Charlotte City Council Housing and Neighborhood Development Committee Summary Minutes April 6, 2006 COMMITTEE AGENDA TOPICS ACTION I. Subject: Revised Housing and Neighborhood Development Action Plan The Committee approved the revised Housing and Neighborhood Development Action Plan. II. Subject: Housing Trust Fund Strategic Plan The Committee approved the revised Housing Trust Fund Strategic Plan. III. Subject: After School Enrichment Programs The Committee voted to: A: Not approve the new program standards developed by Partners In Out-ofSchool Time B: Not approve the Intermediary Vendor Selection process C: Direct the City Manager to discuss the County’s involvement in After School Enrichment programs with the County Manager and report back to the Council in preparation for the FY08 budget process. Present: COMMITTEE INFORMATION Council members Susan Burgess, Anthony Foxx, Don Lochman, Patrick Mumford Absent: Council Member Michael Barnes Staff: Julie Burch, Ruffin Hall, Stanley Watkins Others: Jeff Bradsher, Housing Trust Fund Advisory Board Patrick McNeely, Housing Trust Fund Advisory Board Janice Singleton, Child Care Resources Patti Stowe, Child Care Resources Clair Tate, Partners-In-Out-of-School-Time Time: 12:27 PM – 2:20 PM ATTACHMENTS 1. Agenda Packet – April 6, 2006 Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 2 DISCUSSION HIGHLIGHTS ACTION I. Housing and Neighborhood Development Action Plan Stanley Watkins presented the revised Housing and Neighborhood Development Action Plan. Key points include the following: Mr. Watkins informed the Committee that as a result of the discussion at their March 28th meeting, staff has revised the action plan to include the following additional objectives: • Neighborhood Policy Discuss the City’s role in neighborhood outreach, education and capacity building to strengthen neighborhood organizations • Increase the number of Community Watch programs • Provide education to citizens on earned income tax credits Discussion on neighborhood zoning standards Review neighborhood infill housing policies Review status report on gentrification • Affordable Housing Discussion on the distribution of affordable housing Review current affordable housing policies and the impact of local regulations on affordable housing • Review of transit oriented development policies • Provide an update on the Homeless Report Expand education and outreach initiatives for affordable housing • Discuss the City’s role in preventing foreclosures • Discuss predatory lending Questions/Answers/Comments: Burgess: I would like to adopt this with the consideration of developing a community wide action plan. Next Steps/Action: Council member Foxx made a motion to submit the revised Housing and Neighborhood Development Action Plan to Council for adoption. Council Member Barnes seconded the motion. The Committee unanimously approved the motion. II. Housing Trust Fund Strategic Plan Stanley Watkins presented the revised Housing Trust Fund Strategic Plan. Key points include the following: On March 28, 2006, the Housing Trust Fund Advisory Board presented their strategic plan to City Council’s Housing and Neighborhood Development Committee. Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 3 Upon review, the Committee requested that the Housing Trust Fund Advisory Board and staff revise the action plan to make it more explicit that the plan is a partnership between the Housing Trust Fund and City Council. Key policy concerns of the action plan were in the policy theme. Based on the Committee’s discussion, the Housing Trust Fund Advisory Board proposes the following modifications to the plan. (Underlines represent new language) Theme Strategy Action Steps 1. Policy Partner with City Council to educate elected officials and public on the impacts of affordable housing policies Partner with City Council to review community impact of Charlotte Affordable Housing Policies 2. 3. 4. 5. 6. Review City and County policies that deter affordable housing development Review Housing Locational Policy Review transit stations development strategy Consider a land banking policy Host Community Roundtable with City Council on affordable housing and City policies that impede affordable housing locations Review use of County/CMS lands for housing Questions/Answers/Comments: Burgess: Is there a budget for the Housing Trust Fund other than what we spend on houses? Watkins: No. Staff resources for the Housing Trust Fund are a part of Neighborhood Development’s budget. Burgess: $47 million is allocated for the Housing Trust Fund. We’ve only spent $42 million. Where is the remaining $5 million? Watkins: It will be spent as part of upcoming Request for Proposals. Burgess: Explain the overall housing goal of 4,500. Watkins: The overall housing goal is based on the City’s entire affordable housing program (Federal, Local and Housing Trust Fund). The Housing Trust Fund has financed 2,300 units to date. Burgess: How does the HTF Advisory Board plan to educate public officials and the community about affordable housing? Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 4 McNeely: This idea grew out of the Robert Charles Lesser & Company study. There is a need to provide education on affordable housing. We will do this by working to get articles on affordable housing published in the Observer and other local publications. Burgess: How did we fund the Lesser study? Watkins: It was funded from Neighborhood Development’s budget. Burgess: What’s the budget for the Communications and the Marketing Plan mentioned in the action plan? Watkins: There is no budget. We will seek pro bono work. Burgess: The Charlotte-Mecklenburg Housing Partnership (CMHP) had also planned to start an affordable housing non-profit, but when they learned that the Housing Trust Fund Advisory Board was also going to do this they decided to stop their efforts. Should the Housing Trust Fund Advisory Board do this or should CMHP do this? Watkins: CMHP stopped because they had higher priorities, at the time. We feel as though the HTF Advisory Board should raise the awareness of affordable housing because the HTF is a much broader funding source and the CMHP has received HTF funds. Lochman: How did we determine the amount needed over the next ten years? Foxx: The Robert Charles Lesser & Company study performed an analysis based on supply and demand and current price points. Lochman: Why are we building houses for $110K if there are existing houses for $90K currently available? Watkins: Most of the Housing Trust Fund’s financed units are rental units, not homeownership. Foxx: I have a concern with only 15% of our units for $16K and below. Can we look at the rate of return on affordable housing investments? I think we should look to see what impact we’re having on the City’s bottom line. I also think we need to look at the existing housing stock. I would guess that it is cheaper to rehabilitate existing houses rather than build new houses. Bradsher: This is not always true. Sometimes it can actually cost more to rehabilitate an existing house. Burgess: How will the Audit committee operate? Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 5 Watkins: The intent is to take an in depth look at how city staff is administering the work they do for the Housing Trust Fund. Burgess: The Housing Trust Fund Strategic Plan allows you to strengthen your original charge. Bradsher: Yes, we want to look at the entire scheme of things to see how we can produce more affordable housing units. Burgess: I would like for you to also think about how we can help people with the lowest income. I’d also like for us to look at what other communities are doing. McNeely: We are doing that. We’ve had someone from Greensboro come in to talk with us. We are also looking at Seattle, Washington and New York. Next Steps/Action: Council member Lochman made a motion to approve the revised Housing Trust Fund Strategic Plan. Council member Foxx seconded the motion. The Committee unanimously approved the motion. III. After School Enrichment Programs Stanley Watkins presented additional information on the After School Enrichment Programs (ASEPs). Key points include the following: Two outstanding issues from last year’s budget decisions were adopting new quality standards for ASEPs and a resolution on using an intermediary to administer the program on behalf of the City. City staff worked with Partners-in-Out-of-School-Time (POST) to review and expand current ASEP quality standards to support the highest quality program possible. New standards include: prioritizing programs located in Charlotte’s Revitalization Areas, North Carolina Day Care Certification, collaborating with schools and teachers and providing transportation when needed. These standards have not been implemented as they await review and approval by City Council. After working with POST to develop the quality standards, staff reviewed the proposed ASEP Quality Standards and program administrative options with the Privatization and Competition Advisory Committee (PCAC). The PCAC met on March 10, 2005 and recommended that the City initiate a RFP process to select a third-party intermediary to administer the After School Enrichment Program. The Intermediary will help leverage City funds for the ASEPs and provide oversight, consultation and training for the programs. The intermediary selection will be based on organizational expertise, management plan, compliance system, fund raising expertise and competitive cost to the City. Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 6 On March 28, 2006 the Housing and Neighborhood Development Committee discussed the After School Enrichment programs. During the March 28th discussion, the Committee requested that staff report back to the Committee with information on Mecklenburg County’s involvement in ASEPs and information on what other city’s are doing regarding ASEPs. Stanley Watkins explained to the Committee that Mecklenburg County does not have any direct involvement in funding the ASEPs. Most of the funds come from federal and state agencies. Questions/Answers/Comments: Mumford: We need to have a discussion about if it is appropriate for the City to continue to participate in funding these programs? We also need to discuss if the service can be provided in a more cohesive manner. We also need to discuss of it would be better to have one group manage the ASEPs. Neighborhood Development has done a good job of managing the programs but it is not one of its core services. Lochman: The City’s tax funds should go toward core functions like Police, Fire and streets. Foxx: One of the City’s core functions is public safety. Can you explain the connection between ASEPs and public safety? Tate: ASEPs support this core function by giving kids a safe place to go during after school hours to keep them out of trouble. Without these programs, children would be home alone, thus safety becomes an issue. Lochman: Is there a cut off point for eligibility for these programs? Tate: Children receiving funding for these programs are very low income. Mumford: We want children to receive childcare funding, but we want to figure out the best way to do this. We need to decide if the service should be consolidated into the County’s functions. Burgess: What are the reductions in Community Development Block Grants funds for this year? Watkins: $722,000 this year. Foxx: How would we go about looking at a consolidated approach to After School Programs? Mumford: We funded the ASEPs last year by moving money from other sources with the intent of sending a message that we want to shift this to the proper area. Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 7 Foxx: I’m not ready to say that ASEPs are not the City’s core business. However, I do think we should have a discussion with the County. Also, I’m not ready to say if the County doesn’t fund the programs that we should cut our funding. Mumford: We need to set funding priorities at the local level. Lochman: It’s going to be difficult to get the County to assume this funding. Burgess: We have several dilemmas: 1) Do we raise taxes to pay for this? 2) Do we use money from the general fund to pay for this? 3) Do we fund this by using more housing money? Lochman: I think we are too far along in the current budget process to transfer this to the County at this point. Ruffin (Hall) do you agree? Hall: I do think it’s too late to give the County time to react, but it doesn’t mean that the Council could not engage the County at this point. Mumford: I don’t think it is too late. I think we should begin a formal dialogue with the County Commission so that they can consider funding this. I think we should submit this issue along with the other issues that we’ve discussed as a Council. Burgess: Let’s hold off on making a decision about the intermediary until we have a conversation with the County. Lochman: Mr. Hall, is it safe to say that the FY07 budget provides funding for ASEPS? Hall: The FY07 budget does not include funding for the intermediary. However, it did include funding for the ASEP before we received additional Community Development Block Grant cuts. Foxx: I’m comfortable with holding off on making a decision about the Intermediary until we can have a conversation with the County. Lochman: I think going forward in FY08 we need to prepare to make some tough priority decisions. Mumford: We should not expect to fund ASEPs next year, so how do we prepare so that the ASEP providers will have a smooth transition? Tate: Perhaps we should look at raising private money to help support these types of programs. Housing and Neighborhood Development Committee Meeting Summary for April 6, 2006 Page 8 Next Steps/Action: The Committee decided to take no action on the new standards developed by Partners in Out-ofSchool Time (POST) and to take no action on the Intermediary Selection Process from the Privatization and Competition Advisory Committee. The Committee also decided to direct the City Manager to have a conversation with the County Manager about assuming the After School Enrichment Programs. The meeting was adjourned at 2:20 PM City Council Housing and Neighborhood Development Committee Meeting Thursday, April 6, 2006 – 12:00 Noon Charlotte-Mecklenburg Government Center – Room 267 Committee Members: Susan Burgess, Chair Anthony Foxx, Vice-Chair Michael Barnes Don Lochman Pat Mumford Staff Resource: Julie Burch AGENDA ACTION - Revised Housing and Neighborhood Development Action Plan Housing Trust Fund Strategic Plan – Council Priority After School Enrichment Programs ________________________ Distribution: Mayor/Council Pam Syfert, City Manager City Leadership Team Corporate Communications Debra Campbell - Planning Stanley Watkins – Neigh. Dev. Richard Woodcock – Neigh. Dev. Stan Wilson – Neigh. Dev. Stephanie Small – Neigh. Dev. Walter Abernethy – Neigh. Dev. Pat Mason – Neigh. Dev. Ruffin Hall – Budget Office Mike Nail – Budget Office Anna Schleunes – City Attorney Office Housing Trust Fund Advisory Board Charles Woodyard -CHA Pat Garrett - CMHP Chris Squier – PCAC David Elmore - Business Support Services Claire Tate – Partners In Out-of-School Time Page 1 Housing and Neighborhood Development Action Plan Housing and Neighborhood Development Committee April 6, 2006 Committee Action Requested: Approve the 2006 Housing and Neighborhood Development Focus Area Action Plan. Explanation: At the February 2006 City Council Retreat, Council selected the Housing and Neighborhood Development Focus Area as a priority. City Council also identified some high priority subject areas to be addressed in the Housing and Neighborhood Development Action Plan. City Staff took those subject areas and identified some objectives to be addressed by the action plan. On March 6, 2006, City Council approved the focus area plans and referred the action plan to the Committee for further review and comment. The Housing and Neighborhood Development Committee discussed the action plan during their March 28, 2006 meeting and requested that staff include several additional objectives. Attached is a revised copy of the action plan. Attachment: Revised Housing and Neighborhood Development Action Plan Page 2 REVISED 2006 Housing and Neighborhood Development Action Plan 1. Neighborhood Policy Goal: Decrease the number of Challenged neighborhoods. Objectives: A. Review the City’s strategy for addressing neighborhoods B. Define the City’s service delivery expectations for Stable, Transitioning and Challenged neighborhoods C. Specify City strategic investments for neighborhoods, e.g., infrastructure, housing and economic development D. Assess the City’s current targeted neighborhood revitalization and intervention efforts E. Discuss the City’s role in neighborhood outreach, education and capacity building to strengthen neighborhood organizations a. Increase the number of Community Watch programs b. Provide education to citizens on the earned income tax credits F. Discuss on neighborhood zoning standards G. Review neighborhood infill housing policies H. Review status report on gentrification I. Perform a “gap” analysis on the City’s neighborhood efforts J. Establish goals and priorities for City neighborhoods 2. Neighborhood Ombudsman Goal: Provide proactive outreach services to non-targeted neighborhoods. Objectives: A. Assess the need for a more proactive neighborhood approach B. Provide information to residents on current city programs and services C. Assist neighborhoods in identifying and solving complex problems D. Assist neighborhoods in understanding land use and zoning requirements E. Provide training and capacity building services to strengthen neighborhood organizations 3. Affordable Housing Goal: Establish City affordable housing goals and priorities for the next 5 years. Objectives: A. Discuss on the distribution of affordable housing B. Select priority affordable housing markets to serve, e.g., preservation of existing rental units, households earning less than $16,000, etc. C. Establish Housing Trust Fund performance measures D. Review current affordable housing policies and impact of local regulations on affordable housing a. Review of transit oriented development policies b. Provide an update on the Homeless Report E. Expand education and outreach initiatives for affordable housing 1 Page 3 a. Discuss the City’s role in preventing foreclosures b. Discuss predatory lending F. Assess the need for a 2nd Housing Summit of local housing providers 4. Neighborhood Infrastructure Goal: Upgrade streets, sidewalks, curb & gutter and other infrastructure to sustain neighborhoods. Objectives: A. Address important health, safety and appearance issues related to infrastructure needs B. Provide minimum level of infrastructure consistent with the character and needs of neighborhoods C. Leverage other investments in neighborhoods D. Recommend neighborhood priorities for infrastructure 5. Rental Property and Landlords Goal: Maintain high quality rental properties. Objectives: A. Assess impacts of problem landlords on neighborhoods B. Review current City polices and ordinances to address problem landlords C. Identify strategies and actions to address problem landlords 6. Good Neighbors (Section 8) Goal: Engage in education and outreach to improve citizen awareness and involvement in maintaining neighborhoods. Objectives: A. Increase residents awareness of the importance of property maintenance, sanitation, code enforcement and zoning regulations B. Help residents understand their individual responsibilities for maintaining their properties to sustain neighborhoods C. Provide strategies and tools to assist residents in negotiating practical solutions to neighborhood conflicts. INFORMATION 7. CHARLOTTE HOUSING AUTHORITY Goal: Increase City Council’s awareness of the Charlotte Housing Authority goals, plans and implementations strategy. Objectives: A. Review the Charlotte Housing Authority Strategic Plan B. Receive information on property disposition strategy C. Understand the impact of the Charlotte Housing Authority strategies on the City’s affordable housing. 