|
TO: |
Roger L. Stancil, Town Manager |
|
FROM: |
J.B. Culpepper, Planning Director |
|
SUBJECT: |
|
|
DATE: |
May 4, 2009 |
The purpose of this memorandum is to present to the Council a recommended 2009-2010 HOME Program Plan.
The attached resolution would:
1. Approve a plan developed by the HOME Program Review Committee for use of $861,711 of 2009-2010 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 9.
At the March 23, 2009 public forum, we presented to the Council a recommended proposal for the 2009-2010 HOME Program. We recommend one change to that proposal. We have determined that the Consortium has received $51,058 of program income from the repayment of deferred second mortgages. The HOME Consortium Review Committee recommends allocating these funds to Habitat for Humanity’s allocation for infrastructure costs at its Phoenix Place development.
The U.S. Department of Housing and Urban Development has not informed the Orange County HOME Consortium of the amount of the 2009-2010 HOME Program grant. We have been instructed by HUD to develop a program based on the 2008-2009 grant of $661,756 for fiscal year 2009-2010. As mentioned above, the Consortium has also received $51,058 in program income that is available to be programmed for eligible activities. 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 anticipated 2009-2010 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 $861,711.
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.
The HOME Program Review Committee proposes the following use of 2009-2010 HOME Program funds:
|
Predevelopment/Infrastructure Costs |
Habitat for Humanity/Phoenix Pl. |
$208,534 |
|
Housing Rehabilitation |
Orange Person Chatham Mental |
$162,000 |
|
Homeownership Assistance |
Orange Community Housing and Land Trust |
$100,000 |
|
Second Mortgage Assistance |
Habitat for Humanity |
$ 60,000 |
|
Rental Assistance |
Housing for New Hope |
$ 50,000 |
|
Operational Support |
Orange Community Housing and Land Trust |
$ 30,000 |
|
Administration |
Orange County Housing |
$ 66,177 |
|
TOTAL |
|
$861,711 |
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. However, after the 2009-2010 fiscal year, there will not be funds available in the Housing Loan Trust Fund to be used for the Town’s portion of the match. If the Town wishes to continue to participate in this program, an alternate source of funds for the Town’s portion of the match will need to be identified.
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.
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 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 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 October 23, 2000, the Council adopted a resolution to participate in a HOME Program Review Committee along with Orange County, Carrboro and Hillsborough. The purpose of this Committee is to allow elected officials to have more involvement in the development of the annual HOME Program plan and to review the progress of HOME funded activities on a regular basis. The Council appointed Council Member Matt Czajkowski to represent the Town Council.
On February 4, 2009, the Council held a Public Forum to receive ideas from the public 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 23, 2009 to receive comments on a recommended spending plan. On February 3, 2009, 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.
The HOME Program Review Committee recommends the following one-year plan for 2009-2010:
The Review Committee recommends allocating $185,000 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. The recommended Community Development plan also includes $65,000 for this request.
The Review Committee also recommends allocating $208,534 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 Committee also recommended that any additional HOME funds received above the anticipated grant amount would be allocated to Habitat. The recommended Community Development plan also includes $200,000 for this request.
The Review Committee proposed to allocate $153,000 to Orange Person Chatham Area Program to rehabilitate twenty-three properties currently owned by the Chrysalis Foundation for Mental Health, Inc. The properties serve individuals with disabilities, particularly disabilities related to mental health, substance abuse, and developmental disabilities. The Committee also proposes to allocate $9,000 to provide a cash match for a HUD Supportive Housing Program grant.
The Review Committee proposes to allocate $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. The recommended Community Development plan also includes $53,661 for this request.
The Committee recommends allocating $60,000 to Habitat for Humanity to provide deferred payment zero-interest second mortgages for three homes in the Fairview Community in Hillsborough. The homes would be sold to households earning less than 60% of the area median income.
The Committee recommends allocating $50,000 to Housing for New Hope to provide fair market rent (approximately $700 per month) for 25 individuals for three months. Rental assistance will be supplemented by significant in-kind contributions from the community to support clients’ housing needs.
The Committee recommends allocating $30,000 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.
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.
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 $861,711 of 2009-2010 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 9.
1. Summary of Applications and Comments for 2009-2010 HOME Program Funding (p. 7).