Affordable housing allotments cut in half

Expected cuts to a federal program for affordable housing have led local nonprofit organizations to look for funding elsewhere.

On Monday night, the Chapel Hill Town Council held a public hearing on the potential impact of a 48 percent anticipated cut to federal funding for affordable housing in fiscal year 2012-2013.

In 1992, Chapel Hill, Carrboro, Hillsborough and Orange County formed the Orange County HOME Consortium to provide housing to low-income families.

This year the consortium expects to receive approximately $383,485 from the federal HOME program.

Combined with required local matching funds and program income from repayment of loans, the consortium will likely have $504,031 to distribute.

These proposed funds will go to nonprofit organizations, such as Habitat for Humanity, Community Home Trust and EmPOWERment, Inc.

Loryn Clark, town neighborhood and community services manager, said the cut will have a significant impact on their ability to provide affordable housing in Orange County.

“Funding for programs like this is difficult to come by,” she said. “This will force the community to be creative and identify other sources to fill the need.”

Susan Levy, the executive director of Habitat for Humanity in Orange County, said they typically rely heavily on HOME funds.

“We are looking at additional ways to raise money,” she said. “We might borrow funds, but we don’t like to do that.”

This year Habitat for Humanity only requested $75,000 in anticipation of budget cuts, less than they needed.

Planners recommended that the group receive $146,591 from HOME — still less than the $175,000 they received last year. Because they plan to build an affordable homes subdivision in Efland, Levy said that still won’t cover expenses.

“We do have a diversified base of funds, so we’re not going to let this pull us down,” Levy said.

The Community Home Trust, which helps lower-income home buyers, is also set to receive more HOME funds than it requested.

But the $191,591 proposed for the organization is about $24,000 less than they received last year.

Robert Dowling, Community Home Trust’s director, said he worries federal funding might shrink even as need grows.

“The housing market has been in rough straits for the past three years,” he said. “There needs to be more local money for affordable housing, because clearly federal funding might disappear.”

Chris Moran, executive director of the Inter-faith Council for Social Service, applied for $75,000 but didn’t receive funds.

“It was expected, because we already have $500,000 set aside for our community house project,” Moran said.

Planners will incorporate Monday’s feedback and Town Council members will receive final recommendations on how the funds will be used on April 30.

Contact the City Editor

at city@dailytarheel.com.