DRAFT

FY2009 Community Development Block Grant

Annual Action Plan

Town of Cary

North Carolina

Community Development Block Grant

FY 2008 – 2009 Annual Action Plan

Table of Contents

Executive Summary

Town of Cary Geographic Distribution

I.                Town of Cary FY09 Annual Action Plan

Purpose

           Background

           Overview

Resources

Table 1: Community Development Resources

II.        Citizen Participation

III.        CDBG Funded Activities

Affordable Housing Production and Housing Rehabilitation

           Supportive Housing/Public Facilities

Administration

           Reserves

IV.       Town of Cary Funded Activities

           Nonprofit Support/Public Services

           Affordable Housing Fund Carry-over

           Neighborhood Improvement Grants

           Administration

V.        Homeless Programs

VI.       Public Housing

VII.      Fair Housing

           Actions to Affirmatively Further Fair Housing

VIII.     Monitoring Plan

Appendix A:   Citizen Participation

Appendix B:   Certifications

FY2009 CDBG Annual Action Plan

Executive Summary

The Town of Cary was first designated by the U.S. Department of Housing and Urban Development as an Entitlement Community on July 1, 2004.  As a Community Development Block Grant (CDBG) Entitlement Community, the Town of Cary prepared and adopted a five-year Consolidated Housing and Community Development Plan for Fiscal Years 2005 – 2009. This Consolidated Plan describes the Town’s housing and community development needs and priorities as they relate to the CDBG Program under Title I of the Housing and Community Development Act of 1974.  The Annual Action Plan, in turn, assesses and identifies various projects for the use of CDBG funds and other resources in meeting those needs.  The FY 2009 Action Plan is the fifth and final plan under our current Consolidated Plan.  During FY 2009 the Town will undertake planning studies for a future Consolidated Plan

The primary objective of the CDBG Program is the development of viable urban communities through the provision of decent housing, a suitable living environment, and the expansion of economic opportunities, principally for persons of low- and moderate-incomes. CDBG funds can only be used in compliance with the national objectives of the program.  The Town’s FY2009 Annual Action Plan identifies activities and project which will benefit the community in the areas of housing rehabilitation and affordable housing development, community facilities, public infrastructure, public services, economic development, planning, and administration.

In developing the Annual Action Plan, the Town of Cary solicited citizen participation in an effort to encourage input and provide critical feedback in this process.  The citizen participation process also recognizes that the Town’s internal staff plays a significant role in identifying needs within the town-wide CDBG service area.  Capital projects such as sidewalks, sewer, water and flood drainage, recreational facilities and street repairs are identified and prioritized in conjunction with other eligible CDBG activities. The Town facilitated two public forums and one public hearing to allow citizens an opportunity to discuss, review and comment on the Annual Action Plan. The public forums were held in the community after work hours and citizens from across the service-area were encouraged to attend, especially nonprofits, civic organizations and Hispanic residents.  In compliance with the Citizen Participation Plan, a Spanish interpreter assisted with the meetings for those who were non-English speaking. Overall, a total of 25 citizens participated in the process.  Their comments ranged from addressing the availability of bilingual staff to assist them with questions and concerns about recreational programs to housing rehabilitation of mobile homes and single-family homes.

The estimated CDBG award for the Town of Cary for FY2009 is $450,746.  In addition, the Town intends to re-program $50,000 in CDBG funds from FY2008.

The production and preservation of safe, decent and affordable housing is the principal focus of both the Town’s Five Year Consolidated Plan and the Annual Action Plan. Approximately fifteen (15) owner-occupied homes are slated for rehabilitation and 85 new affordable housing units will be built for occupancy by low- and moderate-income families.  The allocation from the Town’s General Fund for nonprofit support and public services totals $93,000, the Affordable Housing Program is $380,000, Housing Rehabilitation is $251,000, the Neighborhood Improvement Grant Program is $75,000 and program administration is $153,735.  With the utilization of both the CDBG and the Town’s General Funds which account for $1,453,481, the Town can continue to make a significant impact in providing available, accessible and sustainable housing and community development initiatives.

While the CDBG and General Fund reflect those resources within the control of the Town and are the primary focus of the Annual Action Plan, there are other community development collaborations that also provide direct benefit to the overall service-area.  The Town of Cary cooperatively participates with Wake County and surrounding municipalities in other federally funded programs which include the Wake County HOME Consortium, Wake County Continuum of Care, HOME Investment Partnership Grant, American Dream Downpayment Initiative (ADDI), Emergency Shelter Grant, Shelter Plus Care, and Housing Opportunities for Persons with AIDS (HOPWA).

