1st Quarter FRC Report 2022-23

FY 2022-2023 Annual Action Plan

Activities for Q1

Message from Director:

Fayetteville Redevelopment Commissioners, the first quarter of 2023 has been successful as our Economic Development Manager successfully launched a $3M Small Business Relief Grant Program funded through the American Rescue Plan Act (ARPA). These funds, totaling $40M have been allocated to Departments all across the City for various Community Economic Development needs. The program requires these funds be spent in Qualified Census Tracts. This directly translates to the same qualifications that our team applies on a daily basis. Of the $40M, over one quarter was allocated to efforts from our Department.

This represents a substantial body of work to be undertaken in a short time. Staff could use your assistance in identifying interested housing developers, blighted proeprties, and neighborhood partnerhsips with nonprofits. During the second quarter, the City and the Housing Authority will be wrapping up the Choice Neighbhood Transformation Plan and presenting City Council with a path towards the Choice Implimentation Grant. To learn more please visit www.murchisonchoice.com and thank you for your continued support, partnership, and feedback.

Housing Program Highlights

Housing Rehabilitation

This program provides substantial housing rehabilitation assistance through a low interest loan for low- and moderate-income homeowners.This program is transitioning out in favor of Emergency Home Repair and New Affordbale Housing Construction

 Two rehab projects in final stage of punch list and project completion

 $33,278 expended with $305,568 HOME funds available

Single-Family Housing Development – CHDO

The City is required to set aside 15% of its HOME allocation for Community Hosing Development Organizations (CHDO). The City has partnered with Fayetteville Area Habitat for Humanity to construct or rehabilitate affordable single family homes to increase the supply of affordable housing for low- and moderate income families

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

 $647,367 HOME funds available

Emergency Home Repair

The City has contracted with Fayetteville Urban Ministry and Fayetteville Area Habitat for Humanity to provide repairs that remedy substandard conditions and improve accessibility for the disabled.

 5 households received emergency repairs

 $62,027 expended on this activity with $555,314 remaining

 Services provided by Fayetteville Urban Ministry Nehemiah Project

 Fayetteville Area Habitat for Humanity will begin emergency repairs at the beginning of next quarter with a budget of $617,132

New Affordable Housing Construction

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

 The Landing at Beaver Creek is 75% complete;; 72-unit affordable apartments at 6115 Cliffdale Rd.; no funds epended; $800,000 prior years HOME funds

Housing Program Highlights (Cont.)

 Cliffmore Park Apartments submitted an application for financing to build 72 new apartments for age 55+

 $3,075,462 HOME funds available

 $200,000 Housing Opportunities for Persons with AIDS (HOPWA) funds available

 $4,000,000 ARPA funds are also allocated for this activity

HOPWA Tenant Based Rental Assistance (TBRA) & Support Services

TBRA provides a subsidy to HOPWA-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.

 RFQ was posted with two responses received

 Staff recommended and City Council approved to enter into contract with the Robeson Co. Health Dept. for the Dogwood Health Care Network to become Project Sponsor on behalf of the City for management of these activities

 $534,528 budgeted

Homebuyer Assistance

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

 Information workshops held for Lenders and Realtors to educate about the new program

 City staff participated in the Realtor Rally held at the Expo Center to educate area Realtors about the available down payment assistance program

 No funds expended; $168,000 budgeted

Homebuyer Education

First-time homebuyers can complete the HUD approved, 8- hour homebuyer education course to ensure that 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

 59 participants served during this first quarter

 $1,800 expended; $21,993 CDBG funds remain available

Fayetteville Metropolitan Housing Authority (FMHA) Homeownership

The City of Fayetteville will partner with the Fayettevile 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

Housing Program Highlights (Cont.)

Good Neighbor Program

Employment incentive for City of Fayetteville employees to receive up to $30,000 in down payment and closing cost assistance to purchase their first home. This program is designed to attract and retain employees while encouraging renewal of the city's six revitalization areas.

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

 Three employees have completed the first-time homebuyer’s education and oneon-one counseling

 One employee has obtained a mortgage pre-qualification and started the home search process

 $450,000 budget

Economic Development Program Highlights

Business Assistance Loan

This program stimulates small business investment and job creation by providing a loan that fills the gap in financing needs or down payment requirement in order to purchase a commercial property for the business to operate.

 No loan approvals during the quarter; one application declined

 $26,627 expended with $280,777 available for direct loans and program delivery costs

Small Business Development Grant- CDBG

Matching grant program that offers funding up to $10,000 to assist with the further development of the small business that creates/retains jobs.

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

 A grant client approved during the 4th quarter of the prior program year reported a total of 13 jobs created

 Pending benchmarking and best practice review, it is anticpated that this grant will no longer be offered by the City of Fayetteville.

