TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended 2000 - 2001Community Development Plan
DATE: April 24, 2000
The attached resolution would:
(1) Approve a plan for use of $466,000 of 2000 – 2001 Community Development funds;
(2) Adopt a five-year Community Development plan; and
(3) Authorize the Manager to incorporate the one-year and five-year Community Development Plans 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, 2000.
SUMMARY
The U. S. Department of Housing and Urban Development has informed us that the Town will receive $426,000 of Community Development funds in fiscal year 2000 - 2001. In addition, we estimate that we will receive $40,000 of Community Development program income during the program year. Therefore, we recommend funding for activities totaling $466,000.
The recommended plan is based on comments received at public hearings on January 31 and March 29, 2000, and comments received after these hearings. We recommend that the Council allocate 2000 – 2001 Community Development funds as follows:
Public Housing
Renovations (Lindsey Street) $120,000
Refurbishing Program $ 70,000
Meadowmont Affordable Townhomes $ 80,000
Neighborhood Revitalization
(Pine Knolls, Northside or public housing communities) $ 72,600
Community Services $ 47,000
Administration $ 76,400
Total $466,000
This recommended budget was presented to the Council on March 29, 2000.
The recommended budget includes $40,000 of Community Development program income that we anticipate receiving in fiscal year 2000 – 2001. The benefit to programming projected program income is that the funds would be earmarked for a particular project and we would not have to amend the Community Development program mid-year. Typically, when we receive program income during the program year, the Council schedules a public hearing to receive citizen comments on how to spend the funds, and the Housing and Community Development Advisory Board reviews the proposal and provides the Council with a recommendation. The public hearing on March 29 satisfied our public participation requirements. In addition, the Housing and Community Development Board had the opportunity to review the recommended Community Development Plan at its meeting on March 28, 2000.
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
On May 15, 2000, the Town and Orange County will submit to the U.S. Department of Housing and Urban Development a five-year Consolidated Plan covering fiscal years 2000 – 2001 through 2004 – 2005. 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 also suggest how the Town and the County will address the needs over a five-year period.
Please see Agenda Item 4c(1) for a draft of the 2000 – 2005 Consolidated Plan. We will return to the Council on May 8, 2000 for approval of the Plan.
Public Participation Process
On January 31 and March 29, 2000 the Council held public hearings to receive ideas from citizens about how funds could be spent in three areas: the Community Development Program, the HOME Program and the Comprehensive Grant. The purpose of the first hearing is to help the Council determine how Community Development funds could best benefit low- and moderate-income Chapel Hill residents. The second hearing gives citizens the opportunity to comment on a proposed one-year Community Development plan.
Please see Attachment 1 for a summary of Community Development related comments and requests received at the January 31 and March 29, 2000 public hearings and comments submitted after the hearing for consideration.
DISCUSSION
Recommended 2000 - 2001 Community Development Plan
We recommend that the Council consider allocating 2000 – 2001 Community Development funds as follows:
Rehabilitation of Public Housing: $190,000
We recommend that the Council 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 for a portion of the Assistant Housing Director’s salary for oversight of the public housing renovation projects. 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 recommend that the Council budget $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 Affordable Townhomes $80,000
We recommend that the Council budget $80,000 of Community Development funds to the Orange Community Housing Corporation, which would construct thirty-two townhomes in Meadowmont. The townhomes would be developed for first time homebuyers earning less than 80% of the area median income. Funds would be used for development of the site and infrastructure improvements. We note that $40,000 of this budget includes program income that we anticipate would be received in fiscal year 2000 – 2001.
We further recommend that the Council budget $80,000 in the Housing Loan Trust Fund in fiscal year 2000 – 2001 for this project. The additional funds would fulfill the Corporation’s request of $160,000. Though it is not anticipated, it is possible that the Corporation will need additional funds in the 2000 – 2001 fiscal year, and reserving funds in the Housing Loan Trust Fund would ensure that funds are available if needed.
At the March 29 public hearing, a Council member raised a question about the availability of funds from the Housing Loan Trust Fund for this project. We have reviewed the Housing Loan Trust fund accounts and determined that there are funds available for this project.