For public services, the Town has allocated general funds that address several goals highlighted in the Consolidated Plan.  In the FY2009 Annual Action Plan, several nonprofits will receive support to provide public services to Cary residents. Those organizations include Big Brother/Big Sisters of the Triangle; the Carying Place, a homeless service provider; Interact, which provides shelter for homeless families and victims of domestic violence; the White Oak Foundation, an affordable housing group; Christian Community in Action; COPE Eldercare (Compassionate Options for Progressive Eldercare, Inc.), Life Experiences; the Women’s Center of Wake County; and the Center for Volunteer Caregiving.  Two new agencies receiving funding for the first time in FY 2009 are the Life Experiences, Inc and COPE Eldercare (Compassionate Options for Progressive Eldercare, Inc.).  Life Experiences, Inc. provides education, training, and the free enterprise system to create and operate businesses which support employment opportunities for adults with developmental disabilities, thus allowing them to function as independent, productive citizens of the Triangle.  COPE Eldercare (Compassionate Options for Progressive Eldercare, Inc.), is a Geriatric Care Management organization developed to provide elders and their families guidance and support as they encounter the challenges of aging.

While attaining the goals set forth in the Consolidated Plan and continuing the Town’s commitment to funding affordable housing is paramount, there is a rising cost of housing that continues to impede the availability and access to affordable housing within the Town of Cary. With the median price of a new house in the Town at $245,400, there is a high demand for available land and a limited supply of affordable housing stock.  Therefore, the Town’s efforts to preserve and create affordable housing opportunities for low- and moderate-income families will enable the community to become strategic in its use of CDBG and General Funds to benefit those who are most in need. 

In conclusion, the main objective of the Town of Cary’s FY2009 Annual Action Plan is to implement CDBG eligible activities that solidify the strategic vision of the Five Year Consolidated Housing and Community Development Plan.  As a HUD Entitlement Community, the Town will continue to strive to provide decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low- and moderate-incomes.

Geographic Distribution

For FY 2009 Annual Action Plan

The Town of Cary is located in Wake County, North Carolina. It began in 1750 as a settlement called Bradford’s Ordinary and evolved as a major transportation route over the next 100 years with the construction of the N.C. Railroad between the Cities of New Bern and Hillsborough.  Like many small towns, Cary had humble beginnings with a sawmill, general store and post office.  The Town was incorporated on April 6, 1871.

With the Town of Cary’s proximity to Raleigh, Durham and the Raleigh-Durham International Airport, its population dramatically increased with the development of the Research Triangle Park in the 1960’s.  Since the 1960’s, the Town’s population has doubled every decade. Currently, Cary has a population of 129,066 and the land area is comprised of 53.37 square miles. The median age is 33.7 years old with 82.2% of the population white, 8.1% Asian, 6.1% African American, 3.3% Hispanic and .3% considered other.

According to the U.S. Census, the Town’s home ownership rate is 70%.  The median value of all single-family owner-occupied homes is $245,400 (2006 data US Census). A significant portion of the Town’s housing was built between 1939 and 1979 (16.9%) and is in need of repair, especially those houses which may be occupied by elderly, disabled, minority and low- and moderate-income individuals and families. With the majority of the owner-occupied housing (58%) built after 1990, the housing stock is not relatively old.  However, older houses are concentrated within the Town Center Area Plan boundary (downtown Cary) where the majority of housing rehabilitation and new affordable housing initiatives have taken place. The Town’s FY2005-2009 Consolidated Housing and Community Development Plan outlines and justifies this area by means of the latest U.S. Census data and through Town survey and studies. 

The Town of Cary has a total of 42,888 housing units (as of 2006, in which 70% (29,148 units) are owner-occupied, 29.7% (12,314 units) are renter/tenant-occupied and 1,426 (3.3%) are considered vacant. The average cost of rent is $801 with over thirty-three percent of tenants paying more than 30 – 35% of their household income on housing. The median mortgage for single-family housing units is $1,702 (2006 data US Census).  The 2008 median income for the Raleigh-Cary MSA is $74,900.  Low- and moderate-income (LMI) residents are defined by HUD as those households who earn 80% or less of the area median income.  For the Town of Cary, these LMI limits range from $41,950 for a one-person household to $79,050 for an eight-person household.  This data supports the need to both preserve and create affordable housing in the Town of Cary.  The disparities among those paying over thirty percent of their household income for rent also justifies the apparent need to leverage Community Development Block Grant (CDBG) funds and other resources to assist in the availability and accessibility of affordable housing.

