ATTACHMENT 2
Community Development Staff Report
Summary of Comments and Community Development Application Requests
The citizen comments received at the February 4 and March 23, 2009 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:
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. Habitat for Humanity of Orange County
Habitat for Humanity requests $200,000 of Community Development Program funds 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.
Comment: The recommended plan includes $200,000 for this request. Citizens and representatives of Habitat for Humanity spoke in favor of this allocation at the March 23, 2009 Public Hearing. Habitat for Humanity’s Executive Director requested full funding for the organization’s 2009-2010 request at the February 4 Public Hearing. The recommended HOME plan includes $208,534 for this project.
2. Chapel Hill Department of Housing
The Chapel Hill Department of Housing requests $269,270 of Community Development Program funds for the following purposes: $201,770 to perform comprehensive renovations on 8 of 15 apartments in the South Roberson community; $47,500 to continue the five-year Refurbishing Program by completing refurbishing work in 40 apartments; $45,000 to perform exterior painting for the Craig-Gomains community; and $2,000 to replace playground equipment.
Comment: The recommended plan includes $150,000 for comprehensive renovations to the Craig-Gomains 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.
3. Orange Community Housing and Land Trust (Land Trust)
The Orange Community Housing and Land Trust requests $100,000 of Community Development Program funds for its Homebuyer Assistance Program for existing Land Trust homes and for homes that will be brought into the Land Trust in FY 2009-2010. 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.
Comment: The recommended plan includes $53,625 for the Land Trust’s Homebuyer Assistance Program. The Land Trust’s Executive Director requested funding for FY 2009-2010 at the February 4, 2009 Public Hearing and spoke in favor of the recommended allocation at the March 23, 2009 Public Hearing.
4. Interfaith Council for Social Service (IFC)
The IFC requests $100,000 of Community Development Program funds to build Project Community House, a men’s residential facility on University of North Carolina land that will be leased to the IFC for a period of 50 years. Funds would be used for pre-development planning and permitting costs associated with architecture schematics, civil engineering, surveying, permitting fees, and legal representation.
Comment: The recommended plan includes $65,000 for pre-development costs associated with the construction and permit process for a new men’s residential facility. The IFC’s Executive Director spoke in favor of the recommended allocation at the March 23, 2009 Public Hearing.
5. EmPOWERment, Inc.
EmPOWERment Inc requests $52,000 to purchase a house on Bynum Street in the Northside neighborhood to be used for an affordable rental opportunity.
Comment: 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.
EmPOWERment’s Executive Director requested funding for FY 2009-2010 at the February 4, 2009 Public Hearing and spoke in favor of including funding in the recommended budget for EmPOWERment at the March 23, 2009 public hearing.
6. Rogers-Eubanks Neighborhood Association and the Coalition to End Environmental Racism
The Rogers-Eubanks Neighborhood Association and the Coalition to End Environmental Racism 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. Reverend Robert Campbell submitted a letter outlining this request in February 2009 and spoke in favor of the request at the March 23, 2009 public hearing.
Comment: 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 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 (estimate of $86,226 for FY 2009-2010).
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 emphasizes 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 $37,000 of Community Development funds 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.
Comment: The recommended plan includes $25,000 for the Youth Employment Program. Combined with available prior year funds for the program, this amount would fund the program at $30,000.
2. Housing for New Hope
Housing For New Hope requests $20,000 of Community Development funds 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.
Comment: The recommended plan includes $15,000 for the Real Change from Spare Change program. The Executive Director of Housing for New Hope spoke in favor of the recommended allocation at the March 23, 2009 Public Hearing.
3. Chapel Hill Training Outreach Program
The Chapel Hill Training Outreach Program requests $15,000 of Community Development funds 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.
Comment: The recommended plan includes $10,000 for this project. 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.
Comment: The recommended plan includes $10,000 for this request. The Town has supported the program since 1994 and it continues to meet its goals by providing quality after school care and academic support for the children. A representative of the Chapel Hill – Carrboro YMCA spoke in favor of receiving the full request amount of $15,000 at the March 23, 2009 Public Hearing.