Affordable Housing Advisory Commission Meeting August 15, :30 PM Town Hall. Agenda

Transcription

1 Affordable Housing Advisory Commission Meeting August 15, :30 PM Town Hall Agenda I. Consider Approval of June Meeting Minutes (7:30 7:35) II. Northside Neighborhood Initiative & Rebuilding Together funding applications (7:35 7:55) III. Fee Waiver Policy Update (7:55 8:15) IV. Funding application process (8:15 8:50) a. Background Information b. Budget update c. Outline process V. Updates from Liaisons and Commission (8:50 9:00)

2 The Northside Neighborhood Initiative 1 A Proposal to the Town of Carrboro Seeking Funding and Ongoing In-Kind Town Staff Support for the Northside Neighborhood Initiative August 8, 2018 Submitted by Dan Levine Director of Project Management Self-Help Real Estate dan@self-help.org 1 Inclusive in this area are multiple connected neighborhoods including Northside, Lloyd-Broad, Tin Top and Pine Knolls, but we use the broader Northside name here for the sake of simplicity and for consistency with the language used in the Northside Housing Market Action Plan. 1

3 Background Residents of the Northside neighborhood, including Carrboro s Lloyd/Broad and Tin Top communities, have helped sustain the Carrboro and Chapel Hill communities for generations. 2 Many of these neighbors for example, Ms. Eva Barnett (pictured below) who has long lived in Carrboro and run a beauty shop there have been community leaders and advocates in their spare time while working multiple jobs well into their 80s. Northside residents have taken great pride in keeping up the homes they have lived in often for several decades and in maintaining an inclusive, diverse neighborhood. Now, more than ever, they are facing the impact of intense market forces, an aging housing stock requiring re-investment, and rising ownership costs that threaten the future of one of Orange County s most diverse neighborhoods. The good news is working together with partners these neighbors are making significant progress in responding to and reversing these trends. The Northside Neighborhood Initiative (NNI) a collaborative effort among neighborhood residents, UNC, the Town of Carrboro, the Town of Chapel Hill, the Marian Cheek Jackson Center, Self-Help, nonprofit housing developers (including Community Home Trust, EmPOWERment Inc., and Habitat for Humanity), and other partners was formalized in spring of 2015 after years of planning. The NNI is dedicated to preserving the future of the Northside neighborhood, with a particular focus on retaining the neighborhood s long-term residents, as well as providing quality affordable and workforce housing opportunities for existing and new residents. Through a comprehensive neighborhood planning effort documented in the Northside Housing Market Action Plan, participants agreed to work toward fulfilling shared aspirations for Northside. The neighborhood residents and partners in the NNI envision a Northside that is vital, family friendly, socially cohesive, multi-generational, mixedincome, and diverse that celebrates its strengths and opportunities, while honoring the 2 Please refer to the Northside Housing Market Action Plan (MAP), which was previously shared with the Affordable Housing Task Force and with Carrboro Town staff who have actively participated in Northside planning and implementation work, for more background on neighborhood boundaries, demographics, trends, etc. Do not hesitate to be in touch if you would like us to send you an electronic copy of the MAP or have questions about this proposal. 2

