AGENDA DATE: 9/18/2024
TITLE:
Title
FY 2024 Pathways to Removing Obstacles to Housing (PRO Housing) Grant
BODY
SUBJECT/PROPOSAL/REQUEST: Public hearing to receive comments on an application for the federal FY 2024 PRO Housing Round 2 grant program.
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Curfman, Dimock, Pethia
PRESENTER (S): Stacy Pethia
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: In April 2019, the Thomas Jefferson Planning District Commission (TJPDC) released the Comprehensive Regional Housing Study and Needs Analysis. The report identified an affordable housing gap of 10,070 units through the year 2040.
On July 7, 2021, the Board of Supervisors approved Housing Albemarle, the County’s new housing policy, which recommends utilizing county-owned property for affordable housing construction (Strategy 1a.)
On August 13, 2024, the U.S. Department of Housing and Urban Development (HUD) issued a Notice of Funding Opportunity for the FY 2024 Pathways to Removing Obstacles to Housing (PRO Housing) Round 2 grant program. The grant funding can be used for a variety of activities that directly support the County’s efforts to increase affordable housing opportunities for low- and moderate-income households.
STRATEGIC PLAN: Quality of Life: Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: Under the FY 2024 PRO Housing Round 2 grant program, HUD is making available $100 million in funds to support programs and activities that identify and remove barriers to affordable housing production and preservation. Applicants may request up to $7 million in grant funding, and grantees may use awards to further develop, evaluate, and implement housing policy or plans, improve housing strategies, and facilitate affordable housing production and preservation.
Staff is proposing the County submit an application requesting $6.5 million to support the development and implementation of the following programs:
Affordable Rental Housing Revolving Loan Fund (ARHRLF) - $5,000,000
The revolving loan fund would provide loans of up to $50,000 per unit to developers to support the construction or preservation of affordable rental housing units. Loans would be provided as zero- interest loans to nonprofit developers, and one (1) percent simple interest loans to for-profit developers. Applications for loan funds would be accepted at least annually, based on available funds. ARHRLF funds may be used for new construction, as well as rehabilitation, site acquisition, infrastructure, acquisition, and pre-development activities. Units supported by the ARHRLF must provide at least twenty (20) percent of the units as housing which is affordable for households with incomes up to 60% of area median income, for a period of at least 30 years. All loan repayments and interest earned would be returned to the ARHRLF to support future affordable housing projects.
Small Landlord Fund (SLF) - $1,000,000
The SLF would provide financing to landlords who own ten (10) or fewer rental units in Albemarle County to support unit repairs or renovations. Loans of up to $20,000 per unit, or $100,000 per project, would be provided as one (1) percent simple interest loans, in exchange for the landlord agreeing to rent the units to Housing Choice Voucher program participants or households with incomes up to sixty (60) percent of area median income, for a period of fifteen (15) years. All loan repayments and interest earned must be returned to the SLF to support future landlords.
Affordable Multifamily Rental Housing Development - $435,000
The application also includes $435,000 to support the construction of an affordable multifamily rental housing project. Grant funds would be used to secure a consultant to assess one county-owned property to determine the total number of units that could be constructed on that property, as well as infrastructure needs. Funds will also be used to help offset the cost of connecting the new units to public water and sewer.
Grant administration - $65,000
The remainder of requested funds ($65,000) would support the staff required to administer the grant during the six-year grant reporting period.
PRO Housing grants are being awarded through a competitive process using the Community Development Block Grant (CDBG) statutory and regulatory framework, which requires a public hearing to receive community feedback on the proposed activities. Albemarle County Office of Housing is actively seeking public comments on the proposed grant activities through 5 PM Wednesday, September 25, 2024. A copy of the draft grant application (Attachment A) is available on the Office of Housing web page, and comments can be submitted via email to ADU@albemarle.org.
BUDGET IMPACT: If awarded this grant, the County would receive $65,000 to administer it. The balance of grant funds would support the revolving loan funds, and consultancy services. If awarded this grant, the Board would be asked to appropriate the funding received.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment B) approving the County’s submission of the PRO Housing grant application, and authorizing the County Executive to execute the application package, as well as any supporting or related contracts or documents required to obtain this grant, once such package, contracts, and/or documents have been approved as to form and substance by the County Attorney, and to take any further action required for this application.
ATTACHMENTS:
A - Draft PRO Housing grant application
B - Resolution