Residential Development Guide-1987

TOWN OF
WINTON
WINTON RESIDENTIAL
DEVELOPMENT GUIDE
1982
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RESIDENTIAL DEVELOPMENT GUIDE
1987
TOWN OF WINTON, NORTH CAROLINA
PREPARED BY
THE WINTON TOWN BOARD
Carter W. Jones, Mayor
Ulysses Hall
Marshall Askew
Fletcher Lassiter
Wesley Liverman
Thomas Pope
Joyce M. Sexton, Clerk
WITH TECHNICAL ASSISTANCE BY
Planning and Design Associates, P.A.
3515 Glenwood Ave.
Raleigh, North Carolina 27612
[phone]
Terry W. Alford, MRP, AIA, President
Rex H. Todd, MRP,.AICP, Project Manager
Michael V. Butts, MUP, Consultant
David Parham, MRP, Consultant
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TITLE: Residential Development Guide
Winton, North Carolina
DATE: July 19, 1982
SUBJECT: Residential Development in Winton, North Carolina
I-Usla 1l
PLANNING Winton Town Council
AGENCY:
SOURCE OF Town of Winton
COPIES: Post Office Box 134
Winton, North Carolina 27986
CAMA
PROJECT 9798
NUMBER:
ABSTRACT: The preparation of this plan was financed in part through a grant
provided by the North Carolina Coastal Management Program, through
funds provided by the Coastal Zone Management Act of 1972, as amended,
which is administered by the.Office of Coastal Zone Management,
National Oceanic and Atmospheric Administration. The Town of Winton
contributed cash and in -kind service.

TABLE OF CONTENTS
TITLE
PAGE
I. INTRODUCTION
1
II. ASSESSMENT
OF WINTON'S RESIDENTIAL SECTOR
2
A.
Housing Market Area
2
B.
Housing Supply
3
C.
Demand for Non -Assisted Housing
7
D.
Need for Housing Assistance
15
III. POLICIES
FOR WINTON'S RESIDENTIAL SECTOR
20
A.
Guiding the Housing Market Through
Residential Zoning
21
B.
Goals, Objectives, Alternative Strategies
and Resources
24
Goal
24
Objective 1: Supply
24
Objective 2: Demand
25
Objective 3: Need
30
Objective 4: Spatial Configuration
42
Objective 4: Amenities
43
C.
Recommended Course of Action and Time Frame
44 '
iii

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II. INTRODUCTION
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As indicated in the Winton Land Use Plan, 1980-1990, housing is one of the most
significant features of the Town of Winton. The Town has witnessed a relatively
consistent rate of growth from 1930 to 1970 with a subsequent leveling off and some
decline. The growth in the housing stock, although closely aligned with the
population growth, is subject to a number of factors both privately and publicly
induced. The cost of commuting (i.e. fuel) distance to services (i.e. schools,
shopping, recreation, etc.), style of living desired (e.g. urban or rural, single
family or condominium communities, etc.), job opportunities, level of houshold.
income, community amenities, etc. are among the several factors considered when
one decides "where" he or she wants to live.
The Town presently (1980) houses 825 persons, with 967 persons housed within
the Winton Planning Area (i.e. Winton plus the one mile extraterritorial
jurisdiction). Winton is the Hertford County seat (since 1764), the home of
new industries, is within close proximity to the main highway (U.S. 13), has a
shopping district (although limited), and is located along the picturesque
Chowan River. When these population figures are compared to the employment
generated in the Winton Planning Area, a significant latent demand for housing
is revealed.
This latent demand, or potential, for new growth cannot be realized without the
Town's initiative. Through this land use planning -process, the Town Board has
allocated (i.e. zoned) sufficient vacant land to accommodate this demand. However,
just accommodating this demand is not sufficient to insure new housing will
be built in Winton. The Town of Winton must take an active role to insure its
existin¢ housin¢ stock is maintained and new housing built.
The main thrust of any strategy to develop a t
be directed toward the housing needs of low an
It is within these groups that most families a
share of their income for housing, the housing
dilapidated or the house is too small for the
several federally -funded housing assistance pr
residents. This study serves as a prelude to
assistance.
own residential base, must naturally
d moderate income households.
re paying a disproportionate
they live in is sub -standard or
size of the family. There are
ograms available to Winton
the Town's application for this
It must also address demand for non -assisted housing and pay particular attention
to the spatial specifications of urban (residential) development.
The purpose of this plan, .then, is to develop a data base, a set of objectives
or housing targets and an action program by which the Town of Winton can follow
if it is to reach its residential objectives with emphasis on housing quality
and spatial structure in Winton.
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II. ASSESSMENT OF WINTON'S RESIDENTIAL SECTOR
A. Housing Market Area
The housing market or demand area is generally defined as the geographic area
within which all dwelling units are linked together in a chain of substitution.
In other words, the users of the housing in the market area are able to select
between different units at different locations, thus placing the units within
the market area in competition with each other. Smaller submarkets can also be
defined within the overall housing market area. These submarkets are differentiated
by type, quality, location, and size, and each submarket can be related to a
particular group of housing consumers.
Most housing market areas are identified by the community patterns of workers
because of the recognized linkages between place of work and place of residence.
In this case, community patterns of the workers at Winton's two largest employers,
Carolina Aluminum and Hertford County Government has been analyzed. Additionally,
the one mile planning area upon which the Land Use Plan was developed has been
considered.
The analysis of the commuter population of Carolina Aluminum revealed that 77.8%
of the Company's employees live within a 15 mile radius of Winton (encompassing
Ahoskie and Murfreesboro, portions of Gates, Bertie and North Hampton counties,
and part of South Hampton County in Suffolk, Virginia). Examination of county
employee commuting patterns revealed a similar radius. Thus, a 15 mile radius
has:been.designated as the "micro" housing market area for this study.
More locally, a one mile area was designated as an unofficial planning area for
preparation of the Town's Land Use Plan. This area has been selected as
the "micro" housing market area, as it is the heart of the policies and strategies
to improve the housing market's operation.
Within this geography, we turn to two sides of the housing market itself, supply
and demand.
2

