AGENDA #4c(2)
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended 2001-2002 Community Development Program
DATE: April 23, 2001
The attached resolution would:
(1) Approve a plan for use of $476,000 of 2001-2002 Community Development funds; and
(2) Authorize the 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, 2001.
SUMMARY
The U. S. Department of Housing and Urban Development has informed us that the Town will receive $441,000 of Community Development funds in fiscal year 2001-2002. In addition, we estimate that we will receive $35,000 of Community Development program income during the program year. Therefore, we recommend activities for a total of $476,000.
The recommended plan is based on applications submitted by agencies requesting funds and comments received at public hearings held by the Council on January 23 and March 28. We note one change from the Preliminary Plan proposed to the Council on March 28. In the Community Service activity, we propose to budget $11,000 to the YMCA for its after school programs and $9,000 to the Orange County Literacy Council for its computer-based literacy programs.
Public Housing
Renovations (Pritchard Park) $115,000
Refurbishing Program $ 55,000
Meadowmont Affordable Condominiums $ 80,000
Neighborhood Revitalization $ 80,000
Habitat for Humanity (Rusch Road Subdivision) $ 50,000
Community Services $ 20,000
Administration $ 76,000
Total $476,000
The recommended budget includes $35,000 of Community Development program income that we anticipate receiving in fiscal year 2001-2002. 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 28 would satisfy our public participation requirements. In addition, the Housing and Community Development Board will have the opportunity to review the proposed Community Development Plan at its meeting on March 27, 2001.
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 households earning less than 80% of the area median income 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.
The Consolidated Plan
On May 15, 2000, the Town and Orange County submitted 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 also suggests how the Town and the County will address the needs over a five-year period.
This year, we are required to submit an Annual Update to the 2000 – 2005 Consolidated Plan. The Update includes the 2001-2002 Community Development and HOME Program Plans and identifies new housing and community development initiatives in Orange County. Please see Agenda Item 4c(1) for a draft of the Annual Update.
Public Participation Process
On January 23 and March 28, 2001, the Council held public hearings 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.
Please see Attachment 1 for a summary of Community Development related comments and applications for funding received at the public hearings.
This year we asked agencies requesting Community Development funding to submit a standardized application. The application requested detailed information about the agencies requesting funds and the proposed projects. 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 2000–2005 Consolidated Plan adopted by the Council in April 2000. We believe that this process allowed agencies to more clearly understand the criteria by which the projects would be evaluated. This revised application process, along with our new monitoring procedures under which we perform site visits to each agency to evaluate progress, will improve our overall Community Development performance.
DISCUSSION
Five-Year Plan
In April 2000 the Council adopted a five-year plan (please see Attachment 2). The plan includes a projection of Community Development funds through fiscal year 2004–2005, and proposes an amount of funds budgeted for each activity. The proposed plan serves as a guide to the Council when considering the use of future Community Development funds.
The plan proposes to continue funding public housing renovations, affordable housing projects, and community service activities over the next five years. We note that the recommendation for Community Service activities has decreased from $47,000 to $20,000 to emphasize housing objectives as contained in the Town’s Consolidated Plan.
Proposed 2001-2002 Community Development Plan
We propose the following activities for the 2001–2002 Community Development grant:
Rehabilitation of Public Housing: $170,000
We recommend that the Council budget $115,000 of Community Development funds for the rehabilitation of fifteen units at the Pritchard Park 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 2001–2002 Community Development funds would be used to renovate the fifteen-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 also recommend that the Council budget $55,000 of Community Development funds to continue the public housing refurbishing program. This program includes minor repairs of public housing units.
Meadowmont Affordable Condominiums $80,000
We recommend that the Council budget $80,000 of Community Development funds to the Orange Community Housing Corporation to help pay a portion of the costs associated with constructing thirty-two condominiums in Meadowmont. The Council previously budgeted $80,000 of 2000–2001 Community Development funds and $30,000 from the Housing Loan Trust Fund for this project. The condominiums will be developed for first time homebuyers currently living or working in Orange County that earn less than 80% of the area median income. Funds would be used for development of the site and infrastructure improvements. We note that the proposed 2001–2002 HOME Program developed by the HOME Program Review Committee also proposes to budget $80,000 for this activity.
Neighborhood Revitalization: $80,000
We recommend that the Council budget $80,000 of Community Development funds to continue neighborhood revitalization activities. In previous years, funds were used in the Pine Knolls, Northside and public housing neighborhoods. This year we recommend that funds be used Town-wide to assist with the activities of local non-profit affordable housing developers including EmPOWERment, Inc. and the Community Land Trust in Orange County. Funds could be used for second mortgage assistance, property acquisition or renovation, public improvements, or community service activities. Activities must serve households earning less than 70% of the HUD published area median income. We recommend that the Council continue to authorize the Manager to approve specific projects for use of funds.
