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Policy Update 2-23-23

NCHC Updates

Thank you to organizations that supported the letter we put together addressing the importance of NCHFA’s enabling statute. Through the last two legislative sessions – we had concerns about language added to the 2021 appropriations bill that would have critically interfered with the NCHFA’s ability to effectively finance affordable housing real estate development. There were several elements but the proposal was to move it under the state budget act which means it would be subject to all the same requirements and procedural steps as other state agencies. However, one of the core things that allows our NCHFA to operate as effectively as it does, is the fact that they are not under the state budget act currently. 

Last week, we visited the General Assembly, discussing county profiles and our policy agenda, as well as hand delivering the NCHFA letter to House Leadership members. We will continue to provide more details on this as we move throughout this legislative session.

Save the date for our Legislative Week of Action March 13-17! 

Bringing It Home conference registration opens on February 27! Join us on May 2 – 3 for the 2023 Bringing It Home: Ending Homelessness in NC virtual conference, featuring Ann Oliva, CEO of the National Alliance to End Homelessness and NCDHHS Secretary Kody Kinsley. 

This year’s conference will also include a panel discussion with the NC Balance of State CoC Lived Expertise Advisory Council, a virtual speed networking session, a mindfulness session, and a variety of interactive workshops.

NCHFA Staff – Policy & Research Analyst Annie Baumann-Mitchell will be speaking on the 2/28 Housing Call about the SHARP program:

Supportive Housing American Rescue Plan Program – SHARP
Notice of Funds Available
Issued February 13, 2023

The North Carolina Housing Finance Agency is pleased to announce the availability of funding for our Supportive Housing American Rescue Plan (SHARP) Program. The SHARP Program utilizes HOME-American Rescue Plan (HOME-ARP) funds to assist people experiencing homelessness, those at risk of becoming homeless, and other vulnerable populations. The SHARP Program Guidelines, Program Description and Site Visit Request form and additional application information can be found on the Agency’s website.

All Projects and Sites must be approved by the Agency (even if previously approved for SHDP) before a full application can be submitted.

    • A Program Description and Site Visit Request Form, available on our website, must be submitted by Wednesday, May 31st, 2023.  
    • The deadline for submission of the Full Application (Part 1 and Part 2) is: 5:00 PM on Friday, July 21, 2023.
    • All SHARP full applications will be submitted via the Supportive Housing Development Application Portal. Applicants with approved projects and sites will receive instructions on accessing the portal.

Qualifying Populations:

SHARP financing is available to developments serving all of the qualifying populations:

    1. “Homeless” as defined by 24 CFR 91.5 Homeless (1), (2) or (3)
    2. At Risk of Homelessness as defined by 24 CFR 91.5.
    3. Fleeing or attempting to flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking.
    4. Other Households with High Risk of Housing Instability and At-Risk of Homelessness.

Detailed definitions of the qualifying populations can be found in HUD’s CPD-21-20: Requirements for the Use of Funds in the HOME-ARP Program.

The following activities are permitted under the SHARP Program:

Rental Housing:
SHARP funds may be used for acquisition, rehabilitation or new construction of rental housing. SHARP rental projects may be eligible to apply for a capitalized operating cost assistance reserve. Maximum funding amounts are based on project location. Additional details can be found in the SHARP Program Guidelines.

Non-Congregate Shelters:
SHARP funds may be used for acquisition, rehabilitation or new construction of non-congregate shelters. SHARP non-congregate shelter projects located in geographies listed as NCS Project Ineligible in Appendix D of the SHARP Program Guidelines are not eligible to apply.

If you have questions, please contact SHDevelopment@nchfa.com  Thank you for your interest in the Supportive Housing American Rescue Plan Program.

Federal Updates

US Sec. of the Treasury Janet Yellen Encourages Using ARPA Funds for Housing.
Sec. Yellen spoke at the National Association of Counties 2023 Legislative Conference, where she urged counties to focus ARPA funding on workforce development and affordable housing. She spoke about Treasury’s decision in August 2022 to allow State and Local Fiscal Recovery Funds to be used for long-term LIHTC loans, and highlighted a 278-unit affordable housing development in New Hanover County as an example of a project that benefited from this decision. 

