North Carolina's consolidated plan

              2011-2015 CON PLAN FINAL 1
2011-2015 CON PLAN FINAL 2
The State of North Carolina Consolidated Plan
2011-2015
Table of Contents
Part I: Consolidated Plan Requirements
Executive Summary ………………………………………………………….……….2
Consolidated Plan Priority and Goals………………………………………………...5
Housing Market Analysis Summary………………………………………….……….6
Housing and Homeless Needs Assessment…………………………………….……..7
Strategic Plan ………………………………………………………………….……...9
Homelessness ……………………………………………………………….……….13
Other Special Needs…………………………………………………………………14
Non-Housing Community Development Plan ………………………..……………..18
Community Revitalization ……………………………………………………��…..23
Barriers to Affordable Housing……………………………………���……………...24
Lead Based Paint…………………………………………………………….……....27
Anti-Poverty Strategy………………………………………………………………..29
Institutional Structure………………………………………………………………..31
Coordination………………………………………………………………………....32
Low Income Housing Tax Credit…………………………………………………....33
Monitoring……………………………………………………………………………34
Part II Agency Plans
North Carolina Division of Community Assistance ��………………………………36
North Carolina Housing Finance Agency………………………………………….....46
North Carolina Office of Economic Opportunity-Emergency Shelter Grant…….…..51
North Carolina Aids Care Unit- Housing Opportunities for Persons with AIDS…....52
Part II Appendices
Housing Market Analysis Full Study…………………………………………………..55
Housing and Homeless Needs Assessment Full Study………………………………...77
Public Comment……………………………………………………………………….112
2011-2015 CON PLAN FINAL 3
PART I
Executive Summary
The North Carolina Consolidated Plan 2011-2015 was developed in accordance with the Consolidated Plan regulations set forth in 24 CFR Part 91 and with the requirements set forth by the Department of Housing and Urban Development. The Consolidated Plan serves two purposes. First, it is the planning document that guides the North Carolina Consolidated Plan partners in addressing housing and community development needs across the state of for the next five years, using the allocated funds received from the U.S Department of Housing and Urban Development. Secondly, this plan serves as a tool to inform a variety of stakeholders—including the United States Department of Housing and Urban Development (HUD), state and local officials, non-profit and advocacy organizations, and the residents of North Carolina- of the need for improving the living conditions for our state’s very low, low, and moderate income populations.
State Objectives: The state realizes it cannot meet all of the housing need, but it can strategically invest its limited resources to alleviate important housing problems for North Carolina’s households.
The state has three (3) basic goals:
1.To provide decent and affordable housing
2.To provide a suitable living environment
3.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
Who are the Consolidated Plan Partners
The Consolidated Plan partners manage and administer four funding sources for which HUD requires this plan. The North Carolina Department of Commerce, Division of Community Assistance manages the Community Development Block Grants (-CDBG). The North Carolina Housing Finance Agency (-NCHFA) manages the HOME program. The Housing Opportunities for Person with Aids ( -HOPWA) manage HOPWA funds. The Emergency Shelter Grant (-ESG) manages Emergency Shelter Funds. Both HOPWA and ESG are managed by the North Carolina Department of Health and Human Services. All programs are required to follow federal regulations and the state of North Carolina Administrative Code. The state of North Carolina Administrative Code has established program guidelines in which each program will operate each federal funded program.
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Understanding the Consolidated Plan
The Consolidated Plan is required to have the following components according to federal regulations established in 24 CRF Part 91, Consolidated Plan Final Rule.
 Housing Market Analysis and Needs Assessment
 Strategic Plan
 Discuss the required regulatory components as required by 24 CFR Part 91
 Analysis to Impediments to Fair Housing Choice Study
 Annual Action Plan
Consolidated Plan Regulatory Requirements
The regulatory requirements of the Consolidated Plan are established and set forth by 24 CFR Part 91. The United States Department of Housing and Urban Development has established a prescribed method in which the Consolidated Plan must be developed. The Consolidated Plan partners address the requirements of lead-based paint abatement, use of low income housing tax credits, community development, and collaboration among partners and with outside organizations.
Analysis to Impediments to Fair Housing Choice
The federal regulations also require that an Analysis to Impediments to Fair Housing Choice Study be conducted during the development of the Consolidated Plan. The Analysis to Impediments to Fair Housing Choice Study identifies impediments to fair housing choice and establishes goals to address those various identified impediments. The Analysis to Impediments, also known as an AI was developed as a part of the development of the Consolidated Plan in accordance with federal regulations 24 CFR Part 91. The AI is attached to this document within the appendix and is also discussed in the plan.
Annual Action Plan
With the submission of the Consolidated Plan, an annual action plan is also submitted. The Annual Action Plan details how the Consolidated Plan partners will implement various programs and objectives over a programmatic year. When reviewing the Annual Action plan, keep in mind that for some partners, the programmatic years vary and do not begin and or end during the same time period. Each year, the Consolidated Plan partners will submit to the United States Department of Housing and Urban Development accomplishments for activities stated in the Annual Action Plan with the submission of a report called a Consolidated Annual Performance Report (CAPER); this document is submitted yearly on March 31.
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Consultation
To gain input on the proposed programs and use of funding over the next five years, the Consolidated Plan partners followed the adopted Citizen Participation Plan. The Citizen Participation Plan (CCP) describes how the Consolidated Plan partners will inform the public of the development of the Consolidated Plan and gain input on the Consolidated Plan. As required per the Citizen Participation Plan, partners inform the public, gain input, and implement changes to programs as needed to best serve North Carolinians based upon that public input. Consultation is further discussed in the appendix of this document.
Understanding the Housing Market Analysis and Needs Assessment
The Department of Housing and Urban Development has a prescribed method in which the consolidated plan must be developed. The Housing Market Analysis and the Housing Needs Assessment detail the housing and community development needs of the low to moderate income residents statewide. Based upon the findings of the housing market analysis and the housing needs assessment, the strategic plan is developed. The Strategic Plan outlines the general goals, objectives, and activities that the Consolidated Plan partners will undertake and strive for over the next five years to meet the needs of North Carolina’s very low, low and moderate income citizens. The Strategic Plan is designed to be general. Each agency’s funding sources cannot fund all activities because of the different funding requirements for each source. However, collectively, the consolidated plan partners work together to address the priorities, goals and objectives outlined in the Strategic Plan.
Consolidated Plan Priorities and Goals
The estimates of housing need in this Consolidated Plan are based on data from the 2007 American Community Survey, from the U.S. Census Bureau. This was the most recent data available for the state of North Carolina at the time the Housing Market Analysis and Needs Assessment were drafted. However, because it is 2007 data and not based on the decennial census, we were not able to use the data custom-tabulated for HUD in the format known as ―CHAS Data Book‖. The CHAS data had not been updated since 2000 at the time the consolidated plan partners drafted the housing market analysis and housing and homeless needs assessment. Additionally, because North Carolina has been undergoing significant demographic shifts and in light of the current housing market conditions, we did not believe the needs identified in the CHAS data book in 2000 adequately reflected the nature and extent of North Carolina’s general housing needs for 2011-2015, the five year period of this Consolidated Plan.
The Housing and Homeless Needs Assessment also includes data on homeless and other special needs populations. NCHFA collaborated with other agencies because of their expertise in these areas, specifically with the Department of Health and Human Services (DHHS), the Office of Economic Opportunity (OEO), and the North Carolina Council to End Homelessness (NCCEH). Text and data explaining the needs of persons with HIV/AIDS and their families was provided by the AIDS Care Unit in the Division of Public Health and NCCEH. 2011-2015 CON PLAN FINAL 6
Housing Market Analysis
The Housing Market Analysis is divided into four sections which closely adhere to the Consolidated Plan Regulation that can be found at 24 CFR 91.310, ―Housing Market Analysis‖. The state has endeavored to provide accurate and sufficient data to respond to each subsection.
Below are some of the findings from the Housing Market Analysis.
North Carolina is a growing and changing state. As of 2007, the state population was approximately 9 million; a 16% increase from the 2000 census. Additionally, North Carolina experienced significant growth in its population aged sixty-five years and older. North Carolina is facing a growing poverty rate. Approximately 12.2% of the population was living below the poverty level in 2000; whereas in 2007, 14.3% of the population was living below the poverty level. In addition to general population changes, the foreclosure crisis is another significant change and challenge. Data from the North Carolina Administrative Office of the Courts show that between January 2005 and August 2008, there had been approximately 175,000 foreclosures starts in North Carolina, which was 8.1% of owner-occupied housing units (2000 estimates).
Supply and Demand
North Carolina had approximately 2.4 million owner-occupied units and about 1.1 million renter-occupied units in 2007. This compares to 2.1 million owner-occupied units and almost 1 million renter-occupied units in 2000. North Carolina experienced a very slight decrease in total homeownership from 2000 to 2007. In 2007, 75.8% of White households were homeowners, 49.8% of Black households were homeowners, 35.8% of Hispanic households were homeowners, and 62.1% of Asian households were homeowners.1 The number of loan applications for home purchase increased in every MSA in North Carolina since 2003.2 Existing home sales increased significantly between 2000 and 2007 by almost 82%; however, existing home sales decreased 8% from 2005 to 2007.3
Condition and Cost
In North Carolina, 1.5 million housing units were built between 1990 and 2008, which is 38% of the total housing units in North Carolina, and 33% of the state’s housing stock was built between 1970 and 1990. Less than 30% of the state’s housing stock was built prior to 1960. This data reveals that North Carolina has a relatively newer housing stock; however lead paint could be a
1 American Community Survey 2007 Tables B25003A, B, D, I.
2 Home Mortgage Disclosure Act. Aggregate Report. FFIEC. http://www.ffiec.gov/hmda/
3 NC Association of Realtors based on 20 reporting areas in North Carolina. Data from 2001-2004 is not shown because existing home sales steadily increased over those years. The 2000 data is a baseline to show the size of the increase, until the decline began in 2005. 2011-2015 CON PLAN FINAL 7
health issue for the units built prior to 1978.4 The median house value for 2007 was $145,700 which was a 52% increase from 2000 to 2007.5 Fair Market Rent (FMR) has increased 23% since 2000. A housing unit is considered affordable if the household pays no more than 30% of their income for housing. In 2007, over 40% of renter households that were housing burdened.6
Homeless and Special Needs Facilities
The North Carolina Coalition to End Homelessness compiled a state-wide count of emergency shelters, transitional facilities, and permanent supportive housing. The approximate total count of all three types of facilities is 585. Sixty-two counties have some type of homeless facility and many have multiple types including emergency shelters, transitional and permanent housing. Thirty-eight, mostly rural counties, do not have any type of homeless facility. As of January 2009 North Carolina had 3,925 emergency shelter beds, 4,480 transitional housing beds, and approximately 2300 permanent housing beds for the homeless.
North Carolina has a growing elderly population and a significant population with special needs. In 2007, 15% of the adult population aged 21-64 reported some kind of disability.7 These rates suggest a need for supportive housing for persons with disabilities and older adults. As of December 31, 2009, the estimated number of living HIV disease cases diagnosed and reported in NC was 24,248. For 2009, 1710 new diagnoses of HIV disease were reported and 957 new diagnoses of AIDS.8 North Carolina continues to have a need for health services related to HIV and AIDS.
