title
Consider Approving the Recommended Affordable Housing Funding Plan.
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Staff: |
Department: |
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Sarah Osmer Viñas, Director |
Affordable Housing and Community Connections |
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Emily Holt, Affordable Housing Manager |
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Overview: This item provides an overview of a recommended Funding Plan for $1,668,800 in local affordable housing resources.
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Recommendation(s): |
That the Council consider adopting the resolution, approving the recommended Affordable Housing Funding Plan, consistent with staff's recommendations.
Town Affordable Housing Funding
• After allocating a record amount of affordable housing funding in FY 2023, the Town released up to $800,000 in funding from the Affordable Housing Development Reserve (AHDR).
• This amount included the full value of a penny on the tax rate dedicated to the AHDR in the FY 2024 budget, or $971,000, minus funding to support the Affordable Housing Manager position and to provide annual operating support to the Northside Neighborhood Initiative.
• Shortly after releasing the request for funding proposals, the Town learned that it received a $1.5 million federal Community Project Funding (CPF) grant for the Tanyard Branch Trace project on Town-owned land. Because the Town had previously awarded $1.95 million in Town funding to that project, the CPF grant frees up previously allocated Town affordable housing bond funding to award to projects this funding cycle and in the future.
• In addition, the available funding includes $50,000 in unallocated American Recovery Program Act funding that was dedicated to a 2023 Low-Income Housing Tax Credit but never committed to a project.
• Altogether, there is $2,246,286 in affordable housing funding currently available for FY 2024 applicants. Funding not allocated in this funding round will be carried over to support projects in FY 2025.
• Consistent with the recommendation in our Council-approved Affordable Housing Plan & Investment Strategy and in alignment with the Housing Advisory Board’s (HAB) approved charge, staff have assembled the recommended funding plan for Council consideration.
Overview of Funding Plan:
• The table below is a summary of the recommended funding plan, as developed by staff based on the funding guidelines and scoring rubric established by the HAB. The recommended funding plan also reflects the funding priorities identified in the Allocation Strategy of the Affordable Housing Development Reserve (AHDR) and Council-approved Affordable Housing Plan.
• The recommended funding plan fully funds five of the six funding requests received.
• Four of the recommended projects meet the scoring threshold of 60 percent established by the HAB. One recommended project scores below the HAB’s threshold, but staff believe the request represents a sound investment that supports the preservation of a permanently affordable unit acquired through the Town’s Inclusionary Zoning policy.
• Staff did not recommend one project for funding. Given that the proposed renovation budget for this project exceeds the last assessed value of the building, staff recommend that the applicant work within the existing structure of the Preservation Coalition to design a more cost-effective scope of work that will meet the accessibility needs of the household.
• Additional details about the recommended funding plan and the applications received can be found in the attachments.
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Organization |
Project |
Request |
Recommendation |
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Community Home Trust |
Everam Court Foundation Repair |
$33,800 |
$33,800 |
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EmPOWERment, Inc. |
Davie Circle Acquisition |
$200,000 |
$200,000 |
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Habitat for Humanity of Orange County |
225 Knolls St Accessibility Repairs |
$45,000 |
$0 |
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Habitat for Humanity of Orange County |
Carver St. Acquisition |
$375,000 |
$375,000 |
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Residential Services Inc. (RSI) |
Cedar Hills Home Renovation |
$110,000 |
$110,000 |
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Taft-Mills Group and Community Home Trust |
Longleaf Trace LIHTC Project |
$950,000 |
$950,000 |
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Total |
$1,713,800 |
$1,668,800 |
Fiscal Impact/Resources:
• If Town Council approves the recommended funding plan, that would allocate all the remaining 2018 Affordable Housing Bond funds and leave about $575,000 remaining in Affordable Housing Development Reserve funds.
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Attachments: |
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• Resolution |
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• Recommended Funding Plan Overview |
A RESOLUTION APPROVING FUNDING FROM THE AFFORDABLE HOUSING DEVELOPMENT RESERVE (AHDR) AND Affordable Housing Bond (2024-04-24/R-3)
WHEREAS, in fiscal year 2015, the Council approved the establishment of an Affordable Housing Development Reserve (AHDR), which provides funding to support affordable housing development and preservation projects; and
WHEREAS, in November 2018, Chapel Hill residents voted to approve a $10 million affordable housing bond; and
WHEREAS, the Chapel Hill Town Council approved the eligible activities and priority areas for use of Affordable Housing Bond Funds in February 2018; and
WHEREAS, in June 2020, the Town Council approved allocating the first $5 million of affordable housing bond funds to five projects to develop 275 new affordable homes in Chapel Hill; and
WHEREAS, in 2021, the Town issued the first $4.75 million of the approved $5 million of bond funds; and
WHEREAS, in November 2022, the Town Council approved allocating $9,183,530 in affordable housing funding, including $5,353,635 in affordable housing bond funds, $600,895 in Affordable Housing Development Reserve, and $2.5 million in ARPA funding to 6 projects to develop 325 affordable homes in Chapel Hill; and
WHEREAS, in fiscal year 2023, the Council increased the annual allocation to the Affordable Housing Development Reserve by $282,605 to a total of $971,000; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the following funding plan using Affordable Housing Bonds and Affordable Housing Development Reserve funds.
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Organization |
Project |
Recommendation |
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Community Home Trust |
Everam Court Foundation Repair |
$33,800 |
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EmPOWERment, Inc. |
Davie Circle Acquisition |
$200,000 |
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Habitat for Humanity of Orange County |
225 Knolls St Accessibility Repairs |
$0 |
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Habitat for Humanity of Orange County |
Carver St. Acquisition |
$375,000 |
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Residential Services Inc. (RSI) |
Cedar Hills Home Renovation |
$110,000 |
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Taft-Mills Group and Community Home Trust |
Longleaf Trace LIHTC Project |
$950,000 |
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Total Recommendation |
$ 1,668,800 |
This the 24th day of April, 2024.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
PRESENTER: Sarah Osmer Viñas, Director
Emily Holt, Affordable Housing Manager
RECOMMENDATION: That the Council approve the recommended Affordable Housing Funding Plan, as outlined in the agenda item.