Despite a setback to a plan to build affordable housing on town-owned land, Chapel Hill’s Mayor Mark Kleinschmidt says the project remains promising.
“While it’s a very competitive process to get this funding and these tax credits, we have a very competitive project that will stand up well if we have a completed application,” says Kleinschmidt.
Raleigh-based non-profit DHIC announced recently that a plan to build 144 affordable apartments on 8.5 acres of town land had stalled because the application for low-income housing tax credits was not properly completed.
Nonetheless, Kleinschmidt says he’d like to continue to partner with DHIC to resubmit its application.
“If we were to go forward looking for another housing provider to partner with, it’s going to take us longer than it would be to just go ahead and reapply in the spring.”
The DHIC project is part of the wider Ephesus-Fordham revitalization plan.
In May the Council voted to rezone 190 acres of land, a move town leaders hope will spur redevelopment of commercial and residential properties near the Ephesus Road- Fordham Boulevard intersection.
But critics worry that the new zoning will discourage development of affordable housing at a time when landlords are already raising the rents on existing apartments.
In response, Kleinschmidt notes the Town Council set aside several parcels of land for later rezoning while town staffers explore how to offer affordable housing incentives for developers.
DHIC will be eligible to reapply for the low-income housing tax credits in January.
Mayor Kleinschmidt discussed the DHIC project and the future of affordable housing in Chapel Hill – as well as lessons learned from last week’s Mayors Innovation Project – on the air with Aaron Keck earlier this week.http://chapelboro.com/news/local-government/ch-mayor-says-dhic-project-isnt-doa/
Mayors Mark Kleinschmidt of Chapel Hill and Lydia Lavelle of Carrboro joined forces this week to ask local landlords to do the right thing, and accept Housing Choice Vouchers from low-income residents.
The mayors held a news conference at Carrboro Town Commons on Tuesday to address the issue of landlords refusing the vouchers, as rents continue to rise in both communities.
Kleinschmidt spoke to WCHL’s Aaron Keck on Thursday about the growing problem.
“Complexes are now saying that they aren’t going to take them anymore,” said Kleinschmidt. “Now that they’re renovating and they can charge higher rents, they’re saying, ‘You’ve got to find someplace else to live.’ And this is causing a housing crisis for dozens of families and individuals in both our communities, and throughout Orange County.”
Kleinschmidt said that more then 600 families in Orange County rely on the vouchers, which come from the federal HUD program and are administered by the county government.
In Chapel Hill and Carrboro, about 60 tenants have lost their apartments since last summer because of new rental policies.
”We need landlords –and not just owners of apartment complexes – to step up and learn about the Housing Choice Vouchers and understand that they can take them in lieu of cash payments,” said Kleinschmidt. “In fact, being a landlord who gets a Hosing Choice Voucher as part of a rent payment is actually more reliable than any other way of getting payment.”
That’s because the payment is deposited, like clockwork, directly into the landlord’s account every month, he added.
Kleinschmidt told WCHL that he and Lavelle will keep up their efforts to promote affordable housing, by having private meetings with local landlords and apartment building managers.
Chapel Hill’s mayor also pointed out that police officers and teachers are among the types of citizens that often qualify for the vouchers.http://chapelboro.com/news/local-government/kleinschmidt-landlords-get-great-deal-section-8-vouchers/
Harvey Harman stands behind his students. Photo via ChathamHabitat.org.
It’s 512 square feet in size, it costs only $36,000 to build – and Chatham Habitat for Humanity officials say it could help address the affordable-housing crunch in our area.
Chatham Habitat Construction Director Harvey Harman is leading the build: he’s teaching a class on small-house construction this summer at Central Carolina, and his students are building the house with the help of Habitat volunteers.
In addition to being about half the cost to build than a typical Habitat house, Harman and Chatham Habitat executive director Jerry Whortan say a cluster of “small houses” could better serve some of the people in need of affordable housing – like seniors, singles, or young couples – who aren’t really in the market for a single-family home. (They also say the house is designed to be easily expanded if necessary.)
Whortan and Harman joined Aaron Keck earlier this month on the WCHL Afternoon News.