B. Housing Supply
The 1981 survey of the condition of Winton's housing stock and characteristics
of its occupancy revealed information about the supply of housing concerning
number of units available, condition of those units, and spatial configuration
of that supply.
Housing Availability
As shown in Table I, there are 437 housing units within the Winton planning area.
According to the 1980 final census counts, the units inside the town served
(housed) 2.34 persons per household.
Of these units, 321 (73%) are single conventional units, 87 (20%) are single-
family mobile homes, and 29 (7%) are multi -family units. At the time of the
survey, there were 47 vacant units, for a vacancy rate of 10.76%. With 29 of
these vacant units in usable condition (22 are standard and 7 have need for minor
repairs), the effective vacancy rate is 6.63%.
Supply of housing units has increased by 50 units between 1976 and 1980, for an
average rate of 10 new units per year. Twenty-one (21) of these were public
housing units, serving only a portion of the housing market in Winton.
Housing Condition
In order to assess the
quality of housing supply in Winton, a windshield survey
was conducted of the entire housing stock. The following standards were applied.
to each unit in order
to determine condition:
A. Standard:
Slight defects requiring normal maintenance of no more
than $1,500 value.
B. Sub -Standard:
Deteriorating and in need of minor maintenance costing
between 1,501 and 8,000 dollars. (Only minor repairs
needed on: paint, doors, windows, outside windows,
Porches, or stairs).
C. Sub -Standard:
Deteriorating, and in need of major maintenance costing
between $8,001 and $15,000. One or two severe defects
in roof, outside walls, outside porches and stairs, and
foundation.
D. Dilapidated:
Severe defects in all structural components, i.e. roof,
outside walls, porches, and outside stairs, and foundation.
(Repairs costing greater than $15,000).
3

The results of this survey are presented in Table I below:
TABLE I
HOUSING CONDITIONS SURVEY
A
B C
D
Housing Type
Standard.
Sub -Standard Sub -Standard
Dilapidated
Total Units
Conventional
276
32 25
17
350
Mobile Homes
80
6 1
0
87
TOTAL
356
38 26
17
437
Of the 437 units in the Winton Planning Area, 81 units (18.5%) were classified
as sub -standard. This figure increases to 19.5% of the privately owned
(occupant or investor) units alone are considered (that is, not counting the
21 units of public housing counted in the housing survey).
If the conventional units alone are isolated, 74 of the 350 conventional units
(21%) are sub -standard.
Mobile homes comprise 20% of Winton's housing stock. In general, the 87 mobile
homes tend to be in better condition than the conventional units. Only 8%
of the mobile homes are in a sub -standard condition, and none of these were
judged to be dilapidated.
TABLE II
WINTON HOUSING CONDITIONS BY
BY AGE OF RESIDENT, FAMILY SIZE, AND TENURE
Young Young Young Young Elderly Elderly Elderly Elderly
Small
Small
Large
Large
Small
Small
Large
Large,
1
_
Own
Rent
Own
Rent
Vacant
Own
Rent
Own
Rent
Totals
Standard
179
60
6
5
22
72
12
0
0
356
-Sub-Standard
Minor
11
12
0
1
7
3
3
1
0
38
1
Sub=Standard
Major
3
2
0
1
12
4
3
1
0
26
Dilapidated
4
3
0
0
6
4
0
0
0
17
TOTAL
197
77
6
7
47
83.
18
2
0
437
Percent
45%
17.6%
1.37%
1.6%
10.76%
19%
4.12%
0.46%
0%
100%
4
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Spatial Configuration
Analyses undertaken during the preparation of the 1981 Winton Land Use Plan, and
1982 update of the Zoning Ordinance and preparation of Subdivision Regulations
revealed that the majority of Winton's conventional housing stock is concentrated
along the older sections of Town, with scattered development along the entering
roadways. Mobile homes are scattered throughout the Town, a topic addressed in
the update of the ordinances mentioned above. The residential pattern in the Town
is presented in Map 1, Existing Land Use.
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C.. Demand for Non -Assisted Housing.
Demand for non -assisted housing is defined as the number of units that can be
absorbed at a specified price. That is, given a particular type unit at $48,0001
how many are affordable in the community in the context of several factors.
This section outlines several factors which affect demand in Winton _
(resident4population and commuter -population) and then addresses five other factors
to determine an adjusted net demand for non -assisted housing. Then, the housing
submarkets of the elderly, large families, and small families (non -elderly) are
examined.
From this section comes the foundation for policy and housing strategies to stimulate
what appears to be "pent demand" in the current labor force in Winton and help
stimulate the supply of housing in today's stagnant housing industry.
Resident Population.
In 1980 there were 825 persons inside the corporate limits with approximately
142 persons (61 housing units times 2.34 persons per household) in the planning
area, but outside the town, rendering a Planning Area population of 967. Given
that the Town itself is projected to increase by 1.14% to 943 by 1987, and assuming
that the hinterland will do the same,: the Planning Area should have a population of
1075 by 1987. If the persons per household remains stable, -the resident population
will require 460 units in that year (at a 10% vacancy rate).
Inside the 15 mile radius of the housing market area, there are approximately
32,000 residents according to the preliminary'1980 census figures. .This
population is expected to drop by 1% by 1990 to a total of about 31,000
persons. The project population for the Town of Winton is expected to range between
773 and 993 persons by 1990. The actual Winton population for 1990 will depend
upon a number of factors which may affect net migration, among them: Town policies
toward development, industrial expansion of the area, the Town's commercial growth,
and town services and amenities.
1$48,000 is used here as an example of a specific price, reasonably close
to the average price of new single: family units, in the.Winton.area.
7