2 Page 4 Housing Trust Fund Strategic Plan Follow-up Housing and Neighborhood Development Committee April 6, 2006 Committee Action Requested: Approve the Housing Trust Fund Advisory Board’s revised recommendations for the Housing Trust Fund Strategic Plan and adopt the proposed action plan. Policy Framework: On November 26, 2001, City Council established a Housing Trust Fund to provide financing for affordable housing in the Charlotte community. On April 8, 2002, City Council established a Housing Trust Fund Advisory Board. The Advisory Board is charged with: overseeing the Housing Trust Fund, establishing policy and guidelines, monitoring performance and reporting annually to City Council. Revised Plan: On March 28, 2006, the Housing Trust Fund Advisory Board presented their strategic plan to the City Council’s Housing and Neighborhood Development Committee. Upon review, the Committee requested that the HTF Advisory Board and staff revise the action plan to make it more explicit that the action plan is a partnership between the Housing Trust Fund Advisory Board and City Council. Key policy concerns of the action plan were in the policy theme. Based on the Committee’s discussion, the Housing Trust Advisory Board proposes the following modifications to the plan. (Underlines represents new language and strike thoughts represent deleted language) Theme Strategy Action Steps 1. 2. Policy Partner with City Council to educate elected officials and public on impacts of affordable housing policies Partner with City Council to review community impact of Charlotte Affordable Housing Policies 3. 4. 5. 6. Review City and County policies that deter affordable housing development Review Housing Locational Policy Review transit stations development strategy Consider a land banking policy Host Community Roundtable with City Council on affordable housing and City policies that impede affordable housing locations Review use of County/CMS lands for housing The revised Housing Trust Fund Strategic Operating Plan is attached. The Committee also requested a matrix that shows the amount of units that could be built with annual Housing Trust Fund investments of $10m, $15m, $20m, $25m and $30m per year. The matrix is attached. The Committee requested changes in the tax rate for various amounts of funding. The Budget Director informed the Committee that the information will be available at the April 12 City Council Budget Workshop. Page 5 Background: Since 2002, City Council through voter approved bonds and other appropriations have designated $47 million for the Housing Trust Fund. To date, 100% of the Housing Trust Fund’s appropriations have been allocated to housing funding categories and all but $8 million has been awarded to affordable housing developments. The results so far have been the financing of 2,300 affordable homes of which 811 have been completed. The Housing Trust Fund primarily serves families earning an annual income of $38,500 or less. On March 12, 2005 the Housing Trust Fund Advisory Board held its Annual Retreat. The focus of the retreat was: o Long-term future of affordable housing in the City o Role of the Trust Fund in ensuring an adequate supply of affordable housing in Charlotte A Housing Market Study, commissioned by the Housing Trust Fund in 2005, forecasts a need for 12,530 new affordable rental homes by 2010 for families with annual earnings of less than $16,000. The Housing Trust Fund Advisory Board originally established a goal of meeting 50% of the 2010 projected need over the next ten years, which would require annual capital budget of $76 million. The Strategic Plan also sets forth strategies and action plans for the Housing Trust Fund Advisory Board to address: Funding, Housing Policy, Trust Fund Operations and Education and Outreach initiatives. (See page 5 of the Revised Housing Trust Fund Strategic Plan) Attachments: Revised Housing Trust Fund Strategic Plan (April 4, 2006) Housing Trust Fund – Housing Production Projections Page 6 Draft City of Charlotte Housing Trust Fund Strategic Plan April 6, 2006 Page 7 <INTENTIONALLY LEFT BLANK> Page 8 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN APRIL 2006 TABLE OF CONTENTS I. BACKGROUND ......................................................................................................................1 II. ISSUES...................................................................................................................................2 III. VISION....................................................................................................................................3 IV. GOAL ......................................................................................................................................3 V. ACTION PLAN ........................................................................................................................4 VI. NEXT STEPS..........................................................................................................................5 Page 9 <INTENTIONALLY LEFT BLANK> Page 10 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN The Housing Trust Fund has committed $42 million (90%) of its $47 million allocation. Financial commitments have been made to 2,300 affordable ownership, rental and special needs homes. To date, 811 of these homes have been completed. The Housing Trust Fund has been a major contributor to the Council’s five-year affordable housing goal. I. BACKGROUND On March 12, 2005, the Housing Trust Fund Advisory Board held its Annual Retreat. The focus was on the long-term future of affordable housing in the City of Charlotte and the role that the Trust Fund should play in ensuring that an adequate supply of affordable housing is available for the citizens of Charlotte. Additionally, almost 60% of the total units financed have been reserved for families earning less than $19,230. This effort has reduced the Housing Trust Fund’s funding leverage ratio to 1:4. The Housing Trust Fund was chartered by the City Council on February 22, 2002 and charged with the responsibilities of: 1. Overseeing the City of Charlotte Housing Trust Fund operations; 2. Recommending to City Council annual funding priorities for the Housing Trust Fund; 3. Creating or collaborating with taxexempt entities to solicit private funds; 4. Monitoring the Housing Trust Fund performance; and 5. Providing an annual report to City Council. With this backdrop, the Housing Trust Fund Advisory Board pondered the future of affordable housing in Charlotte and the role that the organization can play in that future. The Board reviewed demographic and housing data that will have an impact on the community over the next five years. It engaged in a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis to identify strategic issues that need to be addressed internally and externally. The Board then prioritized issues and identified broad themes and key strategies. Finally, the Board identified an action plan to better address the affordable housing needs in the community. The City Council also established goals for its overall affordable housing program, which included the Housing Trust Fund, of developing 4,500 affordable homes over five years and maintaining a funding leverage ratio of 1:5. While the Housing Trust Fund can serve families making as much as $51,280 annually (80% of the area median income), the Council requested that priority be given to families earning less than $19,230 annually (30% of the area median income). The following pages summarize the outcomes from the Board’s retreat and subsequent follow-up meetings. Key elements of the plan include: • • • • • Since the Housing Trust Fund’s inception, $47 million has been raised to support funding for affordable homes. $10 million has come from bonds approved by the City Council, $35 million from voter approved bonds in 2002 and 2004, and $2 million in a City land sale dedicated to the Housing Trust Fund. Issues Vision Goals Action Plan Next Steps The Board’s overall purpose was to put forth a strategic plan for community discussion on funding and developing affordable homes in the City of Charlotte. 1 Page 11 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN II. ISSUES A number of factors impact the City’s ability to provide affordable housing for its citizens. They include population and employment growth and the ability of the housing delivery systems to meet the various housing needs. The Housing Trust Fund hired Charles Lesser and Company to develop a local housing market study. The major outcome from the study was a growing unmet need of households earning less than $16,000. Year 2004 2010 Net Unmet Housing Demand for Incomes < $16,000 Rental Homes Owner Homes 10,178 1,094 12,530 4,831 Total 11,272 17,361 Opportunities Weaknesses Strengths Given this information, the Housing Trust Fund Advisory Board undertook a SWOT Analysis to identify key issues that need to be addressed. Below is a summary of their findings: Threats Issue Areas Board perception Credibility Board make up Commitment and continuity Board ability to work together and execute decisions effectively Board willingness to understand varying perspectives Rapid record of success City Council’s and voting public high trust in HTF Low community awareness of HTF and affordable housing needs City policy of maximum two terms (Impact of Board turnover) Lack of diversity – no women or other nationalities on the Board Capacity building – the Board has not prepared others to take advantage of HTF Lack of attention given to CDCs and small developers Not being aware or understanding the Charlotte Housing Authority’s (CHA) policy direction Inability to make in-roads to transit locations Better educate community on benefits of affordable housing HTF processes are open and flexible Potential for discussion of affordable housing development around new school sites HTF mandate to bring forward new affordable housing policies Non-profit housing finance initiative Appeal to Charlotte community generosity