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79 <br /> SP-30 Influence of Market Conditions - 91.415, 91.215(b) <br /> Influence of Market Conditions <br /> Affordable Market Characteristics that will influence <br /> Housing Type the use of funds available for housing type <br /> Tenant Based The most recent Fair Market Rents for Orange County are$834 for efficiencies,$902 for <br /> Rental Assistance one-bedroom units,$1,055 for two-bedroom units, $1,435 for three-bedroom units,and <br /> (TBRA) $1,624 for four-bedroom units.Considering that almost half of renters in the county are <br /> cost burdened, and that about 70%of both very low-income(50%AMI)and extremely <br /> low-income(30%AMI) households are cost burdened,these rents may be too high for <br /> many people seeking affordable housing, indicating a market need for tenant-based <br /> rental assistance(TBRA). Furthermore,the Orange County Housing Authority administers <br /> a Housing Choice Voucher program, and a locally-funded rental assistance program, both <br /> of which are over-subscribed. Using HOME funds for TBRA could help fill this gap. <br /> New Unit There is a dire market need for production of more affordable units in Orange County, <br /> Production especially for people with the lowest incomes. Only about 5%of existing units are <br /> affordable for households earning less than 30%AMI. Using HOME funds for construction <br /> of new affordable rental and home ownership units is a top priority,demonstrated by <br /> both the market analysis and the results of citizen and stakeholder engagement in the <br /> development of the Consolidated Plan. <br /> Rehabilitation Although much of the county's housing stock has been built within the last 20 years, <br /> there is a significant need for repair of older units and modifications to facilitate aging in <br /> place for elderly people and other people with mobility impairments. Furthermore, it is <br /> estimated that about 38%of units in the county contain lead-based paint,and are thus <br /> more likely to be in need of remediation. Using HOME funds for rehabilitation of existing <br /> homes and apartments could extend the life of these units and help keep the county's <br /> housing stock more affordable. <br /> Acquisition, Orange County faces very high housing costs.Since the development of the previous <br /> including Consolidated Plan five years ago, housing costs have increased 15%.While this increases <br /> preservation the expense of acquiring housing,the HOME program and other local programs and <br /> policies have mechanisms for preserving the long-term affordability of units, beyond the <br /> initial investment of subsidy. <br /> Table 48—Influence of Market Conditions <br /> IFFY 2020—2024 Orange County, NC HOME Consortium 76 <br /> Consolidated Plan <br /> OMB Control No:2506-0117(exp.06/30/2018) <br />