AGENDA #7b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended 2003-2004 Community Development Program
DATE: April 28, 2003
The attached Resolution would:
(1) Approve a plan for use of $728,250 of 2003-2004 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, 2003.
SUMMARY
On March 26, 2003, the Council held a public hearing on a preliminary proposal for the 2003-2004 Community Development program.
Following the March 26 public hearing, we considered two additional requests: funding for renovations of the Town-owned homeless shelter on West Rosemary Street, and operations support for the InterFaith Council’s Project HomeStart. Included in this memorandum are options for the Council’s consideration:
· Option 1 is the Manager’s original preliminary recommendation as presented on March 26;
· Option 2 includes funding for renovations to the homeless shelter on West Rosemary Street; and
· Option 3 includes funding for the InterFaith Council’s Project HomeStart.
The U.S. Department of Housing and Urban Development (HUD) has informed us that the Town will receive $723,000 of Community Development funds in fiscal year 2003-2004. In addition, we recommend that $5,250 previously allocated by the Council to a community group and not used be reallocated to other purposes. The group does not have a plan to use these funds. Therefore, the total for proposed allocation is $728,250.
The following chart compares the budgets of the three options. The items in bold are the funding amounts that vary across each option.
Organization / Activity |
Option 1 |
Option 2 |
Option 3 |
|
Renovation of Airport Gardens |
$165,000 |
$165,000 |
$165,000 |
|
Public Housing Refurbishing Program |
$50,000 |
$50,000 |
$50,000 |
|
Public Housing Playground Equipment |
$6,000 |
$6,000 |
$6,000 |
|
Comprehensive Housing Rehabilitation |
$150,000 |
$150,000 |
$150,000 |
|
Neighborhood Revitalization |
$115,750 |
$130,750 |
$120,750 |
|
Property Acquisition (Affordable Rentals) |
$80,000 |
$0 |
$0 |
|
Renovation of IFC Shelter |
$0 |
$65,000 |
$0 |
|
IFC Project HomeStart |
$0 |
$0 |
$75,000 |
|
Orange County Family Resource Center |
$15,000 |
$15,000 |
$15,000 |
|
Orange County Literacy Council |
$13,500 |
$13,500 |
$13,500 |
|
Chapel Hill – Carrboro YMCA |
$13,000 |
$13,000 |
$13,000 |
|
Administration |
$120,000 |
$120,000 |
$120,000 |
|
TOTAL |
$728,250 |
$728,250 |
$728,250 |
Option 1: Option 1 is based on applications submitted by agencies requesting funds and comments received at public hearings held by the Council on January 29 and March 26. This is the same preliminary recommendation submitted to the Council on March 26, 2003.
Staff Comment: We recommend that the Council adopt this Option.
Option 2: Option 2 would provide $65,000 for the renovation of the homeless shelter on West Rosemary Street. This would be funded by eliminating the $80,000 proposed in Option 1 for Affordable Rentals, Inc.; the remaining $15,000 would be added to the Neighborhood Revitalization activity budget. At a Work Session on April 2, the Council discussed the option of using Community Development funds for the renovation of the Town-owned building leased to the InterFaith Council. This option would use Community Development funds to make an annual installment payment for the building renovations. If this option is selected, the Council would decide annually on future use of Community Development funds to pay a similar portion for a ten-year term.
Staff Comment: The recommended Capital Improvements Fund includes an annual allocation for the renovation of the IFC Shelter. Use of Community Development funds for this expense would give the Council the flexibility to use Capital Improvements funds for other activities or to reserve funds for future years. Use of Community Development funds for renovations of a homeless facility is an eligible Community Development activity. Federal regulations would apply to the administration of this contract. However, we are still seeking confirmation from the Department of Housing and Urban Development that funds can be used for principal and interest payments. Regardless of the source of funds, the Town is committed to pay for the cost of repairs to the homeless shelter for ten years. This option would not allow the opportunity for Affordable Rentals, Inc. to purchase a house for its program of providing rental units for very low income households.
