JULY2011

TECH DED BY BENCHMARK CMR INC.

STOKES COUNTY

NORTH CAROLINA

ANALYSIS OF IMPEDIMENTS

NICAL ASSISTANCE PROVI

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Stokes County Analysis of Impediments

INTRODUCTION AND EXECUTIVE SUMMARY OF ANALYSYS ....................................... 5

Historical Overview of the Fair Housing Requirement .......................................................................... 5

Who Conducted ...................................................................................................................................... 5

Participants ............................................................................................................................................. 6

Methodology Used .................................................................................................................................. 7

How Funded ............................................................................................................................................ 7

Conclusions ............................................................................................................................................. 7

JURISDICTIONAL BACKGROUND DATA .......................................................................... 9

Demographic Data .................................................................................................................................. 9

Income Data .......................................................................................................................................... 12

Employment Data ................................................................................................................................. 12

Housing Profile ..................................................................................................................................... 13

Maps ..................................................................................................................................................... 14

EVALUATION OF JURISDICTION’S CURRENT FAIR HOUSING LEGAL STATUS ........ 15

Fair housing complaints or compliance reviews where the Secretary has issued a charge of or made a finding of discrimination .......................................................................................................... 15

Fair housing discrimination suit filed by the Department of Justice or private Plaintiffs .................... 16

Reasons for any trends or patterns ........................................................................................................ 16

IDENTIFICATION OF IMPEDIMENTS TO FAIR HOUSING CHOICE ................................ 17

Public Sector ......................................................................................................................................... 17

Private Sector Lending Policies and Practices ...................................................................................... 18

Public and Private Sector ...................................................................................................................... 19

ASSESSMENT OF CURRENT PUBLIC AND PRIVATE FAIR HOUSING PROGRAMS AND ACTIVITIES IN THE JURISDICTION ......................................................................... 20

FAIR HOUSING PLAN TO COVER 5 YEARS ...........ERROR! BOOKMARK NOT DEFINED.

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CONCLUSIONS AND RECOMMENDATIONS ................................................................... 21

SIGNATURE PAGE ............................................................................................................ 22

Analysis of Impediments

INTRODUCTION AND EXECUTIVE SUMMARY OF ANALYSYS

Stokes County

Historical Overview of the Fair Housing Requirement The Department of Housing and Urban Development (HUD) is committed to eliminating racial and ethnic segregation, illegal physical and other barriers to persons with disabilities, and other discriminatory practices in housing. The provisions to further fair housing emanate from the mandate of Section 808(e)(5) of the Fair Housing Act which requires the Secretary of HUD to administer the Department’s housing and urban development programs in a manner to affirmatively further fair housing. The extent of the AFFH obligation has never been defined statutorily. However,

ropriate actions to overcome the effects of any impediments identified through the

. Maintain records reflecting the analysis and actions in this regard.

n in the jurisdiction

g occupancy regardless of race, color,

that is structurally accessible to, and usable by, all persons, particularly person

Foster compliance with the nondiscrimination provisions of the Fair Housing Act.

ons to overcome those impediments, and maintenance of the records preceding analysis and actions.

HUD defines it as requiring a grantee to: 1. Conduct an analysis to identify impediments to fair housing choice within the jurisdiction 2. Take app

analysis 3 HUD interprets those broad objectives to mean: • Analyze and eliminate housing discriminatio• Promote fair housing choice for all persons • Provide opportunities for inclusive patterns of housin

religion, sex, familial status, disability or national origin • Promote housing

with disabilities. • HUD and the NC Department of Commerce require grantees that accept HUD program funds to certify that they will affirmatively further fair housing as part of the grant obligations. An analysis of impediments to fair housing must be conducted by the grantee, along with taking appropriate acti

Who Conducted The North Carolina Department of Commerce (DOC), Division of Community Assistance is the lead agency for preparing the 2010 Analysis of Impediments to Fair Housing Choice. Other Consolidated Plan partners include the North Carolina Housing Finance Agency, the North Carolina Department of Health and Human Services, Office of Economic Opportunity, and North Carolina Housing Opportunities for Persons with AIDS (HOPWA) Program. Western Economic Services, LLC, a Portland, Oregon-based consulting firm specializing in research and analysis in support of housing nd community development planning, prepared this AI.

