AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
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2026-2027 HOME Investment Partnerships Program Annual Plan.
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RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Loryn Clark, Deputy Town Manager, Interim Director, Housing and Community Development Department
Emily Holt, Assistant Director, HCD Department
Melissa Peters, Funding Programs Coordinator, HCD Department
STAFF RECOMMENDATION*
Staff recommends that the Council adopt R-1 approving the 2026-2027 spending plan recommended by the Collaborative for the use of $394,762.81 in 2025-2026 Orange County HOME Program funds.
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ACTION/DECISION POINTS*
1. Approve a spending plan recommended by the Collaborative for use of $394,762.81, including $381,456.81 of 2026-2027 Orange County HOME Program funds and $13,306 in program income.
2. Authorize this plan to be incorporated into the Annual Update to the 2025-2029 Consolidated Plan for Orange County.
LEGISLATIVE CONTEXT*
The Town, as one of the four members of the HOME Investment Partnerships Program (HOME) Consortium, must approve the HOME Annual Action Plan before the document is submitted to the U.S. Department of Housing and Urban Development (HUD) by June 2, 2025.
BACKGROUND AND CONTEXT*
The Town is part of the Orange County HOME Consortium alongside Orange County and the Towns of Carrboro and Hillsborough. Orange County administers the HOME funding on behalf of the Local Government Affordable Housing Collaborative (LGAHC), which is made up of elected officials and affordable housing staff from the HOME Consortium. As part of that role, the County oversees the HOME funding allocation process. The LGAHC serves as the application review team, charged with developing an annual HOME Program plan.
The Orange County HOME Consortium receives an annual allocation of federal HOME funds from HUD to address County-wide affordable housing needs. For the 2026-27 Program Year, the HOME Consortium received $394,762.81. The recommended funding plan includes $381,456.81 of 2026-2027 HOME Program funds as well as $13,306 in Program Income for eligible affordable housing projects.
Development of the HOME Annual Action Plan included the following process:
• September 16, 2025: The Orange County Board of County Commissioners held a public hearing to receive comment on the 2025-2026 HOME Program Consolidated Annual Performance Report and assess community needs for development of the 2026-2027 HOME Annual Action Plan.
• February 27, 2026: Application submission deadline.
• March 11, 2026: Local Government Affordable Housing Collaborative met to review and evaluate applications to make recommendations.
• March 23, 2026: Orange County Staff posted the recommended HOME Investment Partnership Annual Program Plan for public review and comment on the County’s website.
• April 7, 2026: The Orange County Board of County Commissioners held a public hearing to receive comments on the recommended 2026-2027 HOME Program Plan.
• May 13, 2026: Hillsborough Town Council consideration of the HOME Program Plan.
• May 19, 2026: The Orange County Board of County Commissioners and the Carrboro Town Council consideration of the HOME Program Plan.
• The next steps are:
o May 20, 2026: Chapel Hill Town Council consideration of the HOME Program Plan.
o If all jurisdictions of the Collaborative approve the plan, Orange County will submit the Plan to HUD, as the annual update to the 2025-2029 Consolidated Plan.
o County posts the approved annual HOME plans on the HOME Program website <https://www.orangecountync.gov/2336/HOME-Program>.
o County enters into Performance Agreements with agencies, according to the approved program plan.
FINANCIAL IMPACT
Participation in the HOME Program requires a local match, based on a population-based formula. The Town’s portion for the 2026-2027 Program Year is $39,099.32, or 41% of the federal matching requirement. As in previous years, we propose to use an allocation from the Affordable Housing Funding Program for this purpose.
Community Impact
HOME funding is intended to address County-wide affordable housing needs for low- and moderate-income households. HOME funded projects must benefit households earning at or less than the 80% Area Median Income HUD Income Limit ($126,900 for a four-person household).
COMMUNITY ENGAGEMENT
The County held a public hearing to gather input on the HOME Annual Action Plan on April 7, 2026, as well as a 30-day public comment period between March 23 and April 23, 2026.
ATTACHMENTS
Resolution Approving the 2026-2027 HOME Program Plan
2026-2027 HOME Program Annual Plan Summary of Activities
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