In North Carolina, many advancements have been made to improve the living conditions of its citizens. However, from the preceding Analysis, it can be seen that there are issues with supply, demand, cost, and condition of available housing units in the state as well as insufficient homeless facilities and additional barriers to affordable housing.
Housing and Homeless Needs Assessment
The Housing and Homeless Needs Assessment is divided into five sections. These sections closely adhere to the Consolidated Plan Regulation that can be found at 24 CFR 91.305, ―Housing and Homeless Needs Assessment‖. Each subsection is labeled and states the applicable portion of the regulation. The state has endeavored to provide accurate and sufficient data to respond to each subsection.
4Table H34 US Census 2000 and Housing 1 Year Estimates American Community Survey 2007
5 Housing 1 Year Estimates American Community Survey 2007.
6 Ibid.
7 American Community Survey 2007; US Census 2000; Kaiser State Health Facts 2007 http://www.statehealthfacts.org/profileind.jsp?cat=11&rgn=35
8 North Carolina 2009 HIV/STD Surveillance Report Communicable Disease Branch August 2010 2011-2015 CON PLAN FINAL 8
Overview Highlights
Complete references including source and year for the summary statistics below can be found in the complete Housing Needs Assessment.
Household and Income Statistics
 54% of North Carolina’s households earn $50,000 or less, and according to HUD for FY2008 the 80% AMI for a family of four was $44,000;
 18% of the 3.5 million NC households pay between 30% and 49% of their income for housing, and 13% pay 50% or more of their income for housing costs;
 Over 70,000 households live in overcrowded conditions, with 14% of the Hispanic population overcrowded;
Housing Stock Statistics
 72% of North Carolina’s housing stock is less than forty years old;
 Only .6% of the 112,000 children tested for lead poisoning in 2007 had lead levels at the dangerous amount of lead in their blood;
Homeless Statistics
 The January 2009 Point-In-Time (PIT) homeless count revealed 12,746 unduplicated homeless individuals in 63 counties;
 The total unmet need for homeless shelter beds is 4,332;
 30% to 40% of homeless persons are known to have mental illness, and an even higher percentage suffer from addiction disorders;
Special Population Statistics
 The total reported need for permanent supportive housing beds is 2,894;
 It is estimated that an additional 784 permanent housing units for persons with HIV/AIDS and their families will be needed by 2020;
Renter Household Statistics
 37% of all renter households earn less than $20,000;
 Renter households are more cost burdened than owner households;
Home Owner Household Statistics
 White and Asian households have the highest homeownership rates and Hispanic households have the lowest homeownership rates.
 The largest group of owner households is two-person households;
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In North Carolina, much advancement has been made to improve the living conditions of its citizens. However, from the preceding Assessment, it can be seen that the continuing housing need far outweighs the resources available.
Strategic Plan
The strategic plan outlines major strategies to be used by the consolidated plan partners to target the identified priority need groups identified over the next five years. The Strategic Plan is developed using the Housing and Market Analysis and Needs Assessment to create goals and objectives as well as strategies to achieve those goals. Based on the severity of need, the Consolidated Plan Partners assigned priorities to populations differentiated by income, tenure, and homeless/special need status. Priorities are addressed as High, Medium and Low Priorities.
High Priority
 Homeless Families and Individuals
 Non-homeless Persons with Special Needs*
 Households between 31-60% AMI
High Priority Prevent Homelessness
Strategy
Objective
Anticipated Funding
Anticipated Households/Individuals
Prevent homelessness in North Carolina
Provide up to $250,000 in ESG funds for financial assistance to approximately 5,000 households over the next five years to pay late rent, mortgage, first month’s rent, security deposits, utility deposits and or arrearages to secure permanent housing or prevent eviction from permanent housing
$250,000
5,000
Provide Emergency financial assistance in the form of short term rent and utility payments for 2,000 persons living with HIV/AIDS and their families over the next five years with HOPWA funds
$5,000,000
2,000
Increase the number of supportive housing units for homeless populations in North Carolina through the North Carolina Housing Finance Agency's Supportive Housing Development Program from 2011-2015.
$2,201,721
72
Provide supportive services to homeless individuals and families to help them transition to housing stability
$800,000 of the state’s ESG allocation over the next five years, subsidize the provision of one or more needed services to approximately 30,000 homeless individuals and families served by ESG funded homeless facilities. These needed services will assist homeless individuals and families in their transition from homelessness to stability
$800,000
30,000
Providing Operating support to homeless providers in NC
$10,000,000 over the next five years to assist 110 organizations across the state with operating cost for homeless shelters. These funds will provide shelter to over 14,000 homeless single adults and 30,000 members of homeless families each of the next five years.
$10,000,000
220,000 Total $18,251,721 257,072 High Priority Non-homeless Persons with Special Needs
Increase the supply of decent, affordable supportive housing for special needs populations in North Carolina.
Increase the number of supportive housing units for non homeless populations with special needs in North Carolina through the North
$5,137,150
170
2011-2015, an estimated $2 million of HOPWA will be used for operating expenses for dedicated housing facilities.
$2,000,000
750 2011-2015 CON PLAN FINAL 10
Preserve the affordable owner occupied housing stock owned by persons with disabilities
Rehabilitate homes owned by elderly and/or disabled persons through the North Carolina Housing Finance Agency's Single Family Rehabilitation Program from 2011
$29,356,286
704
Rehabilitate homes using CBDG funds in conjunction with funds from the North Carolina Vocational Rehabilitation Program. From 2012-2014.
$1,500,000
600
Provide Rental Assistance for HOPWA eligible clients
Provide emergency financial assistance in the form of short-term rent, mortgage and utility payments to approximately
$5,000,000
2,000
Provide supportive services for HOPWA eligible clients
Allocate HOPWA funds to link supportive services with operating expenses in a dedicated
$3,000,000
650 Total $45,993,436 4,874 High Priority Households with Persons 0-30% AMI
Increase the supply of new rental units affordable to high priority populations.
Finance the development of rental units affordable to high-priority households between 2011 and 2015 through the North Carolina Housing Finance Agency’s
$3,230,015
242
Provide gap financing with CDBG funds in conjunction with NCHFA tax credit projects.
3,000,000
500
Preserve the rental housing stock affordable to high priority populations.
Finance rehabilitation of rental units for high-priority households from 2011-2015 through the North Carolina Housing Finance Agency's Rental Production
$807,506
61
Total $7,037,521 803 Total Allocation for High Priority Need $71,282,678
Medium Priority
 Households between 31-60% AMI
Medium Priority Households between 31-60% AMI
Strategy
Objective
Anticipated Funding
Anticipated Households/Individuals
Preserve affordable owner occupied housing
Provide CDBG funds to assist with rehabilitation , emergency repairs and replacement housing for households between 31-60% AMI through the CDBG Scattered Site Housing program and programs available under the NC Catalyst program.
65,000,000
2,000
Provide down payment assistance to persons who are 31-60% AMI
Provide IDA funding with CDBG funds to assist persons who are 31-60% AMI achieve homeownership .
1,000,000
1,000
Increase the supply of new rental units affordable to medium priority households.
Finance the development of rental units affordable to medium priority households between 2011 and 2015 through the North Carolina Housing Finance Agency’s Rental Production Program.
$9,690,047
726
Provide safe water and sanitation needs
Provide funds from CDBG to provide infrastructure and infrastructure hook up grants to assist persons who are 31-60% AMI
$40,000,000*
10,000
Preserve existing rental housing affordable to medium priority households.
Finance rehabilitation of rental units for medium priority households from 2011-2015 through the North Carolina Housing Finance Agency's Rental Production
$2,422,511
182
Enable renter households to become homeowners.
Work with local governments and nonprofits to assist rental households in purchasing their first home and achieving increased financial literacy through NCHFA's Individual Development Account Loan Pool Program.
$1,834,768
94
Total Allocation for Medium Priority Need 119,947,326 14,002 2011-2015 CON PLAN FINAL 11
Low Priority
 Households between 61-80% AMI
Low Priority Households between 31-60% AMI
Strategy
Objective
Anticipated Funding
Anticipated Households/Individuals
Increase the supply of new rental units affordable to low priority households.
Finance the development of rental units affordable to low priority households between 2011 and 2015 through the North Carolina Housing Finance Agency’s Rental Production Program.
$3,230,015
242
Preserve existing rental housing affordable to medium priority households.
Finance rehabilitation of rental units for low priority households from 2011-2015 through the North Carolina Housing Finance Agency's Rental Production Program.
$807,506
61
Enable renter households to become homeowners.
Work with local governments and nonprofits to assist rental households in purchasing their first home and achieving increased financial literacy through NCHFA's Individual Development Account Loan Pool Program.
$1,034,768
94
NCHFA will enable renter households to buy homes through its New Homes Loan Pool and its Self Help Loan Pool.
$12,843,375
523
Assist households in purchasing their first home through downpayment assistance through NCHFA's Statewide Down Payment Assistance Program.
$917,384
113 Total Allocation for Low Priority Need $18,883,048 1,033
( Note: * Disabled, elderly, households with a member under 6 where a lead threats exist, migrant farmworkers, ex-offenders)
The NCHFA portion of the priorities chart only includes the federal HOME funding. To conduct housing-related activities, NCHFA uses nonfederal as well as federal funds. The nonfederal sources offer the NCFHA even more opportunities and flexibility to serve all priority categories. The available funding sources include the North Carolina Housing Trust Fund; state appropriated HOME Match, Hardest Hit Funds, the Low-Income Housing Tax Credit Program, and bond financing.
Also, while the NCHFA, ESG, CDBG, and HOPWA intends to use HUD funds in the programs above it is possible that funding could be used for other programs depending on how other funding sources change. Some of the activities may not be directly related to housing, but will indirectly serve households for some activities that are listed above.
Affordable Housing
Affordable housing continues to be an objective that the Consolidated Plan partners will address over the next five years. Partnering agencies will work where applicable to provide and sustain decent, safe and affordable housing to citizens in North Carolina by priority need categories.
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Public Housing
The state of North Carolina currently has 99 public housing authorities located in the state. As there is a need for affordable housing, there is also a need for more public housing units. The physical conditions of units are inspected by public housing authorities and by the Department of Housing and Urban Development.
The public housing authorities (PHA) are components in the statewide system for the delivery of affordable housing. Local housing authorities are established through the auspices of local government, subject to state enabling legislation. The state specifically has direct oversight over local PHAs, however we may partner with these entities through a grantee or project sponsor relationship to complete local projects or activities.
The state of North Carolina does not have any ―state managed‖ public housing authorities. Public Housing Authorities in North Carolina report directly to the United States Department of Housing and Urban Development. Many public housing authorities may receive various funding from the Consolidated Plan partners through affiliated non-profits established by the authorities. Certain funding sources require that PHAs seek a certificate of consistency with the state’s Consolidated Plan when there is no local consolidated plan available in which the public housing authority and or non-profit agency is located.
The Consolidated Plan partners have developed a policy for review to ensure that agencies’ activities are consistent with the Consolidated Plan. The consolidated plan partners review the entity’s request to ensure that the agency is not located on the state’s of North Carolina Do Not Fund list and also ensure that the agency is in compliance with all requirements for programs in which they are funded by state agencies. The Consolidated Plan partners does certify local plan’s or project’s consistency with the state program’s Consolidated Plan for PHAs with a troubled or standard performing assessment issued by HUD.