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Participants To examine possible fair housing issues in the home mortgage market, Home Mortgage Disclosure Act (HMDA) data was analyzed for the state by race, ethnicity, gender, income and location. For this analysis, HMDA data from 2004 through 2008 were analyzed, with the measurement of denial rates by census tract and by race and ethnicity of applicants as well as the reasons for denial as the key research objectives. These data were also examined to identify the groups and locations most likely to encounter high interest rate loans Housing complaint data was used to analyze complaints related to fair housing discrimination in the renting and selling of housing. HUD provided fair housing complaint data for the State of North Carolina from 2004 through 2010. That information included basis of complaint, issues pursuant to the grievance and closure status of the alleged fair housing infraction. This review of more than 1,000 fair housing complaints allowed for inspection of the tone and relative degree and frequency of certain types of unfair housing practices seen in the state and the degree to which they were found to be with cause, even while acknowledging that many individuals may be reluctant to step forward with a complaint. The North Carolina Human Relations Commission also provided some complaint data for January 2007 through July 2010. The State of North Carolina elected to use a survey instrument to measure the degree of understanding of fair housing laws, awareness of actions made to affirmatively further fair housing, perceptions of state and local government policies that adversely affect fair housing including zoning requirements and development practices, as well as known practices in both public and private sectors that may deliberately or unwittingly affect housing choice due to protected class status. This step was a cost effective, efficient method to target research resources. The 2010 North Carolina Fair Housing Survey, which was conducted entirely online, received a total of 821 responses. The 2010 survey targeted individuals involved in the housing arena. The prospective contact list was assembled by the lead agency with experts in at least the following areas: Residential and commercial building codes

and regulations; State, local, and federal occupancy

standards; Residential health and safety codes and

regulations (structural, water and sewer); State and local land use planning; Banking and insurance laws and

regulations;

Real estate development, real estate sales and management laws and regulations;

Renter rights and obligations, including civil rights;

Fair housing, disability, social service, and other advocacy organizations;

Habitat for Humanity or similar housing providers.

The survey approach also assured that selected target populations, through their in-need service provider network or advocacy organizations, were well represented. Furthermore, these entities were utilized to help publicize fair housing planning activities and public involvement. The survey protocol involved sending an e-mail announcement to each prospective respondent, introducing them to the upcoming survey, its purpose and intent. A link was provided that directed the respondent to the online survey. The e-mail message also urged respondents to forward the survey announcement to any other individual or agency involved in fair housing. Furthermore, the announcement and survey link were posted on the lead agency’s website and printed copies were distributed during public meetings. As noted above, the survey was designed to address a wide variety of issues related to fair housing and affirmatively furthering fair housing. The following

narrative summarizes key survey themes and data that were intended to be collected from each survey section.

Methodology Used The 2010 North Carolina Analysis of Impediments to Fair Housing Choice offers a thorough examination of a variety of sources related to housing, such as demographic change, economic influences, and the state of the housing market, but also information pertaining to affirmatively furthering fair housing, the state of the fair housing delivery system and housing transactions affecting people throughout North Carolina. This information was collected and evaluated through four general approaches. The four methodological research activities utilized in creating this AI were: 1. Primary Research – the collection and analysis of raw data that did not previously exist. 2. Secondary Research – the review of existing data and studies. 3. Quantitative Analysis – the evaluation of objective, measurable and numerical data. 4. Qualitative Analysis – the evaluation and assessment of subjective data, such as people’s

beliefs, feelings, attitudes, opinions and experiences. Some of the baseline secondary and quantitative data providing a picture of the State’s housing marketplace were drawn from the 2000 census and estimates. These data included population, personal income, poverty estimates, housing units by tenure, cost burdens and housing conditions. Other data were drawn from records provided by the Bureau of Economic Analysis, the Bureau of Labor Statistics and a variety of other sources.

