Title
Vote on a request to approve the 2022-2023 Housing Trust Fund award recommendations and to approve an additional allocation of $37,562 from the Affordable Housing Article 46 fund balance to the current FY2023 budgeted allocation of the Housing Trust Fund for a second grant/loan cycle in FY2023
Abstract
Introduction & Background:
Action #1
The Housing Trust Fund was created in 2018 by the Chatham County Board of Commissioners to support the creation and preservation of affordable housing. Since its inception, $700,000 has been invested in proposals ranging from new construction of tax credit properties, supportive housing, land acquisition, and extensive home repairs. The fund has invested in the creation of 272 units, 90 of which are currently online. The remaining units are expected to come online in 2023.
Each year in the fall, applications for the Housing Trust Fund are published and released at the end of August. The applications are due in October. From there, staff compiles all applications and releases them to the members of the Affordable Housing Advisory Committee (AHAC) who review, discuss, and evaluate the applications based on scoring criteria applicable to the type of application (new construction or preservation). The advisory committee scores each application, discusses, and votes on recommended funding decisions for the Chatham County Board of Commissioners to consider.
The first action the Board of Commissioners is asked to consider is the approval of the 2022-2023 Housing Trust Fund Award, as recommended by the Affordable Housing Advisory Committee.
Details on the composition of the award recommendations can be found in the “Discussion & Analysis” section of this abstract. As you will note, the total recommendation for awarding in the current cycle falls short of the total allocation of $300,000 for this fiscal year. The second action requested for Board consideration is to allocate funding from Affordable Housing Article 46 to open a second round of the Housing Trust Fund in the current fiscal year. More information about this request is found in “Action #2” below.
Action #2
The FY2023 Housing Trust Fund allocation for competitive grants and loans was set at $300,000. The total recommended awards by AHAC for the current cycle is $187,562. This leaves $112,438 in the Housing Trust Fund for the current fiscal year. With the goal of awarding each year’s full allocation, AHAC plans to open a second round in FY2023. As part of this effort, AHAC recommends $37,562 be added to the current Housing Trust Fund allocation from the available Affordable Housing Article 46 fund balance that was generated by the prior year’s Article 46 sales tax receipts, which were stronger than initially budgeted for within the Affordable Housing Trust Fund. If approved, this will bring the second FY2023 Housing Trust Fund cycle availability to $150,000.
Accordingly, the second action the Board of Commissioners is asked to consider is the approval for allocating an additional $37,562 from the Affordable Housing Article 46 fund balance to the current FY2023 budgeted allocation of the Housing Trust Fund for a second grant/loan cycle in FY2023.
Discussion & Analysis:
Action #1
The 2022-2023 Housing Trust Fund Cycle received five applications totaling over $725,000 in requests. The Chatham County Affordable Housing Advisory Committee (AHAC) evaluated the applications using new construction criteria for those projects. No home repair project proposals were received in this cycle. Criteria and applications opened at the end of August 2022 and were due October 17, 2022.
After reviewing and discussing these applications beginning on November 3, 2022, through December 1, 2021, the members of the Chatham Affordable Housing Advisory Committee voted unanimously on the following recommendations:
• Chatham Habitat for Humanity applied for new construction funds to build affordable homes in Siler City for the Hadley Hills Townhomes
Recommendation:
o Full funding - $65,000
o Total units - 4
• XDS, Inc. applied for supportive housing funds to further develop the Tiny Homes Village at the Farm at Penny Lane.
Recommendation:
o Full funding: $22,562
o Total units: 15
• Wallick Asset Management LLC applied for LIHTC development funding to fill gaps in the construction budget in its Oak View at Siler City project.
Recommendation:
o Partial funding - $100,000 out of $278,054 requested
o Total units: 72
Action #2
The intent of the annual Housing Trust Fund process is to award as much of each year’s annual allocation to projects that will increase the access and availability to quality affordable rentals and affordable home ownership. In its efforts to assist with closing the housing gap with the use of this funding source, AHAC seeks to open a second round of funding opportunities for qualified applicants. With approximately $112,000 remaining in this year’s allocation, provided the award recommendation is approved by the Board of Commissioners, AHAC recommends additional funding be allocated to the Housing Trust Fund to bring the available award amount to $150,000. If this recommendation is approved by the Board of Commissioners, a budget amendment will be brought back to the Board as a “consent item” at the next regular Commissioners meeting
How does this relate to the Comprehensive Plan:
Goal 9: Provide equitable access to high quality education, housing and community options for all.
Goal 10: Foster a healthy community
Budgetary Impact: Approving the AHAC awards recommendation will have an impact of $187,562 on the Chatham Housing Trust Fund, for which $300,000 was approved with the adoption of the FY2023 operating budget. As this amount is less than what was approved, no net budgetary impact will be realized. The request to increase the Housing Trust Fund allocation by $37,562 will increase the operating budget by the same amount and will be effectuated by the adoption of a budget ordinance amendment in the January Board of Commissioners meeting. The funding source for this recommended increase is dedicated to affordable housing-related activity and will not be an allocation from the General Fund’s Fund Balance.
Recommendation/Motion: Approve the 2022-2023 Housing Trust Fund award recommendations and to approve an additional allocation of $37,562 from the Affordable Housing Article 46 fund balance to the current FY2023 budgeted allocation of the Housing Trust Fund for a second grant/loan cycle in FY2023