Many public housing authorities receive local community development block grant funds Emergency Shelter Grant funds and Housing Opportunities for Persons with Aids funding if eligible in entitlement communities.. In addition, many non-profit organizations affiliated with public housing authorities across the state have received funding to develop low income housing tax credit projects through NCHFA.
In addition, the Consolidated Plan partners work with public housing authorities to provide technical assistance as well as include public housing authorities and affiliates in funding strategies to develop more affordable housing options for public housing residents, from homeownership to supportive housing.
The state also recognizes that there is a continuing need for voucher assisted programs through public housing authorities. The Conventional Public Housing Program (CPH) and the Section 8 Housing Choice Voucher Program (HCV) currently assist more than 100,000 North Carolina families who are otherwise priced out of the housing market.
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State agencies and the Consolidated Plan partners recognize that long wait list for voucher assisted programs is an on-going issue. To address this issue, the Consolidated Plan partners will continue to work with public housing authorities to develop more affordable housing options for person eligible for public housing to help alleviate the long waiting list.. In addition to the Section 8 waiting list, in the state of North Carolina there are also Indian Housing Authorities that manage Section 8 programs. Many of the Indian Housing Authorities struggle to operate with limited funding and also other regulatory requirements that prevent residents to port out of Section 8 to other programs without severe programmatic impacts.
For public housing authorities that are listed as ―troubled‖ by HUD under part 902 of this title, the state will prescribe that the troubled agency continue to work the with the Department of Housing and Urban Development to have this status removed and also work with local entitlements to gain any technical assistance where applicable.
The Consolidated Plan partners will continue to offer training to troubled housing authorities when available. Since the state of North Carolina does not have any state managed housing authorities, the removal of the ―troubled‖ status is issued by U.S Department of Housing and Urban Development and the state does not have any authority to remove that status. When needed, housing authorities listed as ―troubled‖ are encouraged to work with Consolidated Plan partners as well as other state agencies to gain the necessary training to work to remove that status.
The state of North Carolina has no jurisdiction over public housing authorities. However, the Consolidated Plan partners will continue to advocate to the United States Department of Housing and Urban Development to address the funding restrictions and regulatory barriers that impact public housing authorities throughout North Carolina.
Over the next five years, the Consolidated Plan partners will continue to work with public housing authorities to provide technical assistance on developing more comprehensive affordable housing options and also to help build capacity to ensure that public housing residents are given opportunities for homeownership
Homelessness
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 2011-2015 CON PLAN FINAL 14
persons with disabilities, and HOPWA provides tenant based rental assistance, short-term mortgage assistance and utility assistance, housing information, supportive services and resource identification to persons with HIV/AIDS.
More than 47,199 people, including persons in families, were homeless in North Carolina during FY 2009-10 according to the Department of Health and Human Services, Office of Economic Opportunity. Many people are homeless due to mental illness, substance abuse, unemployment, underemployment, disability or chronic illness. The homeless population also includes ex-offenders as well as victims of domestic violence.
Homeless individuals and families often have significant barriers accessing mainstream housing and supportive services. To that end, homeless prevention, operating assistance, and supportive services are activities that are needed throughout all areas of North Carolina. In addition, state funded activities to support emergency shelter rehabilitation, development of transitional and permanent supportive housing, and construction of new shelters are also needed throughout the state.
Other Special needs
Section 91.305(d): “(1) The state shall estimate, to the extent practicable, the number of persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities (physical, developmental, mental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, and any other categories the state may specify, and describe their supportive housing needs.(2) With respect to a state seeking assistance under the HOPWA program, the plan must identify the size and characteristic s of the population with HIV/AIDS and their families within the area it will serve.”
The other special needs section is a summary of highlights from the Housing Market Analsys and Housing Needs Assessment regarding persons with special needs.
North Carolina has a significant population in need of access to supports and services to live independently in the community. North Carolina has a growing elderly population and a significant population with special needs. In 2007, 15% of the adult population aged 21-64 reported some kind of disability.9 This is slightly higher than the national rate of 13%.10 These rates suggest a need for supportive housing for persons with disabilities and the elderly.
Elderly
The North Carolina Division of Aging and Adult Services (DAAS) mission is to promote independence and enhance the dignity of North Carolina's older adults, persons with disabilities, and their families through a community-based system of opportunities, services, benefits, and
9 American Community Survey 2007; US Census 2000; Kaiser State Health Facts 2007 http://www.statehealthfacts.org/profileind.jsp?cat=11&rgn=35
10 Ibid. 2011-2015 CON PLAN FINAL 15
protections; to ready younger generations to enjoy their later years; and to help society and government plan and prepare for the changing demographics.11
DAAS provides funding for home improvements, including security enhancements, minor home repairs, mobility and accessibility improvements affecting the home or areas adjacent to the home. In 2007, this service provided 1,592 seniors, 60 and older, an opportunity to remain in their home under safer and healthier circumstances, reducing the need for more expensive health care solutions. 819 persons were listed as waiting for services. DAAS administers programs that serve the elderly and helps connect them to needed services like Adult Day Care and Ombudsman programs, and many programs are administered through Area Agencies on Aging (AAA). AAA offices were established through the Older Americans Act and serve to facilitate and support the development of programs to address the needs of older adults in a defined geographic region. In North Carolina, AAAs are located within regional Councils of Government. These AAAs have functions in five basic areas: (1) advocacy; (2) planning; (3) program and resource development; (4) information brokerage; and (5) funds administration and quality assurance.12 The three Area Agencies on Aging in 19 counties have HUD certified counselors on staff and provide HECM counseling. In 2007, approximately 75 people received counseling services and this year requests for services have increased.
Persons with Mental Illness, Developmental Disabilities, and Substance Use Issues
The North Carolina Division of Mental Health, Development Disabilities, and Substance Abuse Services provides a large number of health services to consumers in need. For persons with mental illness, treatment, recovery, and support options are available at the community level as well as through state facilities.13 Persons with mental illness are linked with services in their community level through their Local Management Entities (LMEs) and LMEs serve the entire state of North Carolina. LMEs are agencies of local government-area authorities or county programs that are responsible for managing, coordinating, facilitating and monitoring the provision of mental health, developmental disabilities and substance abuse services in the catchment area served. LME’s responsibilities include offering consumers daily access to services, developing and overseeing providers, and handling consumer complaints and grievances.14 The Division provides technical assistance to the 28 sate funded LMEs Housing Specialists and coordinates statewide meetings of the LMEs HS. DMH/DD/SAS maintains collaborative relationships for the purpose of developing housing resources and residential options with linkage to community based supportive services.
In addition, the Division contracts with North Carolina Oxford House (NCOH) to provide services to consumers recovering from substance use disorder in a low-cost, peer supportive living environment. 8 Oxford Houses were opened in FY2007-2008, bringing the current total number of NCOH to 120 and a total of884 beds. 92 Oxford Houses for men that provide 679
11 NC Division of Aging and Adult Services website. Retrieved on 12/9/2008. http://www.ncdhhs.gov/aging/
12 NC Division of Aging and Adult Services website. Retrieved on 12/9/2008. http://www.ncdhhs.gov/aging/
13 NC Division of Mental Health, Development Disabilities, and Substance Abuse Services. http://www.ncdhhs.gov/mhddsas/statspublications/reports/annualreport07.pdf
14NC Division of Mental Health, Development Disabilities, and Substance Abuse Services. http://www.ncdhhs.gov/mhddsas/lmedirectory.htm#lmelist 2011-2015 CON PLAN FINAL 16
beds; 26 Oxford Houses for women that provide an additional 188 beds, and 2 Oxford Houses for women & children that provides 17 beds.
Persons with mental illness may also be eligible for Medicaid which provides financial support for mental health care services.15 For persons with substance use issues, the Division offers ―services and supports to prevent, treat, reduce, or eliminate substance abuse issues.‖16
For persons with intellectual and other developmental disabilities, crisis services, day treatment, employment services, and personal assistance services may be available. North Carolina has two Home and Community Based Medicaid waivers - the Community Alternatives Program for Individuals with Mental Retardation/Development Disabilities that provides consumers with even more options and enhances their ability to live in the community of their choice.17
However, there is a significant waiting list for the program and it does not cover housing costs. Currently, North Carolina demonstrates an overreliance on institutional services for people with intellectual and developmental disabilities. Other states have fostered the provision of services in living arrangements that are owned or rented by people with intellectual and developmental disabilities rather than in facilities or sites that are controlled by provider agencies. Nationally 27% of those receiving [Medicaid-funded] residential services own or lease their own home, compared to 16% in North Carolina.18
As the state moves forward in its deinstitutionalization efforts, even more affordable accessible housing will be needed. People with intellectual and developmental disabilities and their families continue to be interested in exploring creative community housing options such as participating in the Homeownership Voucher Program and shared living. For these options to be viable, Public Housing Authorities, state regulators and Federal administrators have to demonstrate their support.
Persons with Physical Disabilities
The North Carolina Division of Vocational Rehabilitation Services offers ―counseling, training, education, medical, transportation, and other support services‖ to persons with physical and/or mental disabilities to enable them to live more independently.19 The Division of Vocational Rehabilitation mostly provides employment services and/or Independent Living Services which provides consumers with an alternative to institutionalization as well as greater support services.20 In 2007, 5,164 consumers were served by the Division of VR through its home modification program, 2,476 consumers received services; 2,066 independent living plans of
15 NC Division of Medical Assistance
http://www.ncdhhs.gov/dma/medicaid/index.htm
16 NC Division of Mental Health, Development Disabilities, and Substance Abuse Services. http://www.ncdhhs.gov/mhddsas/statspublications/reports/annualreport07.pdf
17 NC Division of Mental Health, Development Disabilities, and Substance Abuse Services. http://www.ncdhhs.gov/mhddsas/statspublications/reports/annualreport07.pdf
18 NC Council on Developmental Disabilities.
http://nccdd.org/publications/Where-Does-North-Carolina-Stand-Report.doc
19 NC Division of Vocational Rehabilitation
http://dvr.dhhs.state.nc.us/DVR/highlights.htm
20 NC Division of Vocational Rehabilitation
http://dvr.dhhs.state.nc.us/DVR/faqs/ilfaqs.htm 2011-2015 CON PLAN FINAL 17
services completed; 388 individuals transitioned out of nursing homes or able to avoid going into a nursing home; 366 individuals received personal assistance services to assist in being able to remain in their homes. There are 15 offices statewide.
In addition, the Division of VR manages Displacement Prevention Demonstration Program (DPD) in partnership with NCHFA to assist low and very low income homeowners for the sole purpose of performing accessibility modifications to prevent the imminent displacement of a household member with mobility limitations. Since 2002, over 500 households have been served.
Persons with HIV/AIDS
The North Carolina Division of Public Health, AIDS Care Unit reports that housing and healthcare are the primary needs for all people living with HIV/AIDS in North Carolina. If a person does not have a home in which to live, taking medications and living with HIV/AIDS is nearly impossible. Many medications require refrigeration and/or must be taken regularly and with food. It is vital that the message ―housing is healthcare‖ is spread throughout the state of North Carolina when discussing HIV/AIDS housing and the HOPWA program.
An estimated 23,356 people were living with HIV or AIDS in North Carolina (including individuals who may have been unaware of their infection) as of December 31, 2008. Over recent years, North Carolina has averaged over 1,900 new reports annually. According to National AIDS Housing Coalition up to 60% of all persons living with HIV/AIDS report a lifetime experience of homelessness or housing instability. During our state fiscal year July 1, 2008 through June 30, 2009 our HOPWA program assisted 1,717 households and served a total of 2,385 persons with HIV/AIDS and their families.