How Funded Funding for the Analysis of Impediments study was incurred and derived from staff time and equipment of Benchmark CMR, Inc.

Conclusions Impediments Found The basic obstacle is a lack of knowledge among housing agencies in the community concerning Title VIII requirements. Actions to Address Impediments The County adopted a Fair Housing Resolution and a Complaint Procedure in the 2nd quarter of 2011 which designated the County’s CDBG Community Development Administrator as the official to receive complaints regarding housing discrimination. These complaints will then, by formal agreement, be referred to the North Carolina Human Relations Commission for investigation, conciliation and resolution within ten (10) calendar days from the date of receipt. The County will also submit in writing a response to the individual, which filed the complaint informing them of the action being taken. This response will be made within ten (10) calendar days from the date the complaint was received. The County will place an advertisement in the local newspaper, which will inform residents of the Town's Fair Housing Resolution and to whom to contact for information and filing complaints.

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The County will develop a fair housing pamphlet, which summarizes Title VIII requirements, and distribute those to various agencies in the community involved in housing services. This would include realtors, financial institutions and real estate developers.

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Jurisdictional Background Data

Demographic Data

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Income Data

Employment Data The major employers in Stokes County are Stokes County Board of Education, Kobe Wieland, Cooper Products LLC, County of Stokes, Stokes-Reynolds Memorial Hospital; each of the industries employees a minimum of 250 people.

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Housing Profile

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Maps

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Evaluation of Jurisdiction’s Current Fair Housing Legal Status

Fair housing complaints or compliance reviews where the Secretary has issued a charge of or made a finding of discrimination HUD maintains records of all complaints filed that represent violations of federal housing law. Over the 2004 through 2009 time period, HUD reported a total of 804 fair housing complaints from within the state of North Carolina with a high of 208 in 2004 and a low of 21 in 2007. The majority of these complaints, 582, were filed in entitlement areas in the state, while 222 were filed in the non-entitlement areas. Details regarding complaints filed in entitlement or non-entitlement areas are presented in Appendix D of this report. Table V.1 presents the complaint data broken down by basis or the protected class status of the person alleged to have been aggrieved in the complaint. Complainants may cite more than one basis; hence the number of bases cited can exceed the total number of complaints. The majority of the fair housing complaints filed with HUD in North Carolina were filed on the basis of race, with 363 of the 1,021 bases cited. An additional 267 complaints were filed on the basis of disability, 131 were filed on the basis of national origin, and 100 were filed on the basis of family status. The issue, or alleged discriminatory action, that was related to each complaint is presented in the following table; similar to the way bases are reported, more than one issue may be counted per each complaint. In this case, 1,028 issues were cited with discrimination in terms, conditions or privileges in rental transactions cited 315 times. Discriminatory terms, conditions, privilege or services and facilities was cited 145 times and failure to make reasonable accommodation was cited 102 times. The most commonly cited issues related to rental transactions, which suggests that discriminatory acts leading to the filing of fair housing complaints are more commonly associated with the rental market. Housing complaints filed with HUD can also be examined by closure status. Of the 804 total complaints, 349 were determined to be without cause. However, 200 complaints were settled successfully, another 55 were withdrawn by the complainant after resolution was reached, and one was resolved through FHAP judicial consent order, but this represents a fairly low rate of success for the complaint system in the state. These data are presented below in the following table. The 256 housing complaints that were successfully settled were further examined. The table below shows that successfully resolved fair housing complaints in North Carolina most commonly related to disability, followed by race, national origin and family status. Some housing complaint data regarding number of complaints, basis and closure were also received from the North Carolina Human Relations Commission (HRC). These data were relevant to 2007 through July 2010, and, as shown in the following table, a total of 269 complaints were filed during this time period. More than 100 complaints were filed in 2008 while only one complaint was filed in 2007. Eleven of these total complaints were missing detailed information regarding year filed, basis or closure status.