Construction is already under way on the small house at Chatham Habitat’s campus on 467 West Street in Pittsboro. Visit ChathamHabitat.org for more details or to arrange a tour.http://chapelboro.com/news/non-profit-news/small-house-comes-chatham-habitat/
The Chapel Hill Town Council unanimously adopted a $96 million dollar budget on Monday night which includes the second property tax rate increase in two years.
“The budget is balanced with a 1-cent tax increase, restoring the debt fund capacity almost to where it was before the recession started,” said Town Manager Roger Stancil.
With Monday’s vote, the town’s property tax rate rises to 52.4 cents per hundred dollars of assessed value.
Council members decided last week the added penny is needed to help replenish the town’s debt management fund, which will increase the town’s borrowing power by about $10 million before 2017.
Supporters say that will help the town take on big projects like bikeways, parks, and new police and fire stations sooner rather than later. The 2014-2015 budget also includes increased funding for road resurfacing, $400,000 to help finance new buses, and money to hire a youth services coordinator.
In addition, the Council also allocated nearly $700,000 to fund affordable housing initiatives, a move applauded by housing advocates including Habitat for Humanity Director Susan Levy.
“I think all of that who are involved in affordable housing and have been over the years are really heartened by this commitment on your part,” said Levy. “I think it was a bold and a brave thing to do and I just want to say how much we appreciate it.”
Though the budget was approved in just six minutes, Council members assured the public the plan had been fully vetted at a pair of work sessions last week.
“We are not just rubber-stamping a budget here,” said Mayor pro Tem Sally Greene. “We’ve really given this a lot of consideration.”
Chapel Hill has set its tax rate for the next year, but Orange County Commissioners have not yet finalized their budget, which could include an increase in the county-wide property tax rate, or a hike in the Chapel Hill-Carrboro Schools special district tax.
The board will discuss the county budget at a work session Tuesday at 7 o’clock at the Link Government Center in Hillsborough.http://chapelboro.com/news/local-government/chapel-hill-approves-budget-1-cent-tax-rate-hike/
Nearly a dozen housing advocates turned out to Monday night’s public hearing to ask the Chapel Hill Town Council to designate one penny of the current tax rate to support affordable housing.
“When those of us who provide and advocate for affordable housing consider the quarter cent on the tax rate that the manager’s budget proposes, we can’t help but feel it’s insignificance in meeting the needs of this community,” said Susan Levy, Executive Director of Habitat for Humanity Orange County and chair of the Orange County Affordable Housing Coalition. “Currently the town spends less that one percent of its budget to fund affordable housing programs, including running the public housing program. Surely it is time to increase that commitment.”
The manager’s recommended budget already includes $188,750 for housing initiatives, but supporters of the penny plan say that’s not enough and many on the council agree.
To get the total dollar amount closer to the goal of $755,000, Council member Donna Bell suggested diverting an additional $400,000 initially set aside for paying down the town’s post-employment healthcare liability.
“I do not think this is a long-range plan or a sustainable plan, but I would like to use those funds, in addition to the quarter cent that we already have budgeted,” said Bell. “That would bring us up to about 80 percent of what we originally wanted. I think that I would feel good about that level of commitment from the Council as far as funding for affordable housing this year.”
The Council will consider the budget proposal in detail at work sessions scheduled for June 2 and 4. Next year’s budget will likely be formally adopted June 9.http://chapelboro.com/news/local-government/council-advocates-want-boost-budget-affordable-housing/
The Chapel Hill Town Council took a series of votes Monday night to adopt a new type of zoning known as form-based code and apply it to a large swath of land surrounding the Ephesus Church Road-Fordham Boulevard intersection.
Council member George Cianciolo sided with the majority in supporting the plan.
“I do believe that this will be successful for Chapel Hill,” Cianciolo told the crowd of more that one hundred who turned out for the third public hearing on the proposal. “That’s what I was elected to do, use my best judgement.”
The Council voted 8-1 to adopt the new form-based code into the town land use plan, and 6-9 to apply it to the majority of the 190 acre Ephesus-Fordham focus area. Ed Harrison, Matt Czajkowski and Jim Ward voted against the rezonings.
