Source: http://digital.ncdcr.gov/cdm/singleitem/collection/p249901coll22/id/17388/rec/17
Timestamp: 2017-01-20 17:22:25
Document Index: 129872147

Matched Legal Cases: ['§ 91', '§ 91', '§ 91', '§ 91', 'art 92', 'art 574']

2008 State of North Carolina
2008 NC Annual Action Plan
Executive Summary ( 24 CFR91.320( b))
This document, the 2008 Consolidated Annual Action Plan of the State of North Carolina, serves as the annual application to the U. S. Department of Housing and Urban Development ( HUD) for funding for the following housing- related projects:
$ 26.6 million in Community Development Block Grant ( CDBG) funds, to be administered by the Department of Commerce, Division of Community Assistance;
$ 20 million in HOME Investment Partnership Program ( HOME) funds, and additional HOME match and HOME match interest income to be administered by the North Carolina Housing Finance Agency. In the past, the NCHFA has also administered American Dream Downpayment Initiative ( ADDI) funds; however due to projected federal funding changes, the State does not expect to receive ADDI funds in 2008;
$ 2.5 million in Emergency Shelter Grant ( ESG) funds, to be administered by the Department of Health and Human Services, Office of Economic Opportunity; and
$ 2.1 million in Housing Opportunities for Persons With AIDS ( HOPWA) funds, to be administered by the Department of Health and Human Services, AIDS Care Unit.
Department of Commerce, Division of Community Assistance - www. nccommerce. com
North Carolina Housing Finance Agency - www. nchfa. com
AIDS Care Unit – www. epi. state. nc. us/ epi/ hiv
Office of Economic Opportunity - www. ncdhhs. gov/ oeo
The state has three ( 3) basic goals:
To provide decent and affordable housing
To provide a suitable living environment
To expand economic opportunity
The primary means through which these goals are achieved is the provision of affordable housing. Each agency operates programs that help to fulfill these goals, while meeting housing and service- related needs statewide.
The State of North Carolina evaluates its performance annually in meeting the goals of the strategic plan and the action plan. The North Carolina Consolidated Annual Performance & Evaluation Report ( CAPER) is submitted to HUD on March 31 of each year; this is 90 days after the close of the Consolidated Plan Partner program year. The most recent past performance and evaluation reports can be downloaded from the DCA website at http:// www. nccommerce. com/ en/ CommunityServices/ CommunityDevelopmentGrants/ CommunityDevelopmentBlockGrants/ ConsolidatedPlanningProcess/.
Expected Outcomes: Of the total funding for housing activities to be undertaken in 2008, 56% ($ 28,789,000) of the funding is targeted to the high priority needs, 19% ($ 9,528,000) is targeted to the medium priority needs, and 25% ($ 12,970,000) is targeted to the low priority needs. The anticipated distribution of funding by agency and by priority need category is shown in the chart.
Distribution of Funding by Priority Needs Category$ 0$ 5,000$ 10,000$ 15,000$ 20,000$ 25,000$ 30,000DCANCHFAOEOACUFunding ( in thousandsHighMediumLow
The State of North Carolina has developed a North Carolina Consolidated Plan Citizen Participation Plan. This plan is a guidance document to ensure and encourage public participation throughout the Consolidated Planning Process. It sets forth the State’s policies and procedures for citizen participation. The plan can be downloaded from the DCA website at http:// www. nccommerce. com/ en/ CommunityServices/ CommunityDevelopmentGrants/ CommunityDevelopmentBlockGrants/ ConsolidatedPlanningProcess/.
The State of North Carolina consults with public and private agencies that provide housing services, social services, health services, homeless services, lead- based paint services, HOPWA, as well as counties and metropolitan planning agencies. The State draws upon these partnerships in their efforts to set and achieve the goals established in the Five- Year Consolidated Plan and subsequent Annual Action Plans.
1. Sources of Funds: ( 24 CFR91.320( c)( 1)( 2))
This year, the State proposes to assist almost 41,000 households through the four Department of Housing and Urban Development programs that fund the construction/ rehabilitation of housing units, home buyer assistance for existing housing, rental assistance and some housing- related services. These four programs are:
The Small Cities Community Development Block Grant Program ( CDBG)
The State expects to issue grants totaling approximately $ 26.6 million in CDBG funds for housing related activities in 2008.
The HOME Investment Partnerships Program ( HOME) and The American Dream Downpayment Initiative Program ( ADDI)
The State expects to receive $ 20 million in HOME funds. Due to projected federal funding changes, the State does not expect to receive ADDI funds during 2008.
The Emergency Shelter Grants Program ( ESG)
The State expects to receive $ 2.5 million in ESG funds during 2008.
Housing Opportunities for Persons With AIDS Program ( HOPWA)
The State expects to receive $ 2.1 million in HOPWA funds during 2008.
To conduct housing- related activities, the State uses nonfederal as well as federal funds. The available funding sources can be categorized as follows:
Community Development Block Grant Program ( CDBG)
Emergency Shelter Grants Program ( ESG)
HOME Investment Partnership Program ( HOME)
Housing for Persons with AIDS Program ( HOPWA)
North Carolina Housing Trust Fund ( HTF) and HOME Match funds appropriated by the General Assembly
HPPP – Housing Protection Pilot Program appropriated by the General Assembly
The table below lists federal and/ or state matching funds requirements for each program.
The State is required to provide an annual 1: 1 match for federal administrative funds. The requirement is met by the State paying non- CDBG staff salaries.
There were no federal match requirements for the most recent year in which the State received ADDI funds; the State does not anticipate receiving ADDI funds in 2008.
2. Statement of Specific Annual Objectives ( 24 CFR91.320( c) ( 3)) and Affordable Housing: ( 24 CFR91.320 ( g)
The three tables “ One- Year Affordable Housing Goals & Objectives” show how the four core programs are having an impact on the needs of the state. The tables provide the anticipated households assisted and funding amounts ( in thousands of dollars) allocated for each activity type, need type, and priority category. In reviewing the tables, it is important to recognize that the state considered strategic investment of its limited resources through its programs, as well as the appropriateness of the resources available to address the priority need categories. The following table gives the data requested for areas: Statement of Specific Annual Objectives the agency expects to achieve as well as the Affordable Housing one year goals for the number of households to be provided affordable housing.
