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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director |
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SUBJECT: |
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DATE: |
May 4, 2009 |
The purpose of this memorandum is to present to the Council a recommended 2009-2010 Community Development Program Plan.
The attached Resolution would:
1. Approve a plan for use of $642,625 of 2009-2010 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, 2009.
At the March 23, 2009 public forum, we presented to the Council a preliminary proposal for the 2009-2010 Community Development program. We recommend no changes to the preliminary proposal.
The U. S. Department of Housing and Urban Development (HUD) has not yet provided the Town with its 2009-2010 entitlement funding amount. However, we have been advised by the North Carolina HUD Office to use 2008-2009 funding levels for planning purposes. Therefore, we present a recommended budget based on the Town’s 2008-2009 allocation of $574,804. The total recommended budget of $642,625 also includes $7,338 of program income received during the 2008-2009 program year, and a reallocation of $60,483 of residual funds from previous year Comprehensive Rehabilitation Program funds have not been expended.
If the Town receives more than the estimated allocation of $574,804, we recommend adding the additional amount to the Inter-Faith Council Homeless Shelter project described below. If the Town receives less than the estimated allocation of $574,804, we recommend removing funds from the Orange Community Housing and Land Trust’s Homeownership Assistance Program based on the availability of other Town funding sources for Land Trust activities.
We propose the following use of Community Development funds for 2009-2010. The proposed plan is based on comments received at the February 4 and March 23, 2009 public forums and applications submitted by agencies requesting funds.
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1. Infrastructure Development |
$200,000 |
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Habitat for Humanity Phoenix Place |
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2. Public Housing Modernization |
$150,000 |
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Craig-Gomains Housing Community |
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3. Predevelopment Costs |
$ 65,000 |
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Inter-Faith Council Men’s Residential Facility |
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4. Homeownership Assistance Program |
$ 53,625 |
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Orange Community Housing and Land Trust |
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5. Public Service Activities |
$ 60,000 |
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CH Police Department |
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Youth Employment 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 |
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Chapel Hill Carrboro YMCA |
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After School Program |
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7. Administration |
$114,000 |
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Total |
$642,625 |
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 2009 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.
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 2009-2010 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.
On February 4, 2009 and March 23, 2009, the Council held public forums to receive public comment 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 February 4 and March 23, 2009 public forums.
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 recommend the following activities for the 2009-2010 Community Development grant. In response to the increased demand for funding for affordable housing projects, our 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 recommended that they 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 recommended HOME Program Plan includes $208,534 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 recommended HOME Program plan includes $185,000 for this request.
We recommend that the Council budget $53,625 for the Orange Community Housing and Land Trust for its Homeownership Assistance Program to assist low-income buyers with the 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 and Housing Loan Trust 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 recommend that the Council adopt the attached resolution that would:
1. Approve a plan for use of $642,625 of 2009-2010 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, 2009.
1. 2009 Median Household Income Chart (p. 9).
2. Summary of Comments and Community Development Requests (p. 10).