The plan calls for the town to reconfigure the intersection of Ephesus Church Road and Fordham Boulevard, extend Elliot Road and create new mixed-use zones that allow three to seven stories of commercial and residential development.
Supporters say it will encourage new business growth in the area while also addressing long-standing flooding problems and traffic jams.
However, opponents have raised doubts about the efficacy of the stormwater management plan and questioned the cost and timing of the redevelopment proposal. Council member Czajkowski sided with critics of the plan.
“There’s no evidence that it will achieve the original goals, including stormwater, including traffic mitigation, including increasing commercial tax revenue towards the town,” said Czajkowski.
Council member Ward opposed the plan because he said switching from a Special Use Permit approval process to form-based code means the Council will lose the chance to negotiate with developers for affordable housing and energy efficient design.
“Sounds like the rest of the Council is ready to give away the store in terms of the one thing that we have, and that’s the ability to offer greater density as an incentive,” said Ward. “It baffles me.”
Using form-based code, the Council sets parameters for development including building height, setbacks and parking guidelines for each zone, but once these are in place, individual developers will not need to bring their projects before the council if they meet the established criteria. Instead, projects will be reviewed by the Town Manager and the Community Design Commission. Council members expressed interest in reviewing the first projects that come forward under the new guidelines, but they will not be able to ask developers for concessions.
Mayor pro Tem Sally Greene proposed holding off on rezoning four parcels of land along Elliot Road from East Franklin Street to Fordham Boulevard while staffers investigate the possibility of offering density bonuses for developers who build affordable housing.
“What I’m talking about is a proposal that would change properties 1, 2, 3 and 4 from WX 5 to WX 2, as in two stories permitted by right with a density bonus of five stories in exchange for 10 percent affordable housing,” said Greene.
The Council backed her proposal, leaving the land as-is for now.
In addition, the Council voted unanimously to rezone 8.5 acres on Legion Road so that nonprofit developer DHIC can apply for low-income tax credits to subsidize a proposed affordable rental housing project on the site. The town is partnering with DHIC on the project, but some backers worried the rezoning might not happen before Friday’s deadline to apply for tax credits.
While the zoning is now in place, the town is still in the process of figuring out how to pay for the $10 million dollars worth of infrastructure improvements. To that end, the town is asking Orange County to help pay down the town’s debt by contributing a portion of the increased tax revenues the redevelopment is expected to generate.
County commissioners will consider that plan on Thursday night.http://chapelboro.com/news/local-government/chapel-hill-town-council-approves-ephesus-fordham-renewal-plan/
It’s the paradox Orange County faces again and again—being an attractive place to live while attempting to be an affordable community.
The number of affordable housing options is quickly diminishing, coupled with area landlords who no longer accept Section 8 housing vouchers.
While there are initiatives underway to help mitigate the lack of reasonably priced housing, Michelle Laws, Chair of the Chapel Hill-Carrboro NAACP Housing Committee, says there is still too much discussion and not enough action.
“We’ve got people who work here, who clear our streets, clean our facilities, who make sure that our children are taken care of, but people who cannot live in this city,” Laws says. “Then we act as if that is such a complex issue to resolve. That is where I think we are. It is a matter of will, and it is a matter of priority.”
There is a plan on the verge of becoming a reality that Chapel Hill Town Council member and Mayor pro Tem Sally Greene says could prove to be a viable option in helping those who need affordable housing.
With assistance from DHIC, Inc, a Raleigh-based developer specializing in affordable rentals, the Town is moving forward on using low-income tax credits to build 170 affordable rentals on town-owned land next to the Chapel Hill Memorial Cemetery.
Greene has helped to lead efforts and take action on affordable housing.
“What we need to be thinking about and what we are thinking about is greater public-private partnerships, innovations to ways that we do housing programs, even things like more efficient construction models, and particularly much more attention to the cost of transportation when we deal with housing because we recognize that transit is such a huge percentage of what you pay,” Greene says.
About a year and a half ago, James Davis of Orange County Housing, Human Rights and Community Development, moved to North Carolina.
He chose to live in Durham because Chapel Hill was so expensive.