We recommend that the Council budget $50,000 to Habitat for Humanity to acquire property adjacent to property Habitat currently owns on Rusch Road located off of Rogers Road. Habitat intends to develop sixteen houses on the land for households earning less than 50% of the area median income. Acquisition of the additional property would allow Habitat to develop a larger subdivision.
We also recommend that the Council budget an additional $50,000 from the Housing Loan Trust Fund for development costs including site improvements, architectural and engineering costs and infrastructure development). Funds are included in the recommended Housing Loan Trust Fund budget for this purpose.
Community Services: $20,000
We recommend that the Council budget $11,000 to the Chapel Hill–Carrboro YMCA to continue operation of after school programs for children living in the Pine Knolls neighborhood and the South Estes Drive public housing community. We note that $4,000 of funds from the 2000-2001 after school programs would also be used toward this program.
We also recommend that the Council budget $9,000 to the Orange County Literacy Council to operate computer-based literacy programs to public housing residents and other lower income Chapel Hill residents.
Program Administration: $76,000
We recommend that the Council budget $76,000 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.
Housing and Community Development Advisory Board’s Recommendation: On March 27, 2001, the Housing and Community Development Advisory Board voted 3-0 to recommend the proposed 2001-2002 Community Development Plan to the Town Council. The Board also recommended that the Council find a way to fund projects that provide homeownership opportunities for households earning between 50% and 80% of the area median income.
Manager’s Recommendation: That the Council:
(1) Adopt the following 2001-2002 Community Development Plan:
Public Housing
Renovations (Pritchard Park) $115,000
Refurbishing Program $ 55,000
Meadowmont Affordable Condominiums $ 80,000
Neighborhood Revitalization $ 80,000
Habitat for Humanity (Rusch Road Subdivision) $ 50,000
Community Services $ 20,000
Administration $ 76,000
Total $476,000
(2) Authorize the Manager to incorporate the 2001-2002 Community Development Plan into the Consolidated Plan developed with Orange County, Carrboro and Hillsborough for submittal to the U.S. Department of Housing and Urban Development on May 15, 2001.
ATTACHMENTS
1. Summary of Comments and Community Development Requests (p. 7).
2. Adopted Five-Year Community Development Plan (p. 13).
A RESOLUTION APPROVING ACTIVITIES FOR THE 2001-2002 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2001-04-23/R-2)
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 2001-2002;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that based on the Town’s allocation of $441,000 of Community Development Block Grant funds and $35,000 of anticipated Community Development Program Income, the Town Council approves the following 2001-2002 Community Development Block Grant Program Plan:
Public Housing
Renovations (Pritchard Park) $115,000
Refurbishing Program $ 55,000
Meadowmont Affordable Condominiums $ 80,000
Neighborhood Revitalization $ 80,000
Habitat for Humanity (Rusch Road Subdivision) $ 50,000
Community Services $ 20,000
Administration $ 76,000
Total $476,000
BE IT FURTHER RESOLVED that the Council authorizes the Manager to carry out the program, including specific projects for use of Neighborhood Revitalization funds in accordance with guidelines in this memorandum.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate the 2001-2002 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.
This the 23rd day of April, 2001.
ATTACHMENT 1
The citizen comments and requests for funding received at the January 23, and March 28, 2001 public hearings are summarized below. We note that all agencies that requested funding were required to submit an application.
Activities eligible for Community Development funding must meet one of three National Objectives:
· Benefit low- and moderate-income persons; or
· Aid in the prevention or elimination of slums and blight; or
· Treat urgent needs posing an immediate threat to public health and welfare.
Examples of eligible activities include acquisition and /or renovation of property, second mortgage assistance, and site development.
The following agencies submitted applications for affordable housing activities.
1. Chapel Hill Department of Housing
The Chapel Hill Department of Housing requested $190,000 of Community Development Program funds for the following purposes: $120,000 to renovate fifteen apartments in the Pritchard Park community; and $70,000 to continue the Five Year Refurbishing Program by refurbishing about 50 apartments.
Staff Comment: We recommend that the Council budget $115,000 for renovation of Pritchard Park and $55,000 for refurbishing apartments, slightly less than what is recommended in the five-year plan adopted by the Council in April 2000. The Town’s public housing is an important source of affordable rental housing and the Town’s investment in this property should be maintained. The renovation of public housing units is an eligible Community Development activity.
