2nd Quarter FRC Report 2022-23

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FY 2022-2023 Annual Action Plan

Activities for Q2

Message from Director:

Fayetteville Redevelopment Commissioners, the second quarter of 2023 has been successful as your Economic and Community Development team continues to work at a high capacity. Staff was delayed slightly by learning better ways to comply with Federal Grant regulations and build capacity in our non-profit partners. The voters approved a $12M Housing Opportunity Bond, and staff has been busy learning the best ways to utilize those funds in our community. The below graphic shows the results of the 2021 Affordable Housing Study. While we have lots of work to do to build affordable rental options, we must also prioritize programs to aid in building our homeownership. This is why we launched the Homebuyer Assitance Program in July of this year and expanded our First Time Homebuyer Education Workshops.

Moving into the third quarter, the team will begin planning the budget for the next fiscal year. We are committed to funding non-profits to assist with our community's most significant issues. We are also still responding to and overseeing the largest amount of funding ever allocated to this Department. The Choice Planning Grant is wrapping up its two-year planning process, and the Transformation Plan for Murchison Road is due to the Department of Housing and Urban Development. The City and the Fayetteville Metropolitan Housing Authority are diligently working to create partnerships that will serve the Murchison Choice Neighborhood for years to come. Please view the plan and other interesting items at www.MurchisonChoice.com

Housing Program Highlights

Housing Rehabilitation

Substantial housing rehabilitation assistance through a low/no interest loan for low and moderate-income homeowners. This program is transitioning out in favor of Emergency Home Repair and New Affordable Housing Development.

 Two rehabilitation projects were completed in December 2022, in the final stage of contract completion and payment disbursement.

Single-Family Housing Development – CHDO

The City is required to set aside 15% of its HOME allocation for Community Housing Development Organizations (CHDO). The City has partnered with Fayetteville Area Habitat for Humanity to construct or rehabilitate affordable single-family homes.

 Contract preparation is in the process to begin construction of Maloney Avenue Phase I

Emergency Home Repair

Contracts with Fayetteville Urban Ministry (FUM) and Fayetteville Area Habitat for Humanity (FAHFH) to provide repairs that remedy substandard conditions and improve accessibility for the disabled.

 32 households received emergency repairs during the quarter, totaling 37 to date

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$271,657 $67,556 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% REHAB Available Expended $647,367 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHDO Available Expended $406,938 $556,606 $210,684 $61,015 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FUM FAHFH Available Expended

New Affordable Housing Construction

To increase the supply of affordable housing, The City allocates HOME and HOPWA funds annually. It has a one-time allocation of American Rescue Plan Funds (ARP), HOME – ARP, and State funding for multi-family rental and single-family housing construction.

 The Landing at Beaver Creek is 75% complete; 72-unit affordable apartments at 6115 Cliffdale Road; $720,000 expended of $800,000 prior year HOME fund allocation; the remaining $80,000 will be disbursed upon project completion, tentatively scheduled for March 2023.

 The Fayetteville City Council approved HOME funding for $683,968 to develop Cliffmore Park apartments, 72-unit affordable apartments for seniors, located at 5133 Identity Lane.

 The citizens of Fayetteville approved a $12M Housing opportunity Bond in the fall of 2022.

HOPWA Tenant-Based Rental Assistance (TBRA) & Support Services

TBRA provides a subsidy to eligible households in a unit of their choice and any needed support services. Short-term rent, mortgage, and utility (STRMU) assistance provides stabilization intervention to currently housing HOPWA-eligible households.

 Contract executed with Robeson Co. Health Dept. for the Dogwood Health Care Network to become Project Sponsor on behalf of the City for management of these activities

Fayetteville Metropolitan Housing Authority (FMHA) Homeownership

The City of Fayetteville will partner with the Fayetteville Metropolitan Housing Authority (FMHA) and qualified renters to help them become homeowners. At the end of the longterm process, each house will be converted from public to private ownership and added back to the tax roll.

 Program currently under development, $500,000 is budgeted for this activity

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$2,391,494 $200,000 $4,000,000 $720,000 $0 $0 $763,968 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HOME HOPWA ARPA Available Expended Committed $534,528 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HOPWA Available Expended

Homebuyer Assistance

Eligible low- and moderate-income first-time homebuyers may receive a subordinated loan of up to $20,000 to assist with the down payment or closing costs.