President Biden & DC Mayor Bowser Criticized for Clearing DC’s Largest Homeless Encampment.
The National Park Service cleared DC’s largest homeless encampment in McPherson Square. An article over the weekend in the Washington Post indicates that two-thirds of those forced to leave McPherson Square remain unsheltered. President Biden and DC Mayor Muriel Bowser are being criticized in light of the Biden administration defying their own recommendations from the recently released Federal Strategic Plan to End Homelessness.

HUD Funding Awards 

Healthy Homes Production Grant Program. HUD announced over $38M in funding. Wilmington is one of 23 municipalities and organizations nationwide that received funding. HUD awarded Wilmington a $1.5M grant, which the city will leverage with a 25% match, to complete 100 Healthy Home assessments, interventions, and trainings. 

Capital Fund Program. On Friday, HUD also announced over $3B in capital investments for public housing authorities across the country. HUD’s Capital Fund Program provides funding each year to public housing authorities to build, renovate, and modernize the public housing in their communities. NC PHAs received a combined $82M. 

HUD Announces Resources to Advance VAWA Protections. Resources include a new Violence Against Women Act  (VAWA) website, a Notice that establishes HUD’s enforcement authority under VAWA, and $5M in funding to provide training and technical assistance to HUD grantees. 

State Updates

State Budget Update
Our primary focus at the moment is the state budget. The House has indicated that they would like to have a budget out by Easter. Now is the time to reach out to your elected official with any appropriations asks! The Coalition is actively talking with appropriators about:

  1. Funding the Workforce Housing Loan Program funded at $30M and making it a recurring appropriation;
  2. Funding the Housing Trust Fund at $50M with a dedicated revenue source;
  3. Remaining American Rescue Plan funds, CDBG, and a few other smaller items. 

Carolina Forward blog advocates for housing bill this session similar to 2021-22’s SB 349
The blog suggests legislation similar to bipartisan bill SB 34 (“Increase Housing Opportunities”) that was introduced in the 2021-22 session. That  bill sought to increase housing density through the creation of missing middle housing like ADUs, duplexes, and triplexes. While it never made it out of committee, one of its sponsors, NC Republican senator Paul Newton of Cabarrus County, holds a leadership position within the Republican caucus and has indicated that he intends to refile the bill this session.

The Senate Judiciary Committee recommends SB 53, the hotel bill.
The measure is similar to HB 352, which Gov. Cooper vetoed in 2021. The bill drastically changes the way people living in hotels, motels, RV parks, and campgrounds are treated, especially when it comes to evictions. It denies people who have been living at a hotel, motel, RV park, or campground for less than 90 days of tenant protections that have been in place for over 30 years. The Coalition is opposed to this legislation as we were in 2021. Check out NC Policy Watch’s story on the bill. 

Other housing & property tax-related bills filed this session:

  • Expand Disabled Veteran Property Tax Exclusion (House Bill 37): Expands disabled veteran circuit breaker with hold harmless for municipalities
  • Expand Circuit Breaker Property Tax Benefit (Senate Bill 92):  Expands circuit breaker to everyone who meets income eligibility regardless of age or disability. Doesn’t address local revenues
  • Elderly Prop. Tax Appreciation Exclusion (House Bill 105) : Looks at increased appreciation exclusion, includes a deferral; has 4 House Republican sponsors 
  • Home Ownership Market Manipulation (House Bill 114):  Limits corporate landlords to 100 single family rental homes in an urban county.

Local Updates

Asheville Habitat for Humanity advocates for Source of Income Protections.
The organization would like to see these protections added to Asheville and Buncombe County’s nondiscrimination ordinances. Last year, Winston-Salem, Raleigh, Charlotte, and Mecklenburg County became the first municipalities in NC to adopt source of income protections policies that pertain to publicly funded developments. As part of our 2023 policy agenda, the Coalition advocates for statewide protections against source of income discrimination in publicly funded developments. 

Organizational partnership expected to bring additional  affordable housing to Asheville.
First Baptist Church of Asheville and YMCA of Western NC are partnering on plans to build affordable housing, a new YMCA building, and greenspace on a combined 10 acres of land. If the project is approved by City Council, construction could begin in late 2024.  

CASA completes Chapel Hill-Carrboro tax credit development.
On February 3, CASA celebrated the completion of construction at Perry Place, a tax credit development situated on the line between Chapel HIll and Carrboro. The development is the first tax credit property for both the Town of Carrboro and CASA. The community contains 48 1-and 2-bedroom units. Applications opened in December and are still being accepted. 