Activity TypeAnticipated Households Assisted* Anticipated Funding in $ 000sRental Assistance468$ 4,820Production of New Units600$ 9,978Rehabilitation of Existing Units757$ 24,346Acquisition of Existing Units194$ 7,887Other Activities Not Specified Above38,969$ 4,256Total40,988$ 51,287Need TypeAnticipated Households Assisted* Anticipated Funding in $ 000sHomeless36,022$ 2,962Non- Homeless1,740$ 43,137Special Needs3,226$ 5,188Total40,988$ 51,287PriorityAnticipated Households Assisted* Anticipated Funding in $ 000sHigh PriorityHomeless Families & Individuals36,022$ 2,962Non- homeless Persons with Special Needs3,226$ 5,189Renters ( Earning 0- 30% of MFI in Urban Areas; or 0- 50% of MFI in Rural Areas) 241$ 3,225Existing Homeowners ( Earning 0- 30% of MFI in Urban Areas; or Elderly Owners Earning 0- 50% of MFI in Rural Areas) 501$ 17,413Medium PriorityRenters ( Earning 31- 50% of MFI in Urban Areas; or 31- 50% of MFI in Rural Areas) 254$ 3,415Existing Homeowners ( Earning 31- 50% of MFI in Rural Areas; or Non- Elderly Earning 0- 50% MFI in Rural Areas) 189$ 6,113Lower Priority Renters ( Earning 51- 80% of MFI in Urban Areas; or 61- 80% of MFI in Rural Areas) 69$ 835Existing Homeowners Earning 51- 80% of MFI83$ 1,941Potential Homebuyers Earning 30- 80% of MFI whose needs are not met by the market403$ 10,194Total 40,988$ 51,287*** Special Needs" is defined as persons with disabilities, low- income elderly persons, and persons with HIV/ AIDS. ** Each table represents the same total funding amount categorized by distinct goals and objectives as outlined by HUD regulations. * Households is defined as households, individuals or units assisted. One- Year Affordable Housing Goals & ObjectivesAnnual Objective by Priority - § 91.320( c)( 3) & § 91.320( d) Goals by Special Needs - § 91.320( g) Goals by Activity Type - § 91.320( g) 2008 NC Annual Action Plan
3. Outcome Measures: ( 24 CFR91.320 ( e))
Uniform performance measures have been developed by HUD.
Outcome --&gt; Availability/ AccessibilityAffordabilitySustainabilitySuitable Living EnvironmentDecent HousingCreating Economic OpportunitiesObjective --&gt;
The Consolidated Plan Partners have chosen appropriate performance measures for their specific programs. The following are the performance measures for North Carolina HUD- funded programs by Agency, category, objective, and outcome.
Infrastructure Hook- Ups
For all HOME- funded activity, the objective category is “ decent affordable housing” and the outcome category is “ affordability”.
ESG objectives and outcomes are to ensure the provision of emergency and/ or transitional housing, essential services, and or/ homeless prevention services.
The outcome and objective for the HOPWA Program is to provide decent, safe and affordable housing for persons living with HIV/ AIDS and their families.
4. Allocation Priorities: ( 24 CFR91.320( d)( f ))
Funds will be made available through both competitive and open funding cycles. Funds will be allocated both statewide and regionally within the state based on each region's
housing needs, as documented in the North Carolina Housing Market Analysis & Needs Assessment in the 2006- 2010 Strategic Consolidated Plan. See the “ One- Year Affordable Housing Goals & Objectives” Tables for the allocation priorities and proposed distribution of funds to address those needs.
Each program has a unique method of geographic distribution. The funding for the Community Development Block Grant Program is directed to non- entitlement communities across the state. The program funding through the Emergency Shelter Grants Program, the HOME Program, and the HOPWA Program is distributed statewide.
5. Homeless and other Special Needs ( 24 CFR91.320( h)
The state addresses the needs of the homeless and other special needs persons through administration and funding of numerous programs. The state addresses emergency shelter and transitional housing needs of homeless individuals and families to prevent them from becoming homeless with the Emergency Shelter Grants Program ( ESG), the Supportive Housing Development Program ( funded in part with HOME), and the Key Program ( funded in part with HOME Match) through the provision of grants and loans to develop and operate emergency, transitional or supportive housing. ESG also helps to combat chronic homelessness through the provision of preventive programs and activities. The state addresses the needs of those who are not homeless through the Supportive Housing Development Program ( SHDP), Key Program and Housing Opportunity for Persons with AIDS Programs ( HOPWA). SHDP helps partners develop permanent and transitional housing for persons with disabilities, Key provides rental subsidies to persons with disabilities, and HOPWA provides supportive services, resource identification and other assistance to persons with AIDS.
6. Barriers to Affordable Housing ( 24 CFR91.320( i))
7. Other Actions: ( 24 CFR91.320( j)
The Division has designed its eight grant programs to increase local activities that identify and reduce barriers to fair and affordable housing in areas receiving CDBG funding and that support development of soundly designed affordable rental and single- family housing. The Division continues to target investments toward distressed rural areas and high priority small cities through the Commerce Department’s 21st Century Communities Program, Urban Progress ( UP) and Agrarian Growth ( AG) Zones, and distressed counties.
The Division’s Individual Development Account ( IDA) program assists with homeownership for residents of households that are below 80 percent of MHI. The Capacity Building program helps nonprofits develop projects and apply for funding in partnership with their local government.
The Division will continue to work with governmental and non- governmental groups to enhance coordination and to serve on statewide boards and councils, as well as reviewing plans submitted by housing agencies and public housing authorities in order to certify consistency with the Consolidated Plan.
The Division continues to encourage local governments to be involved with lead- based paint removal programs and to work with agencies that are established to mitigate the problem. The Division offers training workshops and courses throughout the year to assist local governments and service providers in better understanding Division programs and requirements, as well as working with the UNC Institute of Government to provide a community development certificate training program for grant administrators.
