AGENDA #6b
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director Loryn Clark, Housing and Neighborhood Services Coordinator |
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SUBJECT: |
Recommended 2007-2008 HOME Program |
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DATE: |
April 23, 2007 |
The purpose of this memorandum is to present to the Council a recommended 2007-2008 HOME Program Plan.
The attached resolution would:
Authorize this plan to be incorporated into the Annual Update to the 2005-2010 Consolidated Plan developed with Orange County, Hillsborough and Carrboro for submittal to the U.S. Department of Housing and Urban Development on May 15, 2007.
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% 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% 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 ($810,005), the HOME Program Review Committee proposes to reallocate funds from former grant awards totaling $470,027 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 ($470,027), the Consortium would be planning activities for a total of $1,280,032.
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.
At the March 28, 2007 public forum, we presented to the Council a preliminary proposal for the 2007-2008 HOME Program. We recommend no changes to that proposal.
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 amend the HOME Program plans from the former grant years mentioned above to reallocate funds 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 $470,027.
The HOME Program Review Committee recommends the following use of 2007-2008 HOME Program funds:
1. Homeownership Assistance Orange Community Housing and
Land Trust $140,000
(Carrboro single family homes)
2. Rental Assistance Tenant Based Rental
Assistance Orange-Person-
Chatham Mental Health Initiative $ 23,883
3. New Construction Habitat for Humanity
(County-wide) $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 $810,005
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.
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.
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.
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 include a description of housing and community development initiatives and programs in Orange County. The Community Development Plan is approved by the Town 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 Annual Update to the Consolidated Plan for the Council’s consideration is on tonight’s agenda.
On January 31, 2007, the Council held a 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. The Council held a second public forum on March 28, 2007 to receive citizen comments on a preliminary spending plan. On February 6, 2007, the Board of Orange County Commissioners held a public forum to receive citizen comments on how HOME Program funds could be spent and affordable housing needs in general.
Please see Attachment 1 for a summary of applications and comments received at the public forums and applications received for HOME Program funding.
The HOME Program Review Committee proposes the following plan for 2007-2008:
The Review Committee recommends allocating $140,000 to the Orange Community Housing and Land Trust to assist first time homebuyers earning less than 80 percent of the area median income to purchase two single family homes in Carrboro. Funds would be provided as a grant to the Land Trust.
The Review Committee recommends allocating $23,883 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. We also recommend reallocating $184,027 of prior year HOME Program funds for this activity (for a total of $207,910). The rental subsidy program would be operated like the Section 8 Housing Assistance Program and will be administered by the Orange County Housing and Community Development Department.
The Review Committee recommends allocating funds to the following agencies for new construction activities:
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.
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.
We recommend that the Council adopt the attached resolution that would:
1. Approve a plan developed by the HOME Program Review Committee for use of $810,005 of 2007-2008 HOME Program funds;
2. Amend the fiscal year 2004-2005, 2005-2006, and 2006-2007 HOME Program plans to reallocate $470,027; and
3. Authorize this plan to be incorporated into the Annual Update to the 2005-2010 Consolidated Plan developed with Orange County, Hillsborough and Carrboro for submittal to the U.S. Department of Housing and Urban Development on May 15, 2007.
1. Summary of Applications and Comments for 2007-2008 HOME Program Funding (p. 8).