Option 3: Option 3 would provide $75,000 for InterFaith Council’s Project HomeStart, a transitional housing facility for homeless women and children. This could be funded by eliminating the $80,000 proposed in Option 1 for Affordable Rentals, Inc., with the remaining $5,000 added to the Neighborhood Revitalization activity budget. This activity could be eligible under the Community Development program if funds are used to provide a public service for clients of the facility. A general proposal was first presented to the Council at a public hearing on March 26, and the staff received a Community Development application on that date. Additional information was provided on April 17.
Staff Comment: We believe that Project HomeStart is an important project. Since InterFaith Council (IFC) did not receive expected funding from the Department of Housing and Urban Development for this program, providing Community Development funds would help address the funding gap needed to continue operating the program. However, we note that IFC did not submit an application by the deadline of February 21 , 2003, as required by other applicants. Although the InterFaith Council recently submitted additional information, the proposal needs more specifics about how Community Development funds would be used for providing a public service activity. We note that Community Development funds cannot be used for general operating and administrative costs. If the Council approves this option, funds would not be provided to Affordable Rentals, Inc. to purchase a house for its program of providing rental units for very low income households.
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 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. 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, 80% of the current median income for a family of four in the Raleigh-Durham-Chapel Hill Metropolitan Statistical Area is $69,800.
Since the mid 1980’s, the Council has used a significant amount of Community Development funds for the renovation of public housing communities, affordable housing projects and neighborhood revitalization. Funds have been used to rehabilitate the exterior of public housing apartments, for drainage improvements, and to refurbish the interior of apartments. Over the past several years, the Council has also budgeted funds for affordable housing development such as the Legion Road and Meadowmont Townhomes and a Habitat for Humanity subdivision on Rogers Road, neighborhood revitalization activities with EmPOWERment, Inc., and community service activities programs with the YMCA, Community Cuisine and the Orange County Literacy Council.
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.
Each year, we are required to submit an update to the 2000-2005 Consolidated Plan that includes an annual plan for spending Community Development and HOME Program funds. The Plan for use of Community Development funds is approved by the Council and the HOME Program Plan is approved by the Council, the Orange County and Hillsborough Commissioners, and Carrboro Board of Aldermen.
This year’s update to the Consolidated Plan will include the 2003-2004 Community Development and HOME Program Plans as well as updates on housing and community development initiatives and programs in Orange County. A draft Consolidated Plan is included on tonight’s agenda for the Council’s consideration (Please see item 7a).
Public Participation Process
On January 29, 2003, 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 Capital Fund Grant for public housing activities. The hearing represented the first step in the Community Development planning process for 2003-2004.
This year we asked agencies requesting Community Development and/or HOME Program 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 monitoring procedures (including site visits to each agency to evaluate progress), is designed to improve overall Community Development performance.
Please see Attachment 1 for a summary of Community Development related comments and requests received at the January 29, 2003 and March 26, 2003 public hearings and a summary of applications received.
Funding Increase
The Town’s Community Development award of $723,000 is a 63% increase from the Town’s 2002-2003 allocation ($445,000). The significant change is due to the increase in number of people living in an overcrowded housing situation (more than one occupant per room); and the number of people living in poverty reported in the 2000 Census data for Chapel Hill. We note the following increases reported in the 1990 to 2000 Census for Chapel Hill:
1. The percentage of overcrowded housing units increased from 1.6% in 1990 to 7.8% in 2000.
2. The percentage of the population below the poverty level increased from 16.1% in 1990 to 21.6% in 2000.
We do not know if these figures were influenced by the development of student housing in Chapel Hill.
As a result of the increase in funding, we will need to place extra emphasis on performance and timeliness because of requirements of the U.S. Department of Housing and Urban Development. Community Development regulations limit the amount of unspent Community Development funds a community can have in its account with the U.S. Treasury on April 30 of each year. If the amount of funds on hand exceeds this limit, the Department could withdraw a percentage of new grant funding. The Town has met the spending threshold this year. However, with an increase in funding, we want to make sure that a significant amount of funds awarded can be spent by April 2004. We intend to incorporate language into Performance Agreements that if a significant portion of funds are not spent by February 2004, the Town could consider reallocating funds for other activities to avoid future fund reduction by the Department of Housing and Urban Development.
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 plan serves as a guide to the Council when considering the use of future Community Development funds. This plan does not take into account the increase in the Town’s allocation.