Results of new market study Strengthening relationship with CDCs and Homeless Alliance Creation of relationships with other jurisdictions – sharing information, technical assistance and capacity building in other communities Best practices research from other communities – leverage quality models from other cities Explore utilizing Charlotte Mecklenburg School sites for affordable housing Challenges of existing landlords with low occupancy rates – (buy down capital structure to produce affordable units with lower rates) The inability to acquire land around transit stop locations Potential for Board complacency Inability to impact many units considering the Board’s mixed-income strategy and focus on 30% or less of the AMI City Bond shortfalls Federal budget cuts NIMBY – particularly as it relates to the Housing Locational Policy Response of persons benefiting from HTF now resisting others that could benefit from the program Impact of CHA’s policies on the affordable housing market 2 Page 12 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN III. VISION Considering the Housing Trust Fund’s history, market trends and current issues, the Board put forth a vision to guide development of its strategic plan. The proposed vision is highlighted below: Housing Trust Fund Advisory Board Vision Everyone in our community should have the opportunity to have a good place to live to achieve their potential; The community should make available a continuum of housing options for its residents that range from shelter and transitional housing for the homeless and special needs populations, to low and moderateincome rental homes, and ownership homes; and The best model for success is building sustainable mixed-income communities. IV. MISSION To accomplish the above vision, the Housing Trust Fund Advisory Board has put forth an expanded mission, which is highlighted below: Housing Trust Fund Advisory Board Mission Finance affordable housing, review affordable housing policies and engage in education and outreach on affordable housing. 3 Page 13 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN V. GOAL To bring focus to the Board’s vision and drive development of its action plan, the Board developed an overall goal for the future. The Housing Trust Fund’s goal is: Housing Trust Fund Advisory Board Goal Address 50% of 2010 projected unmet affordable housing demand (6,265 units). (Increase housing for families earning less than $16,000.) Note: To achieve the above goal would require an investment of $75,809,611 annually in the Housing Trust Fund for a 10-year period. This assumes a mixed-income housing scenario where units serving families earning under $16,000 make up 15% of the new development with an average unit delivery cost of $90,753 and a Housing Trust Fund investment of 20% per unit. This estimate does not consider the impact of inflation. VI. ACTION PLAN The Housing Trust Fund Advisory Board developed four strategic themes – Funding, Policy, Operations and Education & Advocacy – to drive the development of the action plan. For each strategic theme, specific strategies were developed with proposed action steps and timelines. The matrix list on the next page details the Housing Trust Fund’s action plan: 4 Page 14 CHARLOTTE HOUSING TRUST FUND STRATEGIC PLAN Theme Strategy Action Steps 1. Funding Pursue public and private funding Research other national and regional funding alternatives 2. 3. 4. 1. Partner with City Council to educate elected officials and public on impacts of affordable housing policies Partner with City Council to review community impact of Charlotte Affordable Housing Policy Policy 2. 3. 4. 5. 6. 1. Operations 2. 3. Build the best possible business model based on benchmarking against national best practices and ongoing research of innovative affordable housing practices 4. Strengthen HTF oversight, project underwriting review and portfolio review process 5. 6. 7. I. Education and Outreach Increase outreach to local housing II. providers and stakeholders to create opportunities to leverage building capital II. Raise community awareness of need for V. affordable housing. Complete Non-Profit Feasibility Study & decide the next step Renew discussion with City Council on additional public funding Research public or non-profit funding sources Take position on maintaining federal funds Review City and County policies that deter affordable housing development Review Housing Locational Policy Review transit stations development strategy Consider a land banking policy Host Community Roundtable with City Council on affordable housing and City policies that impede affordable housing locations Review use of County/CMS lands for housing Provide overview of Charlotte Housing Authority and Community Development Corporations Establish an Audit Committee Research and test alternative business models for the Housing Trust Fund Provide Board education on Trust Fund Underwriting process and information requirements (i.e., appraisals) Participate in HUD Consolidated Plan Review financial and project status report Provide periodic issue updates (i.e., Exclusionary zoning, building moratorium, etc.) Develop communication/marketing campaign to enhance understanding of affordable housing (i.e., NIMBY concerns). Host outreach and information forums for potential recipients of HTF funding Work with Charlotte Apartment Association and other landlord to provide better access to HTF Re-design HTF Annual Report for greater readability and distribution and update the web site V. NEXT STEPS After review and approval by the City Council, this will drive the work program of the Housing Trust Fund over the next several years. The document will help fulfill the Housing Trust Fund’s vision to provide affordable housing opportunities to citizens of Charlotte and help them to achieve their potential. 5 Page 15 <INTENTIONALLY LEFT BLANK> Page 16 Document Prepared for City of Charlotte Housing Trust Fund Advisory Board by Neighborhood Development Key Business April 2006 Page 17 Housing and Neighborhood Development Committee Housing Trust Fund – Housing Production Projections April 6, 2006 On March 28, 2006 the Housing and Neighborhood Development Committee made a request for the Housing Trust Fund Advisory Board to provide projections for the number of affordable housing units that could be produced based on various City funding levels, ($10M, $15M, $20M, $25M and $30M). The chart below provides the housing projections. Total Development Funds City Funding Level $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 (All Sources) $50,000,000 $75,000,000 $100,000,000 $125,000,000 $150,000,000 Total Units 551 826 1,102 1,377 1,653 Total Affordable Units 441 661 882 1102 1,322 Note: Affordable units include units serving up to 60% of AMI General Assumptions: Mixed income development model 15% of units to serve $16,000 and below 80% of the units serve 60% and below (based on experience) 20% of the units serve 61% and greater Housing Trust Fund Investment – 20% of total investment A $90,753 cost per housing units (based on experience) Page 18 Units Serving $16,000 & Below 83 124 165 207 248 After School Enrichment Programs Quality Standards and Intermediary Selection Housing and Neighborhood Development Committee April 6, 2006 Committee Action Requested: A. Approve the new standards developed Partners in Out-of-School Time (POST). B. Approve recommendation for an Intermediary Selection Process from the Privatization and Competition Advisory Committee, which is contingent on FY07 budget approval. Background: On June 28, 2004 Council directed staff to work with Partners in Out-of-School Time (POST) to develop quality standards for the After School Enrichment Program (ASEP); and develop an ASEP vendor selection process in conjunction with the Privatization and Competition Advisory Committee (PCAC). However, Council action on the items was delayed from last year’s budget discussions. The City has been involved with After School Enrichment Programs (ASEPs) for approximately 30 years. ASEPs provide elementary and middle school students with a safe, nurturing environment during after school hours where time is spent involved in constructive and healthy activity. ASEPs are also designed to support the child’s intellectual, social, physical and emotional growth. The City of Charlotte currently provides $1.2 million to serve 775 children in six ASEPs - The Bethlehem Center, Charlotte-Mecklenburg Schools, Greater Enrichment Program, J.T. Williams Middle School, St. Paul Baptist Church and the YWCA. These programs are currently funded through CDBG (71%) and City’s Innovative Housing Program (29%). The FY07 funding recommendations for ASEPs are still being evaluated and will be addressed in the City Manager’s budget submission. Outstanding Issues Two outstanding issues from last year’s budget decisions were adopting new quality standards for ASEPs and a resolution on using an intermediary to administer the program on behalf of the City. City staff worked with POST to review and expand current ASEP quality standards to support the highest quality program possible. New standards include: prioritizing programs located in Charlotte’s Revitalization Areas, North Carolina Day Care Certification, collaborating with schools and teachers and providing transportation when needed. These standards have not been implemented as they await review and approval by City Council. See attached document for details on the standards. After working with POST to develop the quality standards, staff reviewed the proposed ASEP Quality Standards and program administrative options with the PCAC. The PCAC met on March 10, 2005 and recommended that the City initiate a RFP process to select a third-party intermediary to administer the After School Enrichment Program. The Intermediary will help leverage City funds for the ASEPs and provide oversight, consultation and training for the programs. The intermediary selection will be based on organizational expertise, management plan, compliance system, fund