If the Corporation does not use the funds from the Housing Loan Trust Fund in fiscal year 2000 – 2001, we would recommend that the Council consider using 2001 – 2002 Community Development funds, as recommended in the five-year plan. Please see Attachment 1 for a more detailed discussion of this request.
At the March 29, 2000 public hearing, a Council Member asked if Meadowmont could pay some of the overhead costs for the Community Land Trust in Orange County [The organization has requested an additional $10,000 from the Town’s General Fund for operational expenses for a total request of $18,000]. In general, Community Development funds may be used for costs directly associated with carrying out a specific project, such as the Meadowmont Affordable Housing project.
Neighborhood Revitalization: $72,600
We recommend that the Council budget $72,600 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. Money would be allocated to eligible projects as specific requests are made.
Community Services: $47,000
We recommend that the Council allocate $25,000 to the Chapel Hill - Carrboro YMCA to continue operation of after school programs for children living in the South Estes Drive and Pine Knolls communities. The program for the children living in the South Estes Drive community will continue to be held at the South Estes Drive Community Center. If the Pine Knolls Community Center is not available, the program for children living in Pine Knolls neighborhood may be held in the Lincoln Center gym or an alternate location. Funds would be used to assist with operating expenses for the program.
We also recommend that the Council budget $22,000 to Community Cuisine to continue operation of its youth and adult culinary skills programs for lower income Chapel Hill residents. Awarding of these funds is contingent upon a satisfactory performance review of Community Cuisine’s current contract.
Program Administration: $76,400
We recommend that the Council 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. HUD allows up to 20% of a Community Development grant to be spent on administrative expenses; the recommended administrative budget is 17% of the Town’s total grant.
Recommended Five-Year Plan
In April 1999, we recommended to the Council that we develop a new five-year Community Development plan in conjunction with the five-year Consolidated Plan. We have developed a new five-year plan for the Council’s consideration. The plan includes a projection of Community Development funds through fiscal year 2004 – 2005, and recommends an amount of funds budgeted for each activity. The recommended plan would serve as a guide to the Council when considering the use of future Community Development funds.
The recommended plan continues to focus on the principles adopted by the Council in 1996 (renovation of public housing and comprehensive neighborhood revitalization efforts). The plan also recommends that the Council continue funding affordable housing projects and community service activities over the next five years.
Activity |
2000 – 2001 |
2001 – 2002 |
2002 – 2003 |
2003 – 2004 |
2004 – 2005 |
|
Public Housing Renovation |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
|
Public Housing Refurbishing |
$70,000 |
$60,000 |
$60,000 |
$50,000 |
$50,000 |
|
Neighborhood Revitalization |
$72,600 |
$79,000 |
$79,000 |
$80,000 |
$80,000 |
|
Meadowmont Townhomes |
$80,000 |
$80,000 |
$0 |
$0 |
$0 |
|
Affordable Housing Projects |
$0 |
$0 |
$71,000 |
$80,000 |
$80,000 |
|
Community Services |
$47,000 |
$47,000 |
$56,000 |
$56,000 |
$56,000 |
|
Administration |
$76,400 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
TOTAL GRANT |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
We note that the Town’s status as an Entitlement City may change due to changes in the definition of a Central City by the Office of Management and Budget (OMB). In previous years, Chapel Hill has met the Office of Management and Budget qualifications for a Central City and has received federal Community Development funds as an Entitlement City. If the 2000 Census shows that the Town’s population is at least 50,000, the Town may qualify as an Entitlement City under a different provision of the Community Development regulations.
The change in status could mean that the Town would no longer directly receive federal Community Development funds and in future years, may have to apply for funding through the State’s competitive Community Development program.
Housing and Community Development Advisory Board’s Recommendation: On March 28, 2000, the Housing and Community Development Advisory Board voted 4-0 to recommend the proposed 2000 – 2001 Community Development Plan to the Town Council.