TOWN OF CARY

FISCAL YEAR 2009

ANNUAL ACTION PLAN

Purpose of Annual Action Plan

           The Annual Action Plan is a requirement of the Federal Department of Housing and Urban Development (HUD) as a condition of receiving funding under the Community Development Block Grant (CDBG) program. It sets out the activities and projects to be undertaken within the upcoming fiscal year to achieve the goals and objectives of the CDBG program. The Annual Action Plan also identifies the amount of funds to be spent on each project.  The Plan is a result of an extensive Citizen Participation process.  Citizens from the Town’s target neighborhoods, non-profit partners, internal departments and other stakeholders are consulted for ideas and suggestions of projects to be undertaken.

Background

           The Town of Cary was first designated by the Department of Housing and Urban Development as a CDBG Entitlement Community on July 1, 2004.  As a CDBG Entitlement Community the Town of Cary prepared and adopted a five-year Consolidated Housing and Community Development Plan for Fiscal Years 2005-2009, hereafter referred to as the Consolidated Plan.   The preparation of the five-year Consolidated Plan is a prerequisite for the Town to receive annual funding under the Community Development Block Grant program. 

Additionally, in each year covered by the Consolidated Plan, the Town must describe its annual funding priorities in an Annual Action Plan.  This Annual Action Plan for FY2009 describes the Town’s funding priorities for the period July 1, 2008 through June 30, 2009, or Year Five of the Town’s CDBG program.

Overview

           The Community Development Block Grant (CDBG) program is authorized under Title I of the Housing and Community Development Act of 1974, as amended.

           The primary objective of CDBG is the development of viable urban communities, by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate incomes.

           CDBG funds can only be used in compliance with the national objectives of the program. Participating communities must certify that the planned uses and expenditure of such funds shall be prioritized so as to give maximum benefit to one of the following three national objectives:

           1. Benefit to low and moderate income residents.

           2. Aid in the prevention of slums and blight.

           3. Address urgent needs.

           Low and moderate income residents (LMI) are defined by HUD as those households who earn 80% or less of the area median income. For the Town of Cary in 2008, these income limits range from $41,950 for a one-person household to $79,050 for an eight-person household to be considered low income.  For neighborhood areas to receive CDBG benefits, at least 51% of the households in that area or neighborhood must be of low or moderate income.

           In Cary, the neighborhood and areas that have been identified and targeted for CDBG funded projects are within the boundaries of the Town Center Area Plan (See attached map). These areas and neighborhoods are some of the oldest in the Town and are most in need of revitalization.  The Town’s FY2005-2009 Consolidated Housing and Community Development Plan outlines and justifies this area by means of the latest US Census data and by Town surveys and studies. 

Resources

The Town of Cary expects to receive $450,746 in CDBG funds for FY2009.  Additionally the Town intends to reprogram $50,000 in CDBG funds from the FY2008 program year to supplement this amount.  The Town of Cary has traditionally funded other affordable housing and community development activities along with most of the administration of the CDBG from its General Fund.  Funds budgeted for administration costs are proposed and awaiting Council approval of the FY2009 budget.  With these resources total funds available are as follows:

The Town of Cary also participates cooperatively with Wake County and other communities in other federal programs including the Wake County HOME Consortium and the Wake County Continuum of Care.  In these endeavors, the programs are administered by Wake County Department of Human Services and the projects selected for funding are contained in Wake County’s Annual Action Plan.  The programs administered by Wake County but which benefit Cary residents include the HOME Investment Partnership Grant (HOME), American Dream Down payment Initiative (ADDI), Emergency Shelter Grant (ESG), Shelter Plus Care, and Housing Opportunities for Persons with Aids (HOPWA).  

While the CDBG and General Fund resources reflected above represent those within the control of the Town and are thus the main focus of this plan, there are many other community development resources being utilized to meet the needs of the community.  The following matrix identifies other resources currently at work within the Town of Cary and the types of financing these resources provide.

TABLE ONE:  Community Development Resources Available to Cary

II. Citizen Participation

Each year the Town of Cary solicits citizen participation in developing the Annual Action Plan.  This year the Town, through its Department of Planning, continued its efforts to reach out to the community by advertising and holding community forums to encourage citizen input.  The Town begins its Citizen Participation Plan with an internal meeting of Town staff to identify infrastructure needs within the CDBG target  areas. This includes capital projects such as sidewalks, drainage, sewer, water, recreational facilities and street repairs.