Most persons with HIV/AIDS are living on Supplemental Security Income (SSI) or receive public assistance while awaiting determination of SSI eligibility. Many of our population require support services such as substance abuse and mental health treatment, transportation and case management. Through supportive housing programs they are able to maintain their health and quality of life.
As mandated by HUD, the percentage of HOPWA clients in permanent housing who maintain housing stability will be 90% by 2012 and will increase by 1% each subsequent year along with the fact that improved drug therapies have reduced the number of AIDS deaths thereby persons living with HIV/AIDS are living longer resulting in the need for more stable and affordable housing in North Carolina. During the state fiscal year July 1, 2008 through June 30, 2009 we had an increase of 74 permanent housing units.
North Carolina Housing Finance Agency
NCHFA has a Supportive Housing Development Program (SHDP) that helps fund the development of emergency, transitional, and permanent housing for persons who are homeless and/or special needs, including disabilities. Nonprofit organizations, local governments, and lead regional organizations are eligible to apply for these funds. Projects must include or make supportive services available. ―Eligible populations are homeless or non-homeless households 2011-2015 CON PLAN FINAL 18
that require supportive services, including persons with mental, physical, or developmental disabilities; persons with substance use disorders; persons diagnosed with AIDS and related diseases; and special populations on a case-by-case basis.‖21
The NCHFA and North Carolina Department of Health and Human Services (DHHS) have partnered to provide operating assistance and coordinate services to very low-income persons with disabilities, including the homeless, living in targeted rental units. The NCHFA and DHHS created a program to set aside 10% percent of the total number of Housing Credit apartments to serve the above groups, which are called targeted units. The 10% targeted units qualify for operating assistance (Key) which is provided by the NCHFA under agreement with DHHS, and the resident pays 30% of their gross income for rent and utilities. The supportive services are coordinated through DHHS and provided locally.
Non-Housing Community Development Plan
As required for the Consolidated Plan as outline in 24 CFR 570.2 and 24 CFR part 570, the consolidated plan requires a community development strategy to be identified in the Consolidated Plan. The community development strategy identifies non-housing needs for the state with specific long term and short term community development objectives in accordance with CDBG eligible activities. The community development strategy has been developed in accordance with the primary objectives of Title I of the Housing and Community Development Act of 1974, as amended.
Although the non-housing community development plan has a focus on CBDG eligible activities, in partnership with consolidated plan partners, CDBG will leverage other HUD funds from other agencies to achieve the goals.
In order to better connect housing to jobs, the Consolidated Plan partners as a group and as individual agencies will work to coordinate federal housing and transportation investments with local land use decisions in order to reduce transportation costs for families, improve housing affordability, save energy, and increase access to housing and employment opportunities. By ensuring that housing is located near job centers and affordable, accessible transportation, we will nurture healthier, more inclusive communities – which provide opportunities for people of all ages, incomes, races, and ethnicities to live, work, and learn together.
In order to foster and encourage local innovation, we will create an unprecedented partnership across the consolidated plan partner agencies and other state agencies to provide resources and tools to help communities realize their own visions for building more livable, walkable, environmentally sustainable regions.
The Department of Housing and Urban Development in 2010 adopted six livability principles that will act as a foundation for interagency coordination. These principles are:
1. Provide more transportation choices.
21 North Carolina Housing Finance Agency Supportive Housing Development Program. http://www.nchfa.com/Nonprofits/SHDsupportivehousing.aspx 2011-2015 CON PLAN FINAL 19
2. Promote equitable, affordable housing.
3. Enhance economic competitiveness
4. Support existing communities
5. Coordinate and leverage investments
6. Value Community Neighborhoods
The Consolidated Plan partners will adopt these same principles in their programs were feasible with programmatic funding and with federal regulations through the following key objectives below:
1. Sustainable Development
2. Promoting Energy Efficiency and Green Building
3. Integrating the Six Livability Principles into Consolidated Plan Partner Programs
4. Comprehensive Approaches for Community Development to leverage resources and investments.
Sustainable Development
Programs will be developed and piloted by the North Carolina Division of Community Assistance within 2011-2015 that incorporates taking a comprehensive approach to planning to create more sustainable communities throughout North Carolina using CDBG funds.
Promoting Energy Efficiency and Green Building
The Consolidated Plan Partners will continue to encourage as well incorporate into various individual agency programs energy efficiency and green building. North Carolina’s Small Cities CBDG program will ensure that the golden opportunity to upgrade the energy efficiency of priority needs groups as established within the Consolidated Plan is taken advantage of over the next five years. We will do so by building upon existing programs and partnerships that have brought high performance housing to the affordable housing market in North Carolina through both new construction and retrofit programs to enhance energy efficiency measures and look for ways to reduce impacting greenhouse gas and carbon emissions.
The North Carolina Housing Finance Agency will focus on creating and encouraging sustainable communities in its programs over the next five years. To do so, NCHFA will continue to fund and encourage energy efficiency and green building in its loan pools, supportive housing, and rental production programs as well as rehabilitating homes to higher energy standards through the single family rehabilitation program. NCHFA will also continue to study project sites closely to ensure access to transportation and jobs. In addition, NCHFA will look for ways to further increase energy efficiency and green building and will continue to utilize its partnership 2011-2015 CON PLAN FINAL 20
with Advanced Energy. NCHFA is 2nd in the nation for the federal HOME program in Energy Star units created.
Integrating the Six Livability Principles into Consolidated Plan Partner Programs
Where feasible for Consolidated Plan Partner, they will incorporate into their programs the six livability principals identified by the Department of Housing and Urban Development. Those six livability principles include:
 Provide more transportation choices.
Develop safe, reliable, and economical transportation choices to decrease household
transportation costs, reduce our nation’s dependence on foreign oil, improve air quality, reduce greenhouse gas emissions, and promote public health.
 Promote equitable, affordable housing.
Expand location- and energy-efficient housing choices for people of all ages, incomes, races, and ethnicities to increase mobility and lower the combined cost of housing and transportation.
 Enhance economic competitiveness.
Improve economic competitiveness through reliable and timely access to employment centers, educational opportunities, services and other basic needs by workers, as well as expanded business access to markets.
 Support existing communities.
Target federal funding toward existing communities—through strategies like transit-oriented, mixed-use development and land recycling—to increase community revitalization and the efficiency of public works investments and safeguard rural landscapes.
 Coordinate and leverage federal policies and investment.
Align federal policies and funding to remove barriers to collaboration, leverage funding, and
increase the accountability and effectiveness of all levels of government to plan for future
growth, including making smart energy choices such as locally generated renewable energy
 Value communities and neighborhoods.
Enhance the unique characteristics of all communities by investing in healthy, safe, and
walkable neighborhoods—rural, urban, or suburban
For the Consolidated Plan partners, many agencies’ programs are not allowed, because of federal guidelines or regulations, to address specific areas of the above livability principles. The Consolidated Plan partners will make every attempt where feasible for individual agency objectives to incorporate the livability principles into their programs and also encourage more sustainable planning. 2011-2015 CON PLAN FINAL 21
Comprehensive Approaches for Community Development to leverage resources and investments
The Consolidated Plan Partners will work together collectively to leverage various federal funds and create more viable programs to serve the communities of North Carolina. The Consolidated Plan Partners will work together to access the community development needs in order to develop a more comprehensive approach statewide to the needs for community development for communities throughout the state of North Carolina. The chart below represents priorities for Community Development over the next five years as required by 24 CFR Part 91, table 2b.
Category
Specific Activity Class
Priority Based
PUBLIC FACILITY NEEDS (projects)
Senior Centers
High
Handicapped Centers
Low
Homeless Facilities
High
Youth Centers
Low
Child Care Centers
Low
Health Facilities
Low
Neighborhood Facilities
Low
Parks and/or Recreation Facilities
Low
Parking Facilities
NSN
Non-Residential Historic Preservation
Low
Other Public Facility Needs
NSN
INFRASTRUCTURE (projects)
Water/Sewer improvements
High
Street Improvements
Low
Sidewalks
Low
Solid Waste Disposal Improvements
NSN
Flood Drain Improvements
Medium
Other Infrastructure Needs
Low
PUBLIC SERVICE NEEDS (people)
Senior Services
High
Handicapped Services
High
Youth Services
Low
Child Care Services
Low
Transportation Services
NSN
Substance Abuse Services
Low
Employment Training
High
Health Services
Low
Lead Hazard Screening
Medium
Crime Awareness
Low
Other Public Service Needs
NSN
ECONOMIC DEVELOPMENT
ED Assistance to For-Profits (business)
Medium
ED Technical Assistance (business)
High
Micro-Enterprise Assistance (business)
Medium
Rehab; Publicly-or Privately-Owned
Commercial/Industrial (projects)
Medium
C/I* Infrastructure Development (projects)
Medium
Other C/I* Improvements (projects)
Low 2011-2015 CON PLAN FINAL 22
PLANNING
Planning
Medium
TOTAL ESTIMATED DOLLARS NEEDED:
100,000,000
Identified Obstacles for Meeting Community Development Needs
Lack of funding is a major obstacle for addressing the community development needs for North Carolina. The need for community development grows; however, allocations to programs have not grown to meet this need. Striving to address the growing demands with shrinking budgets continues to be an obstacle for serving for community development needs statewide.
Long Terms Goals for Community Development Needs
Sustainable Development
To develop a pilot program that allows for sustainability planning that will provide the necessary data and knowledge to agencies so they can understand and identify what is necessary for communities in North Carolina to continue to become viable and sustainable communities. After planning, the Division of Community Assistance will look for ways to re-shape and/or help communities create sustainable communities by implementing the measure incorporated into sustainable planning.
Within the five year period the North Carolina Division of Community Assistance will create a pilot program that addresses sustainability. Outcomes of that pilot program will assist the DCA in creating or revisiting current CDBG programs to accommodate the need for sustainability in the state CDBG program.
Promoting Energy Efficiency and Green Building
To promote and enhance energy efficient homes and increase green building within the
the five year period, the Consolidated Plan partner where feasible will look to enhance the knowledge for local governments’ understanding of new models and best practices for energy efficiency as well as incorporate more green building techniques into the existing programs for the CDBG programs over the next five years.
Integrating the Six Livability Principles into Consolidated Plan Partner Programs
The North Carolina Division of Community Assistance will look for innovative ways over the next five years to incorporate into CDBG programs where feasible the six livability principles. 2011-2015 CON PLAN FINAL 23
DCA will specifically look to target principles into programs that focus on affordable housing within the CDBG program.
Comprehensive Approaches for Community Development to leverage resources and investments
The Consolidated Plan partners within a five year period will work together to coordinate programs and resources in order to enhance community development initiatives statewide. This will include over a five year period the North Carolina Division of Assistance along with the other Consolidated Plan Partner agencies, looking at ways to leverage resources through coordinating existing programs such as tax credit, homeless facilities, public facilities and other programs to leverage resources for the needs of community development statewide.
Community Revitalization
States are encouraged to identify areas where geographically targeted revitalization efforts are carried out through multiple activities in a concentrated and coordinated manner.