Manager’s Recommendation: That the Council:
(1) Adopt the following 2000 – 2001 Community Development Plan:
Public Housing
Renovations (Lindsay St.) $120,000
Refurbishing $ 70,000
Meadowmont Affordable Townhomes $ 80,000
Neighborhood Revitalization
(Pine Knolls, Northside or public housing $ 72,600
Community Services (YMCA, Comm. Cuisine) $ 47,000
Administration $ 76,400
Total $466,000
(2) Adopt the following five-year plan:
Activity |
2000 – 2001 |
2001 – 2002 |
2002 – 2003 |
2003 – 2004 |
2004 – 2005 |
|
Public Housing Renovation |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
|
Public Housing Refurbishing |
$70,000 |
$60,000 |
$60,000 |
$50,000 |
$50,000 |
|
Neighborhood Revitalization |
$72,600 |
$79,000 |
$79,000 |
$80,000 |
$80,000 |
|
Meadowmont Townhomes |
$80,000 |
$80,000 |
$0 |
$0 |
$0 |
|
Affordable Housing Projects |
$0 |
$0 |
$71,000 |
$80,000 |
$80,000 |
|
Comm. Services |
$47,000 |
$47,000 |
$56,000 |
$56,000 |
$56,000 |
|
Administration |
$76,400 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
TOTAL |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
(3) Authorize the Manager to incorporate the one-year and five-year Community Development Plans 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, 2000.
ATTACHMENTS
1. Summary of comments received at the January 31, and March 29, 2000 public hearings (p. 10)
2. Request from Community Cuisine (p.13)
3. Request from the Orange Community Housing Corporation (p. 14)
4. Request from EmPOWERment Inc.(p. 17)
5. Request from the Chapel Hill – Carrboro YMCA (p. 18)
6. Request from Chapel Hill Training Outreach Project (p. 20)
7. National Objectives of Community Development Legislation (p. 21)
A RESOLUTION APPROVING ACTIVITIES FOR THE 2000 – 2001 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2000-04-24/R-1)
WHEREAS, the Council of the Town of Chapel Hill held two public hearings to receive ideas from citizens about how Community Development Block Grant Funds could be spent in 2000 - 2001;
NOW, THEREFORE, BE IT RESOLVED that based on the Town’s allocation of $426,000 of Community Development Block Grant Funds and $40,000 of anticipated Community Development Program Income, the Town Council approves the following 2000 - 2001 Community Development Block Grant Program Plan:
Public Housing
Renovations (Craig / Gomains) $120,000
Refurbishing Program $ 70,000
Meadowmont Affordable Townhomes $ 80,000
Neighborhood Revitalization
(Pine Knolls or Northside areas) $ 72,600
Community Services
(YMCA and Comm. Cuisine) $ 47,000
Administration $ 76,400
Total $466,000
BE IT FURTHER RESOLVED that the Council adopts the following five-year Community Development plan:
Activity |
2000 – 2001 |
2001 – 2002 |
2002 – 2003 |
2003 – 2004 |
2004 – 2005 |
|
Public Housing Renovation |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
$120,000 |
|
Public Housing Refurbishing |
$70,000 |
$60,000 |
$60,000 |
$50,000 |
$50,000 |
|
Neighborhood Revitalization |
$72,600 |
$79,000 |
$79,000 |
$80,000 |
$80,000 |
|
Meadowmont Townhomes |
$80,000 |
$80,000 |
$0 |
$0 |
$0 |
|
Affordable Housing Projects |
$0 |
$0 |
$71,000 |
$80,000 |
$80,000 |
|
Community Services |
$47,000 |
$47,000 |
$56,000 |
$56,000 |
$56,000 |
|
Administration |
$76,400 |
$80,000 |
$80,000 |
$80,000 |
$80,000 |
|
TOTAL GRANT |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
$466,000 |
BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate the one-year and five-year Community Development Plans 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, 2000.
This the 24th day of April, 2000.
The citizen comments received at the January 31 and March 29, 2000 public hearings, and comments received after the hearings are summarized below.
1. Community Cuisine
Community Cuisine requested $36,500 of Community Development funds to continue operation of their culinary skills program (Please see Attachment 2). 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.
At the March 29 public hearing, Community Cuisine stated that they agreed with the Manager’s recommendation and requested that the organization be considered for additional support if funds become available during the program year.
Staff Comment: We recommend that the Council budget $22,000 of Community Development funds for this activity.