 Informational workshops were held for lenders and realtors to educate them about the new program

 Five applications were received and processed; one applicant qualified and eligible, scheduled to close in January 2023.

Homebuyer Education

First-time homebuyers can complete the HUD-approved, eight-hour homebuyer education course to ensure they are ready to acquire housing and sustain homeownership. Workshop topics include budgeting, credit repair, mortgage financing, and post-closing homeownership responsibilities.

 Homebuyer workshops facilitated by Kingdom CDC and held monthly at FTCC Center for Business & Industry building

 There were 50 participants served during the second quarter, totaling 109 participants served to date.

Good Neighbor Program

City of Fayetteville employees receives up to $30,000 in down payment and closing cost assistance to purchase their first home. They were designed to attract and retain employees while encouraging homeownership.

 Contract executed with Kingdom CDC to provide homebuyer education and counseling to the City of Fayetteville employees

 Staff presented the Good Neighbor Program to the Airport Department during their regular staff meeting. Approximately 30 employees were in attendance.

 Two employees have obtained a mortgage pre-qualification and started the home search process

 $450,000 budget

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$168,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HOME BUYER ASSIST. Available Expended $18,888 $5,905 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HOME BUYER EDUCATION Available Expended

Economic Development Program Highlights

Business Assistance Loan

Provides a loan that fills the gap in financing needs or down payment requirements to purchase a commercial property for the business to operate.

 One application was submitted during the quarter and has had no approvals thus far

 Staff assisted three other small businesses interested in applying for the program.

Commercial Exterior Improvement Grant

The matching grant program offers funding from $10,000 to $25,000, requiring a one-toone match to encourage exterior improvements of commercial properties in any of the city's qualified census tracts.

 This program will be amended to ensure compliance with Environmental Review Requirements and benchmarked against other cities in North Carolina.

 The program was not funded this year with CDBG funds due to the availability of ARPA funds

ARPA Small Business Relief Grant Program

The City Council approved American Rescue Plan Act (ARPA) funds to support small businesses that need pandemic recovery support. Funds can be used to offset financial hardships from the pandemic and to improve storefronts.

 Small Business Development/Retention Grants: 41 were approved during the quarter totaling 55 approval, with 14 occurring in the first quarter.

 Commercial Corridor Improvement Grants: 7 approved during the quarter totaling 25 approved. A total of 18 was reported during the first quarter.

 60 applications were received during the second quarter; 140 applications were received during the first quarter with 75 total approved applications totaling $2M; All funds have been allocated to small business owners in the community

 In October, applications were closed to evaluate demand and ensure the City did not overcommit funds.

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$254,451 $52,953 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SMALL BUSINESS ASSIST. Available Expended $0 $2,500,000 $500,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ARPA Available Expended Committed

ARPA Childcare Assistance Grant Program

City Council has partnered with the Partnership for Children to provide retention and recruitment bonuses to aid in staffing qualified childcare centers.

 $1M has been allocated for childcare assistance for development and retention bonuses in partnership with the Partnership for Children.

 The contract is being finalized

ARPA Workforce Development Programs

 Under Development in the Third Quarter:

Small Business Retention Grant – Covid19 Recovery

Grants up to $10,000 are available to eligible small businesses with unmet recovery needs due to the pandemic.

 Two applications were submitted during the quarter and to date.

 Approximately $9,000 CDBG-CV funds were available to grant to eligible businesses

Job Skills Training Sponsorship Grant

This program offers a sponsorship grant of up to $500 per eligible student in numerous areas of training at FTCC that can result in a new or improved employment opportunity.

 Twenty- two sponsorship grants approved, totaling 37 to date

ServiceSource

The Warrior Bridge Program provides employment assistance and job placement for veterans.

 Seventy-three veterans assisted with employment services; 13 received a job, 13 maintained their jobs; 102 veterans assisted to date, with 23 that received a job, and 29 held their positions

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$1,000,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ARPA Available Expended $13,284 $18,716 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ARPA Available Expended $10,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CDBG Available Expended

Business Counseling Services: CEED

The Center for Economic Empowerment and Development (CEED) provides direct support to entrepreneurs and small businesses that are starting or expanding a business

 Contracts have not been executed.

 Over $80,000 of CDBG funds and $35,353 from General Fund have been awarded.

Veterans Bridge Home

Connects veterans and provides employment support services

 Thirty-three veterans assisted during the second quarter, with 7 receiving a job and 8 maintaining their position, totaling 54 veterans helped to date; 17 received a job, and 18 maintained their jobs.