State’s Process to Approve Local Governments Community Revitalization Strategies
The Division of Community Assistance recognizes the need for local government to develop viable plans for community revitalization. In addition, the Division knows that the community revitalization can’t be limited only to CDBG funds alone, that there must be a local commitment from local governments to improve their communities.
CDBG grantees will be required to complete a community development plan. This plan will include a comprehensive approach in which the local government will create a viable plan for a comprehensive approach to community development that not only includes the use of CDBG funds but also identifies local investments. The community development plan will incorporate the principles established by the Consolidated Plan Partner both long terms and short term goals. The local governments will be made available funding to address the development of the plan in partnership with the Division of Community Assistance Urban Planning Division and other local stakeholders such as non-profit organization and council of governments.
When the plan is completed, the plan will be reviewed and approved by the Division of Community Assistance. The plan will serve as tool for grantees and the Division of Community Assistance to ensure that activities funded as a part of the CDBG program are in accordance with the Community Development Revitalization strategies outlined for the local government.
Community Revitalization Short Term Objectives
The Division will create pilot programs within 2011-2015 to target funding towards sustainability in community revitalization efforts for local governments through planning grants. 2011-2015 CON PLAN FINAL 24
Community Revitalization Long Terms Objectives
To move affordable housing programs and other community revitalization programs to focus more on a comprehensive approach to community revitalization measures throughout North Carolina through working with local governments under the CBDG program through technical assistance to develop comprehensive plans and create measurable results for overall community planning needs for North Carolinians throughout 2011-2015.
Barriers to Affordable Housing
The Analysis of Impediments to Fair Housing Choice, completed in 2010, summarizes barriers to affordable housing and is available to the public. The Housing Coordination and Partnership Council advises the Governor and General Assembly on barriers to affordable housing in North Carolina, and the Housing Partnership, the oversight board of the state’s Housing Trust Fund, considers barriers to housing in the allocation of state resources. In carrying out their regular programs and funding cycles, the Consolidated Plan Partners continue to promote the removal of barriers to affordable housing.
In 1994, HUD published a rule consolidating plans for housing and community development programs into a single preparation: the Consolidated Plan for Housing and Community Development. This document incorporates the plans for original consolidated programs, which include Community Development Block Grants (CDBG), HOME Investment Partnerships (HOME), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA), as well as encouraging additional program components that have been enacted.
As a part of the consolidated planning process, states and entitlement communities
receiving such funds as a formula allocation directly from HUD are required to submit to
HUD certification that they are affirmatively furthering fair housing. This certification has
three parts and requires:
 Completing an Analysis of Impediments to Fair Housing Choice (AI);
 Taking actions to overcome the effects of any impediments identified through the AI
 Maintaining records reflecting the analysis and actions taken.
HUD interprets these three certifying elements to entail:
 Analyzing and working to eliminate housing discrimination in the jurisdiction;
 Promoting fair housing choice for all people;
 Providing opportunities for racially and ethnically inclusive patterns of housing
occupancy;
 Promoting housing that is physically accessible to, and usable by, all people,
particularly individuals with disabilities; and
 Fostering compliance with the nondiscrimination provisions of the Fair Housing
Act.
2011-2015 CON PLAN FINAL 25
Located in the appendix of the Consolidated Plan is the full document of the Analysis to Impediments to Fair Housing Choice. Within the plan the state has identified the following impediments and has also identified the following goals that will be undertaken both collectively by the Consolidated Plan partners as well as individual agencies where applicable to address the identified impediments.
Identified Impediments to Fair Housing Choice
The 2010 Analysis of Impediments for the state of North Carolina uncovered several issues
that can be considered barriers to affirmatively furthering fair housing and, consequently,
impediments to fair housing choice.
These issues are as follows:
1. Insufficient system capacity. A lack of sufficient resources and personnel in fair housing-
related organizations has resulted in inadequate outreach and education efforts as
well as insufficient testing and enforcement activities. Ultimately, these shortcomings
have led to insufficient awareness and understanding of fair housing in the
general public and housing providers as well as inadequate understanding of the
complaint process.
2. Discrimination in the rental markets. Housing complaint data and survey research revealed
a problem of discriminatory actions by housing providers in the rental markets.
Two main groups were cited: racial and ethnic minorities and persons with disabilities
including failure to make reasonable accommodation.
3. Constraints in the lending markets. Disproportionately high home purchase loan denial rates were found for racial and ethnic minorities, even after adjusting for income. These high
loan denial rates were especially common in lower-income areas. Furthermore, householders receiving loan with high annual percentage rate terms were disproportionately from minority racial and ethnic groups.
4. Possible barriers in land-use policies or practices. Current zoning and development practices may not be in the spirit of affirmatively furthering fair housing.
Addressing the Indentified Impediments
In response to these listed impediments, over the next five years, the Consolidated Plan partners will address the identified impediments through in the state of North Carolina should consider taking by the following actions:
1. Increase system capacity. The fair housing system capacity in the state can be enhanced
through: 2011-2015 CON PLAN FINAL 26
A. Engaging the Human Relations Commission (HRC). The state should more closely and
consistently partner with the HRC to increase education efforts and training activities.
i. Education efforts can include preparation and distribution of pamphlets and flyers or other
advertisements that clearly explain the importance of fair housing, types of housing discrimination and how to file a complaint.
ii. Training activities can include the same topics and be held to further fair housing education of departmental staff, community grantees, and others, as necessary including both
providers and consumers of housing.
B. Developing a Fair Housing Initiatives Program (FHIP) recipient. The creation of a
FHIP recipient would reduce the burden on the HRC and expand the system capacity.
i. The FHIP recipient would be charged with implementing additional outreach and education
activities.
ii. The FHIP recipient would also enhance the frequency of testing and enforcement activities
in the state.
C. Forming a Fair Housing Task Force (FHTF).
An FHTF would be comprised of fair housing agency representatives from throughout the state and would work to coordinate statewide fair housing activities and efforts.
i. The group could meet on at least a quarterly basis.
ii. The FHTF would incorporate existing task forces that are related to fair housing.
iii. This group would aid in prioritizing fair housing activities as well as encourage participation of state and local agencies in statewide fair housing planning.
2. Reduce discrimination in the rental market. In order decrease discrimination against
protected classes in the rental market, targeted outreach and education efforts as well as testing
and enforcement activities should be utilized.
i. Outreach and education efforts could include training or educational seminars for rental
housing providers and housing consumers and focus on topics such as protected
classes and types of discriminatory actions.
ii. Testing and enforcement could also be used to monitor the occurrence of discriminatory
activities in general or to target providers that have been reported to practice discriminatory activities.
3. Decrease constraints in the lending markets. To reduce constraints and the perception of
discrimination in the lending market, efforts should be focused on both lenders and applicants
for loans for housing.
i. For lenders, activities envisioned in this action pertain to targeted training sessions to prevent uneven terms in the making of home loans as well as possible testing
activities. 2011-2015 CON PLAN FINAL 27
ii. Consumers of housing could be targeted with outreach and education efforts that describe the attributed of good credit, how to establish and maintain good credit, what constitutes
fair lending and how to identify predatory loans.
4. Examine land use policies and practices. This action is to include enhanced discussion with individuals and entities that reach out to the Consolidated Plan subgrantees about best
practices in land use planning, making people more aware of North Carolina’s new land use
laws and suggesting advocacy for reducing NIMBYism.
Lead Based Paint Standards
The U.S. Centers for Disease Control and Prevention (CDC) calls childhood lead poisoning ―the most common environmental disease of young children.‖ Lead-based paint is the main source of lead in the home. Lead poisoning occurs when persons breathe contaminated paint dust or ingest lead contaminated paint chips. Among young children of low income families the risks are even higher; those families are more likely to live in older housing with peeling and chipping lead-based paint. Lead poisoning is the leading environmentally caused pediatric health problem in the U.S., even though it is entirely preventable. Lead is particularly harmful to the developing brain and nervous system of fetuses and young children. Children have a greater risk of exposure because of normal hand-to-mouth activity and enhanced absorption of lead.
Lead-based paint was used in over 38 million housing units until 1978, when it was banned for residential use.22 Sixty percent of the nation’s housing stock contains lead paint, but housing built prior to 1960 is at the greatest risk for having high levels of lead in its interior and exterior paint. HUD estimates that there will be over eighteen million pre-1960 units at risk of having lead paint hazards in 2010. Approximately twenty percent of these units are occupied by low-income families. Of that 20%, HUD estimates that 1.4 million will become lead-safe because of HUD’s regulations about lead paint hazards for federally assisted housing. Over 2 million pre-1960 units with lead hazards occupied by low-income families remain.23
The Department of Environmental and Natural Resources (DENR) collects state data on the number of children with lead poisoning. Of the 112,000 children (between 1 and 2 years of age) tested for lead poisoning in 2007, 706 had lead levels greater than 10 ug/dL; this is .6% of the children tested. Having lead levels of 10ug/dL means the child has a dangerous amount of lead in their blood.
22 Renovate Right. Department of Housing and Urban Development. http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf
23 Eliminating Childhood Lead Poisoning: A Federal Strategy Targeting Lead Paint Hazards. President’s Task Force on Environmental Health Risks and Safety Risks to Children February 2000. http://yosemite.epa.gov/ochp/ochpweb.nsf/content/leadhaz.htm/$file/leadhaz.pdf 2011-2015 CON PLAN FINAL 28
The Department of Environmental and Natural Resources (DENR) is involved in a number of activities to reduce the harmful effects of lead based paint in North Carolina; an example is the Lead Based Paint Hazard Management and Preventive Maintenance Program. DENR has also sponsored the Childhood Lead Poisoning Prevention Program to address lead based paint issues in the state. A number of state agencies, universities, and non-profit organizations work together to achieve housing, health, and information/tracking goals that reduce lead poisoning and increase the information available on the issue. These programs are making a difference: the number of children with elevated blood levels has decreased significantly since 1997 and the number of children tested has increased.25 As the table above indicates, only .6% of children in North Carolina had harmful levels of lead in 2007. In 1997, 661 children ages 6 months to 6 years were confirmed to have exposures at or above 10 micrograms per deciliter (mg/dL). In 2007, only 270 children ages 6 months to 6 years were confirmed at the same exposure level, despite the fact that the total number of children tested has grown by more than 51% from 95,166 in 1997 to 143,972 in 2007. While the lead poisoning problem in North Carolina has decreased, lead poisoning is still a problem that impacts affected children their whole lives.
Actions Taken to Address Lead Based Paint Hazards
The North Carolina Housing Finance Agency (NCHFA) has operated single and multi-family housing rehabilitation programs benefiting lower-income families since 1983, comprehensively rehabilitating nearly 12,103 units and providing urgent repairs for over 9,300 units. All HOME-assisted housing units meet the 24 CFR 35 lead paint standards.
NCHFA operates the Lead Abatement Partnership Pool, which assists low-income homeowners with pre-1978 houses where a child under 6 is an occupant or frequent visitor. Funding for the program is through NC DENR Federal Lead Hazard Control Grant. The funding is provided as a grant for rehabilitation and relocation costs. Funds can also be combined with NCHFA’s Single Family Rehabilitation Program.
