ATTACHMENT 2
Community Development Staff Report
Summary of Comments and Community Development Application Requests
The citizen comments received at the January 30 and March 26, 2008 public forums and applications for funding are summarized below. All agencies that requested funding were required to submit an application.
Activities eligible for Community Development funding must meet one of three National Objectives:
· Benefit low- and moderate-income persons; or
· Aid in the prevention or elimination of slums and blight; or
· Treat urgent needs posing an immediate threat to public health and welfare.
Examples of eligible activities include acquisition and/or renovation of property, second mortgage assistance, and site development.
The following applications and comments were considered:
1. Community Alternatives for Supportive Abodes (CASA)
CASA requests $232,619 of Community Development funds to renovate five duplexes on Pritchard Avenue Extension. Once renovated, the one-bedroom units would house ten persons earning less than 30% of the area median income. Eligible residents would be homeless or have a disability.
Staff Comment: The recommended plan includes $30,000 for this request. The recommended HOME Program plan also includes $435,225 for this project. The combination of these funds would satisfy the CASA’s request for funds. Renovation of apartments for very low income rental opportunities is an eligible use of Community Development funds. This project would also compliment the goals and strategies of the 10-Year Plan to End Chronic Homelessness in Orange County.
2. Chapel Hill Department of Housing
The Chapel Hill Department of Housing requests $281,065 of Community Development Program funds for the following purposes: $198,000 to pay a portion of the cost to modernize nine apartments to conform and comply with Section 504 and the Uniform Federal Accessibility Standards (UFAS) as mandated by HUD; $61,800 to continue the Five-Year Refurbishing Program to refurbish about 40 apartments; $19,265 replace appliances; and $2,000 to replace playground equipment.
The modernization work on nine apartments throughout the public housing communities would be in compliance with Section 504 of the Rehabilitation Act of 1973. This provision is to prohibit discrimination on the basis of disability in programs and activities, which receive federal assistance. The total budget for this project is $781,650.
Staff Comment: The recommended plan includes $200,000 for the modernization of public housing apartments, the refurbishing program, and the replacement of appliances. The Town’s public housing is an important source of affordable rental housing and the Town’s investment in this property should be maintained. Although the amount included in the recommended plan is less than the Department of Housing’s request, this allocation represents 43% of the total amount of Community Development funds that are available for all projects in 2008-2009, and represents an increase in funding for public housing from the 2007-2008 Community Development allocation of $197,000.
3. Orange Community Housing and Land Trust
In its application, Orange Community Housing and Land Trust requests a grant of $150,000 for its Homebuyer Assistance Program for existing Land Trust homes and for homes that will be brought into the Land Trust in FY 2008-2009. The Land Trust intends to combine Community Development funds with HOME Program funds and funds from the Town’s Affordable Housing Fund to subsidize the purchase price of Land Trust homes. The Land Trust also made this request at the January 30, 2008 and March 26 public forums.
Staff Comment: The recommended plan includes $100,000 for the Land Trust’s Homebuyer Assistance Program. We recommend supporting this program because it helps maintain the Town’s investment in affordable housing.
The use of funds for public service activities is eligible under federal Community Development regulations. Examples of public service activities include programs concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, homebuyer down payment assistance or recreational needs. The amount of Community Development funds used for public services cannot exceed 15% of the Town’s Community Development grant ($86,226 for FY 2008-09).
In the past, the Council has funded public service projects that support other Community Development objectives and activities, especially public housing and Neighborhood Revitalization. Some emphasis has also been placed on job training for low-income residents. We evaluated the following applications in terms of previous performance and their relationship to other Community Development objectives. In general, we are recommending that some funding be set aside for community services, but that the Council emphasize affordable housing objectives as contained in the Consolidated Plan.
To be eligible for Community Development assistance, a public service must be either a new service or a quantifiable increase in the level of an existing service at the time when the organization first applies for funding for the program. Once a program is funded, it is allowable to continue to receive funding for the program in succeeding years, even if there is no significant increase in services provided. The idea behind this rule is that Community Development funds are not to be used to supplant funds from other sources for existing programs.
