Neighborhood Development Annual Report 2020-2021

NEIGHBORHOOD DEVELOPMENT

Neighborhood Development A N N U A L R E P O R T FY 2020-21

About Us

Central Carolina Health Network Community Housing Solutions Family Service of the Piedmont Greensboro Housing Coalition Greensboro Landlord Association Greensboro Urban Ministry Housing Consultants Group Interactive Resources Center Salvation Army of Greensboro The Servant Center Youth Focus – Act Together YWCA of Greensboro Room at the Inn Inc. UNCG – Center for Housing and Community Studies Please join us in thanking our community partners for helping provide safe and affordable housing, education, and more to city residents. Community Partners

The Neighborhood Development Department serves as a catalyst for neighborhood revitalization and the development and implementation of affordable housing programs to improve the lives of Greensboro residents. Leadership Michelle Kennedy Director Cynthia Blue Housing Services Division Manager Vacant Fiscal Planning and Administration Division Manager Troy Powell Community Improvements Division Manager Mission Investing throughout Greensboro to build a better community. Vision Quality of life is enjoyed in every Greensboro neighborhood.

www.greensboro-nc.gov/NeighborhoodDevelopment

Index

About Us. .......................................................... 2 Preservation & Rehabilitation.................... 3 Homebuyer Support..................................... 4

Affordable Housing Developments. ....... 6 Community Improvements........................ 8 Pandemic Relief............................................10

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Preservation & Rehabilitation

Housing Preservation Fund is Under Development

The Neighborhood Development Department staff has been working to create the Greensboro Housing Preservation Fund, a dedicated pool of public and private dollars used to make loans and investments in affordable housing. Building on recommendations of Housing GSO – the City’s 10-year affordable housing plan that was adopted in October 2020 – the fund will preserve affordability while improving existing housing quality. The fund will be a public-private partnership, leveraging public and private capital and

drawing on private finance and real estate experience. The City, the Community Foundation of Greater Greensboro, and others partners will contribute to what is expected to be a $30 million fund. The Neighborhood Development Department is working with partners and stakeholders to launch the project in 2022.

Rehabilitation Program Gets Makeover

This year, the Neighborhood Development Department started the process of revamping its housing rehabilitation projects. The goal is to increase the number of Greensboro residents living in safe, affordable housing, as outlined in Housing GSO . The department is restructuring the rehabilitation assistance program so all projects are funded through grants or no-payment loans,

instead of traditional loan agreements that require repayment. It will also establish and fund an emergency repair program so the City can respond to urgent rehabilitation needs. The department plans to work with nonprofit partners to accomplish these goals. The program is expected to be restructured by 2022.

Creating Opportunities to Build A Better Community

In fiscal year 2020-2021, construction work on active rehabilitations halted or slowed due to contractor availability, supply shortages, and social distancing protocols.

7 Single-family units rehabilitated or repaired

11 Lead-safe and healthy homes completed

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Homebuyer Support

A Home for Two To Alexis Montgomery, owning a home once seemed “unattainable.” Housing Consultants Group’s home ownership class taught her everything she needed to know – and qualified her for $10,000 in down payment assistance. “That class just really made me feel like I can do it,” said Montgomery, 33, a receptionist at the Greensboro Housing Coalition and mom to six- year-old Amina. “It just gave a real Realtors, insurance representatives and even a plumber – all people who could provide insight into the responsibilities involved in home ownership. She learned how to get all her paperwork in order to make the buying process run smoothly and that she needed to save up for costs at closing. She even picked up in depth understanding of what homeownership really meant.” In the class, she met lenders,

Homebuyer Education and Down Payment Assistance Increases Homeownership Among Minority Families The US Department of Housing and Urban

first-time homebuyers. Not only has the agency already been providing many of the services being proposed nationwide, it has become locally known for its success with a couple of HUD’s proposals. According to Sofia S. Crisp, executive director and founder of HCG, the agency is a leader in creating a climate for “financial stability and generational wealth.” Coupled with some creative campaigns to promote homeownership, HCG has made its mark in the housing industry throughout the Triad. Those campaigns include #100Homes that aimed to turn 100 renters into first-time homebuyers from January to December 2019. The project tripled its goal ahead of schedule, helping 317 families purchase homes. Another success story for HCG is the Individual Development

Development (HUD) proposes to increase Black homeownership over the next nine years by focusing on homeownership counseling and offering a down payment assistance program. The plan is pending federal government approval. To many residents in Greensboro, these types of programs are very familiar. The City’s Housing Connect GSO program is already working to increase home ownership by empowering residents to make informed choices. Housing Consultants Group (HCG), funded by Neighborhood Development under Housing Connect GSO , focuses on education, coaching and counseling families about housing issues, partnering with other entities in these areas, as well as providing down payment assistance for

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1,537

Forgivable Loans Distributed Average Forgivable Loan 357 $9,900

Households received homebuyer education

a tip about asking the seller to provide a one-year warranty on all the home’s appliances. And that’s just what she did when she purchased her home in an upscale peaceful neighborhood with an amazing walking trail. Montgomery is busy renovating. Amina loves painting whatever she wants. “I knew I wanted a different way of life for her. She actually pushed me to become a homeowner,”Montgomery said. “I definitely wanted that for her security and stability, just as my mother did for me.”