NCHFA continues to work with NC CLPPP and DENR. The NC CLPPP and partner agencies address lead-based paint hazards in North Carolina through the Ad Hoc Lead Advisory
24 North Carolina Department of the Environment and Natural Resources Children’s Environmental Health Branch. North Carolina Lead Surveillance Data. 2007. http://www.deh.enr.state.nc.us/ehs/Children_Health/Lead/Surveillance_Data_Tables/surveillance_data_tables.html
25 NC Strategic Plan to Eliminate Lead Poisoning. July 2006. 1-20 http://www.deh.enr.state.nc.us/ehs/Children_Health/NCLeadEliminationPlanAndSummaryPage-Rev071406.pdf
Childhood Blood Lead Surveillance Data24
Target Population
Number Tested
Percent Tested
Lead > 10 ug/DL
Percent > 10 ug/dL
State of North Carolina
250,686
112,556
44.9
706
.6 2011-2015 CON PLAN FINAL 29
Committee. The NC CLPPP currently coordinates clinical and environmental services aimed at eliminating childhood lead poisoning in North Carolina.
As required by the Centers for Disease Control (CDC), NC CLPPP developed the ―NC CLPPP Plan to Eliminate Childhood Lead Poisoning by 2010‖. NCHFA was represented and part of a group of health and housing professionals who developed the plan. The plan reflects a comprehensive approach to eliminating lead poisoning, and the plan’s mission is to eliminate lead poisoning in North Carolina’s children by 2010 through health and housing initiatives. One of the measures of the plan was to secure funding to reduce or eliminate lead hazards in properties inhabited by children. This measure has been achieved, because Lead Hazard Control Grant funds were obtained.
North Carolina is also implementing the national rule and state law that were passed in 2008 and 2009, 40 CFR Part 745 Subpart E and G.S. 130A-453.12. These require the use of lead-safe work practices to prevent lead poisoning.
Anti-Poverty Strategy
In addition to the provision of safe, decent, and affordable housing for all North Carolinians, a core mission of the Consolidated Plan partners is to help alleviate poverty in North Carolina. Creating programs and tailoring existing ones to assist people in improving their economic well being is a cornerstone to all housing and community development work. Housing and community development and economic development are all inter-related, and the elimination of poverty for all North Carolinians is a recurring theme in our work.
When addressing poverty state-wide it is unrealistic that the Consolidated Plan partners’ programs can address all factors that are related to poverty for North Carolinians. The Consolidated Plan partners understand that eradication of poverty means providing residents the tools to help themselves achieve greater financial stability. In addition, the Consolidated Plan partners also know that state agencies can not address poverty alone. Investment of local resources is also necessary in order to address poverty across the state of North Carolina, given the limited resources at the state level.
Division of Community Assistance Anti-Poverty Strategy
The Division of Community Assistance believes that the true eradication of poverty means providing a holistic approach to community development The CDBG eligible activities are designed within the framework that allows grantees to address housing, infrastructure, economic, human capital and all other community development needs. In 2001, the Division of Community Assistance created the Revitalization Strategies category. Grantees in this category are allowed to undertake any eligible activity to address housing, infrastructure, economic, human capital and all other community development needs within a neighborhood-level target area. The goal of this program is to tackle all of the issues that are plaguing a particular neighborhood and work to improve conditions in all aspects within a five year time frame. Revitalization strategies are 2011-2015 CON PLAN FINAL 30
working to alleviate poverty in ways that are outside of the purview of typical community development projects.
The Division of Community Assistance in concurrence with the Consolidated Plan partners also believes that eradication of poverty mean providing residents with tools to help themselves improve financial stability.
In addition, DCA also believes in the importance of the prevention of poverty. The Division will continue to operate the Individual Development Account category which provides down payment assistance, credit and housing counseling, financial literacy, and homeowner education to prospective first time homebuyers. By assisting low income residents to acquire wealth, the Division has programs in place that will help provide those residents a ―step up‖ out of poverty as well as build wealth and skills so that residents can remove themselves from the debt cycle that plagues many low income families.
As a method to ensure that funds are directed to areas of high poverty across the state, many CBDG categories reserve their grant funds for Tier I and Tier 2 counties and state development loans. The Tier system is based on North Carolina Williams S. Lee Quality Jobs and Business Expansion Act, which divides counties into tiers based upon their relative economic development needs. Tier 1 and Tier 2 counties are seen as having a more dire need for economic and community development services. Grant categories such as Revitalization Strategies are set aside for those counties. State Development Zones are particular areas of counties or municipalities that through census and other quantitative data, demonstrate high levels of poverty and other characteristics of high levels of economic and community development need. Neighborhoods in the State Development Zone (but not in entitlement cities) are also entitled to the same preferences as Tier 1 & 2 counties.
North Carolina Housing Finance Agency Anti-Poverty Strategy
Many of the activities NCHFA plans to undertake or continue in the 2011-2015 period are anti-poverty activities:
 Financing of supportive rental housing
 Providing funding for qualified low, very low, and extremely low income home buyers through individual development accounts.
 Financing of transitional and permanent housing for homeless and disabled persons.
 Operating and promoting programs that prevent foreclosure.
 Providing rent assistant for homeless and/or disabled households through the Key
Program.
 Administering HUD rent assistance contracts for 24,000 privately owned apartments
Office of Economic Opportunity, Emergency Shelter Grant Anti-Poverty Strategy
The Emergency Shelter Grants Program annually allocates approximately 2.5 million to local units of government and non-profit agencies. These funds are provided for operation expenses, 2011-2015 CON PLAN FINAL 31
supportive services, and prevention activities all of which are anti-poverty activities that benefit low income persons.
Institutional Structure of Consolidated Plan Partners
The Consolidated Plan partners are instrumental in the provision of the housing and community development services to the residents of North Carolina and are not alone in assisting North Carolinians in this matter. Below are brief descriptions of each agencies’ institutional structure. As required by the Consolidated Plan regulation, each agency has provided further information about their institutional structures with strengths and gaps of the delivery system in each agency plan, later in the document.
CDBG Structure
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 over the next five years. Of this amount, $28,700,000 will be made available for the following housing-related programs: Community Revitalization, Scattered Site Housing, 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.
HOME Structure
The North Carolina Housing Finance Agency is a self-supporting public agency. The Agency’s mission is to create affordable housing opportunities for North Carolinians whose needs are not met by the market. Since its creation in 1973 by the General Assembly, NCHFA has financed more than 196,000 homes and apartments, totaling $12.3 billion. NCHFA provides financing through the sale of tax-exempt bonds and management of federal and state tax credit programs, the federal HOME Program, the state Housing Trust Fund, and other programs. It partners with local governments (cities, counties, Councils of Government, etc), with nonprofit organizations, with private for-profit organizations, and with other state departments, as well as other parties. Using these resources and its own earnings, the NCHFA offers low-cost mortgage and down payment assistance for first-time home buyers, finances affordable homes and apartments developed by local governments, nonprofit organizations, and private owners, finances the development of housing for people with special needs, finances the rehabilitation of substandard owner-occupied homes, and administers HUD rent assistance contracts for 24,000 privately owned apartments statewide.
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ESG Structure
The Emergency Solutions Grant is administered by the North Carolina Department of Health and Human Services, Office of Economic Opportunity. Established in 1966, the goal of the Office of Economic Opportunity is to help meet the needs of the poor by encouraging local grantees to develop innovative projects which better address the causes, conditions and problems of poverty and to serve as an advocate for low-income families. The North Carolina Emergency Solutions Grants Programs anticipates providing more than $12.5 million to local units of government and non-profits for the provision of operation, services, and prevention activities.
HOPWA STRUCTURE
The AIDS Care Unit (ACU) administers the HOPWA Formula Grant. This Unit is within the NC Department of Health and Human Services, Division of Public Health, Epidemiology Section, Communicable Disease Branch. The mission of the Branch is to reduce and eventually eliminate morbidity and mortality due to sexually transmitted diseases (syphilis, gonorrhea and Chlamydia), Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS), and to assure that an up-to-date continuum of care services are available to all HIV-infected individuals residing in North Carolina.
Coordination
Coordination among agencies, nonprofits, and the private sector has become increasingly important as budgets have tightened over recent years. To increase coordination, the state has several housing and community development policy bodies including the Housing Coordination and Policy Council (HCPC), the Interagency Council for Coordinating Homeless Programs (ICCHP), the North Carolina Housing Partnership, the Community Development Council, and the Economic Development Board.
Housing Coordination and Policy Council
The Housing Coordination and Policy Council (HCPC) is a 15-member advisory group that was created by state statute in 1989 to strengthen cooperation among the state’s housing finance and housing service providers. Its purpose is to advise the Governor regarding the coordination of housing programs, the preparation of a comprehensive state housing plan, the best use of housing resources, and other housing-related topics. Its membership consists of representatives of various state agencies concerned with housing and services for low and moderate income North Carolinians and nonprofit organizations experienced with housing programs and advocacy.
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Interagency Council for Coordination Homeless Programs
The North Carolina Interagency Council for Coordinating Homeless Programs, the Interagency Council or ICCHP, was originally established by Governor’s Executive Order 168 on May 29, 1992. The Council serves as an advisory council to the Governor and Secretary of the Department of Health and Human Services and provides information on problems and issues affecting persons who are homeless or vulnerable to homelessness. It also serves as the guiding force in the development and implementation of the state’s Ten Year Plan to End Homelessness.
The ICCHP consists of 29 members who are appointed by the Governor and represent nonprofit organizations serving the homeless, county and city government, public housing authorities, the private sector, and state agencies.
North Carolina Housing Partnership
The Housing Partnership is the board whose responsibility it is to oversee the use of the Housing Trust Fund. Five members are appointed by the President Pro Tempore of the Senate, and five members are appointed by the Speaker of the House, and there are three ex-officio members: Executive Director of NCHFA, Secretary of Commerce (or designee), and the State Treasurer (or designee).
Community Development Council
The Community Development Council is a board appointed by the Governor to work with the Division of Community Assistance on community development initiatives. The CDC is made up of local elected officials. It also advises DCA on planning issues such as the annual action plan.
North Carolina Department of Health and Human Services Housing Workgroup
The NC DHHS Housing Workgroup was established by the Secretary of DHHS to assist with the fragmentation of housing services provided by agencies within DHHS. The workgroup is to identify technical assistance needs and strategies to assist each Division in their efforts to better serve the housing needs of their constituents.
Low Income Housing Tax Credit
The North Carolina Housing Finance Agency (NCHFA) administers the Low Income Housing Tax Credit (LIHTC) program in North Carolina. The LIHTC program produces and rehabilitates approximately 2,000 units of affordable rental housing units each year for low-income households. The distribution of this resource is governed by the state’s annual Qualified Allocation Plan (QAP). Under IRS Code Section 42 (m)(1)(B)(ii), QAPs must give preference to projects
 Serving the lowest income tenants,
 Obligated to serve qualified tenants for the longest periods, and 2011-2015 CON PLAN FINAL 34
 Which are located in qualified census tracts and the development of which contributes to a concerted community revitalization plan
Each state’s QAP must also include the following as application selection criteria:
1. Project location
2. Housing needs characteristics
3. Project characteristics, including whether the project includes the use of existing
housing as part of a community revitalization plan.
4. Sponsor characteristics
5. Tenant populations with special housing needs
6. Public housing waiting lists
7. Tenant populations of individuals with children
8. Projects intended for eventual tenant ownership
North Carolina’s QAP complies with all of the above and has other criteria and requirements adopted by the N.C. Federal Tax Reform Allocation Committee. This committee is responsible for reviewing and approving the QAP, which is then signed by the Governor. Before that occurs, NCHFA collects comments from interested parties in writing and at public meetings. The draft QAP presented to the Committee and Governor is based on this extensive public input and NCHFA’s staff experience.
