Listen to the story here.
The American Rescue Act, signed by President Biden last month, sends around $ 45 million to New Hanover County. According to official figures, $ 4 million has been earmarked for infrastructure improvements to help create affordable housing – although it is not yet clear how this will happen or how much additional housing the county can use.
Most of the $ 1.9 trillion in government relief funds must be related to pandemic recovery, but the law also allows local water and sanitation projects. This will allow the county to spend $ 4 million on upgrading the water and sewer lines along Sidbury Road in northern New Hanover County.
So – how is this going to create affordable housing?
"This means that future developers can forego their additional share of the costs for expanding water and wastewater."
This is county manager Chris Coudriet.
He speaks of "system development fees" that help finance ongoing growth and infrastructure development. Developers pay these fees when connecting new units to a utility company.
Legally, utilities like CFPUA can't waive these fees for individual developers – even if they're a nonprofit like Habitat for Humanity. However, local governments can either get involved in specific projects or, as in this case, in general.
But what's stopping a developer from simply slashing savings and still building luxury apartments once fees are down?
Coudriet says this could be negotiated during the reconsideration.
“So we can get there through the reallocations that are required for development, that we know that the community wants, that we know that the building community wants to provide it, that there will be a reallocation. I think that's the mechanism by which we do that. "
And while the county was able to negotiate affordable housing units as part of an application for reallocation – even without federal funding or improvements to the utility company – lower utility fees give employees additional leverage, says Coudriet.
How much affordable housing will the county demand from new projects facilitated by the Sidbury Road expansion?
"So these are openly political decisions that have not yet been worked out."
The County Commissioners will vote on Monday on a no-obligation review of spending priorities for funding the Rescue Act. However, formal approval of where the money will be officially spent is expected to be in the form of a budget regulation in mid-May. Coudriet said there could be more specific guidelines in this case that could more tightly tie the need for affordable housing to lowering costs for developers.
The following are the proposed guidelines for spending $ 45.4 million federal funds under the American Recovery Act. Note that this is funded for the county only. The City of Wilmington and the Beach Towns each receive their own funding from the law.
American rescue plan
overview
New Hanover County will receive an estimated $ 45.4 million from the US bailout plan signed by President Biden on March 11th. The funds must be spent by December 31, 2024, and New Hanover County has developed a draft framework for using these funds over the next three years to empower our community. Further administration and timing details for each program or project will be determined after that plan is approved by the Board of Commissioners at its board meeting on April 5th.
Broadband Connection – $ 5,760,000
The congress language allows the funds to be used for broadband purposes, so the district proposes the following:
Broadband Access: A program to connect approximately 8,000 households to broadband, focusing for two years on households with children who are eligible for Medicaid or Food and Nutrition services to provide access and affordability to reliable high-speed internet for students and families to improve. ($ 5,760,000)
Business and Employment Assistance – $ 3,850,000
The legislation provides support for businesses and non-profit organizations. New Hanover county's recreational and hospitality sectors were particularly hard hit during the pandemic, and the county is proposing to use funds to:
Business Support: Business grants that are scaled in size based on the number of employees a company has and are focused on retail, service, leisure and hospitality, and childcare facilities. ($ 2,500,000)
Nonprofit Support: Grants to nonprofits that have been negatively impacted and were unable to continue operations at some point during the pandemic. (USD 700,000)
Vocational Training: Two job programs to be run in partnership with Step Up Wilmington include a six-week paid vocational training and placement program for 100 people, and a six-month paid internship and placement program for an additional 10-20 people to develop long-term skills and employment. ($ 650,000)
Housing – $ 3,000,000
The legislation allows support to households affected by the COVID-19 pandemic. Therefore, the county proposes to use funds for the following:
Mortgage Assistance: Assistance to homeowners who are behind with mortgages due to the effects of COVID-19. This would be in addition to the $ 7 million emergency rental assistance program that is currently running across the county. ($ 3,000,000)
Review for the Board of Commissioners, April 5th
Physical and Mental Health – $ 4,136,936
The well-being and mental health of students and seniors who have suffered during the pandemic, and legislation, enables local governments to use funds to mitigate the pandemic's public health impact. The county suggests using the tools outlined below to address these issues and achieve long-term positive effects. For each of these cases, it is intended to include the services in the district's continuing budget from the 2023-24 financial year.
Mental health in schools: Ensure access to mental health counselors in every public school through the county health and human services department. ($ 3,156,039)
Mental Health for Seniors: Establish mental health counselors and a mobile health team based in the Senior Resource Center to help the older adults in our county. ($ 332,215)
School Nurses: Classify two school nurses into school nurses and, in addition to the school nurses the county already provides at each school, provide a school nurse supervisor through the county health and human services department. ($ 212,000)
Senior Resource Center: A gathering place in southern New Hanover County for the Senior Resource Center for meal distribution and social interaction. It also ensures an improved distribution of meals at the existing locations of the SRC. ($ 436,790)
Infrastructure and Emergency Management – $ 12,327,521
The congressional language explicitly allows the American rescue plan to be assigned to water and sanitation projects. Given the role of business continuity management in the pandemic, it also appears to be eligible. The county suggests using the funds in the following ways:
Rainwater services: Coverage and payment of the costs for rainwater supply in the unincorporated district for all users for the 2021-22 financial year in order to reduce the burden on residents due to a new fee and still provide the required service. ($ 4,158,521)
Water & sewerage:
• Sidbury Road water and sewer expansion to ensure access to these vital services, encourage responsible growth, and support the creation of affordable housing in northern New Hanover County. The aim is to reduce development costs in order to provide affordable housing. ($ 4,035,000)
• Blue Clay Business Park water and wastewater infrastructure to improve economic development opportunities in this area. ($ 3,600,000)
Homeless Shelter: Reimbursement from nonprofits that provided shelter outside of the community during the pandemic and that were refused reimbursement by FEMA. ($ 370,000)
Contingency Plan: Revise the county EOP to reflect the updated structure and ensure the plan addresses pandemic issues. ($ 100,000)
Personal protective equipment: replenish the county PPE inventory to ensure adequate supplies for future needs. ($ 64,000)
Review for the Board of Commissioners, April 5th
Revenue Replacement – $ 3,200,000
The congressional language allows for lost estimated revenue to be replaced during the pandemic. The county suggests using funds to:
Sales tax receipts: Reimbursement of sales tax receipts that were not as forecast to ensure the county continues to have a solid financial footing. ($ 3,200,000)
Essential County Employees – $ 6,195,177
The American bailout plan provides for a "premium" for government employees who have provided essential government services. Therefore, the county suggests using the funds in the following ways:
Employee salary:
• Provision of fixed dollar employee awards based on an employee's length of service during the pandemic and full- or part-time status. This is in recognition of the county staff who have stayed on the front lines, continued important public services and ensured residents get the help they need at a time when it was critical. ($ 5,745,177)
• Provide rewards for employees directly involved in the vaccine response to reward them for their dedication, long hours, and constant work in vaccinating our community and saving lives. ($ 450,000)
Reserve and Administration – $ 6,930,366
The legislation appears to allow the county to reserve funds for potential future allowable expenditures, as well as funds to manage and provide reports on the use of funds as needed. The district proposes the following reserve funds for this purpose:
• A reserve fund that represents 10 percent of the total. ($ 4,660,366) • An administration and reporting reserve fund set at 5 percent of the total. ($ 2,270,000)
Total Funding Amount specified in the county's plan: $ 45,400,000