North Carolina Housing Finance Agency ( NCHFA)
The North Carolina Housing Finance Agency strives to meet underserved housing needs by ensuring that its products and programs are widely disseminated to all areas of the State ( including difficult- to- serve urban areas and underserved rural areas), by researching housing needs and obstacles, and by staffing boards concerned with eliminating those obstacles. Among its many efforts directed towards providing housing for persons whose needs are not met by the market, the Agency’s leverages Low Income Housing Tax Credits with State and federal funding. In addition, the Agency provides rehabilitation loans to enable aging rental developments to remain in the affordable housing stock. The Agency operates the “ Lead Abatement Partnership” to assist low- income owners with lead- poisoned children, and provides funds to assist with lead clean- up for households assisted under another state agency’s program. It also ensures all HOME- funded activity is in compliance with HUD lead regulations. Much of the Agency’s work has the implicit long- term goal of reducing the number of families in poverty. All of the Agency’s programs are targeted towards households earning below
80% AMI, and several serve only those below 30% AMI. The Agency fund transitional and permanent housing for the homeless and non- homeless persons with special needs, many of whom are in poverty. In addition, the Agency has two initiatives aimed at preventing homeowners who have lost their jobs from losing their homes to foreclosure.
The Agency offers a variety of trainings and informational sessions for partners who wish to increase their knowledge of industry and Agency guidelines. These trainings strengthen all entities involved, improving their ability to provide affordable housing to those in need, and improving the institutional structure in the state. Several of the Agency’s trainings and programs are operated in coordination with other public and private entities, including USDA- Rural Development, Habitat for Humanity, the Department of Energy, Duke Energy, Advanced Energy and NC Home Builders. Further, the Agency participates on the Housing Coordination and Policy Counsel, the Housing Partnership, and the Interagency Coordination Council for Homeless Programs, and is involved in a number of local and regional conferences and forums. The Agency is also coordinating efforts to fund NCHousingSearch. org, a free website listing affordable rental housing opportunities statewide. The Agency will continue funding rental developments that are connected to public housing authorities’ Family Self- Sufficiency programs, and providing financing for homebuyers from Family Self- Sufficiency programs that participate in the Agency’s homebuyer programs. The Agency will provide technical assistance on real estate financing issues for PHAs designated as troubled by HUD upon request by the PHA. It will also disseminate information about its affordable homeownership programs widely so as to reach as many public housing residents and other North Carolina residents as possible.
The HOPWA Program informed its funded agencies of a new website launched in the state. The NC Housing Search website lists affordable units across the state with number of bedrooms, location and other vital information to aid in helping to link clients with units. All funded projects received “ The Affordable Housing Primer” which is a resource to help make housing information to include tenant’s rights and responsibilities more accessible to the clients we serve. Also, Project Sponsors are kept abreast of housing meetings conducted by the NC Housing Coordinators within the various regions. The information provided at the meetings includes how to access Low Income Housing Tax Credits and Fair Housing trainings. All Family Care Homes funded through the HOPWA program must submit upon request a signed copy of the lead based acknowledgement form. For any household with children under 6 years old it is mandatory that the lead base acknowledgement form be signed, dated, and included in the client file.
Department of Health and Human Services, Office of Economic Opportunity
Through its administration of the Emergency Shelter Grants Program ( ESG), the Office will continue to assist in improving the quality of existing emergency shelters, to help meet the costs of operating emergency shelters and transitional housing programs, and to provide certain essential social services to homeless individuals and families with children so that they may improve their situations. The Office will continue work with
ESG program recipients to restrict the increase of homelessness through the provision of preventive programs and activities.
The Office will continue to work with the N. C. Interagency Council for Coordinating Homeless Programs to implement strategies and policies outlined in the state’s ten- year plan to end homelessness in our state. To contribute to coordinated efforts in our state, the Office will continue to work with the N. C. Housing Coordination and Policy Council.
7. Program Report ( 24 CFR 91.320 ( k))
CDBG Program ( 91.320 k( 1))
Administered by the North Carolina Department of Commerce, Division of Community Assistance, the CDBG Program provides grants to non- entitlement local governments for projects that enhance the viability of communities by providing decent housing and suitable living environments and by expanding economic opportunities, principally for persons of low- and moderate- income.
North Carolina expects to receive approximately $ 45,000,000 in CDBG funds. Of this amount, $ 26,606,000 will be made available for the following housing- related programs: Community Revitalization, Scattered Site, and Housing Development. In addition, other funds may become available as a result of additional HUD allocations, recapture, reversion, or carry- over of prior year funds and program income. The state makes these funds available through grants to non- entitlement governments statewide.
Investment Plan – 2008 Distribution
($ 4,140,000)
($ 1,000,000)
Urgent Needs/ Contingencies
2008 HUD Grant to State
Note: The Capacity Building category will be funded through projected program income receipts in 2007- 2008 as funds become available.
New 2008 funds according to the investment plan above.
Funds from earlier disbursements recaptured or de- obligated from prior Community Revitalization, Infrastructure, Scattered Site, demonstration category grants, funds recaptured from Economic Development projects and funds not
otherwise distributed from the above categories may be awarded to qualifying applications in either Community Revitalization, Infrastructure, or Urgent Needs.
Any Scattered Site funds not awarded may be awarded to qualifying applications in Community Revitalization, Infrastructure, Urgent Needs, or as supplemental Scattered Site Housing funds to previous qualified applicants.
Any recaptured or de- obligated Housing Development or Individual Development Account funds from previous disbursements, and any Housing Development funds not awarded will be available for Individual Development Account grants, if needed. If not, funds may be awarded to qualifying applications in Community Revitalization, Infrastructure, or Urgent Needs.
Any non- revolving loan Economic Development funds from previous disbursements and Economic Development funds not awarded may be distributed to projects in the Urban Redevelopment program, if needed. Any non- revolving loan Economic Development or Urban Redevelopment funds not awarded may be used to provide funds for economic development activities through non- profit agencies in partnership with local governments. If any funds remain at the conclusion of this cycle, funds may be awarded to qualifying applications in either Community Revitalization or Infrastructure.
