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TO: |
Roger Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director |
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SUBJECT: |
Public Forum: Preliminary 2009-2010 Community Development Program |
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DATE: |
March 23, 2009 |
The purpose of tonight’s public forum is to receive comments from the public on a proposed plan for use of 2009-2010 Community Development funds.
The U. S. Department of Housing and Urban Development has not yet informed us of the amount of the Town’s 2009-2010 grant. Therefore, we have developed a preliminary budget based on the Town’s 2008-2009 allocation of $574,840. We also recommend budgeting $7,338 of program income received during the 2008-2009 program year, and reallocating approximately $60,483 of Community Development funds previously budgeted to a Comprehensive Rehabilitation Program that remains unspent. Therefore, we propose a plan for $642,661.
We will present a final recommendation to the Council for consideration of a Community Development Plan on April 27, 2009.
The Town is required to submit an Annual Update to the Consolidated Plan to the U.S. Department of Housing and Urban Development by May 15, 2009.
We propose the following use of Community Development funds for 2009-2010. The proposed plan is based on comments received at the February 4, 2009 public forum and applications submitted by agencies requesting funds.
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1. |
Infrastructure Development |
Habitat for Humanity |
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Phoenix Place |
$200,000 |
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2. |
Public Housing Modernization |
Town of Chapel Hill Housing Dept. |
$150,000 |
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3. |
Predevelopment Costs |
Inter-Faith Council for Social Services |
$ 65,000 |
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4. |
Homeownership Assistance |
Orange Comm. Housing and Land Trust |
$ 53,661 |
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5. |
Public Service Activities |
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Chapel Hill Police Department |
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Summer Work Program |
$ 25,000 |
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Housing for New Hope |
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Street Outreach Workers |
$ 15,000 |
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Orange County Family Resource Center |
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After School Program |
$ 10,000 |
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Chapel Hill Carrboro YMCA After |
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School Program |
$ 10,000 |
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6. |
Administration |
Town of Chapel Hill |
$114,000 |
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$642,661 |
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-Chapel Hill Metropolitan Statistical Area (Durham, Orange, and Chatham counties) is $57,050. Please see Attachment 1 for the 2008 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.
In 2005, the Orange County HOME Consortium consisting of the Town, Orange County, Carrboro and Hillsborough submitted a 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.
This year’s Annual Update to the Consolidated Plan will include a 2009-2010 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 while 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 Consolidated Plan for the Council’s consideration on April 27, 2009.
On February 4, 2009, the Council held the first public forum to receive ideas from the public 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. The forum represented the first step in the Community Development planning process for 2009 – 2010.
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.
Please see Attachment 2 for an evaluation of applications received for Community Development funding.
Federal regulations require that Community Development funds be spent in a timely fashion. We propose reallocating $60,483 from a Comprehensive Rehabilitation Program for owner-occupied homes in the Northside and Pine Knolls neighborhood. A similar rehabilitation program is funded through the HOME Program, and homeowners in Chapel Hill are eligible to receive assistance through this program. If rehabilitation assistance is requested, we would refer Chapel Hill residents to the Orange County Department of Housing and Community Development.
We also recommend that the Council allow the remaining $35,000 that was allocated in the 2009-2010 budget for the Comprehensive Rehabilitation Program to be used for renovation of rental or owner-occupied affordable housing. This modification would allow the Town to respond to requests that we have received for the renovation of affordable rental units.
We propose the following activities for the 2009-2010 Community Development grant. In response to the increased demand for funding for affordable housing projects, our preliminary recommendation reduces funding for all requests received for community service activities. Prior to the application process, we informed the community service applicants that we anticipated large requests for affordable housing projects and that they should consider identifying other resources for their programs.
We recommend allocating $200,000 to Habitat for Humanity for a portion of the infrastructure costs for the Phoenix Place subdivision located in the Rogers Road neighborhood. Habitat intends to build fifty single-family homes for households earning less than 80% of the area median income on this site. The preliminary HOME Program Plan includes $157,475 for this request.
We recommend that the Council budget $150,000 to perform comprehensive renovations at the South Roberson Street Public Housing Community. Renovation work would include installation of new furnaces including air conditioners and water heaters, replacement of interior and exterior doors, replacement of wall and base cabinets and countertops to include new range hoods and sinks, installation of new washer and dryer hookups, upgrade of electrical services, and replacement of water and sewer lines.
We recommend allocating $65,000 to the InterFaith Council for Social Services for infrastructure and predevelopment costs related to the development of a 50 plus bed transitional housing facility for homeless men. The facility would be located on a 1.66-acre of property located on Martin Luther King, Jr. Boulevard and would also include staff offices, meeting areas and a medical clinic for homeless residents. The preliminary HOME Program plan includes $185,000 for this request.
We recommend that the Council budget $53,661 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. The Land Trust would also be able to use funds from the Town’s Affordable Housing Fund and Housing Loan Trust Fund for this purpose. The preliminary HOME Program plan includes $100,000 for this request.
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: $25,000
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: $10,000
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: $10,000
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.
· Housing for New Hope: $15,000
The Homeless Outreach and Housing Support Program assists the homeless and chronically homeless to improve their lives through obtaining and maintaining permanent housing and supportive services. Funding would be used to pay a portion of the salary for a Homeless Outreach worker.
We recommend that the Council allocate $114,000 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 Manager, the Housing and Neighborhood Services Planner, and 100% of 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.
We received an application for funding from EmPOWERment to purchase a house on Bynum Street in the Northside neighborhood to be used for an affordable rental opportunity. We do not recommend funding for this organization at this time because of its performance history associated with the terms of the Town’s Performance Agreements. We are providing technical assistance to the EmPOWERment staff to help them better understand the program requirements and improve its overall performance. In addition, we have discussed our concerns with the HUD Greensboro office, which in response has provided a consultant to work with the EmPOWERment staff to improve its organizational structure and staff capacity. We recommend that the Council postpone funding for this agency until it is able to demonstrate the ability to comply with the terms of the existing Performance Agreements for a period of one year.
We also received a letter from Reverend Robert Campbell on behalf of the Rogers-Eubanks Neighborhood Association and the Coalition to End Environmental Racism. The letter requests that the Town coordinate with Orange County to prepare an application for Community Development and HOME Program funding to finance a construction project to connect residents of the historic Rogers-Eubanks community to Orange Water and Sewer Authority (OWASA) water and sewer services. We have discussed this letter with the Orange County Department of Housing and Community Development and determined that HOME Program funds can only be used for infrastructure development for new construction projects, not for existing housing. We do not recommend Community Development funding for this project at this time because we believe that due to the potential high cost of this type of project, a coordinated plan for funding should be developed in partnership with Orange County and Carrboro.
The plan under consideration tonight is a preliminary recommendation. All comments received during and after tonight’s public forum will be summarized and submitted with the Consolidated Plan to the Department of Housing and Urban Development.
We will submit a final recommended Community Development plan to the Council for consideration on April 27, 2009. A final Consolidated Plan will be submitted to the Department of Housing and Urban Development by May 15, 2009.
1. 2008 Median Household Income Chart (p. 8).
2. Evaluation of Community Development Applications (p. 9).
3. National Objectives of Community Development Legislation (p. 18).