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Fair housing discrimination suit filed by the Department of Justice or private Plaintiffs No know cases filled within the County by the Department of Justice or private Plaintiffs.

Reasons for any trends or patterns Fair housing complaint data was collected from HUD and the North Carolina Human Relations Commission. Data from these sources showed that more than 800 complaints were filed in North Carolina from 2004 through 2009. The most common bases for complaints were race and disability and the most prevalent issue was discriminatory terms and conditions in the rental market. A fair housing survey regarding the state of fair housing throughout North Carolina showed that many respondents have concerns about fair housing in their communities and that they see barriers to affirmatively furthering fair housing, including discrimination in the rental markets, lack of enforcement of fair housing laws, and zoning and land use restrictions. Some respondents also found fair housing laws difficult to understand and noted that additional outreach and education efforts regarding fair housing are needed in their communities.

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Identification of Impediments to Fair Housing Choice

Public Sector Zoning and Site Selection Exclusionary zoning is sometimes associated with discrimination in housing, while inclusionary zoning is looked upon as a weapon to force affordable housing on communities. Neither form of zoning is intended to be either discriminatory or coercive. Recognizing that local zoning ordinances have broad extraterritorial impact, some courts and policy makers sometimes determine that each community must provide its share of a region‘s affordable housing needs. This fair-share principle is often articulated as inclusionary zoning. It is, in effect, the converse of exclusionary zoning. Inclusionary zoning and its correlative, inclusionary housing are terms used to describe a wide variety of techniques local governments use to link the construction of low- and moderate-income affordable housing to the construction of housing for the marketplace. Under an inclusionary zoning program, affordable housing is constructed and integrated into more expensive housing developments, thereby becoming an integral part of the overall residential development of a community. Simply put, inclusionary zoning encourages or requires developers, as a condition of permit approval, to include some portion of affordable housing in new market-rate housing developments. The principal objectives of inclusionary zoning are to increase the supply of affordable housing in a community and to do so in a manner that fosters greater economic and racial integration. There are three types of inclusionary zoning programs: 1. Mandatory 2. Conditional 3. Voluntary Neighborhood Revitalization, Municipal and Other Services, Employment-Housing-Transportation Linkage Stokes County Senior Services provides rides to nutrition programs, doctors’ appointments, grocery shopping, and the pharmacy to persons 60 and over. PHA and Other Assisted/Insured Housing Provider Tenant Selection Procedures; Housing Choices for Certificate and Voucher Holders Presently there are six (6) HUD approved Public Housing Agencies within Stokes County. There are five (5) housing choices within the Stokes County of affordable rental developments that allow subsidized agreements. There are also two (2) HUD approved housing counseling agencies within the County. Property Tax Policies Stokes County does provide for a tax exclusion and deferral for qualified homeowners. It is:

The Elderly or Disabled Property Tax Homestead Exclusion is a major exclusion that requires the owner to make a one-time application. To qualify, a Stokes County resident must be 65 years or older or must have a total and permanent disability as of January 1 of the application year.

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Planning and Zoning Boards The Stokes County Planning Board is an advisory board to the Stokes Board of County Commissioners. The Board is composed of nine members appointed by the Board of County Commissioners for terms of three years.

Building Codes (Accessibility) The Stokes County Building Inspections Department uses the 2009 North Carolina Residential Code as adopted by the North Carolina Building Code Council on March 11, 2008. Chapter 11 of this Code details the regulations for accessibility.

Private Sector Lending Policies and Practices Under the Home Mortgage Disclosure Act (HMDA) financial institutions are required to disclose the race, sex, ethnicity, household income of mortgage applicants, and the outcome of the loan application. After the owner-occupied home purchase loan application is submitted, the financing institution makes one of several decisions: • Originated indicates that the loan was made by the lending institution. • Approved but not accepted notes loans approved by the lender, but not accepted by the

applicant. • Application denied by financial institution defines a situation where the loan application

failed. • Application withdrawn by applicant means that the applicant closed the application process. • File closed for incompleteness means that the loan application process was closed by the