Commuting Population -- Potential Demand
Examination of the entire 15 mile area indicates that Winton itself is the
subordinate part of this market area. Of the 378 Carolina Aluminum employees
within this 15 mile radius, only 48 (15.3%) live.in'Winton (this figure
increases to only 18.5% if the radius shortened to 10 miles). By comparison,
161 employees (42.6%) live in Ahoskie, 39 (10.3%) live in Murfreesboro, and
43 (11.4%) live in Aulander which is at the extreme end of this 15 mile radius.
Data collected form the various Hertford County government agencies located in
Winton indicate that of 203 Hertford County employees who work in Winton, only
34 or 17% live in Town.
Thus, of the 581 jobs available in Winton between the Towns' two major employers
only 92 jobs are held by Winton residents.. This may represent an untapped
market for 489 households who could benefit from relocating to Winton. Even
if half of this number were seriously considering moving to Winton, demand for
housing would.increase by 245 units, or 49 per year (for the next four years).
Demand Factors at a Specific Price
Demand for non -assisted housing is defined as the number of units that can
be absorbed at a specified price. It is determined by five major factors,
namely: 1) household formation; 2) number of replacement units needed; .
3) income and employment; 4) liquid assets, mortgage terms, and mortgage funds;
and 5) space, convenience and type preferences. Briefly, the findings regarding
these are presented for the Winton market area.
Household Formation
Household growth between 1980 and 1987 will require 50 additional units. This
estimate is based upon the local marriage rate and the number of young large
families likely to undouble and remain in Winton (see footnotes to Table III
for details).
3

Need for Replacement Units
A windshield survey in December of 1981 revealed that 38 deteriorated units and
17 dilapidated units will require replacement by 1987, with an estimated loss
by fire* of 3 units, totaling 58.
Income
The median family income in the Winton area is estimated to be $14,200, 1979.
This figure was derived as follows: 1969 Hertford County median family income
($5,912) by the fraction of the 1979 Hertford County per capita income ($5,529)..
divided by the 1969 figure ($2,302) ($2.40), rendering $14,200.
Assuming that 25% of family income is a reasonable budget for housing (even
in 1982), $14,200 times .25 - $3,550 per year divided by 12 renders $296 per month,
as a measure of "ability to pay" for non -assisted housing.
For purposes of attributing this income to households, we assume that the
household of average size (2.34 persons) earns 100% of the median family income
($14,200), able to pay 296 per month for housing. Small elderly households
(at 1.71 persons) owe assumed 73% (1.71 t 2.34).of this ability to pay,
or $216/month.
Liquid Assets, Mortgage Terms, and Mortgage Funds
The 1981 survey of housing conditions and occupancy renders an estimate of 191
families (44%) in the Winton planning area are of low -to -moderate income.
This means that their annual income is less than 80% of the median family income
for non -metropolitan areas. Winton's median family income is estimated at $14,200
per year, with 80% of that being $11,360._(Eighty percent of the national median
ineoiie:forrpanon=metropolitan family of four is $13,950.)
*According to the Fire Chief for the Town of Winton, the Residential fire history
since 1970 has consisted of three fires which required repair to conventional
units, one which required repair to a mobile home, and only one which required
complete-replacement.of the unit. These 5 fires in 10 years renders an effective
fire rate of .5 units per year or 1 every 2 years. Application to a base of
437 units renders a fire replacement rate of .0011 units per year. Assuming
that 460 units will be required to house 1075 persons in 1987, fire replacement
between 1982 and 1987 is estimated at 3 units (460 times .0011 times 5).
9

At 25% of annual income as a housing budget, those at median family income in
the Winton area can reasonably afford a monthly payment of $296. Those at 80%
can afford $236 per month.
Mortgage terms today are deplorable. At 16% to 17%, the housing industry
has virtually stagnated. If we assume that 90% financing is available, a family
in Winton wanted to borrow $40,000 for a 30 year mortgage, a 17% interest rate
would require a monthly payment of $570. This is nearly twice the liquid
assets (based solely on income) of the resident population.
Space, Convenience and Style Preferences
Discussions with bankers and Savings and Loan representatives revealed the
expected on this criteria. The smaller single family unit:of from 1000 to
1300 square feet is most feasible, selling for from $42,000 to $50,000. Most
builders in the area are going to masonite siding or the mountain pine siding,
rather than brick. The three bedroom, two bath models more often have an open
carport for one car. High interest rates and growing acceptability of
condominiums provide impetus to changing tastes regarding space, convenience
and style.
Net Quantitative Demand
Table II below applies the Department of Housing and Urban Development method
of estimating demand to the Winton Planning Area (source: FHA Techniques).
Between 1982 and 1987, net quantitative demand is projected to be 71 units
(53 ownership and 18 rental), for an annual rate,of 15 units (11 ownership
and 4 rental).
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TABLE III
NET QUANTITATIVE DEMAND FOR HOUSING
WINTON PLANNING AREA
All Races
Forecast Period, from 1982 to 1987
Total
owner
Renter
(aT
(tip
--(c7-
1)Prospective household growth in forecast period
50
38
12
2)Shift in tenure (plus or minus)
0
0
0-
3)Anticipated net losses (demolitions, conversions, etc.)
22
16
6
4)Gross quantitative demand (1+2+3)
72
54
18
5)Transfers, white to non -white occ. (where applicable)
0
0
0
6)Adjusted quantitative demand (4+5)
73
54
18
7)Vacancies currently available with all plumbing facilities
29
21
28
8)Vacancies required for reasonable balance
23
17
6
9)Excess of vacancy (7-8)
6
4
2
10)Quantitative demand (6-9), net
66
50
16
ll)Dwelling units under construction (current)
1
1
0
12)Desirable rate of construction sales 4 mos.; rental 4 mos.
6
4
2
13)Excess of construction (11-12)
-5
-3
-2
14)Adjusted net quantitative demand (10-13)
71
53
18
15)Annual rate of demand (14 + years forecast(5)).
15
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KEY:
1) Household growth was determined as follows:
Projected number of marriages for the 7 year period =
Hertford
County
Marriage rate (7.53/1000 population, 1980) times Winton's 1980
population
in thousands (.825 times 7 (years) = 43.5)*
Number of households which may "undouble" and stay in
Winton =
number of
young large households (13, in 1982) times a 50% retention factor = 6.5.
However, 43.5 + 6.5 - 50.
2) No data available.
3) Anticipated net losses were determined by a count of units which were graded
"D".on the windshield survey (11 occupied) plus (8 occupied major deteriorated)
units recommended for demolition plus an anticipated fire loss of .0011
of the stock (437) or .48 units per year for 5 years (1980-1987) = 2.4,
rounded to 3 units. Thus, the net loss over the period was estimated as
11+8+3=22.
4) Self explanatory.
5) N.A.
6) Self-explanatory.
7) Source: Phone interview with Winton citizen.
8) Vacancies estimated at a desirable rate of 5% of the total stock. At the 1980
density, the 1987 population of 1075 will require 460 units. 460 x .OS = 23
vacant units desirable. Allocating vacancies according to current tenure
patterns 26% rental and 74% ownership, render 6 rental and 17 ownership vacancies.
9) Self-explanatory.
10) Same
11) Phone interview with'.Winton citizen
' Source: NC Div. -of Health Ser., Office of Mgmt-. Services, Vital Stats, 1980.
(con It)
11

