AGENDA #4f
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Amendment to Project Ordinance for the Transitional Housing Program for Public Housing Families
DATE: April 5, 2005
The attached budget ordinance would increase the budget for the Transitional Housing Program to add $125,000 allocated under the 2004-2005 HOME Program. The budget ordinance also includes additional Program rental income.
BACKGROUND
In April 2001, the Council approved a Transitional Housing Program that would help some public housing families who are paying monthly rents that are almost comparable to private market rents make the transition to private market housing.
Some of the key elements of the Program are:
· Participation in the Program is limited to public housing families with a rent paying ability of at least $450 per month.
· Maximum time for participation in the program is five years.
· Up to 20% of rent is deposited in an escrow account and the total amount in the escrow account would be given to the participant when the program is completed. Participants would be required to use funds for down payment on a home or deposits for private rental housing.
· Participants remaining in the Program after five years will pay market rate rent and will
be required to seek private housing and leave the program.
The first unit in the Transitional Housing Program was purchased in June 2002 at a cost of $117,500. In February 2005, we purchased a second unit for the Program at a cost of $135,000. Funds to purchase the two transitional housing units were allocated under the HOME Program, County Housing Bond, and the Housing Loan Trust Fund.
DISCUSSION
In fiscal year 2004-2005, the Housing Department was allocated $125,000 under the HOME Program for the Transitional Housing Program. In February 2005, we received official notification from the County of the award amount (see Attachment 1).
The Transitional Housing Program currently has one participant who has lived in the Program’s first house, which is located on South Merritt Mill Road, for about three years. The participant continues to be enrolled in financial counseling and homeownership programs. She is expected to leave the Program and purchase a home on the private market before the five-year limitation ends. The Program’s second unit is located on St. Andrews Lane. A public housing family who is on the Transitional Housing Program’s waiting list is expected to move into the townhouse within the next month.
Next Step
Adoption of the attached project ordinance would make the $125,000 appropriated under the 2004-2005 HOME Program available to purchase a third house for the Transitional Housing Program. We are in the process of looking for a house that would be suitable for the Program. We expect to complete the purchase of the third house within the next two to three months.
RECOMMENDATION
Manager’s Recommendation: That the Council adopt the attached project ordinance for the Transitional Housing Program.
ATTACHMENTS
AN ORDINANCE TO AMEND THE TRANSITIONAL HOUSING PROGRAM PROJECT ORDINANCE (2005-04-05/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statues of North Carolina, the following project ordinance is hereby established.
SECTION I
The project authorized is the Transitional Housing Program for Public Housing Families as approved by the Council on April 23, 2001. Funds are from the 2004-2005 HOME Program.
The Town Manager of the Town of Chapel Hill is hereby directed to proceed with the project within the rules and regulations of the HOME Program, and the budget contained herein.
Current Budget Revised Budget
HOME Program $ 160,117 $ 285,117
County Housing Bond 75,000 75,000
Program Rental Income 12,874 17,968
Transfer from Housing Loan Trust Fund 17,500 17,500
Total $ 265,491 $ 395,585
Current Budget Revised Budget
Acquisition $ 252,617 $ 377,617
Program Participants Escrow Set Aside 2,891 3,910
Operations 9,983 14,058
Total $ 265,491 $ 395,585
The Finance Director of the Town of Chapel Hill is hereby directed to maintain within the Project Fund sufficient detailed accounting records to provide the accounting to Orange County as required by the HOME Program.
Funds may be advanced from General Funds for the purpose of making payments as due. Reimbursement request should be made to Orange County in an orderly and timely manner.
SECTION VII
The Town Manager is directed to report annually on the financial status of the project in Section IV and on the total revenues received.
This the 5th day of April, 2005.