Ready to buy a home? Take advantage of these free programs! To register, contact Housing Consultants Group at 336-850-4040.

Homebuyer Education Class Covering budget management, insurance, working with a Realtor, inspections, mortgage financing, maintenance, housing laws and more.

Down Payment Assistance Offering up to $10,000 for down payment and closing costs as a forgivable, zero percent interest loan. Learn more at www.greensboro-nc. gov/dpa .

Account program, which offered financial planning for home buying. HCG has a three-tiered approach to counseling clients on the path to homeownership. “We never tell a client ‘no,’ you won’t be able to buy a home. We say ‘not now’ and counsel the client using different levels of classes depending on their credit score to prepare them to be ready for homeownership success,” Crisp says. The results, she adds, are that clients take responsibility for their financial health and become fully prepared for homeownership well beyond the paper-signing and hand-off of house keys, while also learning this is the first step on a journey to financial capability. Crisp says this is key to increasing the rate of Black homeownership in the Triad. In 2020-21, HCG and partners helped 357 families receive down payment assistance of $5,000 to

$10,000 from the City of Greensboro. Since 2019, Crisp says 67 percent of HCG’s assistance has been provided to Black families. “HCG has partnered with the City to provide a path to home ownership for many families. The agency equips people with real-life skills and strategies in budgeting and repairing credit, and has a history of giving people confidence in managing their finances,” says Greensboro Mayor Nancy Vaughan. “Through our partnership, people can build financial stability and wealth, which in turn builds stronger neighborhoods.” The idea for forming HCG came to Crisp while she was working as a Realtor. “I knew I could help more people learn how to be a homeowner,” she says. “Homeownership is the right of every person desiring to be one; HCG just points people in the right direction by empowering them with knowledge.”

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Affordable Housing Developments

Partnership Place City financing: $1.6 million | Total cost: $2.5 million An existing multi-family property of 31 two- bedroom townhouse-style units. Rehabilitation began in spring 2021. Leasing expected to begin in 2022. Developer: Partnership Homes Inc. Rents: $560-$648 per month

Under Renovation

Richardson Village City financing: $431,866 | Total cost: $3.12 million An existing multi-family property of 24 two- bedroom townhouse-style units. Rehabilitation began in June 2020. Developer: Beacon Management Rents: $591-$690 per month

Now Leasing

1405 Lord Foxley Dr. City grants: $34,527 2205 E. Florida St. City grants: $55,845

Through the Storm Recovery Alliance, the City of Greensboro has worked with community organizations to allocate resources and coordinate housing relocation and repairs. As part of Greensboro’s Tornado Disaster Recovery Program, CHS acquired, rebuilt, and sold these properties. Developer: Community Housing Solutions (CHS) SOLD

Sold

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Printworks Lofts City financing: $1.2 million | Total cost: $56 million A multi-family feature of the historic Printworks Mill

Now Leasing

rehabilitation. In 2018, construction began on the 217 one- and two-bedroom mixed-income units. Financed with City housing bond and NC Low-Income Housing Tax Credit funding. Developer: Alexander Company Rents: $551-$803 per month for units assisted with City and state funds; up to $1,376 per month for market-rate units

1405 Lord Foxley Dr.

Richardson Village

Sold

Partnership Place

2205 E. Florida St.

City Aids in Affordable Housing Developments The City of Greensboro invests local and federal funds in the development of affordable single family houses, multi-family apartments and supportive housing for homeless and disabled residents. Low-cost City loan financing or grants offset more costly bank financing, which reduces development costs and allows units to be offered at a lower price point.

development project. Neighborhood Development works with our development partners to leverage private lending, state housing finance sources, and philanthropic partners to meet the affordability needs of homebuyers and renters. In fiscal year 2020-2021, construction work on active developments halted or slowed due to contractor availability, supply shortages, and social distancing protocols.

City funds are generally a small portion of the funds necessary to complete a housing

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Community Improvements

From Condemned to Gem The enormous shade tree behind 109 Duffy Ave. was hiding a dangerous secret. It looked mighty, but it was rotten inside. One particularly ugly winter storm ripped it out by the roots, and smashed it through the second story of the lovely Cape Cod home. It tore into both bedrooms, clobbered the bathroom, and nearly ripped through the floor joists. Another tree took out the air-conditioning unit and creamed the deck. The house was quickly condemned by Neighborhood Development’s Code Compliance inspectors, since it was unsafe to occupy. Rain was pouring in from the exposed roof. The owner planned to demolish it. Councial Glenn, owner of Frasier Glenn Investments LLC, found the house on Facebook.