(con't.)
12) The 108 units were divided by 6 years to get an annual rate of 18 per year
and then multiplied by .33 (allowing 4 months for construction of each
unit), hence the desirable rate of 6 units per year.
13) Self-explanatory.
14) Self-explanatory.
15) Self-explanatory.
Demand Within Submarkets: Elderly, Large, and Small (Non -Elderly).
Within nearly all towns, there exist a number of groups which because of their
unique needs, require special study. This section focuses on the housing needs
of the elderly, or large families, and of small families (non -elderly) in the --
Winton Planning Area.
Among the most needy are the elderly. Within the Winton area, there are 160
persons 60 years and older (19.4% of the total population). Assuming the
proportion of elderly will increase to 23.7% by 1987, it is anticipated that there
will be 255 elderly in Winton in that year. (The rate of increase in percent
of elderly, Hertford County, 1980-1987 (1.22%) times 19.4 to render 23.7%).
Currently, there are 89 units housing the elderly inside the Town limits (for
an average of 1.79 persons per household), and 14 additional units housing the
elderly outside the Town but inside the Planning Area totalling 103. Assuming
the increase in percent of elderly stated above, there will be an elderly
housing demand of 108 units in the Town in 1987 and of 19 units outside the Town
in that year, totalling 127.
For this analysis, demand for housing among the elderly is based upon projected
household formation plus replacement of dilapidated units currently housing the
elderly. As reflected above, there is likely to be a 24 unit increase (127-103)
in.household'formation among the elderly by 1987. Additionally, one uflit
may be lost to fire by that year (127 times .0011 fire loss rate times 7 = 1 unit).
Thus, demand for housing among the elderly is estimated at 25 units (24 + 1).
12

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Within this demand are particular requirements for housing type, size and siting.
Factors of limited andclfixed incomes place the elderly within reach of smaller
' new units, or older units which are paid off but with high rehabilitation and
upkeep costs. Health conditions, plus the mobility reductions of normal aging,
place large units out of the comfort as well as the cost range of many of the
elderly. Additionally, the need for designed interaction indicates that
' geographic concentration is a desirable housing pattern for the elderly.
Together, these conditions indicate that a large portion of the demand for
housing among the elderly is for multi -family units, such as efficiencies or
one bedroom units (perhaps, no more than 5% of the units could be two bedroom).
Steps and steep inclines should be minimized or eliminated, and barrier -free
access and egress assured for older persons.
Another resident group which has a special set of housing needs are large
families. There are currently 15 large families (of 5 or more persons) residing
in the Winton Planning Area. These represent 3.43% of the current housing stock.
' We have no projection as to the increase in this category by 1987, so it is
assumed that the proportion of the demand and need for large family units
will be similar to that in 1982.
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The Planning Area population is projected to grow to 107S by 1987. This
1 represents an 11% increase from 1980. Applying this percentage increase to the
number of units housing large families, indicates a need for 17 such housing
units in the planning area by 1987. This represents an anticipated 2 unit net
increase in households among large families by 1987. Additionally, 1 unit may
require replacement due to fire destruction (17 times .0011 times 7). Thus, the
estimated demand for housing for large families is 3 units.(2 + i).
The third and most broadly based special group is the small, non -elderly household
(four or fewer persons). In 1982, there were 274 units housing such families
in the Winton Planning Area, representing 62% of the housing stock. Assuming
that this group will grow 11% by 1987, as is projected for the overall Planning
1 Area population, there will be a.demand for 304 (an increase of 30 units) to serve
this group.
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Additionally, there may be a fire replacement need of 3 units (304 times .0011
times 7 years).
Adding the household formation and fire replacement estimates (30 + 3) renders
a demand estimate of 33 units to serve small non -elderly families in 1987.
Summary of Demand for Non -Assisted Housing
Table IV presents a summary of the two estimates of demand for non -assisted
housing, prepared from the viewpoint of the overall Planning Area and for
each separate housing sub -market.'
TABLE IV
DEMAND FOR NON -ASSISTED HOUSING
Units of
% of
Market Area
Demand, 1987
Subtotal
Adjusted
Elderly
25
40%
29
Large Family
3
5%..
4
Small Family (non -elderly)
33
SS%
38
Subtotal
61
100%
71
HUD Quantitative Estimate
(include vacancies)
71
100%
71
For purposes of the forthcoming policy statements and strategies for improving
the residential sector in Winton, the higher of the two estimates (71) will be
used as a -planning target. Applying the submarket percentages to this figure,
renders demand for 29 units to house the elderly, 4 units for large families,
and 38 units for small non -elderly families by 1987:as shown in Column 3.
14