Community meetings were then advertised and held in the target neighborhoods to maximize attendance by the residents.  A general public forum on community needs was held March 5, 2008 in the Town of Cary Planning Department, and a Latino-focused community meeting was held March 12, 2008 at the Annex Building of the White Plain United Methodist Church.  The March 12, 2008 community meeting was conducted with a Spanish interpreter.  Additionally, non-profit corporations who had previously submitted project applications or had otherwise expressed an interest in obtaining funds through the Town’s process were contacted personally.  A public notice advertising the public forums on March 5 and March 12, 2008 was published in the Cary News, a newspaper that is widely distributed throughout the Town.  Citizen comments were also received by electronic mail.  In total, over 25 citizens participated in the process.  A summary of the comments received may be found in Appendix A.

A committee comprised of staff from the Planning Department and the Town Manager’s office met on April 1, 2008 to review the non-profit funding proposals.  The proposals were ranked and recommendations for funding were forwarded to the Town Council. 

The Town held a public hearing on the FY2009 Annual Action Plan on April 24, 2008 in the Town Hall Council Chambers.   This hearing allowed citizens an additional opportunity to review and comment on the Town’s Annual Action Plan.  Following the public hearing the Town Council approved the Annual Action Plan for submission to HUD. Comments from the public hearing and staff recommendations were forwarded to the Town Council Operations Committee on April 30, 2008.  The Operations Committee forwarded its recommendation to the full Council on May 8, 2008 for adoption.

III.  CDBG Funded Activities

CDBG funds can be used for a wide range of activities, including housing rehabilitation, acquisition of land for affordable housing, economic development, public improvements and social services.  As indicated previously, the Town of Cary expects to receive $450,746 in CDBG funds beginning July 1, 2008 and intends to reprogram $50,000 from previous years funding.  For FY2009, the Town expects to expend the majority of its funds on the development of new affordable housing and the rehabilitation of existing housing.  The funds will be used to the Town’s Owner-Occupied Housing Rehabilitation program and an emergency repair program through Resources for Seniors.  The Town will also support the efforts of the Carying Place to replace six transitional housing units lost due to the acquisition and demolition of Westbrook Apartments for the Town Center Park.  In addition to these projects, funding will be provided to two non-profit sub-recipients not previously funded.  Christian Community in Action will be funded to assist them to acquire a former grocery store to serve as the future location of their thrift shop.  Proceeds for the thrift shop help fund programs for low income families.  In the area of public infrastructure, CDBG funds will be use to assist the White Oak Foundation in the area of utility extensions which will make possible the development of an affordable assisted living housing for seniors.  Finally a small portion is reserved for program administration and planning activities and expected cost overruns on previously approved activities.  Detailed descriptions of the projects follow:

Affordable Housing Production and Housing Rehabilitation

The production and preservation of safe, decent and affordable housing is the principal focus of both the Five-Year Consolidated Plan and this Action Plan.  Nearly fifty-two percent of CDBG funds are allocated for this purpose and four projects will be funded.  These projects include a Town-wide, owner-occupied housing rehabilitation program, an emergency repair program for seniors, and the provision of transitional housing. 

Owner-Occupied Housing Rehabilitation

The Town will continue its owner-occupied housing rehabilitation program by providing funding to homeowners to rehabilitate low and moderate income housing units.   Our rehabilitation program concentrates on owner occupied homes in need of repair to meet code requirements and to provide a clean and safe living environment for the occupants. Program funds will be utilized for rehabilitation expenses including construction costs and certain administrative costs for preparation of cost estimates, bids and monitoring of work.   Priority is given to homes located within the Town Center Area, but is available Town-wide to homeowners meeting the program guidelines and income limits.

Block Group:                                  Town-wide

Cost:                                               $60,000

Priority Need:                                 1

National Objectives:                       §570.208(a)(3) Housing Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Decent Housing

    Expected Outcome:                    Sustainability for the purpose of providing decent affordable housing. Rehabilitate approximately 3 homes for low and moderate income families.

Resources for Seniors Emergency Repair Program

Resources for Seniors is an established non-profit corporation which provides emergency repair services to senior homeowners.  Emergency repairs will be limited to $5000 per home and may include repairs to the roofing, flooring, HVAC, electrical and plumbing systems. Clients will be selected from applicants seeking assistance from Resources for Seniors and form referrals from Town of Cary staff     

Block Group:                                  Town-wide

Cost:                                               $30,000

Priority Need:                                 1

National Objectives:                       §570.208(a)(3) Housing Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Decent Housing

    Expected Outcome:                    Sustainability for the purpose of providing decent affordable housing. Rehabilitate approximately 8-10 homes for low and moderate income seniors.