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926 Dwellings brought into compliance

He saw something worth rescuing. “I bought it maybe a week before it was scheduled to be demolished. (The owner) already had a demolition quote,” said Glenn, who has a background in construction and has been flipping homes in Greensboro since 2018. The company repaired the damage, redesigned the kitchen, and refreshed the whole interior for about $60,000. The neighbors were impressed. Glenn sold it to a new family in July. “Everything popped. It was light

and bright. They really liked the finished product,” Glenn said. At a time when some construction projects are delayed due to material availability or staffing issues, City Inspector Larry Roach was impressed that Glenn was able to take 107 Duffy Ave. from condemned to a brand new house in about four months. And that’s ultimately the goal of the Community Improvements Division and the housing code – to return homes to safe, livable conditions. “All I could do was shake the man’s hand. He really did an outstanding job,” Roach said.

2,092 Vehicle cases brought into compliance

9 Structures

demolished

Community Improvements Shifted Operations During the Pandemic

Nuisance cases brought into compliance 3,172

During the first stages of the pandemic, the Neighborhood Development Department’s Community Improvements Division suspended housing fees and penalties for 122 days, ending July 31, 2020. This was meant to encourage people to stay in their homes complying

with the state stay-at-home order and to keep from creating additional economic hardship. The Minimum Housing Standards Commission met virtually and streamed on Facebook. There were also opportunities for virtual inspections.

Civil penalties issued for Housing Code violations $510,098

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Pandemic Relief Dramatically Expanding Housing Safety Net Programs

The COVID-19 pandemic brought fear and economic uncertainty into the lives of many. With more than $20 million in federal emergency relief funds, Neighborhood Development Department staff found themselves in a position to create a housing safety net for thousands of Greensboro residents affected by the pandemic. City employees had to quickly create several large-scale programs. For each federal funding allocation, staff created the program parameters based on federal guidelines, application and award processes, and hired local housing agencies to run the emergency assistance programs. Meanwhile, additional federal funding was allotted for existing Neighborhood Development programs that provide emergency shelter and homelessness prevention. The first funding the City received was from the federal Coronavirus Aid, Relief and Economic It never occurred to Greensboro resident Thomas Shirley that he would someday need to apply for financial assistance. But, in the past several months, his mother passed away, he lost his job due to the COVID pandemic and was dipping into his savings more and more. “Things got out of control,” he says. “It was a perfect storm.” Before he knew it, he was two months behind in rent and utilities. After reading about the City’s Emergency Rental Assistance Program (ERAP) on his cell phone’s news feed, he decided he wasn’t too humble to apply. Shirley is the single father of a 10-year-old daughter. “I have to have a roof over her head,” he says. “It’s far more important to me to have basic needs met for my child than it is to let my pride rule.”

Security (CARES) Act. Under this program, qualified Greensboro residents could apply for emergency rent, utilities, or mortgage assistance. The second funding source was federal Emergency Rental Assistance Program (ERAP). Under this program’s umbrella, qualified residents could apply for up to 12 months combined of past due plus prospective emergency rent and utility payment assistance per household. “The federal funds were a critical resource for keeping Greensboro COVID-affected families in their housing and creating safety nets for our fellow residents,” says Cynthia Blue, Neighborhood Development’s housing services division manager. “Our staff, together with our partner organizations, worked harder and longer than they may have thought possible, but the end goal of housing stability in the midst of the pandemic is what keeps them focused.” The ERAP application process, he says, wasn’t difficult to follow. Even though a lot of documentation was required, Shirley says he understood why all the information was needed. And throughout the process, the representatives assigned to his case from Housing Consultants Group (HCG) were always available by phone or email whenever he had a question or issue. Shirley’s approved application paid his landlord for two months back rent and two utilities two months of back service charges. He says “you have to be proactive” in processes like this. He would talk with one of HCG’s reps a few times a week for several weeks about info still required or questions he or HCG had about his case. “I could write a 3,000-word letter thanking HCG for how wonderful they were,” Shirley says. “They have made a little girl so very happy and I can sleep now at night.”

Emergency Assistance Makes Big Impact

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COVID-19 Relief

Federal Funds Received $21.3M

Direct Assistance

$7.8M Worth of Rent and

2,611 Households

Receive Rent and Utility Assistance

Utilities Paid

Mortgage Payments Made $182,871

119 Household Received Mortgage Assistance

Homelessness Prevention

95

167

Moved from Emergency to Permanent Housing

Households received short-term rental assistance

2,274 Homeless persons provided overnight, emergency, and/or transitional shelter

6,447 Homeless persons provided services

Spent to Support Permanent Housing $399,739

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NEIGHBORHOOD DEVELOPMENT

PO Box 3136 • Greensboro, NC 27402-3136 www.greensboro-nc.gov/NeighborhoodDevelopment