2. Community Land Trust in Orange County
The Community Land Trust in Orange County requested $100,000 for opportunities to purchase land and/or houses that might become available during the course of the year (not for specific projects). The property would be used to develop homes for first-time homebuyers earning less than 80% of median income. The Land Trust proposes to partner with other nonprofit to provide housing with guaranteed long-term affordability.
Staff Comment: We recommend that the Council budget $80,000 of Community Development funds for Neighborhood Revitalization activities. The funds would be available to any qualified non-profit organization for a variety of activities including property acquisition, renovation, second mortgage assistance and community services. The Land Trust or another organization would be eligible to request neighborhood revitalization funds for specific projects. Funds could be used Town-wide. The use of funds for neighborhood revitalization activities is an eligible Community Development activity.
3. Habitat for Humanity of Orange County
Habitat for Humanity requested $100,000 of Community Development funds for two purposes: $50,000 to go toward the development of up to sixteen homes on a tract of land it owns on Rusch Road; and an additional $50,000 to purchase adjacent properties so they could develop a larger subdivision. The homes would be available to very low-income households earning 50% or less of median income.
At the March 28 public hearing, Susan Levy stated Habitat’s support for the recommended Plan.
Staff Comment: We recommend that the Council budget $50,000 of Community Development funds to acquire the additional property. The acquisition of property is an eligible Community Development program activity. We also recommend that the Council budget an additional $50,000 in the Housing Loan Trust Fund budget for development costs (i.e. site improvements, architectural and engineering costs, infrastructure development).
4. Orange Community Housing Corporation
The Orange Community Housing Corporation requested $80,000 of Community Development funds to develop thirty-two condominiums in the Meadowmont development. The condominiums will be developed for first time homebuyers earning less than 80% of the area median income.
At the public hearing on March 28, Executive Director Robert Dowling stated the Corporation’s support for the Manager’s proposed Plan.
Staff Comment: We recommend that the Council budget $80,000 of Community Development funds for this project in fiscal year 2001–2002. The project is eligible for funds under Community Development Program guidelines. In addition, this project will provide affordable home ownership opportunities to individuals and families that currently live or work in Orange County.
In 2000 – 2001, the Corporation requested $160,000 and the Council budgeted $80,000 of Community Development funds for this project. At that time, we informed the Council that because construction was not scheduled to begin until later in the year, we did not anticipate that the Corporation would spend the entire amount requested. Therefore, we recommended and the Council approved reserving $80,000 in the Housing Loan Trust Fund for this project, if it were needed. We reported that if funds were not needed, we would return the funds to the Housing Loan Trust fund and budget the remaining $80,000 in 2001-2002. The recommended budget for the Housing Loan Trust fund reallocates these funds for other eligible activities.
The use of funds for public service activities is eligible under federal Community Development regulations. Examples of public service activities includes programs concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, homebuyer down payment assistance or recreational needs. The amount of Community Development funds used for public services cannot exceed 15% of the Town’s Community Development grant ($66,150 in 2001-2002).
In addition to meeting one of the National Objectives listed above, community or public service activities must provide:
(1) a new service; or
(2) a quantifiable increase in the level of an existing service than what was provided over the last fiscal year.
In the past, the Council has funded public service projects that support other Community Development objectives and activities, especially public housing and Neighborhood Revitalization. Some emphasis has also been placed on job training for low-income residents. We evaluated the following applications in terms of previous performance, and their relationship to other Community Development objectives. In general, we are recommending that some funding be set aside for community services, but that the Council emphasize housing objectives as contained in the Consolidated Plan.
The following agencies submitted applications for Community / Public Service activities:
1. 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.
At the March 28 public hearing, Youth Coordinator Kim Grooms stated that the YMCA supported the proposed Plan and that the YMCA is committed to serving the needs of the South Estes and Pine Knolls neighborhoods.
Staff Comment: We recommend that the Council budget $11,000 to the YMCA to continue after school programs.
Since 1994, the Town has provided Community Development funds to the YMCA for its After School Program at the Pine Knolls Community Center. In 1999, the YMCA established a similar program at the south Estes Drive Community Center. In 1999–2000, 24 children were enrolled in the Pine Knolls program and 25 children were enrolled in the South Estes Program.
Based on our preliminary assessment of the YMCA Programs, we have determined that the YMCA has complied with the terms of the 2000–2001 Performance Agreement. The Council budgeted $25,000 of 2000-2001 Community Development funds for the after school programs ($12,500 for each program), but the overall budget has decreased from $45,077 to 32,270, a $12,807 decrease. Because of the changes in the budget as part of our performance review, we will propose a contract amendment to reduce the current year budget to at least $21,000. We recommend that the resulting balance of $4,000 be carried over into the next year and be used towards the costs of the 2001-2002 programs.