Program income received in prior years will be available for the Capacity Building category on an as available basis. Any unused program income may be awarded to qualifying applications in either Community Revitalization or Infrastructure.
Funds not awarded in Urgent Needs/ Contingency may be awarded to qualifying applications in either Community Revitalization or Infrastructure.
Competitive categories usually prescribe selection criteria and selection processes for each program, whereas non- competitive categories prescribe specific review criteria.
All categories except Urgent Needs, Capacity Building, Scattered Site Housing, and demonstration projects must meet some type of threshold requirements. All except the above exempt categories may not receive awards or have applications under consideration for more than a total of $ 1,250,000 from a fiscal year’s allocation to the state.
Community Revitalization ( CR) grants help improve or develop residential areas for low and moderate income households. Awards for CR will be made to the highest ranking communities among those applications received. As part of H. B. 1414, the General Assembly in 2004 approved a regional distribution plan that divides the state into four
regions and assigns each region a percentage of the funds dedicated to the CR category annually. Funds not allocated in one region may be reallocated to another if there are an insufficient number of qualified applicants at the end of the program year.
CR projects will be selected on a competitive basis for a one year funding cycle of up to $ 1,000,000 ( up to $ 850,000 for Basic Grant ( housing, water/ sewer, streets, and drainage) and $ 851,000 - $ 1,000,000 for Basic plus Innovative Grant ( CR housing, community centers, parks, etc.). Closeout documentation for previous grants must be received on- time and any problems identified must be resolved. Applications will be rated and ranked first, and sorted by region once all applications have received final scores. Scoring selection criteria correspond to values that total to a maximum score of 1000 points. The selection criteria and associated score for projects are as follows. Further explanation is available in the application guidelines.
Small Business & Entrepreneurial Assistance ( SBEA) grants assist local governments that are already in the process of developing a coordinated effort to support and grow their community’s small businesses/ entrepreneurs. SBEA projects will be selected on a competitive basis for a 24- 30 month funding cycle. Four to six grants of $ 150,000 to $ 250,000 from the $ 1 million total funding will be awarded. Applications received from the State’s most distressed communities ( i. e., applicants must be Tier 1 and/ or 21st Century Communities) will receive additional points during scoring. Applications are rated and ranked using the selection criteria as follows. Further explanation is available in the application guidelines and on the website of the Division.
Distressed Community Designation 50
Total Points 1050
Scattered Site Housing ( SSH) grants will be made to local county governments on a rotating basis to address housing needs of very low income families throughout the county. County governments can receive $ 400,000 every 3 years with funds targeted to very low- income homeowners for rehabilitation or relocation purposes. Counties submit a detailed plan that includes all interested municipalities within the county describing 2008 NC Annual Action Plan
how funds will be distributed to meet housing needs. Scattered Site Housing applicants may request that up to ten percent of funds be set aside for local option to undertake emergency repairs or repair/ replace on- site well and/ or septic systems.
Those counties that accomplish their goals and exhaust funds within two years are eligible to receive up to an additional $ 100,000 to continue activities allowed in the SSH category subject to funding availability.
Infrastructure ( IF) Eligible local governments may obtain grants of up to $ 750,000 to provide new infrastructure ( public water and/ or public sewer) to existing residential neighborhoods to correct problems that pose a severe health or environmental risk. In an effort to address needs in 21st Centuries Communities, half of the total IF funds will be available to local governments in the 21st Century Communities on an open- ended basis. The other half of the funds will be available to all eligible local governments.
Infrastructure Hook- Up
Grants will be made available to eligible local governments applying on a first- come, first- serve basis for the Infrastructure Hook- Up Program. This program constitutes $ 1 million of the total infrastructure allotment. Eligible activities include costs and fees associated with connecting lower income families to existing water or sewer lines.
Eligibility of grantees in previous grant cycles and proper closeouts of previous grant cycles apply. 100% LMI benefit must be shown on a benefit form. Applications will be accepted in an open window cycle in a 2- step process until allocated funds are depleted or until a specified date.
Economic Development ( ED) This category will continue the policy adopted by the North Carolina General Assembly in the William S. Lee Quality Jobs and Business Expansion Act of 1996, as amended, of providing higher levels of funding to the most economically distressed areas of the state. The following considerations will be included for job creation and retention projects during the 2008 program year: 60% of the jobs created or retained in a project must benefit persons qualifying as prior low and moderate income ( LMI). Funding for Economic Development projects is based on the number of jobs to be created and the level of distress in the community applying for the funds. Areas with higher distress rankings, based on the North Carolina Tier rating system, are eligible for more funds per job created. Additional CDBG funding per job is available for projects proposed to be located in a 21st Century Communities as designated by the Secretary of Commerce.
CDBG funds are granted to local governments for various types of infrastructure improvements to assist business expansion or retention. A local funding match of at least one dollar for every three CDBG dollars is required except for the 25 most distressed counties as ranked for the William S. Lee Tax Credit Act and 21st Century Counties. In a secondary priority to infrastructure projects and at the discretion of the Secretary of Commerce, direct financial assistance to private companies is available as loans to be negotiated by the local government applicant and a participating North Carolina commercial bank at a level not to exceed 50% of the bank loan. Repayment of the loan by the private company becomes program income to the State and is deposited into a CDBG economic development revolving loan fund ( RLF). Funding from the RLF is available only as loans.
Loans for industrial shell buildings are available from the RLF based on the projected number of jobs to be created and the level of distress in the community. These loans will be at a 2% interest rate with a maximum term of 5 years. A dollar for dollar match is required by the local government applicant for an industrial shell building. Also, up to $ 500,000 will be set aside in the RLF for counties in Tiers 1- 3 as loans to assist with the costs associated with certifying industrial sites. These grants are repaid after the certified site is sold or within five years of award.
Certain threshold requirements apply, including: $ 1.25 million cap for the yearly funding cycle; expenditure levels of open grants; and proper closeout of previous grants.
Housing Development ( HD) grants administered by DCA will focus on the creation of multi- unit rental developments and provide support for homeownership activities for low and moderate- income families. Local governments in Tier 1, municipalities that have UP or AG zones, and 21st Century communities will receive preference for HD funds. The HD allocation will be divided into two funding pools: Homeownership and Rental Housing.