Commercial Exterior Improvement Grant

Matching grant program that offers funding up to $20,000 to encourage and assist with exterior improvements of commercial properties in any of the city’s qualified census tracts.

 This program will be amended to ensure compliance with Envrionmental 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

 Two grant projects approved during the prior program year were completed during the quarter; 3 jobs retained

 $24,999 expended in matching funds

ARPA Small

Business Relief Grant Program

American Rescue Plan Act(ARPA) funds were approved by City Council to support small businesses The City of Fayetteville is offering small business grants for those businesses who need pandemic recovery support. Funds can be used to offset financial hardships from the pandemic and to improve storefronts.

 Small Business Development/Retention Grants: 14 approved

 Commercial Corridor Improvement Grants: 18 approved

 140 applications were received during the quarter with 32 approved applications totaling $1.5M; $422,000 was expended during the quarter with $1,078,000 remaining

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

ARPA Childcare Assistance Grant Program

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

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

 Contract being finalized and will be routed soon for signatures

ARPA Workforce Development Programs

 $1M allocated for Workforce Development with projects to begin in the 3rd quarter.

Small Business Retention Grant – Covid19 Recovery

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

 No activity during the quarter due to the availability of the ARPA funds

 Approximately $9,000 available to grant to eligible businesses

Job Skills Training Sponsorship Grant

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

 Fifteen sponsorship grants approved; 12 in Cumberland Grow graduation class that is an 11-week trade course for people who have been incarcerated for nonviolent crimes

 $4,222 expended; $27,778 remaining budget

ServiceSource

Warrior Bridge Program that provides employment assistance and job placement for veterans

 29 veterans assisted with employment services; 10 received a job and 16 maintained their jobs

 No funds expended; $10,000 budgeted

Veterans Bridge Home

Connects veterans with one another and provides employment support services

 21 veterans assisted; 10 received a job and 10 maintained their jobs

 No funds expended; $10,000 budgeted

Cumberland Residential and Employment Training (CREST)

Employment services and training for those with developmental disabilities

 3 people were served; 2 received employment and 1 received on-the-job training

 No funds expended; $10,000 budgeted

Economic Development Program Highlights (Cont.)

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

 Awarded $80,000 CDBG funds and $35,353 from General Fund

Fayetteville Metropolitan Housing Authority (FMHA)

The City will support the FMHAs partnership with Apprenticeship NC, FTCC and MidCarolina Workforce Development by funding a Job Skills Training/Pre-Apprenticeship Pilot Program.

 Contract is currently being reviewed by FMHA attorney

 FMHA public housing residents can enroll in a 12.5 week course entitled “Construction Skills” where they will learn valuable construction skills that are in high demand in today’s job market and will be able to earn a livable wage

 $25,000 budgeted

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; was to create/maintain 30 jobs; will receive the fifth and final incentive payment estimated at $16,343 this program year; payments began in 2019

 Campbell Soup project at 2610 Clark West Rd. was a $40M investment; 100 new jobs were verified December 2021; 14 addiitonal new jobs expected by December 2022; will receive the 3rd of 7 incentive payments this program year estimated at $154,118; payments began in 2020

Downtown Management Contract

The Cool Spring Downtown District (CSDD) Inc. is a charitable, nonprofit corporation formed in 2017 to create and sustain an arts and entertainment district located in downtown Fayetteville as a vibrant center of artistic, cultural, civic, and commercial activity.

 Eleven new businesses opened during the quarter; two businesses relocated within the district; and two businesses closed

 Six businesses are slated to open later this year

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

 HB890 is a bill lobbied for by the NC Retail Merchants Association in the spirit of driving business to retailers in urban cores and expanding a community’s sense of livability. The bill, adopted into law in the fall of 2021, allows Cities and Counties to create “Social districts” and provides them the opportunity to ease open-container laws. A social district is a defined outdoor area in which a person may consume alcoholic beverages sold by an ABC permittee. City Council is currently considering establishing a social district downtown.

Economic Development Program Highlights (Cont.)

 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 to visitors downtown

 $110,000 of their $220,000 contract has been expended

 On September 6, 2022, at the City Council Work Session, the City Council directed Staff to work with Cool Spring District, Inc. (CSDD) to bring back the required subsequent actions for implementation of a social district in the downtown footprint.