The Carying Place Transitional Housing

The Carying Place, Inc. is a Cary-based non-profit corporation that provides transitional housing to formerly homeless families. During their stay in the transitional housing, the Carying Place provides these families with  life skills and other supportive services.  The Carying Place recently lost five of its units due to the acquisition and demolition of the Westbrook Apartments to make room for the Town Center Park.  This project will aid the Carying Place in replacing three of those units.  The Carying Place will enter into a partnership with a private landlord to dedicate three units for use in their program for a period of at least ten years.  CDBG funds will be used to allow the Carying Place to make repairs to the units and to buy down the rents from the established Fair Market Rent of $797/month to $500/month, the average rent affordable to persons in their program.

Block Group:                                  535.01 (Town Center Area)

Cost:                                               $30,000

Priority Need:                                 1

National Objectives:                       §570.208(a)(3) Housing Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Decent Housing

    Expected Outcome:                    Sustainability for the purpose of providing decent affordable housing. Secure three rental units for use as Transitional Housing for formerly homeless families.  Approximately nine (9) families will be transitionally housed per year.

The Carying Place Triplex Refinancing

The Carying Place, Inc. is a Cary-based non-profit corporation that provides transitional housing to formerly homeless families. In 2004 The Carying Place purchased a triplex located at 201 Urban Street with HUD funds with the requirement that at least one of the tenants have a disability.  The Carying Place has had difficulty in finding qualified families that meet this particular requirement.  The Carying Place will use $40,000 in CDBG funds and borrow additional funds from a bank to repay HUD and eliminate the disability requirement.  The Carying Place will then use this triplex in its normal program.  As indicated above the organization recently lost six of its units due to the acquisition and demolition of the Westbrook Apartments to make room for the Town Center Park.  This project will aid the Carying Place in replacing three of those units. 

Block Group:                                  535.01 (Town Center Area)

Cost:                                               $40,000

Priority Need:                                 1

National Objectives:                       §570.208(a)(3) Housing Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Decent Housing

    Expected Outcome:                    Sustainability for the purpose of providing decent affordable housing. Secure three rental units for use as Transitional Housing for formerly homeless families.  Approximately nine (9) families will be transitionally housed per year.

Rehabilitation of Non-Residential Structures

The rehabilitation of non-residential buildings within the low and moderate income neighborhoods of the Town Center Area is proposed.  One project has been identified involving the rehabilitation of a vacant shopping center for use as a non-profit center and community thrift shop to support the provision of public services.   

Christian Community in Action

The Town will provide $100,000 in FY 2009 to Christian Community in Action (CCA) towards the acquisition and renovation of vacant property known as the Cary Plaza located at 171 High House Road.  Once acquired the property will be used to as a one-stop non-profit service center for several Cary-based non-profits and would become the new location for CCA’s Dorcas Thrift Shop.  The Thrift shop provides funding for several CCA programs including Crisis Ministry, Job Link, Adult Literacy, Financial Literacy and on-site child care.  On an annual basis the center expects to benefit over 4,400 persons.

Block Group:                                  535.07

Cost:                                               $100,000

Priority Need:                                 2

National Objectives:                       §570.208(a)(2) Limited Clientele Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Public Services, Economic Development

    Expected Outcome:                    Improved delivery of services for over 4,400 persons annually. Reuse of vacant commercial property.

Public Infrastructure

Improvements to utilities to serve new affordable housing development for low and moderate income seniors are proposed. One project, totaling $100,000 or 22% of the CDBG grant will be carried out in FY 2009.

White Oak Foundation

The Town will assist the White Oak Foundation in paying for developer-required extensions of water and sewer lines to allow for the development of a future family and community center and assisted living senior affordable housing development.  This project is located off of the White Oak Church Road in western Cary. 

Block Group:                                  534.03

Cost:                                               $100,000

Priority Need:                                 1

National Objectives:                       §570.208(a)(3) Housing Activities

Target Date for Completion:           June 30, 2009

Performance Measurement and Management:

    Objective:                                   Decent Housing, Public Services

    Expected Outcome:                    Provide assisted care housing for 50-100 low income seniors with supportive services.

Administration

The Town of Cary plans to set aside $15,046 to administer the CDBG program for FY 2009.  Administrative expenses will cover support for the Wake County Continuum of Care, professional fees, advertising and staff training cost under CDBG.  The Town will also begin its planning for the next Consolidated Housing and Community Development Plan.  The current five year plan will expire with the 2009 fiscal year and staff plans to update both the Town’s Affordable Housing Plan and the Five-Year Consolidated Plan as part of the same planning efforts beginning in FY 2008. 

Reserves</