Cumberland Residential and Employment Training (CREST)

Employment services and training for those with developmental disabilities

 Sixteen people were served during the second quarter with 28 part-time job hours retained; 19 people served to date; two received employment, and one received on-the-job training during the first quarter

Fayetteville Metropolitan Housing Authority Empowerment Institute

FMHAs Empowerment Institute is a 12.5-week course in partnership with the City and others to launch a Job Skills Training/Pre-Apprenticeship Program

 The FMHA attorney is currently reviewing the contract.

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$10,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CDBG Available Expended $10,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CDBG Available Expended $25,000 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CDBG Available Expended

Golden Leaf Foundation

Golden LEAF funds economic development projects that focus on creating and retaining jobs, attracting new businesses to North Carolina, expanding industries, and training new workers.

 The City was approved for a $965,830 grant for the Fayetteville Regional Airport Sewer Improvement project during the prior program year; no funds have been expended.

 Staff consulted with PWC and decided to move forward with the current project

Economic Development Incentive Payments

The City offers incentives for developers that develop, operate, and maintain the approved project in accordance with the approved incentive agreement.

 HMM, Hospitality developed the Springhill Suites project at 4750 Lake Valley Dr. with a direct investment of $8,500,000 to create/maintain 30 jobs. They will receive the fifth and final incentive payment, estimated at $16,343, this program year. Payments began in 2019.

 Campbell Soup, at 2610 Clark West Road, was a $40M investment. Over 100 new jobs were verified in December 2021. Fourteen additional new jobs were expected in December 2022. The third of seven incentive payments will be received this program year, estimated at $154,118. They started receiving payments began in 2020

 Incentive payments are paid out during the third quarter.

Building Re-Use Grants

State grant for renovating or expanding a building occupied by an existing North Carolina company wishing to expand in its current location.

 ChenMed project at 4101 Raeford Rd was approved for a $300,000 Building Reuse grant that requires a $15,000 city match; 30 new jobs will be created.

 eClerx project at 325 McPherson Church Road is still active

 The Advanced Computer Learning Center project at 208 Hay St. is still active

 Showcase Restoration, Inc. project at 128 Drake St. will close next quarter

Downtown Management Contract

The Cool Spring Downtown District (CSDD) Inc. is a charitable, non-profit corporation formed to create and sustain an arts and entertainment district in downtown Fayetteville as a vibrant center of artistic, cultural, civic, and commercial activity.

 One new business opened during the quarter, totaling 12 to date; two relocated within the district; and five closed.

 Nine businesses are slated to open later this year

 Seventy-six events welcomed over 77,000 people downtown by the end of the second quarter.

 CSDD was awarded a one-time grant from Duke Energy to support the creation of a Micro-Grant Program to offer exterior grants from $500-$2,500. The program launched in October 2022 and is expected to assist up to 22 street-level businesses

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 Working alongside the Economic and Community Development Department, CSDD successfully lobbied for a Social District that provides an opportunityto ease open-container laws. The Social District went into effect on December 1, 2022, with over 20 participating businesses.

 The Downtown Ambassador Program is an expansion of the Concierge initiative started last year by the CSDD to assist with the homeless community, improve the cleanliness of downtown, and provide information and directions for downtown visitors

Fayetteville-Cumberland Economic Development Corporation (FCEDC)

The City and County have an inter-local agreement for conducting economic development activities and services through FCEDC, a non-profit corporation created by both parties.

 FCEDC facilitates business projects that increase employment in the community and provides direct support to local industry.

 They coordinate with ECD on potential building re-use projects or other available economic development incentives to recruit businesses

 The $115,000 General Fund contract has a remaining balance of $57,500.

Neighborhood Engagement Highlights

Beautification

This program fosters neighborhood pride by providing a grant for the erection of neighborhood signs, landscaping, and place-making to create quality places within the communities.

 Met with the citizens of the Landsdown II community to discuss the installation of a neighborhood sign; additional conversations ensued with other neighborhoods

 One sign was installed for the Kornbow community

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$110,000 $110,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MSD Available Expended $137,850 $2,150 98% 98% 99% 99% 100% 100% BEAUTIFICATION Available Expended

Community Safety Micro-Grant Program

This program is offered to community-based organizations to fund, inspire, and boost community crime reduction activities by supporting efforts to prevent crime and violence in Fayetteville. This is a "low barrier" grant program intended to allow community members to apply and access grant funding

 $50,000 has been allocated for the four grant cycles that began in May 2022 and lasted six months each.