We recommend that the Council budget $11,000 of Community Development funds for this activity in 2001-2002. This amount would be combined with the $4,000 balance of funds from the 2000–2001 grant for a total combined amount available in 2001-2002 of $15,000.
2. Chapel Hill Training Outreach Project, Inc.
The Chapel Hill Training Outreach Project requested $27,868 of Community Development funds for its Family Resource Centers that serve the Trinity Court, Pritchard Park and South Estes public housing communities, and the low wealth and subsidized housing communities of Dobbins Hill and Pine Knolls. The Family Resource Centers are community-based family support programs that provide many support services, activities and resources to families such as parent education and support and family literacy.
Staff Comment: We do not recommend funding for this activity because of the overall emphasis on affordable housing objectives contained in the Consolidated Plan.
3. Community Cuisine
Community Cuisine requested $25,000 of Community Development funds to continue operation of its culinary skills programs. The program provides adult training sessions in the spring and fall 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 28 public hearing, Will Alexander, Chair of the Community Cuisine Board stated that the Adult Training program was completed. He also explained that the organization applied for Human Services funding and hoped that the Council would consider funding Community Cuisine in the future.
Staff Comment: Based on performance, we do not recommend funding this program at this time. The Council budgeted $22,000 of 2000–2001 Community Development funds to Community Cuisine for this project. To date, approximately $6,500 has been spent for program activities. A performance review of the program determined that the objective of providing an adult training program was not being met. At that time, we informed the organization that we would reduce Community Development funds if an adult program were not implemented by February 2001. The adult program is now complete and Community Cuisine is working with the participants to find employment. We recommend that when all of the programs are complete, we review Community Cuisine’s performance and determine if the program has accomplished the intended goals and consider future funding at that time.
4. Orange County Literacy Council
The Orange County Literacy Council requested $9,250 to expand its literacy labs into the Community Computer-based Literacy Project. The Project provides computer-based literacy classes to public housing residents and low-income Chapel Hill residents, and integrates computer technology into individual tutoring with low-income Chapel Hill adult learners. The Literacy Council would use the funds for an intern to serve as Project Coordinator for the computer based literacy program.
At the March 28 public hearing, Executive Director Lucy Lewis stated that if full funding were not awarded, the Literacy Council would only be able to hire someone for 10 hours per week to oversee the computer literacy programs.
Staff Comment: We believe that the Literacy Council operates a needed service in an effective manner. We recommend allocating $9,000 to the Literacy Council due to the overall focus on housing needs in the Community Development program.
The Town Council previously appropriated $15,000 of 1999–2000 Community Development funds to the Literacy Council to establish a computer literacy lab program for public housing residents. The Literacy Council has provided tutoring at South Estes and Trinity Court/Pritchard Park using equipment purchased with Community Development funds as well as one-on-one tutoring at various sites. It does outreach to public housing residents and other low-income citizens to try to recruit them into the program and increase the scope of its work. The organization has requested an extension of its Performance Agreement to June 30, 2001, because an additional computer lab has been established at another site (Hargraves Center) and there are additional participants for the program. A balance of $2,700 from its existing allocation of funds would be used for this purpose. In summary, the organization has steadily and effectively provided a valuable service to a gradually increasing number of low-income persons.
Other Requests
1. Youth Creating Change Serteen Club
The Youth Creating Change Serteen Club requested $18,821 to help establish a community-based, youth-owned arcade and entertainment center to be called Club Exposure. The arcade will provide a safe environment for low- and moderate-income youth and will promote education and positive interaction among the youth. Profits from the business would be used to create a scholarship fund for low-income youth.
At the public hearing on March 28, Maxecine Mitchell of EmPOWERment, Inc. and representatives of Youth Creating Change presented additional information to the Council about their proposal.
Staff Comment: We suggest that the group develop long-term financial and management plans and further develop its business plan. We understand that the Executive Director of the Chamber of Commerce has contacted the group and offered its assistance to the group to develop its proposal. We recommend that the Club work with the Chamber of Commerce and community members to discuss how they could provide expertise and possible financing to the group. When the business plan is more fully developed and other resources and funding sources are committed, we recommend that the Council consider using up to $9,000 of Community Development program income or reallocate residual Community Development funds to match the funds raised. At that time, the Council could amend the Community Development program to accommodate this request.
ATTACHMENT 2
|
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 |