D. Need for Housing Assistance
Need connotes that financial assistance is required in order for an individual
or family to have adequate (standard) housing. This section estimates number
of units in need, type of assistanced needed for the overall Planning Area
and for each sub -market.
Overall Market Area
HUD has established income levels, below which suggest the need for some type
of housing assistance. For small households (four. or less persons) with incomes
below $9,200 per year, HUD assumes they are in need of assistance and for large
families (five or more persons) the income threshold is $12,200 annually.
Family income data is not available for Winton, but such information can be
generated from available county -wide data presented in Table V.
' A B
TABLE V
HERTOFRD COUNTY HOUSEHOLDS
BY INCOME GROUP, 1981
Total
Income Range
Households
$ 0- 1,000
473
1,001- 4,000
939
4,001- 8,500
1,124
8,501-13,000
1,235
13,000-and over
3,603
7,374
Source: State Commerce Department
r
Average House -
Hold Size
2.5
1.9
2.3
2.9
3.4
D
E
Total
% Households
Pop.
in Income Range
1,187
6.4%
1,764
12.7%
2,575
15.2%
3,537
16.7%
12,344
49.0%
E
Winton Occ.
Households
(E x 390)
25
50
60
66
189
390
Interpolating from the above table, there are approximately 2,729-Hertford
County total households or 37% that earn an annual income of less than
$9,200. Winton has 437 total households, 47 of which are vacant, for
390 occupied housing units. If we assume that the same percentage of house-
holds earning below $9,200 for the County as for the Town of Winton, there are
145 households (140 small and S large) in need of housing assistance
(390 times .37 = 145; 15 large families times .37 - 5; 145 minus 5 renders
140 small units in need).

That there is significant need for housing assistance in the Winton Planning
Area is bolstered by the following data and trends:
1. The total labor force statistics for Hertford County indicate a
leveling off in growth during the period 1975 through 1979. However, recent
expansions by Carolina Aluminum may off -set this trend in Winton itself.
2. In 1979, Hertford County's per capita income ($5,529) was'lower than'its
neighboring counties (Gates, Chowan, and Bertie) except Northampton. As mentioned
earlier, median family income is estimated at 14,200 per year which ill equips
families to adequately meet housing needs at today's costs.
TABLE VI
PER CAPITA INCOME
COUNTY
1977
1978
1979
Hertford
4617
5048
SS29
Gates
5599
6367
6824
Chowan
5165
5596
6326
Bertie
4679
S168
5741
Northampton
410S
4462
4894
3. .A further indicator of need are the number of families using other
assistance programs. Within Hertford County, (1982) there are 5156 persons on
the Food Stamp Program, 981 persons assisted by Medicaid and 1152 persons assisted
by AFDC.
TABLE VII
`1
POPULATION
BY AGE
GROUP
FOR HERTFORD
COUNTY
1980-87
AGE
1980
198S
1987
0-19
8,362
( 36%)
6,628
( 29%)
6,587
(29.5%)
20-34
4,652
( 20%)
5,022
( 22%)
4,579
(20.5%)
35-64
7,279
( 31%)
7,441
( 33%)
7,418
(33.2$)
65+
3,072
( 13%)
3,542
( 16%)
3,752
(16.7%)
TOTAL
23,365
(100%)
22,633*
(100%)
22,336*
*Note: 3% drop in population.
0
16

Submarkets of Housing Assistance
' By focusing once again on the housing sub -markets, (i.e. elderly, large
and small (non -elderly) households), the specific number of persons needing
assistance can be developed. For this analysis, need may be indicated by
families living in a sub -standard (major and minor repairs needed) and
dilapidated housing units.
Housing need is generally categorized into two groups: need of loans or
Ili , grants for rehabilitation or replacement of owner occupied housing and
need of rental assistance.
The first category of most severe need in the Winton Planning Area is comprised
of 9 elderly families who own sub -standard structures (with major structural
defects or are dilapidated). An additional 3 families rent such structures
and would presumably qualify for both rehabilitation/replacement (r/r)
assistance and rental assistance once r/r is completed. This number (12)
is estimated to increase to 1S by 1987 (1.24 x 12 = 1S).
The second group is comprised of 7 elderly families for sub -standard (minor)
housing plus an additional 6 families who rent standards units. (Six additional
elderly families already receive housing assistance in the form of public
housing). Thus, 13 families are likely to require rent supplements in order
to remain in standard units. This number may increase to 16 by 1987 if we
assume an increase of 24% among the elderly.
Although not defined as "need" above, it is reasonable to assume that SO%
of the elderly currently living in standard units could ill -afford timely
maintenance expenses to keep their structures in standard condition. This
assumption renders 39 units of assistance needed (78 standard units
times .SO = 39), which may be expected to increase (like elderly population)
by 24% to be 49 in 1987.
This brings the total elderly in need of housing assistance to 74 (15 + 16 + 49)
in 1987, and as such presents a target for the housing policies and strategies
enumerated under section III below.
17

As with the elderly submarket presented above, the need for assistance among
jarAe•families may be categorized in two groups. The first group, those in
need of rehabilitated (major) or replaced units, is comprised of 2 families,
1 of which owns their unit and 1 of which rents. The need for assistance in
this group is projected to increase to 3 by 1987.
The second group, those in need of rent subsidy, is comprised of the 8 families
(1982) living in sub -standard units (minor) and an additional 5 families
who currently rent standard housing, for a total of 13. This number is
expected to increase to 15 by 1987.
Although not defined as "need" above, there are 6 large families who own
standard units. Because of the expenses associated with raising large
families and increasing inflation, 50% of these families (3) are likely to
need assistance inthe form of loans for home improvements. This number
is also projected to increase by 11% to 4 families by 1987.
Thus, the need for housing assistance among large families totals 18 and is
expected to be 22 in 1987 (i.e. 3 + 15 + 4).
As with the above two submarkets, the need for assistance for the young
small households may be categorized into two groups.
The first group is composed of those potentially in need of housing rehabilitation
(major) (5) or replaced (7) housing, 7 of which are owned and 5 of which are
rented. As with the other submarkets, the latter group will need rent
supplement upon rehabilitation/replacement. This total category of need is
expected to increase from 12 to 13 by 1987.
The second group, those in need of rent supplement, is comprised of the 11
families in sub -standard (minor) units, plus 12 families who are currently
renting standard units: :Thus, 23 households are likely to require rent
supplements in 1982, increasing to 25 (23 x 1.11 = 26) in 1987.
18

