AGENDA DATE: 10/18/2023
TITLE:
Title
Pathways to Removing Obstacles to Housing (PRO Housing) Grant Application
BODY
SUBJECT/PROPOSAL/REQUEST: Conduct a public hearing to review and collect public input on the County’s draft application for the PRO Housing grant.
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Dimock, Rosenberg, Herrick, Pethia
PRESENTER (S): Stacy Pethia, Assistant Director of Housing
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 the need for an additional 10,070 affordable housing units in Albemarle County by the year 2040.
On July 7, 2021, the Board of Supervisors approved Housing Albemarle, the County’s new housing policy, but delayed implementation of the following elements until a package of developer incentives to support the construction of affordable housing was approved and implemented :
1) the increased percentage of affordable housing units in residential developments subject to rezonings or special use permits;
2) the increase in compliance periods for affordable housing units; and
3) the new price levels for both affordable for-sale and for-rent units.
On September 7, 2023, the U.S. Department of Housing and Urban Development (HUD) issued a Notice of Funding Opportunity for the Pathways to Removing Obstacles to Housing ( PRO Housing) grant program. The grant funding can be used for a variety of activities that directly support the County’s efforts to develop a developer incentive program.
STRATEGIC PLAN: Quality of life - Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: Under the PRO Housing grant program, HUD is making available $85 million in funds to support programs and activities that identify and remove barriers to affordable housing production and preservation. Applicants may request up to $10 million in grant funding, and grantees may use awards to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation.
Staff is proposing the County submit an application requesting $6,322,642 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 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 20 percent of the units as affordable housing, as defined by Housing Albemarle, for a period of at least 30 years.
Small Landlord Fund (SLF) - $1,000,000
The SLF would provide financing to landlords who need to make repairs to ten (10) or fewer rental units in Albemarle County. Loans of up to $20,000 per unit, or $100,000 per project, would be provided as 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 60 percent of area median income, for a period of 15 years.
Part-time Housing Quality Standards Inspector - $162,009
The application also would include $162,009 to support the addition of a four-year, part-time Housing Quality Standards (HQS) Inspector to the Office of Housing. The temporary position would support the SLF program by providing HQS inspection services for repaired units to ensure those units meet the unit standard requirements under the Housing Choice Voucher program.
The remainder of requested funds ($160,633) would support the staff required to administer the grant during the four-year 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.
BUDGET IMPACT: If awarded this grant, the County would receive $160,633 to administer it. The balance of grant funds would support the revolving loan funds, and one temporary half-time position to perform unit inspections. 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 A) 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 - Resolution