Threshold Requirements: In order to be rated for funding, each applicant must meet certain minimum requirements: demonstration of adequate capacity; $ 1,250,000 cap; create 51% of all units for households below the area median income and maintain for 20 years; document other sources of funding; work with Community Based Development Organizations; and complete an appraisal for projects with CDBG funded land acquisition.
For Tax Credits, the threshold requirements and selection criteria are the same. Only projects that are receiving tax credits for multi- unit rental developments through the NCHFA can receive these funds.
Rental Housing ($ 1,000,000)
Multi- unit Development
Funds will be provided for rental developments. Eligible uses of CDBG funds include installation of public infrastructure ( water and sewer lines are automatically eligible for funding; streets, sidewalks and drainage may be funded on a case by case basis), the removal of hazardous material, acquisition of vacant land ( by an eligible non- profit) or vacant historic buildings ( by an eligible non- profit or for- profit developer), and certain rehabilitation activities ( on a case- by- case basis). The maximum grant is $ 250,000 with a $ 6,000 per unit maximum.
Homeownership ($ 800,000)
Funds will be available for assisting single- family housing developments up to $ 250,000. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer, streets, sidewalks and drainage), the removal of hazardous material, and vacant land acquisition by an eligible non- profit or housing counseling. There is an $ 18,000 per unit assistance maximum for single- family projects.
Individual Development Account ( IDA)
These funds provide match for down payment assistance or closing costs to qualified first- time low and moderate- income homebuyers. The maximum funding is $ 70,000 per project and the program is non- competitive. IDAs are funded by a $ 200,000 set aside from the HD line item and from de- obligated HD funds from previous years.
IDA grants are available only for first- time homeownership. The grant cycle is on a first- come, first- serve basis. The application requires community- based partnerships with established track records and trusting relationships in serving disadvantaged constituencies. The following services must be provided to participants: credit reporting and counseling, financial literacy, homeownership education, and housing counseling. Review criteria includes: organizational capacity, goals and objectives, and project feasibility/ readiness.
Urgent Needs ( UN) grants are to be used to help meet community development needs that: ( 1) have arisen during the preceding 18- month period, ( 2) pose an imminent threat to the health or safety of the community, ( 3) the applicant does not have sufficient local resources, and ( 4) where other financial resources are not available to meet such needs. Due diligence will be conducted to determine whether projects meet the above 4- part test. Urgent Needs grants will be available on an as needed basis, or until funds are exhausted. Projects will generally be funded on a first request basis. If more requests are made for funding than is currently available, the Secretary of Commerce may choose to fund the project that resolves the more serious situation, regardless of the order of submission of requests.
Capacity Building ( CB) grants of up to $ 75,000 will be made available to local governments to assist established non- profit organizations with steady and reliable income streams to develop appropriate and competitive CDBG projects and gain functional capacity in a new and different role. The total amount of funds available for this non- competitive program will not exceed $ 600,000. Funds are available on a first- come- first- serve basis with priority going to local governments from 21st Century Communities, Tier 1 Counties, and UP or AG Zones. A Capacity Building grant is expected to result in a future application in one of the CDBG categories. Funds for Capacity Building grants will be made available from program income.
Selection Criteria include previous CDBG experience, feasibility of the project to result in a future CDGB application, and financial feasibility of the non- profit to carry out the project and any future products.
The NC Development Loan Fund ( NCDLF), also known as the Section 108 Loan Guarantee Program, pledges future CDBG allocations as security for loans in accordance with the HUD Section 108 Loan Guarantee Program Final Rule published November 6,
1991. Applications may be submitted at any time during the year, as long as funds are available from HUD.
The maximum loan is $ 5 million. The state may enter into loan guarantee agreements in support of projects sponsored by individual local governments with a minimum loan of $ 750,000 or in support of loan pools of two or more projects supported by local governments with a minimum of $ 250,000. Projects must meet minimum criteria with respect to equity, collateral and underwriting standards.
Technical Assistance ( TA) funds are used to develop the professional skills and capabilities of local community development grant administrators. Each year, DCA and the University of North Carolina at Chapel Hill’s Institute of Government present a 5- day Community Development Academy for grant administrators. Participants that complete the course and pass an exam receive a certificate of completion, indicating knowledge of community development topics. In addition, funds are used to hold a variety of workshops and seminars throughout the year, taught by DCA staff and others.
HOME Investment Partnerships ( HOME) Program ( 91.320 k( 2))
Administered by the North Carolina Housing Finance Agency, the HOME Program will provide financing to nonprofit housing organizations, for- profit developers, lead regional organizations and local governments to increase the availability of standard, affordable housing in North Carolina.
In addition to administering the $ 20 million allocation of HOME, NC Housing Finance Agency also administers the State’s Housing Trust Fund, Low Income Housing Tax Credits, State Tax Credits, Home Protection Pilot Program, Mortgage Credit Certificates and Mortgage Revenue Bonds. In the past, the NCHFA has also administered American Dream Downpayment Initiative ( ADDI) funds; however due to projected federal funding changes, the State does not expect to receive ADDI funds in 2008.
ii. Resale/ Recapture Provisions
Housing rehabilitation loans under the Single Family Rehabilitation Program will be provided as forgivable, forgiven at $ 3,000 per year over the life of the loan.
Home buyer loan subsidies available under the New Homes Loan Pool, Individual Development Account Partnership Program, and Downpayment Assistance Program will be provided as subordinate deferred- payment loans that are not forgiven. Home buyer loans under the Self- Help Loan Pool will be provided as principal- only amortizing loans. Loans under all home buyer programs will be due and payable ( 1) when the property is sold, ( 2) when the property is no longer the home buyer's principal residence, ( 3) at the end of the loan term, or ( 4) when the first mortgage is refinanced. If the net proceeds of the sale of the property are insufficient to repay the home buyer loans in full, the Agency will accept its pro rata share of the net proceeds in full satisfaction of the loan.