The following agencies submitted applications for Public Service activities:
1. Chapel Hill Police Department
The Chapel Hill Police Department requests $29,466 to continue the Youth Employment Program for youth aged 14-18 living in the Pine Knolls, Northside and public housing neighborhoods. During the summer, approximately 25 youth would work up to 20 hours per week for seven weeks in various Town Departments and local non-profit organizations. Youth would also participate in an orientation session focusing on performance expectations, employment-related behaviors, and financial education.
Staff Comment: We recommend granting the request for $29,466 for the Youth Employment Program. Based on our monitoring of the program, it has continued to be a highly successful program and to meet its goals by providing valuable work experience for the participants. In post-program surveys, both supervisors and youth report that it was a positive educational and work experience. In addition, the program supports the Town’s current neighborhood revitalization efforts in the Northside, Pine Knolls and public housing communities.
2. Chapel Hill Downtown Partnership/Housing for New Hope
The Chapel Hill Downtown Partnership requests $15,000 for its Real Change from Spare Change program, which educates the community on issues of panhandling and homelessness and supports the current street outreach program in Chapel Hill. The target population for the street outreach program is chronically homeless, mentally ill clients.
Staff Comment: We recommend granting the request for $15,000 for the Real Change from Spare Change program. The proposed program would address a need of the homeless population in Chapel Hill that has been identified in the Orange County Ten Year Plan to End Homelessness. Funds would be used to support the Housing for New Hope street outreach worker positions.
3. Chapel Hill Training Outreach Program
The Chapel Hill Training Outreach Program requests $15,000 to continue to operate an after-school program at the South Estes Drive public housing community. The Center provides free after school care for about 14 children.
Staff Comment: The recommended plan includes $15,000 for this project, maintaining the 2007-2008 level of support. We believe that the provision of after-school services is an important activity and supports the Town’s efforts in providing services to public housing residents. The Town has supported the program since 2003 and it continues to meet its goals by providing quality after school care and academic support for the children.
4. Chapel Hill – Carrboro YMCA
The Chapel Hill Carrboro YMCA requests $15,000 to operate an After School Program for 12 youths living in the South Estes Drive and Airport Gardens public housing communities and the Pine Knolls neighborhood. A representative from the YMCA also made this request to the Council at the January 30, 2008 public forum.
Staff Comment: The recommended plan includes $15,000 for this request. Since 1994, the Town has provided Community Development funds to the YMCA for its After School Program. The program has successfully merged with the YMCA’s existing after school program held at the YMCA facility. In the current year, twelve children are being served by the program. The YMCA continues to operate a program that meets the goals and objectives established by the Performance Agreements.
5. EmPOWERment, Inc.
EmPOWERment requests $10,000 for its Career Explorers Summer Intern Program, a collaborative effort with local merchants to provide summer employment opportunities for local high school rising juniors and graduating seniors. Fifteen (15) positions would be available; applicants must live in the Pine Knolls or Northside neighborhoods and live in low- to moderate-income households earning below 80% of area median income. The interns would work 36 hours per week and spend 4 hours per week with the program administrator learning about financial management, general life skills, and gaining exposure to life and career experiences.
Staff Comment: We do not recommend funding for this program. The Career Explorers program is ineligible for Community Development funding because it has existed for several years and served the same number of 15 youths. The federal regulations state, “to be eligible for CDBG assistance, a public service must be either a new service or a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government.”
6. HR Consulting
HR Consulting requests $50,000 to operate a Financial Literacy and Money Management Training programs to teach low-income families how to budget and build wealth.
Staff Comment: Although the proposed program would address an important issue, we believe this application is ineligible for Community Development funds because the applicant, as a for-profit entity, does not meet the definition of a Subrecipient under the Federal Community Development regulations. The definition of a Subrecipient is a public or private non-profit agency, authority or organization receiving Community Development funds to undertake eligible activities; or a for-profit entity administering microenterprise assistance. HR consulting does not meet this criteria.