AGENDA #3
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Community Development Plan for 2000-2001
DATE: March 29, 2000
The purpose of this memorandum is to present a proposed plan for use of Community Development funds in fiscal year 2000 - 2001. The U. S. Department of Housing and Urban Development has informed us that the Town will receive $426,000 of Community Development funds for fiscal year 2000 - 2001. The Town Council will hold a public hearing Wednesday, March 29, 2000, to receive citizen comments on this proposed plan.
INTRODUCTION
We propose the following use of Community Development funds for 2000 - 2001. We note that this plan is based on comments received at a January 25, 2000, public hearing and comments received after that meeting:
Public Housing
Renovations (Craig / Gomains) $120,000
Refurbishing Program $ 70,000
Meadowmont Townhomes $ 53,600
Neighborhood Revitalization
(Pine Knolls or Northside or public housing communities) $ 50,000
Community Services $ 47,000
Administration $ 76,400
Total $426,000
BACKGROUND
The Town of Chapel Hill has received Community Development grants since 1975 under the 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 goals of the Community Development program are to develop viable urban communities, including decent housing and a suitable living environment; and to expand 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), the current 80% of median income for a family of four in the Raleigh-Durham-Chapel Hill Metropolitan Statistical Area is $50,250 (please see Attachment 1 for the Raleigh-Durham-Chapel Hill Median Family Income by Household Size).
In earlier years, the Town used its Community Development funds primarily for housing rehabilitation and public improvements such as street improvements, installation of sewer lines, the Tanyard Branch Greenway and Hargraves Park improvements. Community Development improvement projects were completed in Northside, Pine Knolls, Barclay Road - Justice Street and University Heights neighborhoods.
Since the mid 1980’s, the Council has used a significant amount of Community Development funds for the renovation of public housing communities. These funds have been used to rehabilitate the exterior of public housing apartments, for drainage improvements, and to refurbish the interior of apartments. In 1993, the Council began budgeting funds for Neighborhood Revitalization activities in the Pine Knolls neighborhood. In 1997, the Council added the Northside neighborhood as an eligible area for this activity.
The Consolidated Plan
In May 2000, the Town and Orange County will submit to the U.S. Department of Housing and Urban Development a five-year Consolidated Plan. The purpose of the Plan is to identify and prioritize the housing and community development needs for Chapel Hill and Orange County. The Plan will include a one-year action plan for use of Community Development and HOME funds and a five-year plan is required to submit an annual update to the plan by May 14, 1999.
The Plan will include a 2000 - 2001 Community Development plan approved by the Council and a 2000 – 2001 HOME Program approved by the Council, the Orange County Commissioners, and the Hillsborough and Carrboro Boards of Aldermen. We will also develop a five-year spending plan for use of Community Development funds.
Public Participation Process
On January 25, 2000, the Council held the first public hearing to receive ideas from citizens about how funds could be spent in five areas: the Capital Improvements Program, the Town Budget, the Community Development Program, the HOME Program and the Comprehensive Grant. The hearing represented the first step in the Community Development planning process for 2000-2001.
Please see Attachment 2 for a summary of Community Development related comments and requests received at the January 25, 2000 public hearing and comments submitted after the hearing for consideration.
DISCUSSION
Proposed 2000 - 2001 Community Development Plan
We propose the following activities for the 2000 – 2001 Community Development grant:
Rehabilitation of Public Housing: $199,000
We propose to budget $120,000 of Community Development funds for the rehabilitation of the Lindsey Street public housing community. Funds would be used for renovation expenses and or a portion of the Assistant Housing Director’s salary. Together with Comprehensive Grant funds, the 2000 – 2001 Community Development funds would be used to renovate the nine-unit community. Proposed renovation work would include the abatement of lead-based paint and asbestos, replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, and interior and exterior painting.
We propose to appropriate $70,000 of Community Development funds to continue the public housing refurbishing program. This program includes painting the interior of apartments, and minor repairs of public housing units.
Meadowmont Townhomes $53,600
We propose that the Council budget $53,600 of Community Development funds to the Orange Community Housing Corporation for the development of the Meadowmont Townhomes. Community Development fund would be used for infrastructure improvements to the site. The Townhomes would be sold to first time homebuyers earning less than 80% of the area medina income.
Neighborhood Revitalization: $50,000
We propose to budget $103,600 of Community Development funds to continue neighborhood revitalization activities in the Pine Knolls, Northside and public housing neighborhoods. Eligible activities must serve households earning less than 70% of the HUD published area median income. Funds could be used for second mortgages, property acquisition or renovation, public improvements, or community service activities.
