AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Approve the Recommended Funding Plan for the Affordable Housing Funding Program.
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Sarah Osmer Viñas, Director, Affordable Housing & Community Connections (AHCC)
Emily Holt, Affordable Housing Manager, AHCC
Melissa Peters, Funding Programs Coordinator, AHCC
STAFF RECOMMENDATION*
Staff recommends that Council adopt the resolution approving the recommended funding plan for the Affordable Housing Funding Program.
body
ACTION/DECISION POINTS*
Council may approve or reject the funding plan for the Affordable Housing Funding Program.
LEGISLATIVE CONTEXT*
Town Council approved the allocation of $976,000 to affordable housing activities in the 2025 Town budget.
In January of 2025 <https://chapelhill.legistar.com/LegislationDetail.aspx?ID=7101263&GUID=ED3083F2-86BC-427D-B312-972C6325CBB5>, Council took action to establish a unified local Affordable Housing Funding Program <https://www.townofchapelhill.org/government/departments-services/affordable-housing-and-community-connections/funding/local-affordable-housing-funding-program> (AHFP). As outlined in the latest Affordable Housing Funding Allocation Strategy <https://www.townofchapelhill.org/home/showpublisheddocument/56920/638763387303930000>, Council must approve the allocation of local affordable housing funding over $100,000.
BACKGROUND AND CONTEXT*
The Town released up to $1.3 million in local AHFP funding on February 3, 2025. This amount includes the full value of a penny on the tax rate dedicated to the AHDR in the FY 2025 budget, or $976,000, minus funding to support the Affordable Housing Manager and Funding Programs Coordinator positions and funding to provide annual operating support to the Northside Neighborhood Initiative. This also included $592,192 from unallocated funds in the Affordable Housing Funding Program. Applications were due on March 3.
This year the Town released local AHFP and federal Community Development Block Grant (CDBG) funding in the same application cycle. The Town received 14 applications totaling 3,312,927. Town staff have recommended funding 7 applications with $566,813 in CDBG funding and evaluated the remaining six applications that were eligible for AHFP funding. Town staff reviewed and evaluated these applications based on a scoring rubric and assembled a recommended funding plan for Council consideration.
The recommended funding plan reflects the AHFP funding priorities and requirements in the allocation strategy <https://www.townofchapelhill.org/home/showpublisheddocument/56920/638763387303930000> approved by Council. Additional details about the recommended funding plan and the applications received can be found in the attachments.
TRADEOFFS, ALTERNATIVES, IMPACTS
If Council approves the recommended funding plan, the plan will support the creation of 53 affordable units and the preservation of 4 units. Of the six funding applications, two projects are partially funded and four projects totaling $989,677 would not be funded. The unfunded projects received scores below the 70% threshold typically used for funding decisions.
FINANCIAL IMPACT
If Town Council approves the recommended funding plan the balance of the AHFP would be $93,827, excluding an additional $139,528 in revenue that will be budgeted this spring. That revenue includes $67,278 in interest and a $72,250 payment received for the townhome project at 2217 Homestead Road in lieu of providing a fractional affordable housing unit.
COMMUNITY IMPACT
The Town’s priorities for local affordable housing funding program focus on ensuring the Town’s limited dollars support high impact projects, especially those that support populations with high housing barriers or historically marginalized populations.
ATTACHMENTS
Resolution
Recommended FY 2025 Affordable Housing Funding Plan Overview
Staff Presentation
A RESOLUTION APPROVING FUNDING FROM THE AFFORDABLE HOUSING FUNDING PROGRAM (AHFP) (2025-04-23/R-6)
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 fiscal year 2025, the Council approved an allocation of $976,000 to the Affordable Housing Development Reserve in the 2025 Town Budget; and
WHEREAS, in January 2025, the Council approved the creation of a unified local affordable housing funding program.
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 Funding Program funds.
|
Organization |
Project |
Recommendation |
|
DHIC |
Maddry Meadows |
$1,250,000 |
|
EmPOWERment, Inc. |
Creekside Trail Renovations |
$85,000 |
|
|
Total Recommendation |
$ 1,335,000 |
This the 23rd day of April, 2025.
end