Building Re-Use Grants

The Building Reuse Program is administered by the Rural Division of the North Carolina Department of Commerce; it provides grants to local governments for two purposes: the renovation of vacant buildings and the renovation or expansion of 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 Rd. is still active; job goal not met

 Advanced Computer Learning Center project at 208 Hay St. is still active; job goal not met

 Showcase Restoration, INC project at 128 Drake St. is still active; job goal not met

Golden Leaf Foundation

Golden LEAF funds economic development projects that focus on creating and retaining jobs, attracting new business 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 expended

 SHPO request and ER completed during the quarter

 Staff is consulting with PWC regarding next steps on the project

Fayetteville-Cumberland Economic Development Corporation (FCEDC)

The City and County have an interlocal 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

 FCEDC coordinates with the ECD department on any potential Building Re-use projects or any other available economic development incentives to recruit businesses

 $115,000 contract with a $57,500 remaining balance

Neighborhood Engagement Highlights

Beautification

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

 No new applications, but promoted the program at the community resource and job fair

 $140,000 budgeted

Partnership for Children

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

 Phase I environmental assessment completed

 Architect is expected to submit scope of work in February 2023

 $250,000 budgeted

Blight Removal

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

 Canvassed areas of Bonnie Doone, Bragg Blvd., and Murchison Rd. to identify blighted/dangerous buildings; viewed 400+ structures

 Environmental reviews, scope of work, asbestos testing, RFQs, and bid processing were completed for 5120 Patton St. and 5123 Cannon St., which are located in the Bonnie Doone redevelopment area

 $6,646 expended; $154,507 remaining budget

Community Outreach

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

 Collaborated with FTCC and Fayetteville Urban Ministry to host a community resource and job fair at Smith Recreation Center with 273 attendees and 38 vendors who participated

 Efforts have begun to develop a resource fair/or tabling opportunities for the Bonnie Doone community

 Efforts have begun to develop an annual nonprofit resource fair to be held February 2023

 $13,907 expended; $56,296 remaining for program delivery costs

Neighborhood Engagement Highlights Cont.

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 is made available to a neighborhood, along with a $900 plumber hook-up fee.

 Received eight inquiries about the program

 Three applications were prescreened for eligibility; one approved to offset plumber costs

 $9,388 expended with $190,612 available

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

 Community Garden project underway

 Neighborhood Gateway project underway

 Digital Equity Initiative project underway

 Commercial Market Analysis completed during the quarter

 Community Meeting 5 was held in July with 75 attendees

 Draft Plan submitted to HUD in June and the team is refining the Plan based on feedback from HUD

 Total project budget $711,500; includes a $450,000 CNI planning grant

 $258,324 expended by end of quarter.

Community Safety Micro-Grant Program

This program is being 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 each of the four grant cycles that began May 2022 and last 6 months each

 31 Micro-grant participants were approved and attended three capacity training classes hosted by FTCC and received technical assistance during the first grant cycle

 Of the 31 grantees approved, 29 projects were successfully complete

Community

Resource

Center

ARPA funds were allocated to fund a community resource center

 Project not scoped out yet

 $1,000,000 allocated

Homeless Program Highlights

Family Reunification and Direct Homeless Services

This is progam is intended to connect a homeless person with their family by assisting with transportation to make that connection. Funds are also available to purchase blankets and other items for the homeless.

 Seven individuals assisted during the quarter

 $1,084 expended; $2,916 remains available

 Bus fares are still free

Connections of Cumberland County

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

 447 individuals were provided homeless prevention services

 No expenditures during the quarter; $30,000 budgeted

Salvation Army

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

 No reimbursement request for food/supplies received during the quarter

 $10,000 budgeted

Cumberland HealthNet

A collaborative network of community organizations with a primary focus of improving the health outcomes for the uninsured by linking them with medical and other needed health and community services.

 Street outreach with 79 individuals assisted

 No reimbursement request during the quarter; $30,000 budgeted

Fayetteville Urban Ministry Emergency Assistance Program

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

 14 individuals were assisted

 No expenditures during the quarter; $12,000 budgeted

Better Health

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

 Emergency direct assistance medical services were provided to 52 uninsured/underinsured low to extremely-low income persons

 $5,595 expended; $4,405 remaining 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 received

 $10,000 remaining balance

Homeless Program Highlights Cont.

Day Resource Center

Located at 128 S. King St. is the homeless resource center that is is set to open 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 wll also operate as a shelter during emergency situations.

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

 Cumberland HealthNet approved by City Council to operate the center

 $1,168,615 expended; $6.99M budgeted

Re-entry Services

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

 Contract was executed

 No funds were expended during the quarter

 $10,000 budgeted

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.

 Minor Home Repair Program module was planned, created and went live in Neighborly. Integrated the existing loan module to track existing loans.

 Established and implemented reporting requirements for the Micro-grant Program; closed out first cycle of grants

 Migrated Economic Development loans into Neighborly in order to service the loans with outstanding balances

Administration Costs

 $64,913 CDBG expended; $299,873 available

 $18,836 HOME expended; $89,287 available

 No HOPWA funds expended; $22,717 available