Agenda 05-05-2026; 12-3 - Information Item - Memorandum - Update on Manager’s Work Group to Address Low-Barrier Housing Needs and Opportunities

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� 3 ORANGE COUNTY NORTH CAROLINA emphasized that permanent housing with supportive services, both single-site and scattered, has the most promise for long-term success. In addition, there have been group discussions about potential properties and land in Orange County that could present opportunities for low-barrier housing.These opportunities include a 12-acre forfeiture property in Cedar Grove now owned by Orange County that had been designated for affordable housing, as well as former group homes in Carrboro and downtown Hillsborough that are vacant and under HUD designation.The non-profits that own these homes have expressed willingness to discuss a collaboration with Orange County Housing stakeholders to support low-barrier supportive housing needs.The Work Group has also received a presentation from member and Planning Director Cy Stober about zoning restrictions and barriers to developing low-barrier housing in significant portions of the County. When Tropical Storm Chantal hit in July of 2025,the Work Group shifted to quarterly meetings to accommodate the needs of Town and County Housing staff working to support those displaced or impacted by the storm. As a result of these continued meetings and presentations received, the following upcoming projects and priorities have been identified: • Orange County Housing is expected to issue an RFP for$1.3 million in available HOME ARP funds in the next month that will prioritize Permanent Supportive Housing and/or Rapid Rehousing expansion. • Hope NC has approached Alliance Health and Orange County regarding a request for$100,000 of Orange County's reserve Cardinal funds to support the acquisition of 4 supportive housing duplexes for 8 adults with Intellectual and Developmental Disabilities (IDD) at or below 30%AMI in Habitat's Weaver's Grove development in Chapel Hill.The requested amount is the remainder of funding needed by Hope NC after funding was awarded by the NC Housing Finance Agency ($569,000) and from the Town of Chapel Hill ($185,000).This proposal will be coming before the Board for consideration on May 19, 2026. • Orange County Housing will be issuing an RFP early next FY in conjunction with the 12-acres in Cedar Grove that the County owns and was designated for affordable housing.The RFP will seek applications from non-profit, affordable housing developers for the purpose of building low- barrier, permanent supportive housing at the location. Specifically,the expectation would be to serve up to 15 residents with behavioral health diagnoses with incomes at 30%AMI or less.The County would commit to ensuring the availability of 15 Project Based Voucher's for the units.A portion of the total FY 27-28 affordable housing development CIP funds ($5 million)would be considered by the Board for this development after the property transfer is approved and a detailed housing proposal is presented. Orange County has met several times with a developer/provider who has assessed the location for suitability and offered proposals for consideration. A soil study is now underway. 300 W.Tryon Street, Hillsborough, NC 27278 1 www.orangecountync.gov 1 919.732.8181