'
"need"
Although not defined as above, there
are 50 low and moderate income
families renting standard units who may need
maintenance
assistance in the
'
form of loans or grants. This number may be
expected to
increase to 56
by 1987 (50 times 1.11 = 56).
Thus, there is an estimated 95 units in need
of housing assistance in the
'
Winton Planning Area by 1987.
Summary of Submarket Need for Housing Assistance
As with demand, Table VIII below presents a
summary of the two estimates of
need for housing assistance, prepared from the viewpoint
of the overall planning
area and for each separate housing sub -market.
TABLE VIII
Submarket
Units of
% of
Need
Subtotal
1
Elderly
74
39%
Large Family
22
. 120
Small Family (non -elderly)
95
49`k
'
Subtotal
191
100%
Overall Planning Area
Estimate
145
N/A
11
II
t�
11
11
Because of the greater detail of the submarket analysis and because the
overall estimate is based upon County data and trends, the policies and
strategies for housing assistance will address 191 units.
11
19

III. POLICIES FOR WINTON'S RESIDENTIAL SECTOR.
Having examined the housing market area, the supply, demand and need profiles
of the community, the following section presents policies and strategies to
stimulate supply, promote demand, and leverage the necessary assistance to improve
Winton's residential sector. First, we examine the regulatory context in
which these action policies will operate (planning and zoning) and then articulate
the recommended strategy for execution by the Town Council.
The next part of this section articulates the overall goal for the Winton
planning area and sets forth objectives which address supply, demand, need,
spatial configuration and amenities of housing in Winton's area.
For each objective, a series of alternative strategies is presented and a set of
available resources (public programs and private initiatives) is presented.
The final part of this section presents a course of action and presents a
timeframe for the initiation of these steps.
Undoubtedly, there will -be considerable spillover from any of the action steps
toward achievement of several objectives. Similarly, work on a single objective
may require several inter -related action steps. With this in mind, emphasis
is placed upon the concerted undertaking of a course of action with a clear
end -point in mind, that being the improvement of the.residential sector
of Winton, North Carolina.
20

I
A. Guiding the Housing Market Through Residential Zoning
In theory, 71 units of demand and 191 units of assistance could be placed
anywhere within the Winton Planning Area. However, in reality, particular
locations have been selected as best for the community.
The Winton Land Use Plan considered the mix of industrial, commercial,
institutional, recreational, and other'land uses, as well as.residential,
as a basis for determining the most appropriate pattern of housing for
the future.
The goals and objectives of the Land Use Plan were converted to implementation
strategies in the update of the Town's zoning ordinance. Zoning districts
were established to channelize the provisions of housing supply into an urban
pattern which would best implement the land use plan. These patterns are
shown in Map 2 which at this time is the proposed zoning map of the Town.
This map was analyzed to determine the maximum number of housing units which
are allowable under the proposed zoning ordinance. This equates to the
Town's "holding capacity" for residential development, and demonstrates one
way in which zoning acts as a constraint upon the supply of housing.
There are approximately 500 acres within the corporate limits. of Winton
with 3900 acres or 6 square miles of land within the Town's. Planning Area.
Seventy (70) percent of the land has been zoned for residential purposes,
19 percent zoned for business and office uses and 12 percent allocated for
industrial use (Note: these figures assume 25 percent of the land will be
used for roads, parks and open space, institutional uses and other public
facilities).
21

ZONNO MAP
0
R-IS
® B-1
R-9
MM B-2
®
R-5M1
= I-L
R-3MF
® I-H
0
04
C H O W A H. R I V E R
T" CF
WINTON
HERT m COUNTY.NomCumm
AMR, eR ..
c
o�
4�
i�
1p

TABLE IX
WINTON HOUSING ALLOCATION BY ZONE
DISTRICT TOTAL NEW UNIT*
ACRES POTENTIAL
R-15 100 2100
R-9 120 230
R-5 MR 20 50
R-3 MF 20 85
Potential New Units 2465
* Based oTf vacant land less 25 percent for .
streets, institutional uses, etc.
The total 260 acres allocated for residential use in the Town will accommodate
about 2900 total housing units. Given a vacancy rate _of 1S.4 and a household
size of 2.34 persons per household, about 4880 additional people could be
accommodated within Winton's corporate limits, based on housing zoning.
Thus, there is more than adequate acreage for the housing market to operate inside
Winton's boundaries.
23

I
1
1
1
I
I
1
1
B. Goals, Objectives, Alternative Strategies and Resources
GOAL: To achieve an active residential sector serving all persons in the
Winton Planning Area, which provides an enchanting spatial configuration
and is supported by improved community amenities.
Objective 1: Supply
a. To reduce the percentage of conventional units which are sub -standard
from 21% to 10% by 1987.
b. To diversify the housing stock in the Winton Planning Area from 93%
(408) single family and 7% (29) multi -family (1982) to 80% (368) single
family and 20% ,(92) multi -family by 1987.
c. To maintain diversity of supply along private/public housing lines and
ownership/rental lines until 1987.
d. To reduce the percentage of mobile homes in the planning area
from 20% to 10% by 1987 (through the provision of alternative
housing).
e. To achieve a steady 5% vacancy rate across housing types reducing
it from 10.76% by 1987.
f. To achieve the spatial configuration of residential development as
set forth in the Winton Land Use Plan and articulated in the zoning
ordinance (1982), namely, concentration of conventional housing stock
in older parts of town, and channelizing location of mobile home
development in appropriate locations.
Alternative Strategies for Achieving Supply Objectives:
(1) Work with the County building inspector to improve enforcement activities
related to the NC State Building Code.
(2) Develop a county or town administered home improvement assistance program
as an extension of the FmHA or local financial institution. This should
upgrade the value of the residence and thereby raise the tax base.
(3) Adopt #the North Carolina..model housing code and contract with the
County to enforce it.
(4) Undertake a demolition volunteer program consistent with the Winton
Land -Use Plan, page 21:
(5) Work with developers of low cost housing (multi -family.
or manufactured or modular units) to develop a strategy for
the Town.
(6) Work with the Roanoke-Chowan Housing Authority to support their current
plans to construct additional units of public housing in the Town.
1
24