 The second grant cycle launched this quarter; two pre-application workshops have been completed and received over 100 application submissions; $100,000+ was requested during this cycle, with the max allocated at $50,000; an additional $10,000 was made available to assist two additional applicants.

 24 Micro-grant participants were approved, and contracts were executed.

 Of the 31 grantees approved during the first cycle, 29 projects were completed

Partnership for Children

Funding will assist with public facility improvements at the Partnership for Children Family Resource Center.

 The Phase I Environmental Assessment was completed

 The project's architect is expected to submit the scope of work in February 2023

 $250,000 CDBG budget.

Community Resource Center

ARPA funds were allocated to fund a community resource center.

 The project is not scoped as of the date; and

 $1,000,000 has been allocated.

Blight Removal

This grant program is designed to encourage and assist with demolishing blighted and deteriorated structures beyond reasonable repair in low-income communities.

 Canvassed Bonnie Doone, Campbellton, 71st, Massey Hill, and Murchison Road areas to identify blighted/dangerous buildings. Staff viewed approximately 200 structures

 2021 Newark Ave was demolished in the Murchison Road Redevelopment Area.

 The annual goal of three demolitions was achieved during this quarter.

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$141,514 $19,639 80% 82% 84% 86% 88% 90% 92% 94% 96% 98% 100% BLIGHT REMOVAL Available Expended

Community Outreach

Activities that engage, educate, and market City services and programs targeting low- and moderate-income persons and areas of the community in need.

 Staff participated in fourteen outreach events, including Community Watch Meetings, Day of Service with Manna Church, volunteer opportunities at Fayetteville Urban Ministry, and the Stakeholder's meeting hosted by the Fayetteville Police Department, for a total of 15 outreach events to date.

 The division promoted departmental programs to approximately 150 citizens.

Water and Sewer Assessment Fee Assistance

This program provides grants for low- and moderate-income homeowners for fees up to $2,000 that are assessed when water and sewer are made available to a neighborhood, along with a $900 plumber hook-up fee.

 Program is being phased out and not promoted; until then Public Works Commission continues to provide citizens with an avenue for assistance.

 Three applications were prescreened for eligibility during the quarter, with one approved this program year.

Choice Neighborhood Initiative (CNI) Planning Grant

This competitive grant supports the development of comprehensive neighborhood revitalization plans to achieve three core goals: Housing, People, and Neighborhoods. The Murchison Choice Planning is in its second and final year

 ECD partnered with Fayetteville Metropolitan Housing Authority to host an informational community event at the Indian Housing Authority on Elliott Circle.

 The Neighborhood Engagement Team canvassed the neighborhood to announce the upcoming initiative.

 A second community outreach effort was hosted to engage with residents to complete demographic surveys and a needs assessment. Staff interacted with more than two-thirds of the neighborhood residents.

 The final community meeting was held on the campus of Fayetteville State University in December. A summary of the draft plan was presented to those in attendance

 Staff received estimates for agricultural materials to support the You, Me, and Us Community Garden, an Early Action Project

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$27,541 $43,048 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% COMMUNITY OUTREACH Available Expended $181,244 $18,756 84% 86% 88% 90% 92% 94% 96% 98% 100% WATER & SEWER Available Expended

 Vendors were selected for the Digital Equity Wi-Fi Project for the Murchison Townhomes

 An "Architectural and Engineering" contract was drafted for the firm to illustrate the final Murchison Choice Neighborhood Housing Project plans.

Homeless Program Highlights

Family Reunification and Direct Homeless Services

This program connects homeless people with their families by assisting with transportation to make that connection. Funds are also available to purchase blankets and other items for the homeless.

 This program was transferred during this quarter to a non-profit for administration.

 Cumberland HealthNET will administer Street Outreach services.

 One individual assisted during the quarter, totaling eight people assisted to date

 Fayetteville Area System of Transit (FAST) continues to offer free busing services to the public.

Connections of Cumberland County

This agency assists female-headed households with securing stable housing and case management services by supplementing their clients' rental or utility needs.

 A total of 407 female-headed households were provided homeless prevention and case management services during the second quarter. In the first quarter, 159 received assistance, for a total of 566.

