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Affordable Housing Special Revenue Fund Funding Recommendation
PURPOSE: The purpose of this agenda item is for the Town Council to consider approving the Affordable Housing Advisory Commission’s recommendation for one nonprofit application to the Affordable Housing Special Revenue Fund.
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Department
DEPARTMENT: Housing and Community Services
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Contact
CONTACT INFORMATION: Anne-Marie Vanaman, Housing and Community Services Director, amvanaman@carrboronc.gov <mailto:amvanaman@carrboronc.gov>
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Council Direction
COUNCIL DIRECTION:
_X__ Race/Equity ____ Climate __X__ Comprehensive Plan ____Other
Council Direction Statement
Racial Equity: A full assessment using the Racial Equity Assessment Lens of the Affordable Housing Special Revenue Fund has been completed and reviewed by the Racial Equity Commission. A summary of this assessment as well as the “pocket questions” can be found in Attachment B.
Comprehensive Plan: Chapter 3. Affordable Housing. Goal 2: Increase the number of rental units that are permanently affordable to very low-income households earning up to 60% of AMI with a particular focus on those earning less than 30% AMI and historically disadvantaged households.
Goal 4: Maintain and improve the quality of Naturally Occurring Affordable Housing (NOAH) and “missing middle” opportunities.
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Information
INFORMATION: In the October 1, 2023 application cycle, one request was received and forwarded to the Affordable Housing Advisory Commission (AHAC) for review. EmPOWERment, Inc. submitted a request for $200,000 toward the acquisition of 10 units off Homestead Road, considered to be part of the town’s Naturally Occurring Affordable Housing (NOAH) stock.
On October 18, 2023, the AHAC received a presentation and then discussed the application. However, the AHAC requested more time to consider the request before making a recommendation and tabled their decision until their November meeting.
On November 15, 2023, the AHAC continued their discussion and voted to make the following funding recommendation to the Town Council:
Decline funding - EmPOWERment Request of $200,000.
The AHAC had reservations funding a request that comprised 75% of the available AHSRF budget with two application cycles remaining in the fiscal year. However, they encouraged EmPOWERment to reapply in either the January or April 2024 application cycle when more information is available regarding the following:
The AHAC would like to see EmPOWERment explore financing mechanisms that might expand or leverage this acquisition opportunity. Additionally, the AHAC expressed concern that: (1) there was no option to purchase or letter of intent with the seller; (2) inspection of the units had not been completed; (3) necessary additional funding was pending, but not committed; (4) adequate funding for improvements was not fully addressed, a particular concern since the units are not on sewer service; (5) more information was needed to assess the purchase price.
The AHAC’s recommendation can be found in Attachment A. The funding request can be found in Attachment C.
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Fiscal and Staff Impact
FISCAL IMPACT: There is no fiscal impact. The available AHSRF budget for FY2023-2024 is $262,817. There are two more application cycles this fiscal year, and applications of $5,000 or less are accepted throughout the year by Housing and Community Services and presented to the Town Manager for consideration.
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Recommendation
RECOMMENDATION: Staff recommends that the Town Council consider approving the AHAC’s recommendation.
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