To make a difference, he says, elected officials and activists should take a wholistic approach, and consider issues like housing, transportation, wages and job opportunities to help make Orange County more affordable for everyone.
Orange County Commissioner Mark Dorosin, who also serves as Managing Attorney at the UNC Center for Civil Rights, cautioned against an all-encompassing approach.
“What we ought to be talking about, I think—at the county level and for everybody—is what are the exact needs of the working class, low wealth people, in our community,” Dorosin says. “Do we need more childcare for women or parents so that they can go to work? Then, we ought to take money out of our general fund balance and subsidize more scholarships or subsidize for people to open up those businesses. If we could have said today, ‘We are going to make sure that 10 more kids get daycare so that 10 more families could go to work, then we have done more—all respect to my colleagues here—sitting around talking about economic development.”
Delores Bailey, Executive Director of EmPOWERment, Inc., says that elected officials and activists have to make a public commitment to addressing under-served populations.
“We have people in Chapel Hill who are suffering,” Bailey says. “They can’t figure out where they are going to live next. Their job has been done away with. I think we forget that there are actually people in our town who are not being paid attention to.”
The lack of employment opportunities forces many area residents to travel outside Orange County for work.
Orange County Board of Commissioners candidate Bonnie Hauser says she supports providing better, cheaper transportation options to help make the community more affordable.
“If we as a community can provide people with transportation to better paying jobs where they can get better paying jobs, now we have created a true affordable model where people are elevating in their stature,” Hauser says.
Chapel Hill Town Council Member Maria Palmer says she believes paying workers the appropriate wage is the first step toward counteracting the affordability problem. She added that employers should be more transparent about what they pay their employees.
“We need to be activists poking our noses in everybody’s business. I say that, knowing that people do not like to talk about how much they pay their employees and how much they earn, but we need to do it,” Palmer says.
Through working to preserve to legacy of the historic Northside Neighborhood in Chapel Hill, Hudson Vaughan, Deputy Director of the Marian Cheek Jackson Center, has worked with the community on a wide range of topics.
The lack of affordable housing, he says, affects people at many income levels.
“We see not just families who are on a fixed-income level being displaced, but also even all the way up to the professor level who cannot find housing in downtown, or anywhere in this town. That is a pretty enormous gap,” Vaughan says.
Vaughan, Palmer, Hauser, Dorosin, Davis, Laws, Greene, and Bailey made those comments during the “Affordability” panel of WCHL’s 2014 Community Forum. To hear the full discussion, click here.http://chapelboro.com/news/2014-community-forum/affordability/
Affordability, taxes, housing, solid waste, economic development, and the future of Carolina North and Rogers Road: all longstanding hot-button issues in Orange County, and all requiring strong partnerships between the local municipalities as well as UNC.
Orange County leaders say the time is now to make those partnerships stronger.
“One of our major issues is to renew the strength and vitality of our partnerships with the municipalities,” says Barry Jacobs, chair of the Orange County Board of Commissioners. “I think we’ve lost touch to some degree.”
At the center of the conversation is the eternal question of affordability: how to manage the cost of living while preserving a desirable community, in a space with little room to grow.
UNC Chancellor Carol Folt says that’s often an issue in college towns – and it’s certainly the case in Chapel Hill.
“University towns are very, very highly sought after,” she says. “I try every day to recruit faculty and staff and students…of course they’re concerned about price of living, (but) mostly we hear that people want to live here. So I think we are still on the positive side of this equation: this is a very high-choice place.”
But with that desirability comes a number of challenges – including, perhaps most notably, the cost of housing. Chapel Hill Mayor Mark Kleinschmidt says those costs are worth it: “I sometimes look around (my house) and think, wow, for this price I could be in a much bigger place in Durham,” he says, “but I’d rather be in Chapel Hill.”
And while higher property values still mean Chapel Hillians are paying more dollars in taxes, Kleinschmidt notes that Chapel Hill’s property tax rate is actually lower than many of our neighboring communities.
Still, the cost of housing is a strain, one that makes it difficult – if not impossible – for many people to live in Chapel Hill. And not only Chapel Hill: Hillsborough Mayor Tom Stevens says the affordability question is affecting his community as well.