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$324,726 $386,774 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHOICE Available Expended $2,916 $1,084 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HOMELESS SERVICES Available Expended $19,214 $10,786 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CONNECTIONS OF CC Available Expended

Salvation Army

The Pathway of Hope Emergency Shelter, managed by the Salvation Army, currently offers 54 beds and emergency shelters for single men and families with children.

 On average, 43 beds were used out of the 54 available during the quarter.

 A total of 8,060 meals were served, with 250 at Christmas and 225 at Thanksgiving

 Sixteen inclement weather/White Flag nights served 219 persons.

 $10,000 CDBG budget with no expenses during the quarter

Fayetteville Urban Ministry Emergency Assistance Program

This program provides food, clothing, case management, rapid re-housing, and homeless prevention services to those in need.

 Nine individuals were assisted during the second quarter, totaling 23 individuals helped to date.

Cumberland HealthNET

A collaborative network of community organizations primarily focuses on improving the health outcomes for the uninsured by linking them with medical and other needed health and community services.

 During a street outreach, 58 unique individuals were served, totaling 137 served to date.

 There were no reimbursement requests during thequarter; $30,000 CDBG budget.

Family Endeavors

Through Reveille Retreat, Endeavors provides supportive housing, case management, life skills training, employment development, educational assistance, and other supportive services to women with disabilities and their children experiencing chronic homelessness

 No reimbursements were received

 The CDBG budget is $10,000

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$4,506 $7,494 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FUM EAP Available Expended

Better Health

Provides for the unmet healthcare needs in Cumberland County through assistance, referral, and education

 Emergency direct assistance medical services were provided to 28 uninsured/underinsured low to extremely-low-income persons during the quarter, totaling 80 persons served to date.

Day Resource Center

Located at 128 S. King St. is the homeless resource center set to open in spring 2023. The center is intended to provide a place during the day for people experiencing homelessness and support services to help them in their next steps. It will also operate as a shelter during emergencies.

 Construction is underway and estimated to be substantially complete by June 2023.

 The City Council approved Cumberland HealthNET to operate the center.

 Project funds: NCORR Grant $4.99M; $1M SCIF Grant; and $1M ARPA

Re-Entry Services

The City contracts with the Mid-Carolina Council of Government to empower, support, and encourage individuals with past criminal records to reenter the community from incarceration by utilizing the comprehensive network of service providers.

 Six individuals served during the quarter and to date with transitional housing

 No funds were expended during the quarter.

 The General Fund budget is $10,000

Emergency Rental Assistance Reallocation

The City contracts with Fayetteville Urban Ministry and Connections of Cumberland County to provide Emergency Rental Assistance from reallocating funds from the Department of Treasury. Funds were used to assist individuals impacted by COVID-19 with rent and utilities

 110 households served with expenditure and obligations for rent/utilities

 The remaining $173,284 was obligated by the end of the quarter and will be expended next quarter

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$2,996 $7,004 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% BETTER HEALTH Available Expended $3,780,490 $3,209,510 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DAY RESOURCE CENTER Available Expended

Dream Center - 913 Person St.

The City leases the building at 913 Person Street to Manna Church which currently operates as an overnight shelter. During the day, the Dream Center hosts a daily lunch, with laundry and showers also available.

 Averaged 18 beds out of 20 during the quarter or 90% occupancy;

 16 individuals were also sheltered during White Flag/inclement weather;

 5,804 meals served over 60 days for an average of more than 96 lunches served;

 126 individuals utilized shower services;

 112 individuals utilized laundry services;

 2,276 articles of clothing were distributed through the clothing closet;

 Six individuals transitioned to housing; and

 1 gained employment with Amazon

Program Administration

Neighborly

Neighborly Software is an online platform that allows the Department to streamline workflow, utilize online applications and document storage, and allows for timely subrecipient reporting and monitoring by ECD staff. It improves the administrative efficiency and regulatory compliance of housing, economic, and community development programs.

 24 Micro-grant applications received, scored, approved, and budgets assigned;

 Conducted training on Draw Requests with Fayetteville Urban Ministry staff;

 Completed training with ECD managers on Usage and future program options; and

 We have established reporting processes for the Blight Removal Program.

Administration Costs

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$0 $100,000 $173,284 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ERAP Available Expended Committed $206,987 $76,157 $22,717 $157,799 $31,966 $0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CDBG HOME HOPWA Available Expended

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