Agenda - 05-09-2000-1 - Laserfiche WebLink

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Experience in Orange County has shown that local rents often run an average of 15 to 20 percent higher than those HUD published rates, which explains why such a high percentage (35%) pay more than 50% of their income for rental housing costs. For families earning 80% or more than the County median monthly family income of $4,022 renting amulti-bedroom apartment is relatively easy given that they are able to locate units with 3 or more bedrooms. Larger apartments are in relative scarcity because the rental market is oriented toward providing student rental housing. The most recent County data estimates that 24% of the County's rental properties contain three or more bedrooms. For families earning 50% or less than the median monthly income the primary concern is not finding a rental unit but rather affording one. In 2000, the upper level income limit for alow- income family of four was $29,740. For these families renting a three bedroom dwelling unit in the County, or at a minimum, a two bedroom apartment in Chapel Hill the same set of families would have to spend at least 37% of their monthly income. In both instances, these families would have to spend more than 30% of their gross monthly income on rent. US HUD standards define affordable as occurring when a renter spends no more than 30% of their gross monthly income on total housing cost (rent & utilities). Affordable Housing Needs According to the 1990 census, Orange County had the highest percentage of very low- income households with housing problems in North Carolina; 77 percent of residents in this category cited cost burden and overcrowding as major issues. In 2000,. the County has approximately 12,280 low-income households with cost burden, and overcrowdedness remaining the primary impediments to obtaining affordable housing. Further, according to a 1989 report from the North Carolina Rural Economic Development Center, 1,052 units in Orange County lacked indoor plumbing. The County considers this estimate to be a good approximation of the problem; however, an estimated 10-20% of the County's septic systems are failing at any given moment. The lack of affordable housing forced renters to live in substandard units. Housing problems were reported in 86 percent of very low-income households, and 97 percent of large families were forced to live in overcrowded, substandard units. The majority these families were also cost burdened. Homeless Needs The numbers of homeless persons in Orange County have increased dramatically. During fiscal year 1998-1999, the InterFaith Council Community House reported serving 801 individuals, 700 adults and 101 children. Of this number, 535 were African American, 198 were White, and 4$ were Hispanic, and 20 of other race and ethnicity. The IFC Community House is the only emergency housing resource for families in Orange County. The greatest increase in the homeless population in Orange County continues to be women, children, and families, frequently victims of domestic violence. Thus, the opening of Project Hemostat last year was welcomed into the community. Project Homestart is a transitional