The plan proposes to continue funding public housing renovations, affordable housing projects, and community service activities over the next five years. In practice, our recommendations for the Community Service activities budget last year and this year is lower than the projected $56,000. Reducing funds for community service activities allows us to continue focusing our efforts on neighborhood revitalization and the development of affordable housing, especially in the Sykes Street and Northside, and Pine Knolls areas.
The original five-year plan was based on an estimated Community Development grant of $446,000. The increase in funds will allow the Town to consider an enhanced level of housing and neighborhood revitalization activities.
Recommended 2003-2004 Community Development Plan (Option 1)
We recommend the following 2003-2004 Community Development Plan:
Public Housing Activities: $221,000
1. Renovation of Airport Gardens
We recommend that the Council budget $165,000 to renovate the Airport Gardens public housing community. Currently 2002-2003 Community Development funds are being used for the design work for this project. Funds would be used along with Public Housing Capital Grant funds and previously allocated Community Development funds ($100,000 of 2003-2004 funds) to renovate the twenty-six 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.
2. Refurbishing Program
We recommend that the Council appropriate $50,000 of Community Development funds to continue the public housing refurbishing program. This program includes minor repairs of public housing units.
3. Installation and Repair of Playground Equipment
We recommend that the Council budget $6,000 to repair and replace playground equipment at various public housing sites.
Comprehensive Rehabilitation $150,000
We recommend that the Council budget $150,000 for the renovation of owner occupied housing in the Northside neighborhood. We estimate that these funds would rehabilitate a minimum of four houses and provide for contract staff support. Based on experience with HOME funded housing rehabilitation projects in the Northside Neighborhood, the cost to completely rehabilitate a house has ranged from $25,000 to $35,000. If Community Development funds are used for rehabilitation, federal regulations require correction of all minimum housing code violations.
We recommend that we contract with Orange County Department of Housing and Community Development to oversee the rehabilitation work. Town staff would be responsible for the administrative portion of the program (i.e. qualifying households).
As with the Comprehensive Rehabilitation program funded through the HOME Program, funds could be provided as deferred loans to qualified homeowners that could be forgiven over time (typically twenty years, depending on the amount of the loan). The funds would be repaid to the Town if home was sold or conveyed to heirs that do not meet the income guidelines of the program within the affordability period (typically twenty years). We propose to consult with representatives from the Northside Community Association, further develop the criteria for eligibility for the program and a method for prioritizing applicants, and present a recommendation to the Council.
Neighborhood Revitalization: $115,750
We recommend that the Council budget $115,750 of Community Development funds to continue neighborhood revitalization activities in the Northside, Pine Knolls, and public housing neighborhoods. Funds could be used for second mortgage assistance, property acquisition or renovation, code enforcement, demolition, public improvements such as installation of sidewalks or road improvements, or community service activities. Activities must serve households earning less than 80% of the HUD published area median income.
We recommend reserving $20,000 of these funds to expand the Police Department’s summer youth work program for youths living in the Northside, Pine Knolls, and public housing communities. The youths would work approximately twenty hours per week in various Town Departments and possibly with local non-profit and for profit businesses. Funds may also be used for administrative costs associated with operating this program. We estimate that at least fifteen to twenty youths could be hired for this program. These youths would be recruited and interviewed by Town staff.
In general, we recommend using remaining funds to focus on improving living conditions in the Sykes Street area of Northside. We propose to continue our efforts in this area by working with neighborhood residents, EmPOWERment, Orange Community Housing and Land Trust, and the Sykes Street Steering Committee. We also propose to continue an interdepartmental effort with the Police Department, Planning, Inspections, and Public Works to improve the neighborhood environment. Specific activities in the Northside area could include acquisition and rehabilitation of housing for homeownership, code enforcement, and where necessary, demolition of unsafe homes, construction and repair of sidewalks using the Town’s sidewalk priority list, and other public improvements.
We recommend that the Council continue to authorize the Manager to approve specific projects for use of these funds. We also recommend that the Council continue to authorize the Manager to approve converting Neighborhood Revitalization funds into grants to Orange Community Housing and Land Trust as opportunities appear to achieve long term affordability of housing projects to be placed in the Land Trust.