Community Services: $47,000
We also propose to budget $22,000 to the Chapel Hill - Carrboro YMCA to continue operation of the After School Day Programs held at the Pine Knolls and South Estes Drive Community Centers. Funds would be used to assist with operating expenses for the program.
We also propose to budget $25,000 to Community Cuisine to continue operation of its youth and adult culinary skills programs for Chapel Hill residents.
Program Administration: $76,400
We propose to budget $76,400 for administration of the Community Development program. Funds would be used for the Community Development Coordinator’s salary, a portion of the Long Range Planning Coordinator’s salary, and overhead costs.
NEXT STEPS
A public forum is scheduled for March 29, 2000, to receive citizen comments on the proposed plan. All comments received during the public hearing process and the comment period will be summarized and submitted with the Consolidated Plan to the Department of Housing and Urban Development. The Housing and Community Development Advisory Board is scheduled to review the proposed plan on March 28, 2000. We will forward the Board’s recommendation to the Council at the March 29, 2000, public hearing. We will submit a final recommended Community Development plan to the Council for consideration on April 24, 2000. A final Consolidated Plan must be submitted to the Department of Housing and Urban Development by May 15, 2000.
ATTACHMENTS
1. 2000 Median Household Income for Raleigh-Durham-Chapel Hill area (p. 5)
2. Summary of comments received at the January 25, 2000 public hearing (p. 6).
3. National Objectives of Community Development Legislation (p. 8).
4. Request from Community Cuisine (p. 9).
5. Request from the Orange Community Housing Corporation (p. 10).
6. Request from EmPOWERment Inc (p.13).
7. Request from the Chapel Hill-Carrboro YMCA (p. 14).
8. 8.National Objectives of Community Development Legislation. (p. 16).
ATTACHMENT 2
The citizen comments received at the January 25, 2000 public hearing are summarized below.
1. Community Cuisine
Kelly Welch, Executive Director of Community Cuisine requested $36,500 of Community Development funds to continue operation of their culinary skills program. The program provides training sessions throughout the year and assists with job placement. The organization also sponsors a similar program for teenagers. Funds would be used to sponsor programs and for administrative expenses.
Staff Comment: We propose that the Council budget $25,000 for this activity.
2. Orange Community Housing Corporation
Robert Dowling, Executive Director of the Orange Community Housing Corporation requested $160,000 of Community Development and HOME Program funds to develop thirty-two townhouses in Meadowmont. The townhomes will be developed for first time homebuyers earning less than 80% of the area median income.
Staff Comment: We propose to budget $53,600 of 2000 - 2001 Community Development funds to the Orange Community Housing Corporation for the Meadowmont Townhomes. In addition, we propose to budget $____ of HOME Program funds for the project. Because development of the Meadowmont town homes will not begin until next spring, we recommend that we consider budgeting additional Community Development funds for this project next year.
3. EmPOWERment Incorporated
Myles Presler, Director of EmPOWERment Inc. requested $250,000 of Community Development funds and $200,000 of HOME Program funds for neighborhood revitalization activities in Chapel Hill and throughout Orange County.
Staff Comment: We propose to fund portions of these requests in the 2000 – 2001 Community Development and HOME Program Plans.
4. Chapel Hill – Carrboro YMCA
The Chapel Hill – Carrboro YMCA requested $25,000 of Community Development funds to continue operation of After School Programs for children living in the Pine Knolls and South Estes Drive Family communities.
Staff Comment: We propose to budget $17,500 of 1999-2000 Community Development funds for this activity.
1. Rosemary Street Parking Lot
On March 15, 1999, we reported to the Council that we are continuing to work with the Town of Carrboro to develop a parking lot at the corner of Rosemary Street and Sunset Drive. The Council has previously budgeted $15,000 of Community Development funds for this project, however, additional funds may be needed to complete the project. On March 15, 1999, we recommended that if the Council determined that improvements are required (i.e. reconstruction of the curb and gutter along West Rosemary Street to align with the curb and gutter west of Sunset Drive; reconstruction of the existing sidewalk along West Rosemary Street; and replacing the existing curb cut on West Rosemary Street with standard curb and gutter), we would obtain cost estimates for the improvements and return to the Council with a funding plan.
Staff Comment: The proposed 1999-2000 Community Development Plan does not budget funds for this project. We recommend that we reserve any new program income for this project.