2. Orange Community Housing Corporation
The Orange Community Housing Corporation requested $160,000 of Community Development and HOME Program funds to develop thirty-two townhomes in Meadowmont (Please see Attachment 3). The townhomes will be developed for first time homebuyers earning less than 80% of the area median income.
At the March 29 public hearing, the Corporation stated that they would need access to the full $180,000 requested from the Town to begin the construction of the project, and asked the Council to consider budgeting the remaining $80,000 from the Housing Loan Trust Fund in fiscal year 2000 – 2001.
Staff Comment: We recommend that the Council budget $80,000 of Community Development funds for this project in fiscal year 2000 – 2001. The HOME Consortium also recommends that the Council budget $80,000 of HOME Program funds for the project. Because construction of the Meadowmont town homes is not expected to begin until December 2000, we offer four funding options for the Council to consider:
1) The Council could consider budgeting the remaining $80,000 of Community Development funds for this project in fiscal year 2001 – 2002. If the Council chooses not to budget additional funds until July 2001, and the Corporation needs funds prior to the beginning of the fiscal year, it is possible that the construction of the project could be delayed.
2) If funds are required earlier than July 2000, the Council could amend the Community Development program and reallocate funds or use program income (if available) for the Townhomes. The Town’s Citizen Participation Plan would require the Council to hold public hearings to receive citizen comments on the proposed amendment prior to reallocating funds.
3) The Council could also choose to budget funds for this project during the budget process in April 2001. If the Council approved funds for the project, the Corporation could encumber funds before the Town actually receives funds in July 2001. The funds could not be spent until after the fiscal year begins in July. Federal Community Development regulations allow us to encumber the funds before the fiscal year begins.
4) Another option is that the Council could choose to reserve funds in the Housing Loan Trust Fund in fiscal year 2000 -2001 for this project, if needed. If the funds were not needed in the fiscal year, the funds could be returned to the Housing Loan Trust Fund budget and the Corporation would use the $80,000 projected for this project in 2001 – 2002. There are currently funds available in the Housing Loan Trust Fund for this activity.
We recommend that the Council choose Option 4 and budget funds in the Housing Loan Trust fund for this project in fiscal year 2000 - 2001.
3. EmPOWERment Incorporated
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 (Please see Attachment 4).
At the March 29 public hearing, EmPOWERment Inc. stated that the organization agreed with the Manager’s recommended Plan.
Staff Comment: We recommend that the Council fund portions of these requests as follows: $72,600 of 2000 – 2001 Community Development Neighborhood Revitalization funds, and $100,000 of HOME Program Community Revitalization funds. Funds would allow us to continue the current revitalization efforts in the Pine Knolls and Northside neighborhoods.
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 (Please see Attachment 5).
At the March 29 public hearing, the YMCA stated that the organization agreed with the Manager’s recommendation for funding.
Staff Comment: We recommend that the Council budget $25,000 of 2000 – 2001 Community Development funds for this activity. We believe that this program provides an important service to the families living in the Pine Knolls and Northside neighborhoods.
5. Chapel Hill Training Outreach Project
On March 27, 2000, the Council received a request from the Chapel Hill Training Outreach Project requesting assistance from the Community Development Neighborhood Revitalization Program to establish Family Resource Center’s in Chapel Hill communities (Please see Attachment 6).
Staff Comment: We believe that establishing additional Family Resource Centers in other public housing and the Northside Communities [The Pine Knolls neighborhood already has a Family Resource Center] could complement the Town’s current revitalization efforts of these communities. We recommend that staff meet with representatives of the Chapel Hill Training Outreach Project to determine how Neighborhood Revitalization funds could be used for this project, and how much funding would be needed. After this meeting, we could return to the Council with a recommendation on how to proceed.
We note that Neighborhood Revitalization funds are not reserved for specific projects, but for specific activities in the Pine Knolls, Northside and public housing communities (property acquisition and / or rehabilitation, second mortgage assistance and community services). A qualified 501 (c )(3) non-profit organization can apply for use of funds. Funds are allocated based on availability, and have traditionally been used by EmPOWERment Inc. for property acquisition and second mortgage assistance.