Affordable Rentals, Inc.: $80,000
We recommend that the Council budget $80,000 to Affordable Rentals, Inc. to purchase a house in Chapel Hill. The property would be used as permanently affordable rental housing. We note that Affordable Rentals, Inc. is no longer considering purchasing the property identified in the application the organization submitted. According to Executive Director Alex Asbun, the organization intends to identify another property in Chapel Hill to purchase for permanently affordable rental housing.
Community Services: $41,500
We recommend that the Council allocate funds for three community service activities that meet the Community Development regulations:
Program Administration: $120,000
We recommend that the Council allocate $120,000 for administration of the Community Development program and related housing programs. Currently, the Community Development staff administers Community Development Program and the Housing Loan Trust Fund, coordinates efforts with non-profit organizations that receive Community Development funding from the Town, coordinates activities with the HOME Program Consortium, monitors compliance with Performance Agreements and federal regulations, administers housing loans and grants provided by the Town over time, and coordinates with the U.S. Department of Housing and Urban Development to achieve compliance with federal regulations.
We propose to continue to use funds for the Community Development Coordinator’s salary, a portion of the Long Range Planning Coordinator’s salary and a part-time contract Community Development Program Monitor. These costs total approximately $93,000. This year we propose to use approximately $20,000 for financial accounting services, and $5,000 for assistance with the administration of the proposed comprehensive rehabilitation program. The balance of funds, $2,000, would be used for overhead costs.
The following outlines the responsibilities of the existing Community Development staff:
We believe that the increase in our grant amount and expansion of program activities will increase the complexity of our financial record keeping. Therefore, this year we recommend allocating Community Development funds for part-time financial accountant services
Housing and Community Development Advisory Board’s Recommendation: On April 22, 2003, the Housing and Community Development Advisory Board voted 5-0 to recommend the proposed 2003-2004 Community Development Plan as presented to the Council on March 26, 2003.
Manager’s Recommendation: That the Council adopt the attached resolution that would:
(1) Adopt the following 2003-2004 Community Development Plan:
Public Housing $221,000
Renovation of Airport Gardens $165,000
Refurbishing Program $ 50,000
Playground Equipment $ 6,000
Comprehensive Housing Rehabilitation $150,000
Neighborhood Revitalization $115,750
Property Acquisition (Affordable Rentals) $ 80,000
Community Services $ 41,500
Family Resource Center $15,000
Orange County Literacy Council $13,500
YMCA $13,000
Administration $120,000
Total $728,250
(2) Authorize the Manager to incorporate the 2002-2003 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, 2003.
The Council also could choose one of the options reported above.
ATTACHMENTS
1. Summary of Comments and Community Development Requests (p. 12).
2. Five Year Community Development Plan (p. 18).
A RESOLUTION APPROVING ACTIVITIES FOR THE 2003-2004 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2003-04-28/R-7)
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 2003-2004;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that, based on the Town’s allocation of $723,000 of Community Development Block Grant funds and $5,250 of reallocated Community Development funds, the Town Council approves the following 2003-2004 Community Development Block Grant Program Plan:
Public Housing $221,000
Renovation of Airport Gardens $165,000
Refurbishing Program $ 50,000
Playground Equipment $ 6,000
Comprehensive Housing Rehabilitation $150,000
Neighborhood Revitalization $115,750
Property Acquisition (Affordable Rentals) $ 80,000
Community Services $ 41,500
Family Resource Center $15,000
Orange County Literacy Council $13,500
YMCA $13,000
Administration $120,000
Total $728,250
BE IT FURTHER RESOLVED that the Council authorizes the Manager to carry out the program, including specific projects for use of Neighborhood Revitalization funds and conversion of Neighborhood Revitalization funds into grants for Land Trust projects, in accordance with guidelines in this memorandum.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate the 2003-2004 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 28th day of April, 2003.
The citizen comments received at the January 29 and March 26 public hearings and applications for funding 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 comments and applications were considered:
1. Affordable Rentals
Affordable Rentals requested $90,000 of Community Development funds to purchase and renovate a house on McMasters Street for rent to a very low-income household (earning between 30% and 50% of the area median income). The organization also applied for a $22,500 loan from Harrington Bank for this project.
At the public hearing on March 26, Alex Asbun stated that the house on McMasters Street that was mentioned in the application may no longer be on the market. He stated that if funds were awarded, Affordable Rentals would consider acquiring a different property. He also stated that the organization recently purchased 316 McMasters Street from EmPOWERment, Inc. and will maintain the property as affordable rental housing.
