Agenda - 05-07-2013 - 5e - Laserfiche WebLink

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As mixed use /mixed income communities continue to add amenities to new home construction, home costs continue to rise in Orange County despite the current housing market slowdown. It is increasingly difficult to fund projects that meet low and moderate income criteria. Orange County will continue to work with local groups, and municipalities, to determine the areas that qualify for funding by researching and evaluating alternative areas. As the population of Orange County continues to grow, the lack of affordable land has become a major barrier to the development of Affordable Housing, especially when taking into account that the Town of Chapel Hill and the County will not develop infrastructure beyond the Urban Services Boundary. By waiving building permit fees and providing zoning incentives, the members of the Consortium plan to minimize the obstacles to affordable housing development. There are a limited number of developers and builders who are capable of building Affordable Housing. The profit potential for middle and upscale housing draws most builders to that range of development, leaving few contractors willing to work in the Affordable Housing arena. Also, the high cost of land, costly permitting fees and the length of time to get housing projects approved is prohibitive to the development of Affordable Housing. This obstacle will be mitigated through the waived permit fees and zoning incentives already discussed. 4. Identify the federal, state, and local resources expected to be made available to address the needs identified in the plan. Federal resources should include Section 8 funds made available to the jurisdiction, Low - Income Housing Tax Credits, and competitive McKinney -Vento Homeless Assistance Act funds expected to be available to address priority needs and specific objectives identified in the strategic plan. Orange County HOME Consortium Response: By drawing upon financial resources available to the Consortium through HUD and by instituting or strengthening partnerships with County departments, municipalities, and nonprofit organizations, the Consortium will have sufficient resources available to accomplish the Plan goals. The following table provides a conservative estimate of the total amount of funding that is expected to be available through HUD over the course of the five years covered by this Plan. The estimates for CDBG and HOME are based on 80% of the current FY 2010 funding level, multiplied by five (to arrive at a cumulative five -year figure). CDBG and HOME Program Income estimates are based on 80% of the projections listed in the Consortium's 2009 Annual Action Plan. The estimate for HOME Matching Funds is 25% (the minimum amount of match required) of the five - year HOME estimate. Y 2013 -2014 Action Plan 23