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Supporting Narrative 3310 Fredrickson Road Wilmington, NC 28401 910.762.4744 capefearhabitat.org Serving New Hanover, Pender, and Duplin Counties New Hanover County Workforce Housing Services Program Proposal Describe how your project will address the strategic goal(s) listed above. Increasing Stock As seen in the 2023 Housing Needs Assessment Update, the median price of a home in New Hanover County is $312,103. Of the homes that are on the market, only 12.3% are under $300,000. These statistics present the urgent need for investment in affordable housing in our community. For a family at 60% Area Median Income, affording a home at market rate would require nearly 50% of their income to go towards mortgage payments. This forces families to make tradeoffs between housing, healthcare, food, and other essentials. At Cape Fear Habitat for Humanity, it is our objective to create opportunities for affordable homeownership that are accessible to low-to-moderate income families. In our Haven Place neighborhood development, we will build 35 permanently affordable housing units that will be available starting next year. Haven Place will be our second largest development since Cottages of Cornerstone, a 40-unit development built in 2014. In summary, this project will increase stock by providing 35 units for sale at an affordable mortgage and increasing the county property tax base by an estimated $10.5 million. Improving Stock Many of the homes currently on the market at an affordable price may require significant rehabilitation costs to make the homes sustainable and livable. Cape Fear Habitat builds high-quality homes while still ensuring affordability. All homes are built to standards as defined by SystemVision, the nation’s only affordable housing guarantee program made possible by the North Carolina Housing Finance Agency (NCHFA). SystemVision provides training and technical support that leads to improved health, safety, durability, comfort, and energy efficiency of affordable homes in North Carolina. All SystemVision homes are third-party verified and performance-tested for the following: Air Tightness & Framing, Ventilation & Moisture Management, Insulation & Windows, HVAC Sizing/Installation & Duct Tightness, and Pressure Balancing. Once completed, each home receives two guarantees, one for energy use and the other for Cape Fear Habitat Page 2 comfort. Our homes are also built to be resilient against hurricanes and other natural disasters. Cape Fear Habitat maintains high standards in our building practices and utilizes durable, high-quality materials, including: • 2x6 Exterior Framing – allows for higher R-value in walls • Vinyl Siding – provides a 50+ year lifespan and easy maintenance • Architectural Shingles – provides 50+ year life span and hurricane resistance • Laminate/LVP Flooring – provides easy maintenance and ensures better air quality Cape Fear Habitat’s experienced construction team regularly submits all site plans to state and local agencies for permitting approvals. Our land development team reviews county zoning, flood zoning, and lot size prior to lot acquisition. We do not build homes in flood zones. Our projects meet all NCHFA environmental review standards. The team pulls all required North Carolina and New Hanover County permits before new construction or rehabilitation projects begin. Cape Fear Habitat is moving to a model of pre-constructing homes inside our indoor building warehouse. This process allows us to build homes for families more quickly while reducing cost, waste, and environmental impact. Cape Fear Habitat is a North Carolina Licensed General Contractor and has earned a New Hanover County Community Resiliency Model Training Certificate. We work only with licensed, vetted subcontractors for plumbing, electrical, HVAC, and roofing. In terms of quality and home size, Cape Fear Habitat constructs homes that are a match to surrounding communities. Homeowners have the opportunity to choose from five different right-sized house plans along with selecting their siding, shutters, shingles, flooring, and countertops. Home sizes range from two to five bedrooms and 1,100 – 1,600 sq ft, depending on the family’s needs and lot size. Most houses are approximately 1,400 sq ft, three bedrooms, two bath units. Increasing Access In efforts to increase access to affordable housing through our Homeownership Program, we recognize that a significant prerequisite for access is awareness. Cape Fear Habitat has spent the last year increasing outreach efforts by hiring a Community Cape Fear Habitat Page 3 Outreach Coordinator and making all programs accessible for Spanish-speaking families. In the last few months, our Community Outreach Coordinator has established twelve new partnerships with local government and various community organizations. We have established an ongoing partnership with the City of Wilmington which provides information about our Homeownership Program to staff and new hires. The City will refer families who may not qualify for their programs to Cape Fear Habitat. We also provide information about our Homeownership Program to traditional lending institutions which can be shared with families who do not qualify for a traditional mortgage. We attend meetings at other nonprofit organizations like Communities in Schools to inform the staff about our programs; this information can then be relayed to program participants and families. We also distribute informational flyers through New Hanover County schools for students to share with their families. We attend and table at various community events, including the Northside Food Cooperative’s bi-weekly community dinners, which host an average of 100 residents at each dinner. Our Community Outreach Coordinator has worked to significantly expand resources for Spanish-speaking families, including translation services for our programs. We have partnered with the New Hanover County Office of Diversity and Equity, Cape Fear Latinos, Legal Aid of North Carolina, VIDA Translations, and Self-Help Credit Union to assist our Spanish-speaking families with the application process and understanding program requirements. All application materials and educational materials have been translated into Spanish. Another key component of increasing access to affordable housing is ensuring the families in our Homeownership Program are prepared for the responsibilities of homeownership and personal finance. Home maintenance and hands-on home repair classes are provided for all future homeowners. Families enrolled in the program actively assist with the construction of their homes and those of other participating families. The Homeowner Services Department is