institution due to incomplete information. • Loan purchased by the institution indicates that the previously originated loan was purchased

on the secondary market. Part of the HMDA data includes information about the reason for the loan denial. The most frequently cited categories of denials were credit history and debt-to-income ratio. These data do not offer proof of discrimination in the home purchase market, only that there is institutional inequity in these denial rates. These problems could be diminished through enhancing programs for consumers to better understand credit and the importance of establishing good credit. In addition to modifications implemented in 2004 for documenting loan applicants’ race and ethnicity, the HMDA reporting requirements were changed in response to the Predatory Lending Consumer Protection Act of 2002, as well as the Home Owner Equity Protection Act (HOEPA). Consequently, loan originations are now flagged in the data system for three additional attributes: 1. If they are HOEPA loans; 2. Lien status, such as whether secured by a first lien, a subordinate lien, not secured by a lien,

or not applicable (purchased loans); and 3. Presence of high annual percentage rate loans (HALs), defined as more than three percentage

points for home purchases when contrasted with comparable treasury instruments or five percentage points for refinance loans.

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Evaluated home purchase loan applications from 2004 through 2008 showed that in the State of North Carolina there were 752,088 loan originations and 156,881 loan denials, for an average five-year loan denial rate of 17.3 percent. The data also showed that American Indian, black and Hispanic applicants experienced significantly higher rates of loan denials than white applicants, even after correcting for income. Further, some geographic areas of the state had significantly higher denial rates that exceeded 80.0 percent, including areas with high concentrations of minority populations. Analysis of high interest rate loans showed that minority populations also received a disproportionate share of these lower quality loan products.

Public and Private Sector Fair Housing Enforcement Any person who feels their housing rights have been violated may submit a complaint to HUD via phone, mail or the Internet. A complaint can be submitted to the national HUD office in Washington, DC or at the regional HUD office in Atlanta. When a complaint is submitted, intake specialists review the information and contact the complainant in order to gather additional details and to determine if the case qualifies as possible housing discrimination. Complaints that are specific to a state or locality that is part of HUD’s Fair Housing Assistance Program are referred to the appropriate parties, who have 30 days to address the complaint. If HUD is handling the case, the formal complaint is sent to the complainant for review and is then forwarded to the alleged violator for review and response. Next, the circumstances of the complaint are investigated through conducting interviews and examining relevant documents. During this time, the investigator attempts to rectify the situation through mediation, if possible. The case is closed if mediation of the two parties is achieved or if the investigator determines that there was no reasonable cause of discrimination. If reasonable cause is found, then either a federal judge or a HUD Administrative Law Judge hears the case and determines damages, if any. A respondent may be ordered: • To compensate for actual damages, including humiliation, pain and suffering. • To provide injunctive or other equitable relief, for example, to make the housing available. • To pay the Federal Government a civil penalty to vindicate the public interest. • To pay reasonable attorney's fees and costs. Within Stokes County, the County Manager or his designate, is the official authorized by the County to: • Receive and document complaints regarding housing discrimination in the County • Refer such complaints to the North Carolina Human Relations Commission for investigation,

conciliation and resolution. In addition to general fair housing discrimination complaints, HUD accepts specific complaints that violate Section 504 of the Rehabilitation Act of 1973, which prohibits programs or organizations that receive federal funds from discriminating against persons with disabilities. The County will respond in writing to written citizen grievances. The County will respond to all written citizen grievances within ten (10) calendar days of receipt of the comments. In North Carolina, the North Carolina Human Relations Commission (HRC) accepts fair housing complaints as they are related to fair housing violations in regard to the federal Fair Housing Act or the North Carolina Human Rights Act. This agency accepts complaints that are alleged to occur in areas that are not covered by existing FHAP agencies.

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Informational Programs The North Carolina Human Relations Commission (HRC) works as a clearinghouse of fair housing information and resources for citizens of North Carolina. Visitability in Housing According to HUD, housing that is "visitable" has a very basic level of accessibility that enables people with disabilities to visit friends, relatives, and neighbors in their homes within any community. Visitability can be achieved for little cost, with the use of two simple design standards:

• Provide a 32" clear opening in all bathroom and interior doorways • Provide at least one accessible means of egress/ingress for each unit.