tObjective
2: Demand
a.
To activate demand for the 460 units which may be expected from
'
the: residential population by 1987.
b.
To recruit 100 of the 489 employees of Carolina Aluminum and Hertford
County Government who work in Winton but do not live there by 1983.
c.
To activate demand for 71 units (53 owner and 18 renter) by 1987,
at the annual rate of 11 owner and 4. rental, as follows:
'
. 29 units for the elderly
. 4 units for large families
. 38 units for young small families
Alternative
Strategies for Achieving Demand Objectives.
(1)
Conduct a survey of employees of Carolina Aluminum and Hertford County
Government to determine why they don't currently live in Winton and
what they want in order to begin living there.
(2)
From survey results, design and undertake strategies to meet the
relocation needs of those employees. This could include improving
'
conditions in Winton which are perceived as barriers. Focus on.both
short run (quick success) issues and long-term projects.
(3)
Investigate and determine the feasability of ways in which the Town's
tax exempt status can: leverage mortgage money with banks, and
other lending institutions such as the North Carolina Housing
Finance Agency. Banks could loan money to the town for expressed
public purposes. (See the Local Government Fiscal Control Act).
(4)
Establish a local Housing Development Corporation or a Community
Development Commission responsible for leveraging and managing money
for housing and development.
(5) Prepare a Community Development Block Grant application for housing
rehabilitation (1982). Contact NRCD Field Office, Tom Richter, 946-6481.
(6) Encourage the application of conservation measures (reduce home
operating costs) through energy audits and energy conservation
financing in existing housing units.
' (7) Select among the following programs directed at stimulating demand and
undertake in a coordinated manner:
(NOTE: Contact persons for the following HUD programs may be identified
by calling Greensboro, at 378-5361).
I
I
1 25

ONE -TO FOUR -FAMILY HOME MORTGAGE INSURANCE
(SECTION 203(b) and (i))
'
Federal mortgage insurance to facilitate homeownership
and the construction and financing of housing.
Nature of Program: By insuring commercial lenders
against loss, HUD encourages them to invest capital
in the home mortgage market. HUD insures loans
made by private financial institutions for up to
97 percent of the property value and for terms of
up to 39 years. The loan may finance'. homes in
both urban and rural areas (except farm homes). Less
rigid construction standards are permitted in rural
areas.
Applicant Eligibility: Any person able to meet the
cash investment, the mortgage payments, and credit
requirements.
'
Legal Authority: Section 203(b) and (i), National
Housing Act (1934), (P.L. 73-479).
Application Dates: Anytime
CONDOMINIUM HOUSING
Federal mortgage insurance to finance ownership of
'
individual units in multifamily housing projects.
Nature of Program: HUD insures mortgages made by private
lending institutions for the purchase of individual family
units in multifamily housing projects under Section
234 (c). Sponsors may also obtain FHA -insured
mortgages to finance the construction or rehabilitation
of housing projects which they intend to sell as
individual condominium units under Section 234 (d).
A project must contain at least four dwelling units;
they may be in detached, semi-detached, row, walkup,
or elevator structures.
A condominium is defined as joint ownership of common
areas and facilities by the separate owners of
single dwelling units in the project.
Applicant Eligibility: Any qualified profit -motivated
or nonprofit sponsor may apply for a blanket
mortgage covering the project after conferring with
his local HUD -FHA Field Office; any credit -worthy
person may apply for a mortgage on individual units
in a project.
Legal Authority: Section 234, National Housing Act
(1934), (P.L. 73-479), as added by Housing Act
of 1961 (P.O. 87-70), and as amended.
Application Dates: Anytime
'
26

COOPERATIVE HOUSING
Federal mortgage insurance to finance cooperative housing
projects.
Nature of Program: HUD insures mortgages made by
private lending institutions on cooperative housing
projects of five or more dwelling units to be
occupied by members of nonprofit cooperative ownership
housing corporations. These loans may finance: new
construction, rehabilitation, acquisition, improvement
or repair of a project already owned, and resale
1 of individual memberships; construction of projects
composed of individual family dwellings to be bought
by individual members with separate insured mortgages;
and construction or rehabilitation of projects that
the owners intend to sell to nonprofit cooperatives.
Applicant Eligibility: Nonprofit corporations or
trusts organized to construct homes for members
of the corporation or beneficiaries of the trust;
and qualified sponsors who intend to sell the project
to a nonprofit corporation or trust.
Legal Authority: Section 213, National Housing Act
(1934), (P.L. 73-479), as added by Section 114,
Housing Act of 1950 (P.L. 81-475).
' Application Date: Anytime
GRADUATED PAYMENT MORTGAGE
Federal mortgage insurance for Graduated Payment Mortgages.
Nature of Program: HUD insures mortgages to facilitate
early homeownership for households that expect
1 their incomes to rise substantially. These
"graduated payment" mortgages allow homeowners to
make smaller monthly payments initially and to increase
their size gradually over time.
Five different payment plans are available, varying
in duration and rate of increase. Larger than usual
downpayments are required to prevent the total
amount of the loan from exceeding the statutory loan
to value ratios. In all other respects, the graduated
payment mortgage is subject to the rules governing
ordinary HUD -insured home loans.
Applicant Eligibility: All FHA -approved lenders may
make graduated payment mortgages; credit -worthy
applicants with reasonable expectations of increasing
income may qualify for such loans.
' Legal Authority: Section 245, National Housing Act (1934)
(P.L. 73-479), as added by Section 308, Housing and
ICommunity Development Act of 1974 (P.L. 93-383).
27