working to organize a disaster preparedness event and estate planning services for existing and future homeowners. Families in the program participate in financial literacy training and credit counseling with our Nationally Certified Credit Counselor. Each family creates a budget and actively works to improve their credit score. Families are required to submit a payment toward closing costs each month they are enrolled in the program. It is part of their program plan that once families submit all closing costs, they continue allocating monthly payments into savings for the future needs and repairs of their homes. This teaches homeowners to pay bills on time, but more importantly, adjust their budget for the Cape Fear Habitat Page 4 extra costs that come with homeownership. Families increase their credit score by 50 to 150 points while paying off an average of $1,800 in debt. This unique process prepares families to successfully own and maintain their homes, especially since most are first- time homeowners. We educate and provide support to our homeowners to build generational wealth and ensure their investment is passed along to their heirs. Tell us how your proposal supports New Hanover County's commitment to diversity, equity, and inclusion. https://www.nhcgov.com/236/Diversity-Equity-Inclusion-Policy Cape Fear Habitat is dedicated to addressing the systems of oppression that result in inequitable outcomes for people of color and minority populations. The majority of the families we serve are Black and Hispanic/Latino with low- to moderate-income. Our staff actively works to remove barriers to participation with outreach to underserved areas of the community. We have an ongoing commitment to engage communities that have been historically marginalized and embrace diversity at the client, staff, and board levels. As an Equal Housing Lender, it is our responsibility to serve families from a variety of backgrounds. To properly serve such a diverse group of individuals, we must also be made up of a diverse group of employees, volunteers, and board members. We create this inclusive environment through a variety of measures, beginning with our board. We approach board recruitment strategically, actively engaging with individuals from a variety of ages, occupations, races, and cultural heritage. Recently instituted term limits also help promote board succession which actively fosters diversity. We are deeply committed to furthering equity and inclusion by evolving our staff and leadership to be reflective of the communities we serve. Cape Fear Habitat is an Equal Opportunity Employer and encourages diversity at all levels. We have adjusted our recruitment process to use inclusive language in job posts. We have also partnered with local nonprofit agencies, such as StepUp Wilmington, to recruit staff and to combat barriers to equitable access to information about our employment opportunities and application process. Our vision is a world where everyone has a decent place to live. Cape Fear Habitat for Humanity does not discriminate based on race, ethnicity, class, gender, gender identity, sexual orientation, intersectionality, country of origin, and ability, as well as cultural, political, religious, or other affiliations. Our affiliate is inclusive for members of all communities who actively support our mission of bringing people together to build Cape Fear Habitat Page 5 homes, communities, and hope. By sharing power among a diverse range of voices, we will inherently become a stronger, more impactful, and more resilient organization. Is there anything else you'd like to tell us about your proposal? In addition to the New Hanover County Housing Goals, our mission at Cape Fear Habitat and our 35-unit affordable housing development, Haven Place, are directly aligned with the 2023 recommendations from the Workforce Housing Advisory Committee. The committee’s recommendations to “Reduce Barriers to, and Support the Production and Preservation of a Diversity of Housing Options,” and “Expand Housing Counseling & Financial Literacy Programs” would be achieved with the support from New Hanover County’s Workforce Housing Services Program. Funding for the construction of Haven Place would provide homeownership opportunities for low to moderate-income families, as well as allow us to leverage other sources of funding for program sustainability and expansion. For example, our Homeownership Services department is collaborating with local advocacy groups and Legal Aid of North Carolina to provide estate planning services to our homeowners. We plan to continue seeking funding to expand this necessary service, in addition to our home maintenance classes, disaster preparedness events, and financial counseling. Furthermore, the committee directly cites Habitat for Humanity in their recommendation, “Replacement of One-Time Funding Opportunities.” Our programming and capacity have grown tremendously with the relief aid from Hurricane Matthew and Florence, as well as COVID-19. However, continued funding is necessary to maintain our recent momentum. Investing in long- term, affordable housing now will build economic and social resilience for years to come. The Affordable & Workforce Housing Public Opinion Study from the University of North Carolina Greensboro illustrated just how urgent affordable housing is for our community. One participant noted “...we’re at sort of desperate times in Wilmington for this” (p. 66). With the rising market costs, the declining availability of land, and the continued recovery from Hurricane Florence and COVID-19, a large majority of the essential and service workers in our workforce cannot afford to buy a home in Wilmington, even with a full-time job. A 35-unit development like Haven Place will provide permanent affordable housing that is accessible to families in the workforce. This long-term affordability builds generational, inheritable wealth as homes continue to increase in value, but stay affordable for low-to-moderate income families. Another participant invited the question of where people actually want to live: “I would Cape Fear Habitat Page 6 challenge, and say the same places that we all want to live, somewhere where there’s good schools, there’s adequate space to play outside, where you feel safe, you have enough room” (p. 74). As the public survey indicated, some families must pay more than they can afford to ensure they can live in a neighborhood that meets these conditions. Haven Place will create safe, comfortable housing that does not require families to go over their budget. An established development provides families with opportunities to meet their neighbors and build a sense of community that will be passed down through generations.