 HOME Program funds:
1. Homeownership Assistance Orange Community Housing and
Land Trust $140,000
(Carrboro single family homes)
EmPOWERment, Inc.
Rehabilitation, Acquisition, and
Second Mortgage Assistance $250,000
2. Rental Assistance Tenant Based Rental
Assistance Orange-Person-
Chatham Mental Health Initiative $333,910
3. New Construction Habitat for Humanity
(Highland Woods/Chestnut Oaks) $250,000
Orange Community Housing and
Land Trust $300,000
(Tax Credit Rental Project)
4. Operational Support Orange Community Housing and
Land Trust $ 30,000
5. Administration Orange County Housing
and Community Development $ 66,122
TOTAL $1,370,032
As in previous years, we propose to use funds available in the Housing Loan Trust Fund for the Town’s match contribution of $60,998. There are currently funds available for this purpose.
BACKGROUND
The HOME Program was established to provide funding for various types of housing programs to benefit low-income families. This funding is in addition to the existing federal Community Development grants, rental assistance through the Section 8 Program and public housing operating and improvement funding. In 1992, Chapel Hill, Carrboro, Hillsborough and Orange County formed the Orange County HOME Consortium with Orange County acting as the lead entity. The Consortium was established as a local partnership to develop affordable housing.
Please see Attachment A for a summary of 2006-2007 HOME Program Activities.
Relationship to the 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 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.
On January 25, 2006, the Council held the first public forum to receive ideas from citizens about how funds should be used in five related areas: the Town Budget, the Capital Improvements Program, the Community Development Program, the HOME Program and the Comprehensive Grant. On February 6, 2007, the Board of Orange County Commissioners held a public hearing to receive citizen comments on how HOME Program funds could be spent and affordable housing needs in general.
Please see Attachment B for a summary of applications and comments received at the public forum and applications received for HOME Program funding.
For your reference, we have attached a list of eligible HOME Program activities (Please see Attachment C).
DISCUSSION
The HOME Program Review Committee proposes the following one-year plan for 2007-2008:
1. Homeownership/Downpayment Assistance: $390,000
The Review Committee proposes to allocate funds to the following agencies for homeownership assistance:
2. Rental Assistance: $333,910
The Review Committee recommends allocating $333,910 to provide tenant based rental subsidies in support of the Orange-Person-Chatham Mental Health Agency Homelessness Initiative that will provide housing and support services to persons with disabilities who are homeless. The rental subsidy program will be operated like the Section 8 Housing Assistance Program and will be administered by the Orange County Housing and Community Development Department.
3. New Construction: $550,000
The Review Committee proposes to allocate funds to the following agencies for new construction:
4. Operational Support: $30,000
The Committee recommends allocating $30,000 to the Orange Community Housing and Land Trust for administrative expenses related to implementing its HOME Program funded projects. As a designated Community Housing Development Organization for the HOME Program, the Land Trust is eligible to receive funds for administration of a housing program.
5. Administration: $66,122
The remaining $66,122 would be allocated to the Orange County Housing and Community Development Department for administration of the HOME program.
Housing projects funded with Orange County HOME Program funds are subject to the County’s 99-year long-term affordability policy, and must remain affordable for 99 years. Orange County records deed restrictions on the property with the Register of Deeds for affordable housing projects.
All comments received during tonight’s public forum and the comment period will be summarized and submitted with the Consolidated Plan to the Department of Housing and Urban Development.
We will submit a final recommended HOME Program plan to the Council for consideration on April 23, 2007. The governing boards of Orange County, Carrboro and Hillsborough will also consider the proposed plan prior to submitting the Consolidated Plan to the Department of Housing and Urban Development on May 15, 2007.
ATTACHMENTS
A. Summary of 2006–2007 HOME Program Activities (p. 36).
B. Summary of Applications and Comments for 2007-2008 HOME Program Funding (p. 37).
C. Eligible HOME Program Activities (p. 39).