4 neighborhood s cultural and historic legacy. Funding Request Summary For a few years the Town of Carrboro has provided significant in-kind support to the NNI by allowing staff to participate in upfront planning and ongoing coordinating and implementing efforts. In addition, the Town previously awarded $55,000 to Self-Help for land acquisition and home repairs, which we have deployed on a number of properties inside Carrboro town limits. Finally, the Town has helped fund and otherwise support our nonprofit development partners in myriad ways to create and preserve affordable housing, protect the community from student-ification, and more. Self-Help, as lead NNI implementation partner alongside the Jackson Center, is deeply grateful for the Town s support to date. We now request that the Town of Carrboro like the Town of Chapel Hill, Orange County, and UNC have done take an important next step to sustain the NNI by playing an active financial role in ensuring effective program delivery. Specifically, Self-Help seeks a $30,000 grant to support NNI implementation, including land banking for affordable housing, coordinating critical home repairs and grant-funded property tax relief for low-income seniors, coordination among community Compass Group members, strategic partnership among development partners, managing home renovation and repairs, and other critical program implementation efforts jointly coordinated by the Jackson Center and Self-Help. (For the sake of simplicity in contracting and reporting with the Town, Self-Help will contract with the Jackson Center for its key role in these program activities rather than asking the Town to execute two separate funding agreements.) Town funds would be used solely to deliver program services within the Carrboro town limits. We believe this request is consistent with the goals and policies of the Town s Guidelines for the Affordable Housing Special Revenue Fund, and with related policy initiatives. Program Description Town of Carrboro grant funds of $30,000 would be used over the next 12 months to carry out NNI implementation through program activities such as those described above and further detailed on the following page. The Center for Community Self-Help, a 501c3 nonprofit organization, will manage these grant funds and provide annual reports or other information the Town requires via its grant contract. Self-Help will co-lead implementation of NNI programs in partnership with the 501c3 nonprofit Jackson Center, which is our grassroots neighborhood-based partner. Although the NNI includes numerous elements, we have provided an overview of two key programs below to help illustrate the type of work the Town s funds will support. 3

5 Northside Land Bank: Creating and Preserving Diverse Housing Options The Northside Land Bank is the keystone of much of the NNI work. The Land Bank utilizes a $3 million loan from UNC to Self-Help, in order to facilitate the purchase and renovation/construction of vacant homes and land, such as the house pictured to the left. These funds allows a communityguided acquisition process to compete with a robust and aggressive student rental investor market that is increasingly targeting Carrboro. Once property is acquired, the Land Bank responsibly manages the property and re-sells it at or below cost to nonprofit affordable housing developers and direct to homebuyers (where feasible) with owner-occupancy and (as applicable) affordability deed restrictions attached. Town grant funds for the Land Bank would be used to help defray staff costs associated with acquiring, building/renovating, and selling property within the Carrboro town limits of the NNI target neighborhoods. Please note that land banking is listed as an eligible/desired use in the Town of Carrboro s Guidelines for the Affordable Housing Special Revenue Fund (per section 4-C), which also includes related activities such as supporting housing construction and re-selling properties to individuals and families (4-D and 4-E, respectively). Promise of Home: Safety and Accessibility Repairs & Other Supports for Existing Residents Self-Help s funding request of the Town will also be dedicated toward the implementation of the Promise of Home program for Carrboro residents, which provides critical safety and accessibility repairs along with other supports to help residents stay rooted in the community. The Promise of Home program is designed to make critical repairs to eligible homeowners dwellings in order to make their house safe, decent and affordable, in order to increase retention among current residents, reduce ongoing and future maintenance costs, promote energy efficiency, and preserve affordability. It also provides philanthropic foundation-funded tax relief for low-income seniors to help them continue to live affordably in their homes. Approximately 60 homeowners in the Northside/Lloyd-Broad section of the neighborhood are low-income seniors (age 62 and older), which is the target demographic for Promise of Home. Roughly one-third of these families live in the Carrboro side of the neighborhood. (We do not yet have as detailed of data for the Pine Knolls/Tin Top portions of the target area but know there are dozens more low-income seniors.) With an aging housing stock and the rising cost of living, many long-time residents need significant home repairs e.g., roof replacement, HVAC repairs, electrical and plumbing updates and assistance with rising property tax bills to be able to stay in their homes. The Promise of Home program seeks to help these low-income, elderly neighbors stay safe and rooted in the Northside. 4

6 Note that critical housing repairs are listed as an eligible/desired use in the Town of Carrboro s Guidelines for the Affordable Housing Special Revenue Fund (per section 4-I). Conclusion The Town of Carrboro has played an important and productive role to date in neighborhood planning and in coordinating with NNI partners. We greatly appreciate your ongoing in-kind and property-specific support of the work, and respectfully request a financial commitment of $30,000 in grant funding to support equally critical, broaderbased efforts to implement NNI programs. In so doing, the Town of Carrboro will be supporting the effort alongside the Town of Chapel Hill and Orange County, which have both committed funds for this purpose. We are proud of the collaborative and impactful work completed to date, and excited about the new initiatives underway in the Northside. We look forward to continuing to collaborate with Town staff in the months and years ahead, and in sharing the data and stories coming out of this work as the NNI continues. We welcome your feedback or questions regarding this funding request, and would be happy to walk with you through the neighborhood to show you more examples of the work in person at your convenience. Thank you for all you do for the Carrboro community, including the neighborhoods of the NNI. We look forward to your review of this request and to your ongoing support. 5