At this time, the Agency does not expect to receive an ADDI allocation for the period of the 2008 Action Plan due to projected federal funding changes. ADDI funds currently available for award will be used in the Agency’s New Homes Loan Pool.
In 2007, the North Carolina Housing Finance Agency will not approve additional HOME Consortia, if doing so will result in a net loss of HOME funds to the State.
Starting in 2002, NCHFA partnered with the NC Department of Health and Human Services ( DHHS) to facilitate the inclusion of persons with disabilities and the homeless within LIHTC properties. As part of this partnership, LIHTC applicants committed to targeting 10% of the units in their developments to persons with disabilities. To support this commitment, developers partner with local lead agencies in the preparation and implementation of Targeting Plans. These plans outline how the property will work with the agencies to make these units available.
In order to make the targeted units affordable, NCHFA and DHHS expanded their partnership in 2004 to create the Key Program. This program provides a bridge subsidy for households on disability income who have not yet received a Section 8 Housing Choice Voucher. Through this award- winning program, the Agency is able to assist in providing stable and affordable housing for these high priority populations. This program will continue to be funded in part by HOME Match funds in 2008.
The State has adopted procedures consistent with the requirements of affirmative marketing under 24 CFR Part 92.351( a) and ( b). Recipients and subrecipients of HOME funding must certify that they have developed and adopted affirmative marketing procedures for HOME- assisted housing containing five or more units. In both rental and home ownership situations, the Agency works to address impediments to administering the HOME Program. In addition, the Agency reviews marketing plans as part of its application review process and provides training to rental property managers on a regular basis.
NCHFA has conducted outreach to both recipients of HOME awards and businesses contracted by those recipients. Language encouraging the use of minority- and women- owned businesses is included in either the commitment letter or program guidelines of HOME- funded programs involving contractors. Further, the NC Office for Historically Underutilized Businesses maintains a website of minority- and women- owned businesses, services, and suppliers, and provides comprehensive and continuing assistance to support them. The Agency encouraged HOME recipients in construction programs to utilize the Department of Administration’s online search tool to find contractors. In addition, the Agency contacted the contractors and subcontractors of which it is aware and encouraged them to list their businesses on this search tool.
ESG Program( 91.320 k( 3))
North Carolina’s process for distributing ESG funding is non- competitive. Pre- applications for funding are distributed to previous ESG contractors, county managers, community action agencies, and other interested agencies, organizations, and individuals in December of each year.
Pre- applications are used to determine an applicant’s eligibility for ESG funding according to set criteria. An eligible applicant must:
Document its process for verifying that clients served meet the HUD definition of “ homeless”
Operate the emergency and/ or transitional shelter facility for which funding is requested for at least one year prior to the date of application;
Operate the emergency and/ or transitional facility for which funds are requested for a minimum of six full months out of the year;
Operate a safe and sanitary facility ( if a shelter is a 24 hour or night only facility which: -
if a 24 hour or Night Only facility, has an average daily occupancy ( ADO) of at least six homeless persons per nightly; or
if a Day Only facility, has an APSD ( average number of person served daily) of at least 30 persons per day; and provides one or more of the essential services defined by the U. S. Department of Housing and Urban Development.
Have an established accounting system that provides for maintenance of ESG funds in accordance with OMB Circulars A- 110 and A- 122;
Have a voluntary board of directors of at least five members;
Have the ability to expend ESG funds budgeted for Operations and/ or Services within 365 days and ESG funds budgeted for Homeless Prevention within 180 days;
Have acceptable resources to match the ESG funding received;
Involve to the maximum extent possible homeless person in maintaining and operating facilities assisted under the ESG Program; and
In the case of private, non- profit organization, have the endorsement of the unit of local government in the community in which the emergency or transitional shelter is located.]
Program staff review pre- applications in February of each year and notify potential contractors to submit an application in March. Once applications are approved and the agreement between the NC Department of Health and Human Services and the US Department of Housing and Urban Development is in place, contracts are executed.
All ESG contractors will be subject to on- going monitoring throughout the term of the grant. The primary methods of monitoring will include:
Review of mid- year and end of year contractor performance reports
Review of contractor monthly financial status reports
Review of monthly Average Daily Occupancy ( ADO) and Unduplicated Occupancy
Periodic on- site monitoring, including review of randomly selected case files; and
On- going telephone contact with contractor staff.
HOPWA Program( 91.320 k( 4))
In 2008, funds will be awarded based on a continuation application. The AIDS Care Unit will review applications from HOPWA Project Sponsors to fund and support eligible HOPWA activities under HUD’s 24 Code of Federal Regulations Part 574. The eligible activities addressed in the continuation applications will reflect the critical issues and recommendations from the 2004 needs assessment process conducted by AIDS Housing of Washington and the HOPWA Needs Assessment Steering Committee in collaboration with the HIV/ STD Prevention and Care Branch. The availability of resources to fund programs for each eligible activity will also be considered. This funding represents the third year of a three- year funding cycle based on the 2005 competitive allocation process.
Funds should be distributed throughout the State, both in urban and rural areas within the 92 counties served by the state HOPWA Program.
HOPWA- funded programs should be client centered.
Agencies must demonstrate knowledge of HIV/ AIDS issues and develop protocols to ensure confidentiality.
Agencies must indicate their willingness to actively collaborate with HIV Care Consortia, community- based organizations, AIDS service organizations and other community organizations and agencies to establish a referral network.
Ensure that clients receiving HOPWA funds have access to a case manager and a housing care.
Demonstrate their ability to meet HUD and local housing quality standards relating to habitability and access.
Have the financial and programmatic capabilities to manage a housing program per federal and state regulations, policy and guidance.
Serve clients at or below 80% of median family income level.
Submission of an annual program questionnaire detailing HOPWA activities. This information must be submitted to the HOPWA Administrator by September 12, 2008 for submission to HUD as part of the State’s HOPWA Integrated Disbursement Information System ( IDIS) reporting requirements.