Visitability design incorporates the following in all construction or alterations, in addition to the applicable requirements of Section 504 and the Fair Housing Act, whenever practical and possible for as many units as possible within a development: Visitability also expands the availability of housing options for individuals who may not require full accessibility. It will assist project owners in making reasonable accommodations and reduce, in some cases, the need for structural modifications or transfers when individuals become disabled in place. Visitability will also improve the marketability of units.

Assessment of Current Public and Private Fair Housing Programs and Activities in the Jurisdiction The Stokes County currently implements a two year fair housing plan the thrust of which is public education. This consists of published public notices regarding fair housing, posting fair housing posters on County properties, development and distribution of fair housing brochures etc. A fair housing activity is undertaken each quarter. In regard to private fair housing activities local banks and realtors have periodic training on fair housing laws. Five (5) Year Strategy of Quarterly Activities to Implement Analysis of Impediments Study

- A 30 month Fair Housing Plan will be prepared in the 1st Quarter.

- A Complaint Procedure will be adopted in the 2nd Quarter.

- The County will request Fair Housing posters and pamphlets from the North Carolina Human Relations Commission (NCHRC) in 3rd quarter.

- The County will post Fair Housing Posters in both English and Spanish at an appropriate location at the County Building, to be visible to the public, in 4th quarter.

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- The County will advertise both the Fair Housing Resolution and Complaint Procedure in 5th quarter. This notice will include the State’s TDD number.

- The County will maintain a current list of local realtors who are available to assist in locating housing for anyone needing assistance, in 6th quarter.

- The County will prepare Fair Housing Pamphlets and distribute them to appropriate

lending institutions throughout the County in 7th quarter.

- The County will distribute Fair Housing Pamphlets to realtor organizations throughout the County, in 8th quarter.

- The County will again advertise the Fair Housing Resolution and the Complaint Procedure in 9th quarter.

- The County will post Fair Housing Posters at other County maintained buildings visited by its citizens in 10th quarter.

- A second 30 month Fair Housing Plan will be prepared in the 1st Quarter.

- A Complaint Procedure will be readopted in the 12th quarter.

- The County will request Fair Housing posters and pamphlets from the North Carolina Human Relations Commission (NCHRC) in the 13th quarter.

- The County will post Fair Housing Posters in both English and Spanish at an appropriate location at County Buildings, to be visible to the public, in 15th quarter.

- The County will advertise both the Fair Housing Resolution and Complaint Procedure in 16th

quarter. This notice will include the State’s TDD number.

- The County will update its list of local realtors who are available to assist in locating housing for anyone needing assistance, in 17th quarter.

- The County will prepare Fair Housing Pamphlets and distribute them to an updated list lending

institutions throughout the County in the 18th quarter.

- The County will distribute Fair Housing Pamphlets to citizen organizations throughout the County, in the 19th quarter.

- The County will prepare a new Analysis to Impediments Plan in the 20th quarter.

Conclusions and Recommendations It is recommended that Stokes County continue the following activities to affirmatively further fair housing choice:

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A. Stokes County should continue its periodic advertisement, in a newspaper of general

distribution, of a notice advising County residents of the County's commitment and who to contact should a complaint need to be investigated.

B. The County should continue to disburse a Fair Housing Pamphlet which summarizes Title VIII requirements. These should be distributed annually to various agencies in the community involved in housing services.

C. The County should continue to post fair housing information in its main County Building and its Community Development Office as a further effort to inform residents and housing providers of fair housing laws.

D. The County should continue to be a receiving agency for fair housing complaints within its jurisdiction in conformance with the Fair Housing Resolution adopted by Stokes County Board of Commissioners.

E. The County should periodically review programs and policies relating to fair housing of the major institutions in the County involved in fair housing choice issues.

Signature _______________________ _________________________________________________ Date Chief Elected Official