Durham to use ARPA funds for affordable housing.
At  recent Durham City Council meeting, Deputy City Manager Bertha Johnson presented to City Council plans to use ARPA funds to help finance 4 affordable housing developments. The suggested allocation would provide: 

  • The Dearborn Family development: $6.5 million
  • East Geer St. Residential:  $5 million
  • Sandy Ridge Villas: $4 million 
  • 902 South Briggs Avenue: $5.4 million

Council members seemed to be in unanimous support of the proposed use of funds but will need to formally approve the projects at an upcoming council meeting. 

Walltown community advocates for affordable housing at former Northgate Mall.
The historically black Walltown community continues to advocate for the creation of affordable housing at the site of the former Northgate Mall. At a recent meeting, Walltown Community Association members advocated for the creation of 11 acres of affordable housing on the site to offset rising housing costs in the neighborhood. The developer, Northwood Investors, has scrapped early concept plans to include a small affordable housing component to the development and, as of now, plans to build laboratory and retail space and a small park. 

Redfin ranks Raleigh the fastest growing rental market in January 2023.
In Raleigh, rents increased 22% from January 2022 to January 2023. Nationally, year-over rents increased by about 2%.

Raleigh funds housing, homelessness prevention, and eviction diversion.
City Council allocated over $4M to the following organizations: 

  • $1.86M to Rebuilding Together of the Triangle for the Raleigh Home Revitalization Program that provides zero-interest, forgivable loans to longtime homeowners for repairs and maintenance
  • $1.5M to CASA for 100 affordable apartments, including 50 for permanent supportive housing
  • The purchase and lease of land for a 119-unit affordable housing development south of the Beltline
  • Two quarter-million contracts to Triangle Family Services and Passage Home for emergency rent assistance, housing case management, and housing navigation for people experiencing homelessness
  • $50K for the newly created Wake Legal Support Center, which assists with evictions and landlord/tenant disputes, in addition to other small claims and domestic issues. 

City of Washington rezones land for workforce housing. City Council voted to rezone over 7 acres to residential multifamily for tax credit developer Mills Construction to build 60 workforce housing apartments. In Beaufort County, Census data shows that over half of renters spend more than 30% of their income on rent.  

Tax credit development breaks ground in Beaufort.  In Carteret County, developers broke ground on a 48-unit LIHTC development in Beaufort. This project is in addition to 300 units of affordable housing that the town approved In October through a public-private partnership with the Beaufort Housing Authority and WinnCompanies.  

Events

  • [in-person] Housing Policy Forum 2023 | NLIHC, 3/21-3/23 in Washington, D.C. 
    • Features discussions with Congresswoman Pramila Jayapal (D-WA), chair of the Congressional Progressive Caucus, FHFA Director Sandra Thompson, Treasury Deputy Secretary Wally Adeyemo, Matthew Desmond, and NC’s own Rev. Dr. William Barber II. 

Reports & Resources

The City of Greensboro released an infographic that highlights how changes in zoning affect opportunities for housing.  Combining 2021 and 2022 numbers, there have been about 10,795 potential housing units approved through rezoning or annexation in the past two years.

118th Congress Begins with New Committee Membership on House and Senate Committees That Focus on Affordable Housing, Community Development | Novogradac

The Impact of the Low-Income Housing Tax Credit in North Carolina | NCHFA

Equity in Zoning Policy Guide | Enterprise Community Partners

Advancing the Promise of Shared Equity Housing Models | NeighborWorks

In the News

The Political Beat: Bringing affordable housing to Charlotte | WSOC TV

Jimmy Carter’s legacy on North Carolina affordable housing | FOX8 WGHP

Evictions in Triad could hit pre-pandemic levels, housing advocates say | FOX8 WGHP

The Eta Chapter of Phi Beta Sigma still fighting for the homeless decades after their first initiative | NC A&T Register

First 3D printing housing development in NC blueprint for sustainability, affordability | WRAL

Kitty Hawk looks at drafted land use plan; update affordable housing hot topic | The Coastland Times

The U.S. needs more affordable housing – where to put it is a bigger battle | NPR

There’s a push to change zoning laws to create more affordable housing | NPR

White House outlines plan to address nation’s soaring rent prices and protect tenants | PBS NewsHour

When it’s easy to be a landlord, no one wants to sell | The New York Times

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