title
Next Steps for Developing a Process for Use of Affordable Housing Bond Funds.
body
|
Staff: |
Department: |
|
Loryn Clark, Executive Director |
Housing and Community |
|
Sarah Vinas, Assistant Director |
|
Overview: On May 23, 2018, the Council approved a resolution to proceed with an affordable housing bond referendum in November, 2018. The purpose of this memorandum is to share proposed next steps for developing a process for allocation of affordable housing bond funds.
|
|
Recommendation(s): |
That the Council receive this report.
Background:
• During a Work Session on February 7, 2018 <https://chapelhill.legistar.com/LegislationDetail.aspx?ID=3335617&GUID=E66DA221-3910-49E3-86C9-ACAA04274597>, we discussed with the Council our interest of creating an affordable housing investment plan and using general obligation (GO) bonds as the primary funding source.
• On February 21, 2018 <https://chapelhill.legistar.com/LegislationDetail.aspx?ID=3346661&GUID=C9696EDC-F4C6-4ADE-B9B1-F1F2C2DC634B> the Council adopted a schedule to pursue an affordable housing bond in November, 2018.
• On February 21, 2018, the Council also adopted a resolution identifying eligible activities and priorities for use of affordable housing bond funds.
• Eligible activities are:
o Acquisition of property
o Home repairs/comprehensive rehabilitation
o Construction of new affordable housing units.
• The Council approved the following priorities:
o Rental housing serving households earning less than 60% of the Area Median Income
o Rental housing serving vulnerable populations (i.e. disabled, homeless, elderly)
o Long-term affordability
o Located near transit services
o High leverage from other sources
• On May 23, 2018 <https://chapelhill.legistar.com/LegislationDetail.aspx?ID=3508315&GUID=C4CBAD0C-9D9D-41D2-89CD-375AAD6AA647> the Council adopted a resolution authorizing the issuance of up to $10,000,000 of general obligation bonds for affordable housing.
• In response to the Council’s request, Town staff solicited a list of potential projects from our partner housing providers as examples of what could be funded with affordable housing bond funds. We also identified two Town-initiated projects. Town staff has conducted no review of the projects from our partners and provided them as examples. Our plan of action included developing a process for selecting projects. Ultimate approval of projects to be funded will rest with the Council.
• If the voters approve the bonds in the November referendum, the Council would have 7-10 years to issue the bonds.
Key Issues:
• Town staff will develop an educational campaign about an affordable housing bond and how the funds could be used in the community in anticipation of the referendum.
• The attached draft allocation strategy provides more detail about potential eligible projects.
• Staff will work with the Housing Advisory Board to develop an application process and a scoring rubric consistent with the Council’s defined priorities.
• Town staff will develop a process that aligns with the principles of the Affordable Housing Development Reserve <http://www.townofchapelhill.org/town-hall/departments-services/housing-and-community/funding/affordable-housing-development-reserve>, with national affordable housing trends and with other successful local government models. The Town’s approved affordable housing strategies and the Council’s goals will be the foundation for the process.
• Through our recent discussions, Town staff has identified these Council interests that we will incorporate into the application and scoring system:
o Consider using funds to acquire property
o Dedicate funding for households displaced by redevelopment
o Leverage bond funds as much as possible
o Develop strategies for specific populations
Next Steps
• Begin work with the Housing Advisory Board to develop a project selection and monitoring system for Council review in the fall.
Fiscal Impact/Resources: There is no fiscal impact associated with this report. Existing staff resources would be used to develop the application and evaluation process for affordable housing bond funding.
Council Goals:
|
☒ |
|
Create a Place for Everyone |
☐ |
|
Develop Good Places, New Spaces |
|
☐ |
|
Support Community Prosperity |
☐ |
|
Nurture Our Community |
|
☐ |
|
Facilitate Getting Around |
☐ |
|
Grow Town and Gown Collaboration |
|
|
Attachments: |
|
|
|
|
|
• Draft Allocation Strategy |
.d
|
The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
The purpose of this memorandum is to share next steps for developing a process for allocation of affordable housing bond funds.