Affordable Housing Senate Bill 04-20-1999 5b

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One Penny for Housing: Creating a Housing Trust Fund in Orange County We are calling for the Board of County Commissioners to support creation of a Housing Trust Fund in Orange County. We propose that one penny on the tax rate be allocated on an annual basis for affordable housing purposes. Dedicating a revenue source will create a housing trust fund in Orange County to represent our local commitment to maintaining a diverse community. There are currently over 110 housing trust funds in the United States. These funds have spent more than $1.5 billion building and preserving more than 200,000 homes and apartments for low-income families. We request that the Board of County Commissioners join with us to ask our Legislative Delegation to include Orange County in Senate Bill 708, a bill introduced by Sen. Fountain Odom entitled "Affordable Hausingfl, which will extend legislative authority to enable Mecklenburg County to use general revenues to support affordable housing. This bill amends current statutes to allow counties to "engage in and appropriate and expend funds for residential housing construction...". Members of our delegation have expressed interest in supporting this legislation but need a resolution from the Commissioners requesting that they offer a committee substitute to include Orange County in this legislation. We are here tonight to encourage you to pass this resolution. We are also requesting that Orange County join our other local governments in investing an amount equal to 1 cent on the tax rate to capitalize a Housing Trust Fund to be supported by local funds. To prevent double taxation of residents living in local municipalities we request that the County's allocation be based upon properties outside of Chapel Hill, Carrboro and Hillsborough. Affordable Housing is a Critical Need HUD estimates that more than 5,500 households in the County either live in substandard conditions or pay too much each month in housing costs. Only 368 new affordable homes and apartments were built between 1992-97.(1} The average existing home price in the County is $180,000, while a family of four living at 80% of the median income can only afford to buy one at $119,000.(2) As the University grows by 3,200 students in the coming decade, existing affordable neighborhoods will be further strained. Local Governments Need to Contribute Their Share for Affordable Housing We cannot rely solely upon inconsistent state and federal funds to meet local obligations. Of the $20 million invested in the County for affordable housing between 1992-97, only 5°~ came from local sources, which includes local government tax revenues.(1) This proposal could yield approximately $650,000 annually -about three-quarters of our