MEMORANDUM
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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 Manager |
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SUBJECT: |
Recommended 2008-2009 Community Development Program |
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DATE: |
April 28, 2008 |
PURPOSE
The purpose of this memorandum is to present to the Council a recommended 2008-2009 Community Development Program Plan.
The attached Resolution would:
(1) Approve a plan for use of $595,033 of 2008-2009 Community Development funds; and
(2) Authorize the Town Manager to incorporate the Community Development Plan into the Consolidated Plan developed with Orange County, Hillsborough and Carrboro for submittal to the U.S. Department of Housing and Urban Development on May 15, 2008.
SUMMARY
At the March 26, 2008 public forum, we presented to the Council a preliminary proposal for the 2008-2009 Community Development program. There two adjustments to our preliminary proposal:
1. We recommend using Community Development funds for neighborhood revitalization activities to benefit lower and moderate income households and areas throughout the Town. We believe that there are Neighborhood Revitalization needs throughout the Town and that this modification will allow us to address these needs. Our preliminary proposal recommended that neighborhood revitalization funds should be used exclusively in the Northside, Pine Knolls and public housing neighborhoods.
2. We recommend funding the request of $15,000 from the Chapel Hill Downtown Partnership for its Real Change from Spare Change program. As a result, we have reduced the recommended funding level for the Comprehensive Rehabilitation program from $50,000 to $35,000.
The U. S. Department of Housing and Urban Development has informed us that the Town will receive $574,840 of Community Development funds in fiscal year 2008-2009. We also recommend reallocating a total of $20,193 of residual funds from previous year Community Development Block Grant funds that have not been expended, bringing the total amount of available funds to $595,033.
RECOMMENDED PLAN
We propose the following use of Community Development funds for 2008-2009. The proposed plan is based on comments received at the January 30 and March 26, 2008 public forums and applications submitted by agencies requesting funds.
1. Public Housing Modernization, Refurbishing, Appliances $200,000
2. Orange Community Housing and Land Trust
Homeowner Assistance $100,000
3. Comprehensive Rehabilitation Program $ 35,000
4. Neighborhood Revitalization Program $ 40,667
5. Community Alternatives for Supportive Abodes Renovation $ 30,000
6. Community Services $ 74,466
CH Police Dept. Youth Employment Program $29,466
Chapel Hill Training Outreach Project/
Family Resource Center After School Program $15,000
Chapel Hill Carrboro YMCA $15,000
Real Change from Spare Change $15,000
7. Administration $114,900
Total $595,033
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% of the median income and moderate-income as up to 80% of the median family income. According to the U.S. Department of Housing and Urban Development (HUD), 80% 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 1980’s, 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.
Relationship to the Consolidated Plan
Three 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 2008-2009 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 Council while the HOME Program Plan is approved by the governing bodies of the HOME Program Consortium: the Town Council, the Orange County and Hillsborough Commissioners, and Carrboro Board of Aldermen. A draft Annual Update to the 2005-2010 Housing and Community Development Consolidated Plan is also on tonight’s agenda for the Council’s consideration.
Public Participation Process
On January 30 and March 26, 2008, the Council held the public forums 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.
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 2 for a summary of Community Development-related comments and applications received at the January 30 and March 26, 2007 Public Forums.
Proposed Reallocation of Funds
Federal regulations require that Community Development funds be spent in a timely fashion. We propose reallocating the balance of funds remaining in former grants for completed community service programs for which there are no future plans for expenditures, totaling approximately $20,193.
DISCUSSION
Recommended 2008-2009 Community Development Plan
We recommend the following activities for the 2008-2009 Community Development grant:
1. Modernization of Public Housing: $200,000
We recommend that the Council budget $200,000 for the Housing Department to use towards the cost of:
· modernizing nine public housing apartments (to conform and comply with Section 504 and the Uniform Federal Accessibility Standards (UFAS) as mandated by HUD),
· the 5-year Refurbishing Program, and
· the replacement of appliances.