raising expertise and competitive cost to the City. Attached is an updated selection process schedule for consideration. The City’s cost is expected to be less than $100,000 annually for an Intermediary. Pursuing the Intermediary is contingent upon City Council FY07 budget approval. Attached is additional information about ASEPs. Included is a slide show that was presented to the Committee in May 2004, a report from the National League of Cities, The After School Hours: A new Focus for America’s Cities, which features Charlotte and a report from Child Care Resources, Early Care & Education Demographics Report. Page 19 The Committee also requested information on Mecklenburg County’s involvement in After School Programs. This information will be distributed at the meeting. Attachments: The After School Hours: A New Focus for America’s Cities (To be distributed) Early Care & Education Demographics Report PowerPoint Presentation – Charlotte After School Programs Mecklenburg County’s Involvement in After School Programs (To be distributed) Page 20 Charlotte After School Programs City Council Dinner Briefing May 24, 2004 Page 21 The Housing and Neighborhood Development Committee Asked Staff to Present… The Need for After School Programs in CharlotteMecklenburg The Relationship between After School Programs and City Core Business Impact of After School Programs in Charlotte – Mecklenburg Page 22 Background… • Current City investment and participation Neighborhood Development monitors 5 after school programs $1.2 million in CDBG and Innovative Housing Funds serves 718 students • Beatties Ford Road After School Enrichment Establish J. T. Williams Middle School FY 2005 Provide academic and cultural enrichment opportunities to at risk youth $60,000 City funds to match CMS funding commitment Page 23 A National Problem… The most dangerous time of day for children… 3:00 p.m. – 6:00p.m. Millions of children and teens are turned onto our streets without supervision or constructive educational or recreational activity… Juvenile crime, abuse against children and adolescent experimentation in drugs, tobacco, sex… soars. Source: Fight Crime – An organization of Police Chiefs, Sheriffs and Prosecutors 2001 Page 24 After School Programs… Support student success Provide additional resources for academic achievement Increase confidence in the classroom Help prepare students for end of grade and competency testing. Source: After school Alert Issue Brief, January 2004 Page 25 After School Programs… Provide alternatives to involvement in youth crime: “…of 1539 children tracked in a Chicago since 1967, those who were not in after school care (550) were 70% more likely to be arrested for a violent crime by age 18.” Source:Fight Crime: Invest in Kids Report Page 26 Challenges faced by CWAC Children* Quality of Life Dimension Citywide Youth Population CWAC Charlotte Supported After School Programs 137,941 36,191 Average Kindergarten Scores %After School Enrichment Students testing > to grade level in FY 2003 school year** 2.8% 2.6 Dropout Rate 6.4% 10.4% N/A 82.7% 73.5% N/A % Births to Adolescents 6.7% 11.2% N/A Juvenile Arrest Rates 1.0% 1.4% N/A N/A N/A % Children Passing Competency Exams % Students testing at or above grade point level in reading and math FY 2003** *Source: 2002 Quality of Life Index ** Source: CMS Page 27 718 N/A 66% in Reading 73% in Math 46% in Reading 57% in Math Relationship of After School Programs to Community Safety… Our Vision… “Charlotte will be the safest large City in America” Our Challenge… Juvenile arrests in Charlotte increased 14.4% (from 4014 to 4593) between 2002 and 2003* “In San Diego – juvenile arrests during after school hours were down by 13.1% and juveniles as victims of crime decreased by 11.7%” Source: Afterschool Alert: Issue brief January 2004 *Source: Charlotte Mecklenburg Police Department 2003 Annual Report Page 28 Relationship of After School Programs to Economic Development… Our Vision… Our Challenge… “Charlotte will be the most prosperous and livable city for all citizens through quality economic development” CWAC reported drop out rates 40% higher than City average CWAC Competency test pass rates 12% lower than City average Births to adolescents in CWAC nearly tripled the City’s average. Source: 2004 Economic Development Focus Area Plan Page 29 Relationship of After School Programs to City Within A City… Our Vision… Our Challenge… “Creating great neighborhoods in which to live, work and play” CWAC neighborhoods are challenged economically, educationally and socially A disproportionate number of youth exhibit at risk factors Source: CWAC Focus Area Plan Page 30 Relationship of After School Programs to Affordable Housing Goals… Our Opportunity… Our Vision… After school programs “ Support family selfenable CWAC working sufficiency initiatives and parents to gain and hold full increase affordable time employment housing opportunities” The US General Accounting Office estimates that welfare reform will be associated with a “substantial increase” in unmet child care needs” Source: Afterschool Alert: Issue Brief January 2004 Source: CWAC Focus Area Plan Page 31 Possible Funding Opportunities… Other Cities: • Houston: $2.4 million annually; $830,000 from General Fund • Columbus: $1.5 million (General Fund and CDBG) • Seattle: $4 million from General Fund • Fort Worth: $2 million ($1.4 million from special taxing district and $421,000 from CDBG) Untapped resources: Leveraging Workforce Development Board Funds Page 32 Impact of City Subsidized After School Programs… * • Children are safer “…students who spend three or more hours alone during out of school time are…more likely to use drugs and alcohol,…possess lower self-esteem and perform less well academically” Source: Critical Hours: Afterschool Programs and Educational Success • Parents respond that their children experienced great improvement in grades “ North Carolina’s Support Our Students program for middle school students found that [those] who participated…increased their reading and math scores on the state’s End of Grade tests” Source: Critical Hours: Afterschool Programs and Educational Success • Parents indicate that they can work full time – improving their quality of life *Source: 2003 CMS After School Enrichment Program Survey Page 33 Questions Question and Answer Session Page 34 Early Care & Education Demographics Report Mecklenburg County As of June 30, 2005 Page 35 Contents Early Care & Education Demographics Report Mecklenburg County As of June 30, 2005 Population Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 Early Education Demographics . . . . . . . . . . . . . . . . . . . . . . . . . Page 2 Early Education Programs by Age of Children Served . . . . . . . . Page 4 Licensed Child Care Program Features . . . . . . . . . . . . . . . . . . . Page 5 Child Care Program Supply Trends . . . . . . . . . . . . . . . . . . . . . Page 7 Child Care Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 8 Child Care Subsidy Information . . . . . . . . . . . . . . . . . . . . . . . . Page 9 About Mecklenburg County . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 Page 36 Population Statistics 2005 Child Population (0-13 yrs.) Total = 158,510 700,000 600,000 768,773 786,651 750,570 732,194 715,783 658,020 596,190 615,885 800,000 637,428 900,000 680,563 699,660 Total Population of Mecklenburg County 85,822 80,000 70,000 60,000 500,000 50,000 400,000 40,000 300,000 30,000 200,000 20,000 100,000 10,000 0 36,156 24,750 11,782 0 1995 2002 1996 2003 1997 2004 1998 2005 1999 2000 2001 (As of July 1, 2005) 0-2 years 3-4 years 5 years old 6-13 years Source: State Demographics Unit, North Carolina as of July 1, 2005 Source: State Demographics Unit, North Carolina, projection revised June 2005. Estimates for intercensal years provided by the North Carolina Office of State Planning Estimates for 2000, 2001, 2002, 2003, 2004, and 2005 vary from previous estimates and have been derived from the most recent Census data Pregnancies & Births Women 16+ with Children Number of live births (15-44) Number of pregnancies (15-44) Pregnancy rate (per 1,000) Birth rate (per 1,000) 80,816 100,000 80,000 31,891 60,000 12,773 16,946 95.3 71.3 Number of teen births (15-19) Number of teen pregnancies (15-19) Teen pregnancy rate (per 1,000) Teen birth rate (per 1,000) 40,000 20,000 0 1990 991 1,506 59.7 39.3 2000 Source: US Census 1990 and 2000 Source: State Center for Health Statistics, calendar year 2003 information released September 2004. Households with Children Under Age 6 by Family Configuration and Employment Status 1999 Income Ranges for 273,561 Mecklenburg Households Total = 57,563 80,526 90,000 2,356 21,620 80,000 61,807 70,000 9,190 58,289 60,000 50,000 31,983 40,000 4,499 30,000 19,898 17,438 23,518 20,000 10,000 Living with two parents (both working) Living with father only (working) Living with mother only (working) Living with two parents (one parent working) Not in labor force 0 Less than $10,000 $20,000 - $29,999 $50,000 - $74,999 Source: US Census 2000 $10,000 - $19,999 $30,000 - $49,999 $75,000+ Source: U.S. Census 2000 1 Page 37 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Early Education Demographics Legally Exempt Early Childhood, School-Age Child Care and Summer Camp Programs Licensed Early Childhood Programs Total = 903 1 1 Total = 195 27 32 411 444 47 13 24 85 1 2 7 3 Star Rated Family Child Care Homes Provisional License Church Exempt (1 part day) Part-Day Only Preschools (Star Rated) Temporary C License Star Rated Head Start Only Star Rated Licensed Centers Probationary License CMS Pre-Kindergarten Family Child Care Homes School Age Note: The North Carolina Division of Child Development separately licenses each building in which a regulated early education program operates. Therefore, one program operating in two buildings will have two licenses. Part-Day Preschools Head Start Summer Camps *Nine CMS Pre-K sites have Head Start enrolled children & 1 CMS Pre-K site has 2 More at Four classrooms Child Care Centers by Type of Licensure & Capacity Family Child Care Homes by Type of Licensure & Capacity Licensed Child Care Centers with Star Ratings = 451 Licensed Family Child Care Homes with Star Ratings = 411 License Number of Programs 1 Star Percent of Programs Number of Slots Percent of Slots 5 1.11% 470 1.20% 2 Stars 3 Stars 2 154 0.44% 34.15% 77 10,729 0.20% 27.48% 4 Stars 5 Stars 207 83 45.90% 18.40% 18,378 9,389 47.07% 24.05% Subtotal* 451 100.00% 39,043 100.00% Licensed Child Care Centers without Star Ratings = 36 Church Exempt 23 63.89% 2,839 Temporary C 11 30.56% 728 Provisional 1 2.78% 58 75.01% 19.23% 1.53% Probationary Subtotal* Total 1 2.78% 160 4.23% 36 100.00% 3,785 100.00% 487 Number of Programs License Percent of Programs Number of Slots Percent of Slots 1 Star 2 Stars 80 2 19.46% 0.49% 523 16 17.87% 0.55% 3 Stars 4 Stars 5 Stars 218 96 15 53.04% 23.36% 3.65% 1,560 714 113 53.32% 24.40% 3.86% Subtotal* 411 100.00% 2,926 100.00% Licensed Family Child Care Homes without Star Ratings = 3 Church Exempt 0 0.00% 0 0.00% 42,828 Temporary C Provisional Probationary 2 1 0 66.67% 33.33% 0.00% 13 5 0 72.22% 27.78% 0.00% Subtotal* 3 100.00% 18 100.00% Total 414 2,944 * Includes Head Start programs *Percentagetotals are rounded to 100%. *Percentage totals are rounded to 100%. Private Part-Day Preschool Only Programs Nationally Accredited Full-Time, Part-Day Preschool, After-School & Summer Camp Programs • Number of Programs = 87 30 • Total Capacity = 8,710 Capacity 1 30 NAEYC = 3,486 25 NAFCC = 35 20 1 Legally Exempt 15 85 Star Rated 21 Centers NAA = 0 9 Part-Day Preschools ACA = 800 4 10 2 Page 38 NAFCC - National Association for Family Child Care 3 5 NAA - National Afterschool Association 0 ACA – American Camping Association NAEYC Church Exempt NAEYC - National Association for the Education of Young Children NAFCC 0 NAA ACA June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Average Fees for Full-Time Child Care Percent of annual Percent of annual income spent on income spent on Family Child Average Average child care for one Child Care child care for one Care Homes Centers Annual FCCH child in a family Annual child in a family (FCCH) Weekly Cost Center Cost Cost of three in of three in Weekly Cost Mecklenburg Mecklenburg County* County* $133 $6,916 $161 $8,372 17.53% 21.23% $130 $6,760 $157 $8,164 17.14% 20.70% $126 $6,552 $153 $7,956 16.61% 20.17% $123 $6,396 $145 $7,540 16.22% 19.12% $121 $6,292 $143 $7,436 15.95% 18.85% Age Infant Toddler 2 years old 3 years old 4 years old Average Fees for School-Age Care School-age (part-time) 40 weeks of school year care $74 $2,960 7.50% $80 $3,200 8.11% $114 $1,368 3.47% $130 $1,560 3.95% School-age (full-time) 12 weeks of care during summer/holidays According to CCRI's provider database, the average annual fee for child care in Mecklenburg County is: Family child care for 0-5 year old children . . . . . . . . . . . . . . . . . . . . $6,583 School-age care (year round in a FCCH) . . . . . . . . . . . . . . . . . . . . . . . . $4,328 *Based on annual income of $39,444 (income needed for a family of one parent, one infant and one preschool child as reported by the North Carolina Justice and Community Development Center 2003) School-age care (year round in a child care center) . . . . . . . . . . $4,760 Source: Child Care Resources Inc. as of June 30, 2005 Center-based care for 0-5 year old children . . . . . . . . . . . . . . . . . . $7,894 Average Fees for Star Licensed Child Care Centers Per Week* Average 1 Star 2 Stars 3 Stars 4 Stars 5 Stars Infant $162 $128 $140 $155 $165 $183 Average 1 Star 2 Stars 3 Stars 4 Stars 5 Stars Infant $133 $126 $130 $132 $141 $145 Toddler $158 $122 $140 $151 $161 $176 2 Year old $152 $122 $140 $146 $156 $169 3 Year old $146 $116 $130 $141 $149 $160 4 Year old $144 $116 $130 $139 $148 $159 School-age (Full) School-age (Part) $133 $81 $112 $76 $121 $77 $130 $84 $134 $82 $148 $68 Data based on child care centers’ and family child care homes’ self-report to Child Care Resources Inc. of fees charged. *Weighted averages Average Fees for Star Licensed Family Child Care Homes Per Week* Toddler $131 $123 $128 $129 $138 $145 2 Year old $126 $118 $125 $125 $133 $143 3 Year old $123 $116 $120 $122 $129 $137 4 Year old $121 $114 $118 $120 $126 $135 School-age (Full) School-age (Part) $114 $74 $110 $73 $125 $100 $112 $71 $118 $78 $121 $79 Source: Child Care Resources Inc. database as of June 30, 2005 Child Care Resources Inc. (CCRI) maintains a referral database of licensed and legally exempt early education programs in Mecklenburg County. The North Carolina Division of Child Development (NCDCD) provides CCRI with basic information about licensed programs, which CCRI supplements with information gathered directly from program operators. Of the 903 NCDCD licensed early childhood and school-age programs in Mecklenburg County, 831 (92%) have elected to provide CCRI with more program details than publicly available through the NCDCD. CCRI’s database also includes information about 195 legally exempt (non-regulated) early education programs (e.g. part day preschool programs, summer camps and other school-age programs). 3 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Page 39 Early Education Programs by Age of Children Served Licensed Family Child Care Homes Ages Served # of Programs Serving Those Age Groups Infant (0-12 months) Toddler (12-24 months) Twos Threes/Fours 402 404 410 408 Ages Served # of Programs Serving Those Age Groups Fives School Age Before & After School 397 370 250 Family Child Care Homes reporting this information: 414 Combined Capacity: 2,944 children Licensed Child Care Centers Ages Served # of Programs Serving Those Age Groups Infant (0-12 months) Toddler (12-24 months) Twos Threes/Fours 328 332 352 424 Ages Served # of Programs Serving Those Age Groups Fives School Age Before & After School 467 413 295 Child Care Centers reporting this information: 487 Combined Capacity: 42,828 children Private Part-Day Preschool Only Programs Ages Served # of Programs Serving Those Age Groups Infant (0-12 months) Toddler (12-24 months) Twos 47 59 76 Ages Served # of Programs Serving Those Age Groups Threes/Fours Fives 86 59 Part-Day Preschool Programs reporting this information: 87 Total Capacity: 8,710 children Publicly Sponsored Pre-K Sites Ages Served # of Sites Serving Those Age Groups Head Start Only (3 and 4 year olds) CMS/Bright Beginnings Curriculum (4 year olds) More at Four/Smart Start Pre-K Programs* (4 year olds) CMS Exceptional Children’s Program (EC) (4 year olds) CMS/Montessori Curriculum (4 year olds) 14 19 36 19 2 # of Classrooms 48 138 70 24 10 Capacity 863* 2,468** 1,057*** 244 252 Publicly Sponsored Pre-K Sites reporting this information: 69 Total Capacity: 4,884 *Includes 317 Head Start enrolled children in 17 CMS Bright Beginnings classrooms and 546 enrolled in Head Start classroom sites or community-based child care centers. **This number does not include the Head Start and More at Four children at the CMS Bright Beginnings sites. ***Includes 180 More at Four children enrolled in 21 CMS Bright Beginnings classrooms and 877 enrolled in community-based child care centers. Based on Child Care Resources database of 1,016 programs supplying the above listed information as of June 30, 2005. These programs are able to serve a total of 58,020 children. Note: Total number of sites, classrooms, and capacities do not total. (Does not include summer camp programs.) 4 Page 40 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Licensed Child Care Program Features Family Child Care Home Schedules Child Care Center Schedules 487 450 410 450 412 350 350 299 300 250 389 389 400 400 254 250 227 215 224 250 186 200 200 150 150 100 295 302 300 165 98 86 98 100 33 1 50 1 50 0 6 0 Day Before School Full Time Full Year Evening After School Part Time School Year Day Before School Full Time Full Year Overnight Before/After School FT/PT Evening After School Part Time School Year Overnight Before/After School FT/PT 414 family child care homes reporting 487 licensed centers reporting Source: Child Care Resources database as of June 30, 2005 Source: Child Care Resources database as of June 30, 2005 Special Services Offered by Licensed Facilities Years in Operation - Licensed Facilities 450 563 450 400 400 350 258 300 250 200 200 100 355 300 249 250 150 342 350 98 69 150 85 73 69 201 161 100 44 50 50 1 0 0 0-1 Year 4-5 Years 1-2 Years 5-11 Years 2-3 Years 11+ Years Bi-Lingual/Spanish Experienced with Special Needs Drop-In Care 24-Hour Care 3-4 Years Bi-Lingual/Other Transportation Temporary/Emergency Care 901 licensed centers & family child care homes reporting 901 licensed centers & family child care homes reporting Source: Child Care Resources database as of June 30, 2005 Source: Child Care Resources database as of June 30, 2005 5 Page 41 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Licensed and Legally Exempt Family Child Care Homes by Zip Code Zip Code Programs Capacity Zip Code Programs Capacity Zip Code Programs Capacity 28078 28105 28134 28202 28203 28204 28205 28206 28208 28209 28210 28211 28212 28213 28214 28215 28216 28217 28226 28227 28262 28269 28270 28273 28277 28278 8 9 2 1 1 1 32 6 37 55 63 13 8 8 8 223 48 278 1 8 5 24 29 21 62 44 24 5 55 28 165 211 147 463 304 170 3 24 12 32 1 20 4 6 24 171 78 214 5 138 26 42 Licensed and Legally Exempt Child Care Centers by Zip Code* Zip Code Programs Capacity Zip Code Programs Capacity Zip Code Programs Capacity 28031 28036 28078 28105 28134 28202 28203 28204 28205 28206 28207 28208 28209 28210 28211 28212 28213 28214 28215 28216 28217 28221 28226 28227 28231 28256 28262 28269 28270 28273 28277 6 3 17 18 7 10 9 6 51 22 2 624 174 2,307 2,244 815 1,241 708 400 3,799 1,410 189 69 12 19 14 18 30 16 37 33 29 1 4,025 1,241 1,752 1,531 1,344 2,663 1,281 2,099 1,744 1,723 50 17 16 1 1 18 15 8 10 13 2,369 1,386 25 170 3,188 1,630 927 1,229 1,830 Private Part-Day Preschool Only Programs by Zip Code Zip Code Programs Capacity Zip Code Programs Capacity Zip Code Programs Capacity 28031 28036 28078 28105 28134 28202 28203 28204 28205 28206 28207 28208 28209 28210 28211 28212 28213 28215 28216 28226 28227 28262 28269 28270 28273 28277 28278 4 3 4 6 1 2 2 2 6 2 274 306 233 1,092 54 310 70 180 277 31 4 1 1 4 5 3 2 3 7 7 766 70 94 585 636 217 214 323 499 637 6 2 2 3 2 2 1 421 86 454 430 128 268 55 Publicly Sponsored Pre-K Programs by Zip Code ** Zip Code Programs Capacity Zip Code Programs Capacity Zip Code Programs Capacity 28036 28078 28134 28203 28205 28206 28207 28208 28209 28210 28211 28212 28215 28216 28226 28227 28262 28269 28277 1 1 1 2 5 4 1 45 92 12 156 687 991 12 1 2 1 3 3 2 1 274 259 548 146 206 126 77 1 2 1 1 1 24 126 88 138 12 * More at Four and Head Start children enrolled in child care centers in the community are counted within licensed and legally exempt child care centers. ** CMS Bright Beginnings (including those with enrolled Head Start and More at Four children, Exceptional Children and Montessori Classes) and Head Start independent sites are counted in with publicly sponsored Pre-K programs. Based on Child Care Resources Inc. database of 1,066 reporting programs with a total capacity of 61,797 as of June 30, 2005. 