7 RTT WORK SCOPE Client Name: Cotton, Edric Address: 1801 N Greensboro St. Carrboro, NC County: Orange Description of Work Continual Sewer drain issues. 2) Home has interior dampness for lack of HVAC system to remove humidity. 3) Kitchen water damage to floor from plumbing leaks subfloor, framing, and new floor repaired by family & in good condition to finish. No cabinets, sink or stove in kitchen, only microwave. 4) Exterior large amount of trees and overgrown scrubs next to house need trimmed to allow for better security of home and dryness. (home was broken into by persons hiding behind brush) Room Exterior HVAC Electrical Project Phase Trouble shoot drain issue. Trim trees Bushes Replace Electric base board heat with Heat pump Panel Upgrade 200 Amp CONSTRUCTION Repair Task Repair Specification Cost Labor Funding Source Source Use camera to Examine waste drains in house, crawlspace & underground 4200 Licensed Plumbing locate possible to the street drain to locate blockages. Estimated repair cost Subcontractor blockage in sewer of continual drain issue. line from tree roots in back yard. Trim tree branches & bushes away from house to extend life of roof, allow house to dry, reduce mold, mildew Install high efficiency heat pump & ducts in the attic (Home 1260sf conditioned space) Remove & replace electrical panel for upgrade to 200 amp panel Cut back tree branches that overhang roof, trim bushes away from house to allow for better security of home & dry up dampness. Include haul off of debris Install Ton Heat Pump 15 SEER, Install whole house duct work including returns, filters, boots, thermostat, condensation pan, drain line, safety feature. Include hauling away of debris. Permits & Inspections required. Includes removal of existing panel & removal of base board heaters, terminating wires or complete removal of wires to these appliances & debris haul off. 750 RTT Staff and Volunteers 9500 Licensed HVAC Subcontractor 1700 Licensed Electrical Subcontractor

8 RTT WORK SCOPE Client Name: Cotton, Edric Address: 1801 N Greensboro St. Carrboro, NC County: Orange Kitchen Carpentry Plumbing Windows General Conditions Install cabinets Install new Kitchen cabinets and countertops Install up to 18 LF of lower cabinets, including a 36 sink base, 18 LF of counter top. Install up to 13 6 of upper cabinets, (note: window above kitchen sink area) 45 of wall left of window, 46 of wall right of window. Length of the front wall is 13 6 overall. (Kitchen measurements in client folder) additional wall space of 59 on right side wall, floor measures 13 6 x Include toe kick, door pulls, trim, end panels, counter top end trim.homeowner has done much of the subfloor and floor repair work. Install 20 LF of 4 ¼ baseboard on walls without cabinets, install 28 LF of matching shoe molding (match floor color) Connect to existing supply & waste lines, P trap, supply stops RTT Staff and Volunteers Baseboard, Shoe molding Install floor trim 225 RTT Staff and Volunteers Plumb Install sink drain & 375 Licensed Plumbing kitchen sink supply Subcontractor Light Light over sink Install pendant or flush mount ceiling light over sink area 125 Licensed Electrical Subcontractor Large Large window Openings measure 105 wide x 48 3/8 high in front wall 1000 RTT Staff and window openings in Existing windows are aluminum awning style from early Volunteers replacements exterior brick wall 1960s. Window replacement Project Supervision Replace broken window in Bedroom 1 RTT will supervise project from start to finish Window opening measure 70 ½ wide x 33 ¾ high, left side wall of home, existing window is aluminum frame slider type 900 RTT Staff and Volunteers 15% of overall construction costs 3469 RTT Staff Total Cost $26,599