The modernization project could use Community Development funds along with Public Housing Capital Fund Program (CFP) grant funds to modify bathrooms to have roll-in showers or bathtubs with grab bars and in-tub seats, lower medicine cabinets, handicap accessible commodes, shower spray units and bathroom fixtures; to modify kitchens to have handicap accessible appliances, sinks, range hoods and cabinets; to install visual alarm systems; to widen doorways and corridors to minimum handicap clearance; and to lower thermostat controls, electrical switches, clothes rods and shelves and mirrors.
We also recommend that $15,000 of this amount be used to pay a portion of the Contracting Officer’s salary for oversight of the modernization project.
2. Orange Community Housing and Land Trust : $100,000
We recommend that the Council budget $100,000 for the Orange Community Housing and Land Trust for its Homebuyer Assistance Program to assist low-income buyers to purchase Land Trust homes in Chapel Hill. 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.
3. Comprehensive Housing Rehabilitation Program: $35,000
We recommend that the Council allocate $35,000 for the Comprehensive Housing Rehabilitation Program to renovate owner-occupied housing in the Northside and Pine Knolls neighborhoods. The Council has previously allocated funds to this program. To date, four homes have been renovated. We continue to market the program and qualify applicants.
4. Neighborhood Revitalization: $40,667
We recommend that the Council budget $40,667 of Community Development funds to continue neighborhood revitalization activities throughout the Town and public housing neighborhoods. Activities must serve households earning less than 80% of the HUD published area median income or low income areas. 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; sewer and water connection assistance; second mortgage assistance; or community service activities.
We also recommend that the Council continue to authorize the Manager to approve specific projects, and to convert Neighborhood Revitalization funds into grants to non-profit organizations for housing projects that achieve long-term affordability. Funds used to assist individuals would be structured as deferred loans.
5. Community Alternatives for Supportive Abodes (CASA): $30,000
We recommend that the Council allocate $30,000 for the renovation of five duplexes located at 701-719 Pritchard Avenue Extension. These units will provide ten apartments to house persons who earn 30% or below of the Area Median Income and who have a disabling condition or have been homeless. CASA will partner with local service agencies for referrals and on-going tenant support service plans. Each tenant will have his/her own support service plan and receive appropriate services that match his/her needs, including mental health, substance addiction, healthcare, veteran’s services, vocational and employment, budgeting, independent living skills, emergency assistance funds and case management.
CASA applied for both CDBG and HOME funding for this project. The recommended plan for 2008-2009 HOME funds includes an allocation of $435,226 for this project. With the recommended Community Development allocation of $30,000, the renovation project will be fully funded.
6. Community Services: $74,466
We recommend that the Council allocate funds for four community service programs that meet the Community Development regulations:
· Chapel Hill Police Department Youth Employment Program: $29,466
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% of area median income. During the summer, approximately thirty-five youth would work up to twenty 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 fourteen elementary school-aged children.
· Chapel Hill Carrboro YMCA After School Outreach Program: $15,000
The After School Outreach Program operates at the Chapel Hill/Carrboro YMCA, serving 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.
· Chapel Hill Downtown Partnership/Housing for New Hope Real Change from Spare Change Program: $15,000
The Real Change from Spare Change 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. Funds would be used to support the Housing for New Hope street outreach worker positions.
7. Program Administration: $114,900
We recommend that the Council allocate $114,900 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 Coordinator and the Housing and Neighborhood Services Planner, 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.
RECOMMENDATION
We recommend that the Council adopt the attached resolution that would:
1) Approve a plan for use of $595,033 of 2008-2009 Community Development funds; and
2) Authorize the Town Manager to incorporate the Community Development Plan into the Consolidated Plan Update prepared with Orange County, Hillsborough and Carrboro for submittal to the U.S. Department of Housing and Urban Development on May 15, 2008.
ATTACHMENTS
1. 2008 Median Household Income Chart (p. 9).
2. Summary of Comments and Community Development Requests (p. 10).