Staff Comment: The recommended plan includes $80,000 to Affordable Rentals for this project. According to the application submitted, Affordable Rentals has access to private financing; we recommend this source be used to supplement the recommended amount of Community Development funds. We note that options 2 and 3 do not include funding for Affordable Rentals.
2. Chapel Hill Department of Housing
The Chapel Hill Department of Housing requested $385,500 of Community Development Program funds for the following purposes: $300,000 to pay part of the cost to renovate twenty-six apartments in the Airport Gardens public housing community; $79,500 to continue the Five-Year Refurbishing Program to refurbish about thirty-eight apartments; and $6,000 to install and repair playground equipment.
Staff Comment: The recommended plan includes $165,000 for the renovation of Airport Gardens, $50,000 for refurbishing apartments and $6,000 for playground equipment. 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. Community Development funds would be used with Capital Grant funds for the renovation of twenty-six units at Airport Gardens.
3. Chapel Hill Department of Housing–Transitional Housing
The Chapel Hill Department of Housing requested $125,000 of Community Development funds to purchase a home for the Transitional Housing Program. Funds would be used to acquire and renovate a house. The purpose of the Transitional Housing Program is to provide a supportive environment that fosters a transition to private market housing for public housing residents.
Staff Comment: Though the acquisition of property is an eligible Community Development activity, the recommended plan does not include funding for this program. We recommend that the Council focus funding efforts on renovation of Airport Gardens public housing community at this time. The Town has been awarded funds for the Transitional Housing Program through the HOME Program and through the Orange County Affordable Housing Bond program that could be used for this purpose.
4. EmPOWERment, Inc.
EmPOWERment did not submit a formal application for funding, but submitted a letter requesting that the Council allocate $250,000 to purchase property in the Sykes Street area of the Northside neighborhood.
Staff Comment: The recommended plan does not include funds specifically for use by EmPOWERment. However, the plan does include $115,750 for Neighborhood Revitalization activities.
5. Northside Community Association
The Northside Community Association requested $275,000 of Community Development funds to establish a rehabilitation program for owner-occupied homes in the Northside and Pine Knolls neighborhoods.
At the March 26 public hearing, Delores Bailey, Community Organizer for EmPOWERment, Inc. requested that the Council increase the preliminary recommendation for funding for this activity to the amount requested. She also stated that she had received about thirty applications requesting rehabilitation assistance and estimated that each request would cost approximately $5,000.
Staff Comment: The recommended plan includes $150,000 for this program. We estimate that funds could be used to renovate at least four homes. Based on experience with HOME funded housing rehabilitation projects in the Northside Neighborhood, the cost to completely rehabilitate a house has ranged from $25,000 to $35,000. We propose to contract with the Orange County Department of Housing and Community Development to administer this program. We would develop criteria for eligibility for the program for the Council’s consideration during the summer, and consult with representatives from the Northside Association. Renovation of owner-occupied homes is an eligible Community Development activity.
6. Habitat for Humanity of Orange County
Habitat for Humanity requested $40,000 of Community Development funds for planning costs related to the development of property it recently purchased on Sunrise Road. Habitat intends to develop the property and sell homes to first time buyers earning less than 50% of the area median income.
At the March 26 public hearing, Executive Director Susan Levy stated that if Community Development funds could not be used for predevelopment expenses that Habitat would request $40,000 from the Housing Loan Trust Fund for this activity.
Also at the March 26 public hearing, Rob Nelson, a member of the Sunrise Coalition stated that he was concerned about this proposal for several reasons: zoning issues; the number of units proposed; the impact the project may have on schools; and the sewer pump station. He stated that he believed Habitat should adhere to the current zoning and environmental practices. He also asked that the Council not make decisions about funding for this project until these questions and other questions raised in the Mayor’s Committee meeting were addressed.
Sandra Cummings and Doug Schworer, also members of the Sunrise Coalition asked that the Council not make funding awards for this project until the Mayor’s subcommittee has completed its work.
Mark Chilton, Executive Director of EmPOWERment, Inc. stated that funds will not actually be available for three to six months. Therefore, he suggested that the Council budget funds for this project while the discussions with the Mayor’s Committee continued.