9 Attachment C Affordable Housing Fund Application Eligibility Analysis: Rebuilding Together of the Triangle 8/7/18 Application Procedures: Application Procedure Procedure Met 1) A complete description of the project, including the proposed location; 2) A discussion of how the project meets the criteria of eligible uses and eligible beneficiaries 3) Who the ultimate beneficiaries will be or are intended to be; 4) If appropriate, documented income data for the intended recipients. AH Fund Eligibility Criteria: Criteria Requirement This Application Criteria Met 1. Who May Nonprofit or Individual Rebuilding Together of the Triangle Apply 2. Eligible Use Meet the goal of the fund: 1. Established Eligible Use 2. Goal/Strategy of AH Plan Eligible Use i. To provide for emergency home repairs and the maintenance of properties in the affordable housing stock that are falling into disrepair. 3. Eligible Beneficiary 1. Home located in Carrboro 2. Owner or occupant of the property after acquisition 3. House to have an anticipated life of at least 20 years 4. Household income of 115%, priority given to households at 80% of AMI 1. Home located at 1801 N Greensboro St. 2. The current homeowner will remain the owner 3. House has an anticipated life of greater than 20 years 4. Less than 80% AMI priority met

10 DEPARTMENT: Draft Revised Policy 2/28/2018 ADMINISTRATIVE POLICY TOWN OF CARRBORO NUMBER: NORTH CAROLINA REVISION: EFFECTIVE DATE: PAGE 1 of 1 Planning September 26, 2000 SUBJECT: Land Use and Building Permit Fee Waiver or Refund Policy PREPARED BY: Roy Williford Planning Director REVISED BY: Annette Lafferty, Economic and Community Development Director APPROVED BY: Town Manager 1.0 PURPOSE To establish fees waiver or refund policy for land use and building permits 2.0 ORGANIZATIONS AFFECTED All departments and divisions 3.0 REFERENCES 4.0 POLICY The Town of Carrboro in its desire to further affordable housing opportunities hereby establishes a Permit Fee Waiver or Refund Policy. The Carrboro Board of Aldermen adopted this policy on September 26, 2002 and amended it on March 13, DEFINITIONS Affordable housing is defined as: 1. A dwelling unit that will be occupied by families or persons with incomes that are less than 80% of the median income for Orange County as reported by the US Dept. of Housing and Urban Development and where the total monthly housing cost (including mortgage payments, utilities, taxes and insurance) will not exceed 30% of their total monthly income.

11 6.0 PROCEDURE The Town Manager may approve a request to waive development and building permit fees by affordable housing projects (excluding; engineering fees) that are consistent with the following critieria; 1. The fee waiver or refund will directly benefit families or persons of low to moderate income over a sustained period of time; and 2. The project is directly funded or subsidized by a federal, state or local unit of government or non governmental organization that guarantees affordability for 99 years or more; and 3. The need and benefit will be realized by the community as a whole if the fee waiver or refund is granted; and 4. The project meets the goals and objectives of the Town of Carrboro's Affordable Housing Plan.

12 DEPARTMENT: Draft Revised Policy 2/28/2018 ADMINISTRATIVE POLICY TOWN OF CARRBORO NUMBER: NORTH CAROLINA REVISION: EFFECTIVE DATE: PAGE 1 of 1 Planning September 26, 2000 SUBJECT: Land Use and Building Permit Fee Waiver or Refund PolicyFee Deferment Policy PREPARED BY: Roy Williford Planning Director REVISED BY: Annette Lafferty, Economic and Community Development Director APPROVED BY: Town Manager 1.0 PURPOSE To establish fees waiver or refunddeferment policy for land use and building permits related to affordable housing projects 2.0 ORGANIZATIONS AFFECTED All departments and divisions. 3.0 REFERENCES 4.0 POLICY The Town of Carrboro in its desire to further affordable housing opportunities hereby establishes a Permit Fee Waiver or RefundDeferment Policy. The Carrboro Board of Aldermen adopted this policy on September 26, and amended it on March 13, DEFINITIONS Affordable housing is defined as: 1. A dwelling unit that will be occupied by families or personsoccupants with incomes that are less than 80% of the median income for Orange County as reported by the US Dept. of Housing and Urban Development and where the total monthly housing cost (including mortgage payments, utilities, taxes and insurance) will not exceed 30% of their total monthly income.