“We’re seeing rising costs (too),” he says. “It’s a little bit less expensive to live here, so we’re finding families move out (of Chapel Hill-Carrboro) and folks wanting to be in Hillsborough – (but) as prices go up, we’re finding a lot of our families are moving to Mebane.”
The housing crunch has driven local leaders to explore creative policies for developing more affordable housing in all of Orange County’s municipalities.
But as Carrboro Mayor Lydia Lavelle points out, housing is not the only factor driving the cost of living.
“We’ve studied extensively the interplay between transportation costs and affordable housing,” she says. “A typical income earner spends anywhere from 20 to 30 percent of their income on transportation – owning a car, taxes, insurance, and so forth.”
That, she says, gives local leaders a strong incentive to develop housing downtown – so residents don’t need vehicles to get to and from work. Kleinschmidt adds that he’s equally proud of Chapel Hill’s fare-free bus system, which also keeps the cost of living down.
Taxes too are a primary concern – and local leaders are quick to point out that they’ve managed to maintain services while avoiding tax increases, even through the long recession. (Lavelle says she expects Carrboro to maintain that streak this year too.) But Barry Jacobs says that, at the end of the day, it’s just as important to preserve the services that make Orange County a desirable place to live.
And the most important of those services, he says, is education.
“We’re proud of public education (and) we’re going to fund it to the best of our ability,” he says. “Going through the recession, and then having a state legislature that’s attacking public education, we have actually raised the per-pupil funding…and in the last 20 years we’ve built 14 schools in this county. And three of them were high schools. Those are expensive suckers…
“And that’s part of what makes this an attractive community. That’s what draws people here. It’s a double-edged sword, to use a cliché.”
But Jacobs adds that the need for education spending must be weighed against the concern for affordability – particularly the fact that many Orange County residents are seniors on fixed incomes.
And so the question returns to partnerships: town, county, and UNC officials working together to promote efficiencies, reduce costs, and improve the standard of living. Local leaders agree that’s already happening (if slowly) on the issue of Rogers Road remediation, and Chapel Hill Mayor Kleinschmidt says he’s confident it will also happen on the issue of solid waste: “I think we’re going to come together with a solution,” he says, “(and in) four, five, six years, we’re going to have a site for a transfer station that we’re all going to use.” (Kleinschmidt says there are several attractive candidates for that site in the northern part of Chapel Hill, including one off Millhouse Road.)
It’s also happening on the question of economic development, where UNC is actively partnering with the towns and county on projects ranging from the LAUNCH entrepreneurial incubator to the redevelopment of 123 West Franklin, the former University Square – though Chancellor Folt says little is happening right now when it comes to Carolina North. (“We’re really not having any active plans there right now,” she says. “It’s really not at the top of the list.”)
In the end, though, while local leaders seem to agree that municipal partnerships have been stronger, there’s also a shared commitment to strengthening them in the months and years to come.
“How we should go forward is together,” says Jacobs.
Folt, Jacobs, Kleinschmidt, Lavelle, and Stevens made those comments during the “Town and Gown” panel of WCHL’s 2014 Community Forum; they were joined on the panel by outgoing UNC student body president Christy Lambden.http://chapelboro.com/news/2014-community-forum/costs-partnerships-people-want-live/
CARRBORO – The Town of Carrboro is working on a long-term plan to make affordable housing more available to residents.
While discussing options for creating and funding affordable housing in Carrboro, Alderperson Jacquelyn Gist reminded her colleagues that affordability isn’t just about low mortgage payments.
“We’re not talking just affordable to buy, but affordable to stay in and maintain, and I think we need to be really cognizant of that.”
Her remarks came during a Board of Aldermen work session Tuesday night that included about a half hour of brainstorming, as Aldermen reviewed goals for affordable home ownership and rentals.
The main goal is for 15 percent of housing in Carrboro to be in the affordable range by 2020. The town has an Affordable Housing Task Force working on it, and there’s still a lot of fleshing out to do before there’s a final plan.