Review of monthly contract expenditure reports and monthly detailed expenditure reports. Additionally, performance monitoring will be based on the timely submission of monthly expenditure reports with supporting documentation
8. Monitoring ( 24 CFR 91.330)
Each of the Consolidated Plan Partners has plans for monitoring and ensuring compliance in their own programs. These plans may include elements such as site- visits, file reviews, interviews with residents, and reviews for compliance with federal and state regulations ( such as Davis- Bacon and Fair Housing requirements). The monitoring plans vary by program and funding source.
Public Comment Process for the 2008 Action Plan
The Consolidated Plan Partners followed the North Carolina Citizen Participation Plan process to ensure that an opportunity for public comment and participation was provided on the 2008 Annual Action Plan. A notice for the October 10, 2007 public hearing was published on September 27, 2007 in three papers across the state – The Daily Reflector ( Greenville), The News & Observer ( Raleigh) and The Asheville Citizen Times ( Asheville). Seven people were in attendance at the October 10 hearing and the minutes for the hearing are provided below. Copies of the draft Action Plan were requested by the public and two comment letters were received during the public comment period September 28, 2007 – November 2, 2007. A summary of the comments received and the responses are included after the public hearing notice and public hearing meeting minutes.
North Carolina Department of Commerce, Division of Community Assistance
ACTION: Notice is hereby given that the 2008 Consolidated Annual Action Plan for housing and community development programs will be published October 1, 2007 and available for public review and comment.
SUMMARY: The N. C. Consolidated Plan addresses housing and community development needs across the state and sets priorities for meeting those needs. The 2008 Consolidated Annual Action Plan details the state’s plans for housing and community development programs and spending for 2008. The state’s Consolidated Annual Action Plan includes the following programs funded by the U. S. Department of Housing and Urban Development ( HUD): Small Cities Community Development Block Grant program ( CDBG), HOME Investment Partnership ( HOME), Emergency Shelter Grants ( ESG) and Housing Opportunities for Persons with AIDS ( HOPWA).
AVAILABILITY OF REVIEW MATERIALS: Copies of the 2008 Consolidated Annual Action Plan will be available on the web sites of the North Carolina Division of Community Assistance ( www. nccommerce. com) and the North Carolina Housing Finance Agency ( www. nchfa. com). Copies are also available by request from the North Carolina Department of Commerce, Division of Community Assistance and will be distributed to all of the regional offices; contact Valerie Woods at ( 919) 733- 2850 to receive a copy. Copies of the plan will also be distributed to all federal depository libraries in North Carolina.
PUBLIC HEARING: A public hearing will be held on October 10, 2007, at 2: 00 p. m. at the offices of the North Carolina Division of Community Assistance, Methodist Building, 1307 Glenwood Avenue, Raleigh, North Carolina, 27605. Persons wanting additional information on the public hearing may contact Valerie Woods at ( 919) 733- 2850. Persons with disabilities or who otherwise need assistance should contact Ella Limehouse at ( 919) 733- 2850 in advance of the hearing. Accommodations will be made for all who request assistance with participating in the public hearing by Wednesday, October 3, 2007.
COMMENT PERIOD: Comments concerning the 2008 Consolidated Annual Action Plan may be made at the public hearing. Written comments will be accepted until 5: 00 p. m. Friday, November 2, 2007 and may be made via email ( vwoods@ nccommerce. com), fax ( 919) 733- 5262, or mailed to Valerie Woods, North Carolina Division of Community Assistance, 4313 Mail Service Center, Raleigh, NC 27699- 4313.
2008 Draft North Carolina Consolidated Annual Action Plan &
Amendments to the 2007 North Carolina Consolidated Annual Action Plan
A public hearing for the Draft 2008 North Carolina Consolidated Annual Action Plan ( NC Action Plan) and amendments to the 2007 NC Action Plan was held on Wednesday, October 10, 2007 at 2: 00 pm at the Methodist Building at 1307 Glenwood Avenue in Raleigh, North Carolina. The Action Plan serves as North Carolina’s annual application to the U. S. Department of Housing and Urban Development for housing- related projects from four partner agencies.
Vickie Miller, Assistant Director, Division of Community Assistance, opened the public hearing at 2: 07 pm. Seven people were in attendance.
Four Partner Agencies contributed to the 2008 NC Action Plan
Division of Community Assistance- CDBG
Housing Finance Agency- HOME
Office of Economic Opportunity- ESG
AIDS Care Unit- HOPWA
A total of $ 51.3 million in federal funds is to be spent on housing by the four agencies
The Plan for 2008 sports a new, streamlined format.
This is a one- year snapshot of the five- year Consolidated Plan; this is the third year of the 2006 – 2010 Consolidated Plan
The 2007 Action Plan is proposed to be amended as follows: In the CDBG Program Report, under Method of Distribution, “ Contingency grants may fund eligible projects ( remove “ submitted in any category” and add “ to meet community development needs that: 1) were not funded under a program category, or 2) for activities identified as high priority, subject to fund availability.”
ESG Program Report - Michael Leach, North Carolina Office of Economic Opportunity
Received $ 2,527,048 for FY 2007.
5% of the allocation, $ 126,352, will be used for the administration of the program and $ 2,400,696 will be made available for grantees.
Grantees may use ESG funding for operations ( communications, equipment, space cost, travel, supplies, etc.), services ( assistance in obtaining permanent housing, medical and psychological counseling, employment and nutritional counseling, substance abuse treatment, obtaining public benefits, etc.) and prevention ( short term subsidies to defray rent and utility arreages, security deposits, legal services, etc.)
CDBG Program Report - Valerie Woods - Division of Community Assistance &
Garrett Wyckoff - Commerce Finance Center
CDBG expects to receive approximately $ 45,000,000 in CDBG funds, of this amount, $ 27,700,000 will be made available for the following housing related programs: Community Revitalization, Scattered Site Housing, and Housing Development.
CDBG expects to spend the following amounts in these categories
Community Revitalization: $ 13,000,000
Small Business: $ 1,000,000
Scattered Site: $ 13,200,000
Infrastructure: $ 5,140,000
Housing Development: $ 1,500,000
Economic Development: $ 8,710,000
Urgent Needs/ Contingencies: $ 1,000,000
Projected Program Income: $ 300,000
Administration: $ 1,000,000
Technical Assistance: $ 450,000
Updates on CDBG programs
Community Revitalization – one year cycle
Small Business – New program in 2007; will make 2007 awards the end of October and 2008 awards in 2008.