13 6.0 PROCEDURE A fee deferment shall be requested by a developer to the Board of Aldermen. Once a formal request has been made, it will be referred to the Affordable Housing Advisory Commission (AHAC) for review. Once the request has been reviewed by the AHAC, a formal recommendation will be made to the Town Manager whether to defer any, some or all of the building and permit fees. The Town Manager may approve a request to waive development and building permit fees by affordable housing projects (excluding; engineering fees) that are consistent with the following critieria; 1. The fee waiver or refunddeferment will directly benefit families or personsoccupants of the development who are of low to moderate income over a sustained period of time; and 2. The project is directly funded or subsidized by a federal, state or local unit of government or non governmental organization that guarantees affordability for 99 years or more; and 3. The need and benefit will be realized by the community as a whole if the fee waiver or refunddeferment is granted; and The project meets the goals and objectives of the Town of Carrboro's Affordable Housing Plan. When building and permit fees are deferred from the developer, the Affordable Housing Special Revenue Fund will pay these fees to the Town of Carrboro. 4. Applications will be reviewed on a case by case basis. The amount of deferred building and permit fees may be dependent upon the balance of the Affordable Housing Special Revenue Fund, other dedicated programming and funding, and the priorities of the AHAC, Board of Aldermen and Town Manager as related to affordable housing. Formatted: Font: 10 pt Formatted: List Paragraph, Indent: Left: 0.66", Hanging: 0.18", Right: 0.43", Space Before: 3.55 pt, Line spacing: Exactly 12.9 pt, Outline numbered + Level: 3 + Numbering Style: 1, 2, 3, + Start at: 1 + Alignment: Left + Aligned at: 0.64" + Indent at: 0.83", Tab stops: 0.85", Left Formatted: Indent: Left: 0.66", Hanging: 0.18" Formatted: Normal, Indent: Left: 0.66", No bullets or numbering

14 Housing Fund Quarterly accounting of funds: Quarter 1 7/1/18 9/30/18 Update will be provided at meeting on 10/17 FY BOA AUTHORIZED BUDGET $337,500 Community Home Trust $74,036 Center for Community Self Help $20,000 Home Consortium Match $13,545 Human Services Grants $28,950 Partnership to End Homelessness $23,378 Northside Neighborhood Initiative $30,000 Deferred Loan Expense $20,000 UNEXPENDED RESERVES $127,591 + Commitment to CASA $357,208 Empowerment $16,000 Empowerment Fund $3,000 Habitat $2,500 Marion C. Jackson Cntr $3,000 $24,500 ($4,450) Current Process: Follow guidelines complete eligibility checklist submit documentation all have a rolling application process. Currently Unexpended Reserve funded projects fall under 3 main categories: 1. Critical Home Repairs expenditures have increased exponentially over the past years 2. Deposit Assistance remained about flat at around $1000 per year 3. Capital Projects/Acquisition fluctuates depending on project demand FY15 16 FY16 17 FY17 18 FY18 19 Expenditures $3, % $5, %2 $81, %3 $13,198 YTD Rental Deposit $1, % $ % $1, % $1,000 Critical Repair $2, % $33, % $12,198 AH Capital $5, % $16, % Fee Waiver $30, % Board and Manager already approved critical repairs (2 requests from Habitat) and $1000 for rental assistance in FY To consider: 1. Application for all acquisition projects or $ limit 2. ½ cent available next year ($112,500) 3. Possible Payment in Lieu Lloyd Farm Joint Review 9/6, Public Hearing 9/25 Schedule: September: Review current application process/guidelines/plan Address capital projects application and process Non profit/developer input process October: Address critical home repair and deposit assistance application process November: Schedule 1 week early, 11/14, for final review of application process