Alderperson Damon Seils said he likes the idea of re-developing the Jones Ferry Road corridor, which is already home to a lot of affordable housing. He said it’s also attractive to developers.
Mayor Lydia Lavelle offered this idea:
“We’ve talked about exploring other ways to come up with affordable housing, like reaching out to landowners of older housing in Carrboro and incentivizing them in some way.”
And Gist inquired about the desirability of manufactured housing in Carrboro:
“It’s affordable, it’s very nice, and it’s verboten around here. I just wonder if we want to look again at easing our rules on manufactured housing.”
A lot of ideas and incentives were offered for discussion, but as Alderperson Sammy Slade pointed out, no plan for affordable housing will become reality without some money behind it.
“In talking with the manager, one possibility – just exploring and brainstorming – was to have a bond referendum so we’d have the money up front,” said Slade. “But we could allocate a penny tax that could, over time, pay that off, and become a constant revenue stream after we pay it off, too.”
Gist wasn’t on board with the idea of raising taxes.
“There are many members of our community for whom the tax rate is making living here unaffordable,” said Gist. “And they tend to be our older residents, people who have been here a long time, people who have owned their houses for a long time.”
Slade answered that he shared those concerns, but at a time when both federal and state government are cutting back on subsidies for affordable housing, finding the money for it locally is tricky.
The Affordable Housing Task Force meets one more time before the next work session of the Board of Aldermen. The plan is to have some real strategies worked out before the summer break.http://chapelboro.com/news/local-government/carrboro-board-aldermen-getting-closer-affordable-housing-plan/
More than 100 people came out for Monday’s public hearing on the Ephesus-Fordham redevelopment plan and nearly a third of the crowd shared their thoughts with the Chapel Hill Town Council.
Brett Bushnell was one of fifteen to speak in favor of the plan to spend $10 million on road and infrastructure improvements in the area.
“The Ephesus-Fordham plan has the ability to fix the broken infrastructure in this area. The road network in this area is extremely dated and not functioning well,” said Bushnell. “It should also reduce the need to drive to Durham, Chatham or even Wake County for shopping, dining and working. It will broaden the tax base and take the burden off of residential property owners.”
The project would reconfigure the intersection of Ephesus Church Road and Fordham Boulevard, extend Elliot Road and create new mixed-use zones to allow three to seven stories of commercial and residential development on 190 acres in a bid to spur economic development.
But opponents worry the proposed new zoning tool known as form-based code will take public input and Council control out of the approval process.
“Once the form-based code is passed, you’ve lost control,” Bruce Henschel told the Council. “You might assume developers won’t build 190 acres of seven story buildings and parking lots cheek-by-jowl, but the code would allow them to do it. You couldn’t stop them as long as they met everything on the checklist.”
Using form-based code, the Council will set parameters for development including building height, setbacks and parking guidelines for each zone, but once these are in place, individual developers will not need to bring their projects before the council if they meet the established criteria.
This kind of zoning and approval process would be new to Chapel Hill. Supporters and critics alike raised questions on Monday about how the zoning would work. In the three hour discussion that followed, Council members tried to address some of the limitations of form-based code, including the town’s inability to mandate affordable housing.
The Council is looking to partner with a nonprofit to build low-income housing on town land in the Ephesus Road area, but beyond that, Council members say there’s little incentive for developers to provide workforce housing.
The Council also received a cost benefit analysis of the project by Business Management Director Ken Pennoyer. He offered two scenarios. In the more fiscally conservative estimate, the project would cost about $26.4 million and the town would likely break even after 20 years. But if Orange County leaders agree to pledge a portion of the additional revenue the project is expected to generate, Pennoyer said the project would bring in $46.9 million dollars for the town over the next two decades.
“Obviously their participation helps our financial numbers and therefore makes the project more viable,” said Pennoyer. “If the project isn’t viable and doesn’t go forward, then [Orange County] doesn’t benefit at all.”
The Council will discuss the funding partnership with Orange County Commissioners at a joint meeting on Thursday. The Ephesus-Fordham plan will come back before the council for a vote in mid-April.http://chapelboro.com/news/local-government/council-residents-wrangle-ephesus-fordham-questions/