6 Page 42 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Child Care Program Supply Trends Child Care Centers and Family Child Care Homes Licensed Child Care Centers 2000-2005 Licensed Family Child Care Homes 2000-2005 600 550 500 450 400 350 300 250 200 150 100 50 0 600 550 500 450 400 350 300 250 200 150 100 50 0 466 2000 468 2001 472 2002 481 2003 489 2004 487 2005 512 500 492 453 453 414 2000 2001 2002 2003 2004 2005 Star Rated License Trends for Child Care Centers 2001-2005 Star Rated License Trends for Family Child Care Homes 2001-2005 300 450 275 400 250 350 225 300 200 175 250 150 200 125 100 150 75 100 50 50 25 0 0 2001 2002 2003 2004 2001 2005 2002 2003 5 Stars 4 Stars 3 Stars 5 Stars 4 Stars 2 Stars 1 Star GS110-106 2 Stars 1 Star 7 Page 43 2004 2005 3 Stars June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Child Care Demand N = Number of Responses Ages of Children Served N = 2,785 Children Location Preference N = 2,734 0.25% 0.5% 0.25% 2% 13% 25% 10% 13% 14% 1% 3% 5% 7% 75% 12% 19% Pre-Natal/Under One Two Five Nine and Over Near Home Near Employer/Home In Route to Employment Zip Code Employment One Three/Four Six to Eight Near School Near School/Home Community Other Note: Families can choose more than one option. Type of Care Preferred N = 4,882 5% Primary Reason Child Care Needed N = 2,785 5% 2% 1% 4% 6% 6% 51% 7% 77% 36% Child Care Center Summer Camp Part-Day Preschool Employment Parent Attending School/Training Parent Seeking Employment Family Child Care Home School Age Program Relocation Child Socialization Other Note: Families can choose more than one option for care. Reasons Parents Did Not Find Child Care N = 705 Calls for Child Care Referrals N = 2,785 Children 2% 0.2% 1% 3% 0.3% 7% 50% 0.4% 10% 0.6% 1% 1% 93% 28% 3.5% Mecklenburg Other NC Counties Rowan Iredell Cost Preferred care not available Facility's schedule Quality of program Out of State Gaston York County, SC Stanly Waiting for Financial Assistance Hours of operation Location Note: Numbers are based on a 20% sample of families searching for care and extrapolated to the whole; parents can give more than one response. Source: Child Care Resources Inc. (January 1 – June 30, 2005) Note: Percentage totals are rounded to 100% 8 Page 44 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Child Care Demand (continued) N = Number of Responses License Status of Programs Where Families Found Child Care N = 1,162 1% 7% 1% Quality Indicators Parents Used When Searching for Child Care 48% N = 1,219 1% 3% 1% 4% 6% 0% 55% 11% 32% 5 Star 3 Star 1 Star Temporary 12% 18% Star Rating Low staff/child ratio Staff/child interaction Small group size Education of staff Compliance history Staff stability (lack of turnover) 4 Star 2 Star GS 110-106 License Exempt Note: Numbers based on a 20% sample of families searching for care and extrapolated to the whole; families can choose more than one indicator. Note: Numbers are based on a 20% sample of families searching for care and extrapolated to the whole; parents can give more than one response. Child Care Subsidy Information Ages of Children Whose Parents Called Seeking Child Care Financial Assistance N = 1,678 Child Care Financial Assistance Total number of calls received by Child Care Search from parents/caregivers needing subsidized child care: 2,049. 12% 26% 15% Number of Children Receiving Subsidized Care 7% 13% 10% 17% . Prenatal/under age one Two Five Nine and over One Three/Four Six to eight Number of children receiving subsidized care as of June 30, 2005 9,598 Monthly average of children receiving subsidy from January – June 2005 9,570 Average monthly waiting list from January – June 2005 5,348 Waiting list for subsidized care as of June 30, 2005 5,361 Note: Children of parents seeking child care referrals in addition to subsidy are included with child care demand data. Maximum Income Eligibility for Child Care Subsidies 6/30/2005 Maximum Income Eligibility for Child Care Subsidies 8/01/2005 Family Size Family Size Maximum Gross Monthly/Annual Income Family Size Maximum Gross Monthly/Annual Income 1 2 3 4 5 6 $1,824/ $21,888 $2.385/ $28,620 $2.946/ $35,352 $3,507/ $42,084 $4,068/ $48,816 $4,629/ $55,548 7 8 9 10 11 12 $4,735/ $56,820 $4,840/ $58,080 $4,946/ $59,352 $5,051/ $60,612 $5,156/ $61,872 $5,261/ $63,132 Maximum Gross Monthly/Annual Income Family Size Maximum Gross Monthly/Annual Income 1 2 3 4 5 6 $1,836/ $22,032 $2.401/ $28,812 $2.966/ $35,592 $3,531/ $42,372 $4,096/ $49,152 $4,661/ $55,932 7 8 9 10 11 12 $4,767/ $57,204 $4,873/ $58,476 $4,979/ $59,748 $5,085/ $61,020 $5,191/ $62,292 $5,297/ $63,564 Co-payments (% of gross monthly income): 1-3 children - 10% / 4-5 children - 9% / 6-12 children - 8% . Source: Child Care Resources Inc. (January 1 – June 30, 2005) Note: Percentage totals are rounded to 100% 9 Page 45 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Points to know about Mecklenburg County: • Estimated total population of 786,651 as of July 1, 2005 (Source: State Demographics Unit, North Carolina projection revised June 2005) • The seasonally unadjusted unemployment rate was 5.1% as of June 2005 (Compared to 5.3% in June 2004) (Source: North Carolina Employment Security Commission) • Charlotte is the most populous city in Mecklenburg County, the most populous in North Carolina and the 21st most populous in the United States. (Source: U.S. Bureau of the Census, July 1, 2003 population estimates) • Charlotte is the second largest banking center in the U.S., behind New York City. (Source: Charlotte Chamber of Commerce, 2003) • Median household income of $50,045 in 2002 • Total number of students in Charlotte-Mecklenburg Schools for 2004-05 is 121,640 (CMS) • There are 151 public schools in Mecklenburg County. Of these, 91 are elementary schools, 32 are middle schools, 17 are high schools, and 11 are schools with special programs. Fifty are magnet schools. (CMS) • The total number of students enrolled in Pre-K in 2004-2005 was 2,965 four-year olds. (CMS) • According to the North Carolina Division of Child Development, 26,255 children ages 0-12 were enrolled in some form of licensed child care in Mecklenburg County as of June 30, 2005. There were 44,300 child care slots available at the time. (Source: US Census Bureau Model Based Estimate, 2002) • Number of TANF recipients 0-17: 6,689 Number of TANF recipients 0-5: 3,017 General Information • The federal poverty guidelines are determined according to family size and apply to all but two states.* These guidelines, issued each year by the Department of Health and Human Services (HHS), are a form of measurement that simplifies the poverty thresholds for administrative purposes, such as determining financial eligibility for certain programs. Listed below are the 2005 HHS poverty guidelines: (Source: North Carolina Eligibility Information System, July 1, 2005) • Number of Food Stamp recipients 0-17: 32,067 Number of Food Stamp recipients 0-5: 12,285 (Source: North Carolina Food Stamp Information System, July 1, 2005) • Children 0-5 living in poverty in 1999: 7,351 (Source: US Census 2000) • Single individual = $9,570 • Family of two = $12,830 • Family of three = $16, 090 • Family of four =$19,350 • Family of five = $22,610 • Family of six = $25,870 • Family of seven = $29,130 • Family of eight = $32,390 • For each additional person, add $3,260 Child Abuse and Neglect (CAN) Data for Mecklenburg County CAN reports for all ages (0-17) 9,871 CAN reports for ages 0-6 4,307 CAN reports for ages 7-12 3,264 CAN reports for ages 13-17 2,300 * Alaska and Hawaii use different guidelines due to higher living expenses. Children Found Substantiated or In Need of Services 2,437 Ages 0-6 1,183 Ages 7-12 771 Ages 13-17 483 (Source: North Carolina, Department of Health & Human Services, Division of Social Services, Central Registry for Child Maltreatment, 2003-2004) 10 Page 46 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Definitions Bright Beginnings is a Charlotte-Mecklenburg Schools-sponsored program that serves educationally at-risk four-year-old children in school settings and in area child care programs. This program enables four-year-olds who might otherwise have started their school years behind their peers to build the foundation they need to succeed when they enter kindergarten. Bright Beginnings has a child-centered curriculum with a strong language and early literacy focus. It features support services provided by child development, health and mental health, and literacy specialists, as well as active parent/family involvement. Bright Beginnings classrooms in area childcare programs are funded by More at Four and Smart Start of Mecklenburg County. Center-Based Programs are independently operated or operate in schools, workplaces, individual homes (considered small centers), churches or synagogues. Most are open on a fixed schedule, eight or more hours per day, Monday through Friday. Children in centers are usually grouped by