Scattered Site- Local governments will indicate whether they will participate; two years to use funds; can also apply for additional $ 100,000 once initial funds have been used
Infrastructure- new water/ sewer lines or replacement due to health issues; up to $ 750,000 grants; $ 75,000 for Infrastructure Hook- Up.
Economic Development - ( Garrett Wyckoff) Funds will be used to continue the William S. Lee Quality Jobs and Business Expansion Act of 1996 for job creation and retention projects; additional funding available for projects in 21st Century Communities
Housing Development – Focus on two funding pools: homeownership and rental housing
Urgent Needs - help meet community development needs that have arisen in preceding 18 months; projects must meet 4- part test
Contingency – grants may fund projects related to drought conditions
Capacity Building- assists non- profits
NC Development Loan Fund – also called Section 108 Loan Guarantee; no loans have been granted; program is being evaluated
Technical Assistance Funds – for developing professional skills and capabilities of local community development grant administrators
HOME Program Report – Emily Askew, North Carolina Housing Finance Agency
We expect to receive $ 20 million dollars of HOME; we are unsure if we will receive funds from the American Dream Downpayment Initiative in 2008. Some versions of the federal budget have included ADDI and some have not.
NCHFA expects to use HOME for Home Owner Housing ($ 15,600,000) in these categories
New Homes Loan Pool - $ 1,900,000
Self- Help Loan Pool - $ 3,500,000
Single- Family Rehabilitation Program - $ 5,600,000 ( a rotating program that will serve 25 counties each year)
Rural Opportunity Mortgage Program - $ 4,600,000
NCHFA expects to use HOME for Rental Housing ($ 4,400,000) in these categories
Rental Production Program - $ 3,100,000
Supportive Housing Development Program - $ 1,300,000
The 400 Initiative, a special program created with funds from the General Assembly and operated through a partnership between NCHFA and DHHS, has launched. The Agency is currently creating over 400 units of housing affordable to persons on disability income.
During the FY 2006, the HOPWA program served approximately 3366 clients.
The HOPWA Program receives annual funding, which can be spent over a three- year period. Program funds were awarded through a continuation application process for the July 1, 2007 to June 30, 2008 contract period. The AIDS Care Unit awarded grants totaling $ 2,188,322 to local health departments, non- profit community based organizations, housing authorities, AIDS service organizations and other interested provider agencies for implementation of housing programs. Of the total amount allocated, $ 2,154,000 was North Carolina’s FY 2007 HOPWA allocation from HUD. The remaining amount allocated was carryover funds from FY 2005 and FY 2006.
Short- term Rent, Mortgage and Utility Assistance - $ 781,908
Operating Expenses - $ 393,024
Tenant- Based Rental Assistance - $ 424,523
Supportive Services - $ 193,453
Resource Identification - $ 132,618
Housing Identification - $ 80,559
Vickie Miller opened the hearing to public comments at 2: 22 pm. There were no public comments and the public comment portion was closed at 2: 23 pm.
Valerie Woods explained the public comment process.
Public comments will be accepted until 5 pm on November 2, 2007.
Comments can be provided via email, mail, or fax and should be addressed to Valerie Woods, DCA ( address was provided).
The public hearing was adjourned by Vickie Miller at 2: 24 pm.
Summary of Public Comments Received on 2008 NC Annual Action Plan
The Division of Community Assistance received two letters pertaining to the CDBG program from Mr. David Harris, President of RSM Harris Associates, Inc., during the public comment period. One letter, dated October 3, 2007, discussed the rate of drawdown of CDBG funds. Mr. Harris noted that while recent improvements in administration of funds at the Division have increased the rate of drawdown, another change should be considered. Mr. Harris suggested awarding Scattered Site Housing Funds and Concentrated Needs funds as soon as each program’s awards are approved, instead of waiting to announce both programs together, so that Scattered Site Housing projects could get underway earlier.
The second letter, also dated October 3, 2007, addressed the current policy on manufactured homes that limits the expenditure of CDBG funds for rehabilitation to $ 15,000. Mr. Harris discussed a project where a double- wide could not be rehabilitated under a Concentrated Needs grant because the costs exceeded the $ 15,000 limit ( a sizeable portion of the costs were to construct a permanent foundation – one that is required to meet CDBG standards). Mr. Harris suggested the following options to prevent this situation from occurring in the future:
Amend the $ 15,000 limit on manufactured houses by excluding the cost of a permanent foundation from the limit.
Amend the $ 15,000 limit by applying it to single- wide homes only. Double- wides could be included along with other housing types under the current substantial Rehabilitation Policy.
Establish a separate Substantial Rehabilitation Policy for manufactured housing, both single- wides and double- wides. This would require a lot of effort and input to develop a policy that would work statewide.
The Division has been and is continuing to explore and implement steps to improve the rate of drawdown of CDBG funds. The Division is currently working with their Field Office to improve the timely award of funds.
The Division is reviewing and will consider the CDBG policy on rehabilitation limits as they apply to all manufactured housing. The Division appreciates the options provided by the commenter and each option is being assessed to determine how best to address this and future manufactured housing rehabilitation projects. While limits are needed to prevent expenditures that may not be merited, it is not the intention of the Division to prevent viable projects from proceeding.
10. Applications & Certifications ( 24 CFR 91.325)
Each Agency hereby submits signed applications and certifications consistent with the certification requirements of HUD.
Description	Title North Carolina consolidated annual action plan Other Title Consolidated annual action plan Date 2007-11-15 Description 2008 Digital Characteristics-A 214 KB; 32 p. Digital Format application/pdf Pres Local File Path-M \Preservation_content\StatePubs\pubs_borndigital\images_master\ Full Text 2008 State of North Carolina
Outcome --> Availability/ AccessibilityAffordabilitySustainabilitySuitable Living EnvironmentDecent HousingCreating Economic OpportunitiesObjective -->
32 OCLC number 65404022 you wish to report: