AGENDA #1c
to: Roger L. Stancil, Town Manager
from: J.B. Culpepper, Planning Director
Loryn Clark, Housing and Neighborhood Services Coordinator
subject: Public Forum: Preliminary 2008-2009 HOME Program
date: March 26, 2008
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 2008-2009. 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 $661,756 for fiscal year 2008-2009h. In addition, the participating municipalities are required to contribute a 25% match of the grant funds after subtracting administrative costs of $66,176. The total match requirement is $148,895. The Town’s contribution to the matching funds is 41% of the total match or $61,047. 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 $59,558, $20,845, and $7,445 respectively. Therefore, including the 2008-2009 grant funds allocated to the Orange County HOME Consortium ($661,756) and the required local match ($148,896), the Consortium is planning activities for a total of $810,652.
HOME Program Review Committee
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. The Council appointed Council Member Matt Czajkowski to represent the Town Council.
HOME Program
The HOME Program Review Committee proposes the following use of 2008-2009 HOME Program funds:
|
1. Housing Rehabilitation |
Community Alternatives for Supportive Abodes (CASA) |
$435,226 |
|
2. Homeownership Assistance |
Orange Community Housing and Land Trust |
$100,000 |
|
3. Second Mortgage Assistance |
Habitat for Humanity |
$120,000 |
|
4. Sewer Construction |
Town of Hillsborough |
$ 56,250 |
|
5. Operational Support |
Orange Community Housing and Land Trust |
$ 33,000 |
|
6. Administration |
Orange County Housing and Community Development |
$ 66,176 |
|
TOTAL |
|
$810,652 |
As in previous years, we propose to use funds available in the Housing Loan Trust Fund for the Town’s match contribution of $61,047. 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.
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.
The Annual Update to the Consolidated Plan will include a 2008-2009 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 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. We will prepare a draft Annual Update to the Consolidated Plan for the Council’s consideration on April 28, 2008.
Public Participation
On January 30, 2008, 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 5, 2008, 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 1 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 2).
The HOME Program Review Committee proposes the following one-year plan for 2008-2009:
1. Housing Rehabilitation: $435,226
The Review Committee recommends allocating $435,226 to Community Alternatives for Supportive Abodes (CASA) for the renovation of ten one-bedroom apartments on Pritchard Avenue Extension in Chapel Hill. The units would be rented to very low income individuals who may have disabilities or be formerly homeless.
2. Homeownership Assistance: $100,000
The Review Committee proposes to allocate $100,000 to Orange Community Housing and Land Trust to assist first time homebuyers earning less than 80% of the area median income to purchase Land Trust homes throughout Orange County. The majority of homes would be located in the Chapel Hill/Carrboro area.
3. Second Mortgage Assistance: $120,000
The Committee recommends allocating $120,000 to Habitat for Humanity to provide deferred payment zero-interest second mortgages on six homes throughout Orange County. The homes would be built in 2008 and 2009 and would be sold to households earning between 30% and 80% of the area median income.
4. Sewer Construction: $56,250
The Review Committee proposes to allocate $56,250 to the Town of Hillsborough to construct infrastructure to provide sewer service to six new homes in partnership with Habitat for Humanity.
5. Operational Support: $33,000
The Committee recommends allocating $33,000 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.
6. Administration: $66,176
The remaining $66,176 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 28, 2008. 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, 2008.