The QAP is generally compatible with the goals of the Consolidated Plan because the LIHTC program produces multifamily housing units affordable to persons at or below 60% AMI. The North Carolina Division of Community Assistance (DCA) collaborates with NCHFA on some LIHTC projects by providing qualified projects with Community Development Block Grant funds.
Monitoring
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, Section 3, Fair Housing. Language Access, Equal Opportunity and Procurement, requirements). The monitoring plans vary by program and funding source. Consolidated Plan partners are subject to both federal regulations and established regulations as set forth in the state of North Carolina Administrative code. Although all various HUD programs are subject to various federal regulations and separate state regulations there are some common monitoring requirements with the monitoring of the HUD programs. All partners as required certify the United States Department of Housing and Urban Development that each program will comply with all applicable laws and regulations.
All consolidated plan partners are prohibited by state administrative code from entering into a new grant agreement with any agency, local government, and or organization that has been identified by the State Office of Budget and Management on the State Do Not Fund List. 2011-2015 CON PLAN FINAL 35
PART II
Agency Plans for 2011-2015
Division of Community Assistance
North Carolina Housing Finance Agency
Emergency Shelter Grant
Housing Opportunities for Persons with Aids
2011-2015 CON PLAN FINAL 36
North Carolina Division of Community Assistance
Agency Plan for 2011-2015
Background Information
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 yearly over the next five years. Of this amount, $28,700,000 will be made available for the following housing-related programs: Community Revitalization, Scattered Site Housing, 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.
Institutional Structure
The North Carolina Division of Community Assistance (DCA) is part of the North Carolina Department of Commerce, led by the state Secretary of Commerce, who reports directly to the Governor. The mission of the North Carolina Department of Commerce is ―To improve the economic well –being and quality of life for all North Carolinians.‖
The Department of Commerce's Division of Community Assistance (DCA) and Commerce Finance Center (CFC) administer the state of North Carolina's Community Development Block Grant (CDBG) program to local governments in non-entitlement areas. Non-entitlement areas are cities with populations of less than 50,000 (except cities that are designated principal cities of Metropolitan Statistical Areas), and counties with populations of less than 200,000.
The primary statutory objective of the CDBG program is to develop viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for persons of low- and moderate-income. The state must ensure that at 2011-2015 CON PLAN FINAL 37
least 70 percent of its CDBG grant funds are used for activities that benefit low- and moderate-income persons.
All North Carolina small cities are eligible to apply for funds except for 23 entitlement cities that receive funds directly from the U.S. Department of Housing and Urban Development (HUD).
These directly-funded cities include: Asheville, Burlington, Cary, Chapel Hill, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Jacksonville, Kannapolis, Lenoir, Morganton, Raleigh, Rocky Mount, Salisbury, Wilmington, and Winston-Salem.
All counties, except for the two HUD-designated urban counties of Wake and Cumberland, are eligible to apply for Small Cities CDBG funds. All municipalities in the two counties are ineligible except for the Town of Holly Springs in Wake County and the Town of Linden in Cumberland County.
Grants Management and Program Development
Grants Management and Program Development division is responsible for writing of guidelines and applications for each CDBG category, providing technical assistance to potential grantees and members of the public on the front end of the grant process, rating applications and monitoring demonstrations grants and all planning efforts for DCA. Grants Management provides technical assistance to grantees once they have been awarded, monitors to ensure that grants in established categories and ensure CBDG compliance on the part of the grantees, and assist with grant closeout and proper documents for all grants.
Community Development Council
The Community Development Council is a board appointed by the Governor to work with the Division of Community Assistance on community development initiatives. The CDC is made up of local elected officials. It also advises DCA on planning issues such as the annual action plan and the Consolidated Plan.
Strength and Gaps in Service Delivery
DCA has a number of strengths as an agency. DCA has the ability to meet a variety of needs for community development statewide. The flexibility of DCA funds, allows the state of North Carolina program to continue to be responsive to the needs of the citizens and communities of North Carolina. DCA is consistently redesigning programs and new ones are introduced in order to meet the state’s latest community development challenges and needs. In addition, DCA has highly capable staff to provide technical assistance on a variety of forums; DCA offers more local communities’ opportunities to participate in the CBDG programs.
Another key strength in the CBDG program is the ability for partnership. The CBDG program partners with an array of Consolidated Plan partners to implement new diverse program 2011-2015 CON PLAN FINAL 38
initiatives that allow stakeholders a more comprehensive delivery of services for community development needs.
DCA with is numbers of strengths, also faces some challenges. As community development needs grows throughout North Carolina, the lack of funds to meet all identified needs throughout the state is also a challenge. Though the flexibility of CDBG funds creates more interest in the CDBG program, the lack of funding to meets those needs are a challenge. Meeting the demands both geographically and by type of need with limited funds is a constant struggle and criticism of the CBDG program.
DCA as with other agencies face state budgetary conditions. State budgetary conditions have limited DCA’s capacity to provide technical assistance as demanded in communities and present a weakness in the Division’s ability to provide housing and community development services. DCA staff will continue to provide assistance to all communities and member of the public to the best of their ability.
Division of Community Assistance Programs
DCA 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 DCA’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.
DCA 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 is prepared to react to severe economic crises such as plant closings and severe economic crises by coordinating economic recovery plans and implementing recovery activities. In response to severe natural or other disasters, the Division is prepared to react to meet the urgent needs of our state’s communities.
DCA 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 DCA programs and requirements, as well as working with the UNC Institute of Government to provide a community development certificate training program for grant administrators. 2011-2015 CON PLAN FINAL 39
The information provided in this section is designed to give an overview of programs. Programs are subject to change based upon availability of funding, regulatory requirements, and also indentified needs.
DCA in 2011-2015 will maintain some the key standard programs offered within DCA, but will also create new programs to meet some unmet needs that have been identified through the Consolidated Plan.
Energy Efficiency and Rehabilitation Standards
North Carolina’s program will ensure that the golden opportunity to upgrade the energy efficiency of the target homes while they are being rehabilitated is not missed, especially as it relates to transit accessibility, green building and energy efficiency.
When possible, the following standards will apply.
1. Effective Insulation - Properly installed and inspected insulation in floors,
walls, and attics ensures even temperatures throughout the house, reduced
energy use, and increased comfort.
2. High-Performance Windows - Energy-efficient windows employ advanced
technologies, such as protective coatings and improved frames, to help keep
heat in during winter and out during summer. These windows also block
damaging ultraviolet sunlight that can discolor carpets and furnishings.
3. Tight Construction and Ducts - Sealing holes and cracks in the home's
"envelope" and in heating and cooling duct systems helps reduce drafts,
moisture, dust, pollen, and noise. A tightly sealed home improves comfort and
indoor air quality while reducing utility and maintenance.
4. Efficient Heating and Cooling Equipment - In addition to using less energy
to operate, energy-efficient heating and cooling systems can be quieter, reduce
indoor humidity, and improve the overall comfort of the home. When properly
installed into a tightly sealed home, this equipment won't have to work so hard
to heat and cool the home.
5. Efficient Products - ENERGY STAR qualified homes may also be equipped
with ENERGY STAR qualified products — lighting fixtures, compact
fluorescent bulbs, ventilation fans, and appliances, such as refrigerators,
dishwashers, and washing machines.
6. Third-Party Verification - With the help of independent Home Energy
Raters, ENERGY STAR contractors chose the most appropriate energy-
saving features for their homes. Additionally, raters conduct onsite testing and
inspections to verify the energy efficiency measures, as well as insulation, air 2011-2015 CON PLAN FINAL 40
tightness, and duct sealing details.
Other Sustainable Development Practices
DCA will use Energy Efficient and Environmentally-Friendly Green Elements as available in meeting the Energy Star certifications of any residential property that are economically feasible.
Priority will be given to the following (in addition to those mentioned above):
• Sustainable Landscaping
• Energy Efficient Landscaping
• Durable, Heat Absorbing and Local Source Materials Usage
• Green Label Certified and Healthy Flooring
• Sealing Joints
• Tub and Shower Enclosures for Moisture Prevention
• Green Maintenance Guide and Resident Orientation
Scattered Site Housing
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 replacement purposes. Counties submit a detailed plan that includes all interested municipalities within the county describing 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. Selection Criteria for Scattered Site Housing awards include: community need; community impact; project design; financial feasibility; distribution plan: and participation process.
Small Business and Entrepreneurial Assistance
Small Business & Entrepreneurial Assistance (SBEA) grants help develop a coordinated effort for assisting the existing small business/ entrepreneurial sector. SBEA projects will be selected on a competitive basis for a 24-30 month funding cycle. Funding will be awarded to the state’s most distressed local governments (i.e., applicants must be Tier 1 and/or 21st Century Communities). Application are rated and ranked using the selection criteria as follows. Further explanation is available in the application guidelines and on the website of the DCA.
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Infrastructure
Infrastructure (IF) An estimated total of $5.14 million will be available in the Infrastructure category. 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.
Applicants with one or more current grants in any category except economic development must meet financial or closeout requirements as specified in the grantee’s performance based contract and in the closeout schedule for each grant fiscal year. Problems with previous grants must be resolved.
Criteria for IF awards include: severity of needs; benefit to low and moderate income persons; local commitment; treatment of needs; and appropriateness and feasibility.
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.
Applicants must be on a list and have a reservation of funds in order to submit an application. Applications are reviewed in the order submitted and review criteria include conformity with basic criteria to apply and eligible activities. A balanced distribution of program funds will also be considered as a factor in making awards.
Economic Development (ED)
This category will continue the policy 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 2010 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 or retained 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 current 21st Century Communities as designated by the Secretary of Commerce.
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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 Article 3J Tax Credits legislation and current 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. Principle payments are deferred for the first two years of the loan. 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.
Funds are granted to local governments that propose a project in conjunction with a private for profit business that proposes to restore a vacant building to economic use resulting in the creation or retention of permanent, full-time jobs by the project company. To be eligible, documentation must be provided showing the building has been vacant thirty (30) consecutive days or more. CDBG funds for this category are limited to a maximum of $750,000 per unit of government per program year. The grant amount is calculated based on $20,000 per job for 3J Tax Credit eligible businesses (see chart) and $12,000 per job for businesses not eligible for tax credits. CDBG funds provided to the company by the local unit of government will be in the form of a forgiven loan. The loan has a term of five years with no principal or interest payments. If the project company retains the jobs pledged in the loan agreement for the five year term, the entire amount is forgiven. 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.
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 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 $375,000. 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 CDBG application, and financial feasibility of the non-profit to carry out the project and any future products.
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Talent Enhancement Demonstration Grant Program also known as (TEDGS) is a pilot program targeting local units of government to enhance the capacity to develop strategic and competitive CDBG proposals and grant administration. The aspects of enhancement include economic impact analyses, community survey research and design, grant administration and writing, and feasibility study preparation. The Talent Enhancement Demonstration Grants program is funded through the Community Development Block Grant (CDBG) in the amount of $600,000. The grants will be awarded through a first come, first serve competitive process with priority given to Tier 1 counties and local government in 21st century Communities. A Talent Enhancement Demonstrate Grant must result in a future application in one of DCA’s CDBG grant categories.
