2004 S Housing - Consolidated Housing Plan Annual Update/HOME Program Signed Agreement with Chapel Hill

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Transitional Housing Program Description Program Purpose Overview The overall purpose of the Transitional Housing Program (THP) is to prepare public housing families in Chapel Hill and Carrboro for the move from conventional public housing to private market housing. Public housing as established under the Housing Act of 1937 is a way of providing decent, safe, and sanitary housing for individuals who are excluded from the private housing market because of their low-income status. The primary objective of the Housing Act of 1937 is to provide low- income families with affordable housing by charging the family not more than thirty percent (30%) of adjusted household income for rent and utilities. The Act envisioned that families' incomes would increase to a level whereby they could afford private market housing. Thus, these families would move out of public housing, making way for other low-income families. Some public housing families' household incomes have increased to a level or an amount where their public housing rents are almost comparable to private market rents. However, these families continue to live in public housing.- Under the THP public housing families are provided low cost rental housing and supportive services to support their successful transition from conventional public housing to private market housing. Participation in the THP is limited to public housing families with a rent paying ability of at least four hundred and fifty dollars ($450.00) per month. Families selected will be required to participate in budgeting and financial management sessions. The maximum time allowed in the program is five (5) years. At the end of the five-year period, families must leave the program and move into private market housing. Families remaining in the transitional house after the five-year period will begin to pay market rate rent. The benefits of the THP for participants include: A) Family's rent will not increase although family's income may increase and B) Twenty percent (20%) of the monthly rent will be deposited into a savings account. In regard to the latter, the amount in the savings account can only be used when families leave the program and for down payment on a home or rental security costs. HOME Program Funds Use The requested HOME Program Funds will be used to purchase and, if necessary, rehabilitate a house in the Chapel Hill area. The house will serve as a home for a participant in the THP. The purchase and use of houses outside conventional public housing is essential to the success of the program.