The effects of federal cuts on affordable housing funds nationwide might be more visible locally next year as housing affordability has come to the forefront of area government discussions.
Some preliminary figures included in the county’s 2005-10 Draft Consolidated Plan for Housing and Community Development Programs show possible funding decreases in the low-income housing budgets for both Chapel Hill and the county.
The Orange County Board of Commissioners opened the floor Tuesday to county residents to voice their thoughts on the plan, which will be submitted to the U.S. Department of Housing and Urban Development, and will continue to solicit input through May 6.
The county now provides 623 units with Section 8 affordable-housing assistance grants.
Chapel Hill helps subsidize 336 units of low-rent housing — defined as affordable to anyone making 80 percent or less than the area median income.
The town’s housing department hopes to refurbish all 336 units next fiscal year through its community development block grant program, which provides federal funding for housing, the draft plan states.
But under Bush’s Strengthening America’s Communities plan, the grants, which HUD oversees, will be reduced from $4.62 billion this fiscal year to $3.7 billion for fiscal year 2005-06.
Preliminary figures indicate that Chapel Hill’s community block grants could lose about $45,000 from the amount the town received in fiscal year 2004-05, bringing funding sources to $666,392.
Loryn Barnes-Clark, Chapel Hill principal community development planner, said that because the town does not have finalized figures, it cannot begin planning how to address the cuts.