Staff Comment: Using funds for architectural design costs for new construction projects is not an eligible Community Development activity. This request could be considered for funding from a Housing Loan Trust Fund allocation already available to Habitat for the Rusch Road subdivision.
7. Residents of the Emily / Partin Road Neighborhood
Major Geer, representing residents of the Emily/Partin neighborhood requested assistance from the Town to install sewer lines in the neighborhood.
Staff Comment: At the January 29, 2003 Council meeting, the Council suggested that the residents of the Emily/Partin Road neighborhood consider approaching OWASA for an assessment project. When the project is closer to implementation, the Council could consider allocating future years’ Community Development funds for this request. Use of Community Development funds would need to meet the federal requirements that the area or individuals benefiting from the funds would be lower-income.
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 ($108,450 in 2003-2004).
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 emphasizes 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 $12,680 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 recommend that the Council allocate $13,000 (rounded) to the YMCA to continue its after school program for youths living in the Pine Knolls and South Estes Drive public housing communities.
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. This year, approximately three children from Pine Knolls and fourteen children from South Estes were served by these programs. In February, the YMCA moved the program from the South Estes Drive Community Center to the YMCA facility so the children could receive a more enriching and diversified after school experience. The YMCA continues to operate a successful program.
2. InterFaith Council
At the public hearing on March 26, 2003, Chris Moran, Executive Director of the InterFaith Council submitted an application requesting $75,000 for Project HomeStart, the organization’s Transitional Housing facility. Funds would be used for operating expenses for the facility.
Staff Comment: Option 3 includes funding for this request.
3. Orange County Family Resource Centers
The Orange County Family Resource Centers requested $15,000 of Community Development funds to operate an after school program at the South Estes Drive public housing community. The Center would provide free after school care for about thirteen children.
Staff Comment: The recommended plan includes $15,000 for this project. We believe that the provision of after school services is an important activity and supports the Town’s efforts in providing services to public housing residents. This would be the first allocation provided to this organization using Community Development funds.
4. Orange County Literacy Council
The Orange County Literacy Council requested $13,500 to continue funding a Program Coordinator for the Community Computer-based Literacy Program. The Program provides computer-based literacy and GED classes to public housing residents and low-income Chapel Hill residents.
Staff Comment: The recommended plan includes $13,500 for the Literacy Council. We believe that the Literacy Council’s Community-based Computer Literacy Program provides a valuable service to public housing and other lower-income Chapel Hill residents. The program helps its clients learn to read, and in some cases to attain a GED, as well as to learn to use computers. The Town funded $15,000 for 1999-2000 to establish the program and $9,000 for 2001-2002 and $11,500 for 2002-2003 to continue the program. It currently operates in the South Estes and Trinity Court/Pritchard Park public housing communities and the Hargraves Center, and provides one-on-one tutoring at various sites. The program has made slow but steady progress over the past four years to improve its effectiveness.
5. Youth Creating Change
Youth Creating Change has requested $44,902 of Community Development funds to establish a contract with the Town of Chapel Hill to provide limited maintenance service such as: trash pick-up, bus clean-up and light lawn service, and to establish a youth individual development account (IDA) program.
Staff Comment: We do not recommend funding for this proposal. The Town currently operates a youth job training program during the summer through the Police Department and we believe that this would be a duplication of services. The youths involved in Youth Creating Change could apply for a position in the Town’s Summer Youth Work Program operated by the Police Department.
In June 2002, the Council amended the Community Development program and budgeted $2,110 to the organization for a job training program. We are currently working with Youth Creating Change to identify documentation needed to enter into a Performance Agreement for this project. Until the initial project is complete and we have an opportunity to evaluate the organization’s progress, we do not recommend that the Council provide additional funds to this organization at this time.
Economic Development Requests
1. Delaine’s House of Beauty requested $30,608 of Community Development funds to purchase equipment for the beauty salon located on North Graham Street.
2. Young Minds After School Program requested $18,900 of Community Development funds to purchase toys and games for an after school program, and for overhead expenses.
Staff Comment: At this time, we do not recommend using Community Development funds for economic development projects. Based on the Town’s experience of providing one small business loan and the experience of other local communities, we do not recommend operating an economic development program.
|
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 |