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. The Department of Commerce is currently evaluating the Section 108 program to see if changes should be recommended.
NC Catalyst Program
The NC Catalyst Program is a new program that consolidated several existing programs and activities such as Housing Development and Individual Development Accounts. The NC Catalyst Program will use de-obligated funds to fund unmet needs under the NC Catalyst Program.
NC Tomorrow is a pilot program to spur regional planning for viable sustainable communities throughout North Carolina. The NC Tomorrow planning initiative will center on the six livability principles established by the federal Partnership for Sustainable Communities.
The NC Tomorrow Program will provide planning grants to as many as 17 non-entitlement local governments serving as the lead regional coordinator within each of the 17 Council of Governments (COGs) regions. In exchange for the grant, the non-entitlement local unit of government must foster regional multi-jurisdictional participation around the program goals and develop the regional NC Tomorrow Sustainable Strategic Plan. A total of $1,275,000 of proposed 2011 Community Development Block Grant funds has been set aside for planning grants under this program. A maximum of $75,000 will be awarded to a non-entitlement local government serving as the lead regional coordinator. The grantee may use up to $7,500 for grant administration. The remaining funds will be available for CDBG-eligible activities to prepare the regional NC Tomorrow Sustainable Strategic Plan.
Disability Displacement Prevention Program in conjunction with North Carolina Housing Finance Agency and the North Carolina Vocational Rehabilitation Office, Independent Living Office , the Division of Community Assistance will partner with these agencies for the Disability 2011-2015 CON PLAN FINAL 44
Displacement and Prevention Program. Local government will work with the Independent Living Office to provide accessibility and rehabilitation to persons qualified and eligible for this service by the Independent Living Office. The Independent Living Office staff will serve as the grant administrators in conjunction with the local government to administer funds for this program. De-obligated funds will be used to support activities under this category.
Technical Assistance
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.
Monitoring
All CBDG recipients of state CDBG Small Cities Program funds must adhere to all Program policies, procedures and requirements as specified in the application approved by DCA. The CDBG recipients certify that they will comply with all applicable federal and state laws, regulations, rules and Executive Orders, pursuant to Paragraph (e) of Rule .0407 of the North Carolina Community Development Block Grant Administrative Rules, 4 NCAC 19L. In addition, all CDBG recipients are also required to comply with all lawful requirements of DOC, all applicable requirements of the General Statutes of the state of North Carolina specifically N. C. G. S. 87-1-87-15.9 and any other applicable laws, rules, regulations, requirements, and Executive Orders currently or hereafter in force. Recipient is prohibited from any fraud, waste and abuse of CDBG funds by any person or entity. The rules contained in 4 N.C.A.C. 19L (as well as applicable federal rules and regulations) are part of the Agreement, except where specifically modified by applicable law, rule, regulation, DOC, the CDBG HUD Program Requirements and any subsequent amendments, regulations or clarifications to any of the foregoing.
Additionally, CDBG recipients agrees to ensure compliance with respect to the Program and the Grant (and any of its proceeds) with all applicable federal and state laws, rules, regulations and requirements, including but not limited to the following (as each may be modified or amended): (1) the CDBG HUD Program Requirements; (2) Title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq), (3) existing CDBG laws, rules, regulations and requirements, as may be amended, including those set forth in 24 C.F.R., Part 570; (4) North Carolina laws, rules, regulations and requirements; (5) DOC guidance and requirements regarding CDBG now or hereafter in effect, including but not limited to: DOC’s CDBG Guidelines and Application Instructions, and DOC bulletins or other guidance documents; and (6) Recipient’s own approved CDBG application to DOC, as may be amended with DOC approval.
2011-2015 CON PLAN FINAL 45
The CDBG Grants Management Division staff will monitor all CDBG funded activities and grants. In addition, the Compliance Division will also conduct compliance reviews throughout the life of the grant to ensure that the grantees are in compliance with all applicable laws and regulations. With all monitoring of grants, it is the design of our programs to use all monitoring visit as an opportunity to provide technical assistance to the CDBG grantees.
2011-2015 CON PLAN FINAL 46
North Carolina Housing Finance Agency
Agency Plan for 2011-2015
Background Information
The North Carolina Housing Finance Agency is a self-supporting public agency. The Agency’s mission is to create affordable housing opportunities for North Carolinians whose needs are not met by the market. Since its creation in 1973 by the General Assembly, NCHFA has financed more than 196,000 homes and apartments, totaling $12.3 billion. NCHFA provides financing through the sale of tax-exempt bonds and management of federal and state tax credit programs, the federal HOME Program, the state Housing Trust Fund, and other programs. It partners with local governments (cities, counties, Councils of Government, etc), with nonprofit organizations, with private for-profit organizations, and with other state departments, as well as other parties. Using these resources and its own earnings, the NCHFA offers low-cost mortgage and down payment assistance for first-time home buyers, finances affordable homes and apartments developed by local governments, nonprofit organizations, and private owners, finances the development of housing for people with special needs, finances the rehabilitation of substandard owner-occupied homes, and administers HUD rent assistance contracts for 25,000 privately owned apartments statewide.
Institutional Structure
NCHFA operations are overseen by a geographically diverse 13-member Board of Directors. The Governor, President of the Senate, and Speaker of the House of Representatives each appoint four members, and these 12 members elect a thirteenth. The Board of Directors appoints the Agency Executive Director, subject to approval by the Governor; and the Executive Director hires all staff. NCHFA statute describes its board composition, general powers, program authority, and financing capability.
NCHFA reports its budget through the Office of State Budget and Management in the Governor’s Office. Its financial accounts are audited annually by an independent auditing firm. NCHFA bonds are rated AA by Standard and Poor’s and Aa2 by Moody’s.
Strengths and Gaps
NCHFA has a number of significant strengths; particularly that it is a single purpose housing agency with flexible funding resources. The NCHFA has developed enormous technical expertise and knowledge in its staff and Board of Directors through successfully operating a diverse group of housing programs.
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One challenge NCHFA faces is an uncertain interest rate environment. NCHFA has private activity volume cap sufficient to meet its current homeownership goals. It offers a variety of loan products (conventional, FHA, USDA, and VA) and has 90 and 150 day interest rate guarantees. Because market interest rates are so low, NCHFA’s FirstHome mortgage product is not as competitive. To continue to provide homeownership opportunities for low and moderate income homebuyers, NCHFA has expanded its Mortgage Credit Certificate Program.
NCHFA also recognizes as a weakness in the housing delivery system the lack of sufficient programs to address foreclosures. However starting in late 2010, NCHFA will be implementing new programs targeted at foreclosure prevention, as part of President Obama’s Housing for Hardest Hit Initiative.
NCHFA Programs26
NCHFA’s FirstHome Mortgage program offers low-rate mortgages for first-time homebuyers. It is targeted to moderate and low income individuals who haven’t owned a home in the last three years. NCHFA also provides interest-free deferred second mortgages up to $8,000 to pay a substantial part of the down-payment and closing costs for homebuyers below 80% of median income.
The Mortgage Credit Certificate is a valuable tax credit program for eligible borrowers. An MCC reduces a borrower’s tax liability, dollar-for-dollar, by 20% of the mortgage interest they pay. The maximum MCC tax credit is 20% of the interest paid--up to $2,000—every year that the buyer occupies the home.
The Home Protection Program (HPP) helps workers who have lost their jobs because of changing economic conditions (i.e. through no fault of their own) and need assistance to avoid losing their home to foreclosure. The Program was created and funded by the General Assembly. Displaced workers apply through a participating local housing counseling agency who determines the homeowner’s eligibility to apply for assistance and helps them submit an application to the Agency. Successful applicants can receive a loan to pay the mortgage while they look for a job or train for a new one. Loan funds can be used to pay the homeowner’s mortgage and related expenses, such as property insurance, homeowner dues, and property taxes.
The New Homes Loan Pool provides interest-free, deferred payment second mortgage loans for the purchase of newly constructed, substantially rehabilitated homes or foreclosed homes. Assistance is targeted to home buyers below 80% of area median income. The Self Help Loan Pool provides interest free mortgage loans for permanent financing of newly built homes using homebuyer sweat equity. Assistance is targeted to homebuyers below 50% of area median income. Both programs have some funds available for green building/energy efficiency measures. The IDA Loan Pool provides interest-free deferred payment second mortgage loans to homebuyers participating in local Individual Development Account (IDA) Programs. Assistance is targeted to households below 80% of area median income. Funds are also available for match.
26 Please note NCHFA programs are funded through many sources including the HOME Investment Partnerships Program. 2011-2015 CON PLAN FINAL 48
The Housing Credit Program encourages the production of rental housing for low-income households by allowing a 10 year federal tax credit. The program has a two-part annual application cycle, requiring a preliminary application to be submitted in January and a full application in May. State Tax Credits are available for projects that receive an allocation of federal tax credits and meet certain income targeting requirements. The Rental Production Program provides loans for the construction of rental housing for households below 50% of area median income. The Preservation Loan Program provides loans for the rehabilitation and preservation of existing affordable housing developments that are not able to utilize other funding sources.
The Key Program provides operating assistance for persons with disabilities, making the rents affordable to individuals on SSI incomes. This program is funded in partnership with the North Carolina Department of Health and Human Services and is available to affordable housing developments that are participating in NCHFA programs like the Housing Credit Program.
The Supportive Housing Development Program provides interest-free loans for the production of emergency, transitional, and permanent housing for homeless families and individuals, and persons with special housing needs. This program serves households below 50% of area median income. The Supportive Housing Pre-development Loan program assists nonprofit organizations developing supportive housing by providing financing for pre-development costs such as architectural and engineering work, environmental reviews, appraisals, and consulting fees.
The Single Family Rehabilitation Program provides funds to local governments, regional agencies, and nonprofit organizations for forgivable, deferred-payment loans to rehabilitate single-family, owner-occupied homes. Assistance is targeted to elderly and disabled homeowners in eligible counties, who are below 80% of area median income.
The Urgent Repair Program provides funds to local governments, regional agencies, and nonprofit organizations for grants to correct housing conditions that pose an imminent threat to life or safety or that cause the displacement of households below 50% of area median income. The Displacement Prevention Partnership works with state and regional offices of Independent Living to provide accessibility modifications enabling very low income homeowners with severe mobility impairments to live at home.
The Duke Home Energy Loan Program (HELP) is available to homeowners below 80% of area median income through local governments, regional agencies and nonprofits within the Duke Power service area. Loan Pool funds are provided as deferred-payment loans to make homes more energy-efficient.
The Lead Abatement Partnership works with the Department of Health and Human Services and the Department of Environment and Natural Resources to eliminate lead paint hazards in owner-occupied homes of children with elevated blood lead levels.
In addition to these programs, NCHFA will become even more active in the area of foreclosure prevention since it is such an important issue for the state of North Carolina. On August 4, 2010, 2011-2015 CON PLAN FINAL 49
the U.S. Treasury Department has approved the Agency’s plan to use $159 million of federal Hardest Hit Program funds to help North Carolinians who have suffered job loss or other financial hardships to save their homes from foreclosure. The housing finance agency has designed the new programs based on its experience with the smaller, state-funded Home Protection Program. Many of the same local counseling agencies that have delivered Home Protection loans will help deliver the new program.
Most of the new funds--$115 million--will be used to make mortgage payments for unemployed workers while they seek jobs or complete job training i