age. As they grow, children often move into the next playgroup with a different caregiver. All centers must meet state regulations for the legal operation of a child care facility. Child Care Subsidy - Financial assistance for income eligible families to secure North Carolina Division of Child Development licensed child care while parents/guardians are working, attending school or job training activities. Exceptional Children’s Programs are public pre-kindergarten programs that assure children with varying abilities have the opportunity to develop mentally, physically, and emotionally when provided with an appropriate individualized education in the least restrictive environment with their typically developing peers. The program serves children ages 3, 4, and those 5 year olds not age eligible for kindergarten. Parents have the opportunity to be actively involved in meaningful ways in their child’s education. (Based on IDEA – P.L. 94-142) GS 110-106 (Religious-sponsored child care facilities) are child care facilities or summer day camps operated by a church, synagogue, or school of religious charter. While exempt from licensure, they must file a notice of intent to operate a child care facility with the state. A religious-sponsored child care facility may choose to seek licensure, but if it does not, it must still meet state licensing requirements with the following exceptions: staff qualifications, staff training, written activity plans and developmentally appropriate activity centers. Head Start and Early Head Start are federally-funded programs that provide free, comprehensive developmental services for children ages birth to five from low-income eligible families. These programs are child-focused and family centered. Licensure – Legal permission, granted by the North Carolina Division of Child Development, to operate a child care facility for more than two children for more than four hours a day. A license is issued according to the rules and regulations set forth by federal and state laws or local ordinances pertaining to a child’s health, safety and welfare. Licensed Family Child Care Homes (FCCH) are operated by individuals who provide care in their homes for more than two children who are not related to them. These programs offer a home-like setting that provide the opportunity for siblings to stay together. A licensed FCCH may care for up to eight children, with no more than five preschool children in care at any given time. The caregiver’s own preschool-age children must be included in the number of preschoolers. However, their school-age children are not counted for licensing purposes. FCCH’s must provide age-appropriate toys and activities, nutritious meals and snacks and meet basic health and safety standards. All FCCH’s must meet star regulations for the legal operation of a child care facility. Legally Exempt Family Child Care Homes are allowed to care for two non-related children in addition to their own without being licensed by the state. Montessori Curriculum is an individualized program of education based on the philosophy that children learn through their own experiences in a carefully prepared, ordered, and responsive environment. Included in the environment are didactic and sequenced materials geared toward promoting children’s education in four areas: development of the senses, conceptual or academic development, competence in practical life activities, and character development. More at Four is a state wide, voluntary program that prepares eligible four-year-old children for school success by providing them with high quality pre-kindergarten experiences. The curricula used are child-centered, have a literacy and language focus and include parent participation. More at Four classrooms operate in centers and school settings for six hours per day, follow the public school calendar and have no more than a one-to-nine staff-to-child ratio. 11 Page 47 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Definitions (Cont’d.) NAA Accreditation - Accreditation standards for programs offering care to school age children. The standards were developed by the National AfterSchool Association (NAA), a professional support network promoting quality programs for children and youth in their out-of-school time. NAA accredits programs that meet these quality standards, based on a selfstudy and an NAA Endorser’s ratings of compliance with the standards. NAFCC Accreditation - Accreditation standards for family child care homes. The National Association for Family Child Care (NAFCC), a professional organization offering education and support for quality programming in family child care, has developed a set of standards that define quality for family child care homes. To have a program accredited by NAFCC, the family child care home provider must complete a self study to rate the degree to which standards are met, submit an application to NAFCC, and have the ratings validated by an NAFCC Observer. NAEYC Accreditation - Accreditation standards for early education programs (full day and part day). The National Association for the Education of Young Children (NAEYC) has developed a set of quality standards that programs must meet to receive accreditation. Receipt of accreditation indicates that an early education program provides a high quality learning environment for children that exceeds the threshold for quality set by licensing requirements. Programs must complete a self study, submit an application, and have ratings verified by an NAEYC Validator. School-Age Child Care refers to programs for children before and/or after school hours and during school holidays and vacations. Family child care homes, child care centers and schools typically offer this type of care. Programs that operate for four hours or less per day are license-exempt, but may voluntarily seek state licensure or pursue national accreditation. Part-Day Preschools operate for four hours or less per day serving children between the ages of 0-5 years. While licenseexempt part-day preschoolers may voluntarily seek licensure and may pursue national accreditation. Typically, part-day programs operate on the same calendar year as the public school system, serving families where one parent is not employed full-time. Faith organizations and community-based not-for-profit organizations are the primary sponsors of part-day programs. Public Pre-Kindergarten Programs include center-based classrooms for four-year olds that are fully or partially publicly funded and operate under the direction of state, local, and federal education and human service agencies. Probationary License may be given if the program has not met the law or rules either on purpose, or on an on-going basis, or is hazardous to the health and safety of children. The probationary license, and the notice explaining why it was issued, must be posted in the child care program where it can be easily seen. Provisional License may be issued if the program has not met the child care rules either on purpose, or it has happened more than once, or it is dangerous to the health and safety of children. A provisional license is given so that the program has time to fix the problems. The provisional license, and the notice explaining why it was issued, must be posted in the child care program where it can be easily seen. Star Rated License - North Carolina’s new system of licensing child care programs that is based on points a program can receive in three categories: Program Standards, Staff Education and Compliance History. A program can earn more points and receive additional stars on its license by achieving the following: provide higher quality environment/program for children, and; employing staff with additional training, education and/or experience in early education, and; maintaining a high rate of compliance with the North Carolina State regulations for child care programs. Summer Day Camps are generally designed for school-age children and operate during the day for less than four months. They may be offered by child care centers, colleges, recreation sites, faith-based groups, or other sponsoring organizations. This type of program is exempt from state licensure. Temporary License is given by the North Carolina Division of Child Development for a period of six months to a new program or to a previously licensed program (when a change in ownership or location occurs) after which it may apply for a higher than one star rating. For more information, call (704) 376-6697. 12 Page 48 June 2005 Report (As of June 30, 2005) © 2005, Child Care Resources Inc. Statistics in this report are based on information gathered from Child Care Resources Inc.’s comprehensive database of family child care homes, child care centers, part-day preschools, Head Start programs and public pre-kindergartens. To ensure accuracy of the data, Child Care Resources Inc. annually surveys all early care and education programs in the three counties in regard to their programs (licensing, capacity, curriculum, hours of operation, fees, etc.) The database is also updated weekly based on licensing information provided by the North Carolina Division of Child Development. Daily updates are made to reflect changes in status or programming throughout the year. Statistics regarding population and income, which are gathered from various sources, are the most current available. Child Care Resources Inc. publishes and distributes this report semi-annually and maintains updates on a quarterly basis. For more information regarding this report or about early care and education or school-age programs in Mecklenburg, Cabarrus, or Union County, contact Child Care Search at 704-348-2181. Page 49 Main /Administrative Offices 4601 Park Road, Suite 500 Charlotte, NC 28209 (704) 376-6697 Cabarrus County Office 2353 Concord Lake Road, Suite 160 Concord, NC 28025 (704) 786-1023 Union County Office 105-A Cedar Street Monroe, NC 28110 (704) 238-8810 email: mailbox@childcareresourcesinc.org www.childcareresourcesinc.org © 2005, Child Care Resources Inc. Page 50