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 HOME 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 HOME Program Plan.
The attached resolution would:
(1) Approve a plan developed by the HOME Program Review Committee for use of $810,651 of 2008-2009 HOME Program funds;
(2) 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, 200 7.
At the March 26, 2008 public forum, we presented to the Council a recommended proposal for the 2008-2009 HOME Program. We recommend no changes to that proposal.
The U.S. Department of Housing and Urban Development has awarded the Orange County HOME Consortium $661,756 for fiscal year 2008-2009. 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 $810,651.
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.
RECOMMENDED PLAN
The HOME Program Review Committee proposes the following use of 2008-2009 HOME Program funds:
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1. Housing Rehabilitation |
Community Alternatives for Supportive Abodes (CASA) |
$435,225 |
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2. Homeownership Assistance |
Orange Community Housing and Land Trust |
$100,000 |
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3. Second Mortgage Assistance |
Habitat for Humanity |
$120,000 |
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4. Sewer Construction |
Town of Hillsborough |
$ 56,250 |
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5. Operational Support |
Orange Community Housing and Land Trust |
$ 33,000 |
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6. Administration |
Orange County Housing and Community Development |
$ 66,176 |
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TOTAL |
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$810,651 |
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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.
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 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 also on tonight’s agenda.
On January 30, 2008, 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 26, 2008 to receive citizen comments on a recommended spending plan. 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 forums and applications received for HOME Program funding.
DISCUSSION
The HOME Program Review Committee recommends the following one-year plan for 2008-2009:
1. Housing Rehabilitation: $435,225
The Review Committee recommends allocating $435,225 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 recommends allocating $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 recommends allocating $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.
RECOMMENDATION
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 $810,651 of 2008-2009 HOME Program funds; and
2. 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, 200 8.
ATTACHMENT