I
i
I
r
I
I
I
I
I
I
I
I
I
I
L
MULTIFAMILY RENTAL HOUSING
Federal mortgage insurance to facilitate construction
and financing of a broad cross section of rental housing.
Nature of Program: HUD insures mortgages made by
private lending institutions to finance the construction
or rehabilitation of multifamily rental housing by private
or public developers. The project must contain at
least five dwelling units. Housing financed under
this program, whether in urban or suburban areas, should
be able to accommodate families (with or without
children) at reasonable rents.
Applicant Eligibility: Investors, builders, developers,
and others who meet HUD requirements may apply for
funds to.an FHA -approved lending institution after
conferring with their local HUD office. The housing
project must be located in an area approved by HUD
for rental housing and in which market conditions
show 1 need for such housing.
Legal Authority: Section 207, National Housing Act
(1934), (P.L. 79-479), as amended.
Application Dates: Anytime
EXISTING MULTIFAMILY RENTAL HOUSING
Federal mortgage insurance to facilitate purchase or
refinancing of existing apartment projects.
Nature of Program: HUD insures mortgages to purchase
or refinance existing multifamily projects originally
financed with or without Federal mortgage insurance.
HUD may insure mortgages on existing multifamily projects
under this program that do not require substantial
rehabilitation. Project must contain eight or more
units, and must be at least three years old.
Applicant Eligibility: Investors, builders, developers,
and other who meet HUD requirements.
Legal Authority: Section 223(f), National Housing
Act (1934), (P.L. 73-479), as added by Section 311,
Housing and Community Development Act of 1974
(P.L. 93-383).
Application Dates: Anytime
I
28

MULTIFAMILY HOUSING COINSURANCE
Joint mortgage insurance by the Federal Government
and State Housing Finance Agencies to facilitate
financing of rental housing.
1
Nature of Program: State Housing Finance Agencies
which are approved for participation in the program,
effectively assume the responsibilities of a HUD/
FHA Area Office with respect to underwriting mortgage
loans and those responsibilities of an FHA -approved
mortgagee.
An annual mortgage insurance premium of one-half of
one percent of the average outstanding principal
balance of the loan is collected from the mortagor
'
and is shared by HUD and the Housing Finance Agency
in direct proportion to their risk on the coinsured
loans.
Applicant Eligibility: State Housing Finance Agencies
as mortgagee and coinsurer. Nonprofit, limited
dividend, and profit -motivated entities are eligible
to apply to approved State agencies for loans.
I
I
I
I
I
Legal Authority: Section 244, National Housing Act
(1934) (P.L. 73-479), as added by Section 307,
Housing and Community Development Act of 1974
(P.L. 93-383).
Application Dates: Anytime
29

I
Objective 3: Need for Housing Assistance
a. To meet the projected 1987 need for housing assistance for each
submarket as follows:
1. Elderly: Assist 74 units for housing of the elderly, consisting of:
i9
units which are deteriorated in a major fashion or
dilapidated;
The 3 families in need of rent supplement;
7 rental units with need for minor repair;
6 units where tenants are in need of rent' supplements;'
39 units owned by occupants in need of maintenance assistance.
(1982 totals 64, increasing to 74 in need by 1987).
2. Large Family: Assist 22 units for housing of large families,
■
consisting of:
11
1
I
.FJ
I!
II
It
I
2 units needing replacement;
8 units in need of minor repair
5 units whose tenants need rental assistance;and
3 units whose owners need maintenance assistance
(1982 totals 18, increasing to 19 by 1987).
3. Small Family (non -elderly): Assist 95 units for housing of.small
families consisting of:
7 units for replacement;
5 units for majo'r'rehabilitation;
11 units in need of minor repair;
12 units in.need of rent supplement; and
50 units whose renters require financial assistance
for maintenance.
(1982 totals 85, increasing to 95 in 1987).
b. To meet the need for multi -family housing in Winton by 1983.
c. To meet the need for home ownership in Winton by 1987.
Alternative Strategies for Meeting the Need for Housing Assistance.
(1) Establish a non-profit housing corporation locally (or regionally)
designed to borrow money from FmHA for the purpose of acquiring land,
constructing houses or apartments, selling, conveying, assigning,
mortgaging or leasing any real or personal property. Coordinate the
operation of this agency with the Roanoke Chowan Housing Authority
and ARPDC.
30

(3) Investigate each of the following programs for the following sub -
markets (see attached program summaries. (pages 32-41):
Elderly:
FmHA 515,
502,
504, 523
Title I
Main Rehab.
Title I
Mobile Homes
HUD 203K
Maintenance Assistance
HUD 231
Rental
HUD 202
Non-profit Sponsor
HUD 106 (a) $
(b) Non-profit Sponsor
Section 8
Rent Supplement
NCHFA
Rehab Loan
Large Family:
FmHA 502,
504,
523
HUD Title
I
HUD 203K
Section 8
NCHFA
Rehab Loan
Small Family:
FmHA 502,
504,
523
HUD Title
I
(Title I, Mobile Homes)
HUD 203K
Section 8
NCHFA
Rehab Loan
(4) Investigate each of the following programs for multi -family
housing assistance (see attached program summaries).
HUD 241
HUD 221 (d) (3) and (d) (4)
(5) Investigate each of the following programs for assistance in increasing
ability of families to purchase houses:
HUD 221 (d) (2)
Revised Section 235
Title I
FmRA 502 and 504
NOTE: Contact persons for the aforementioned HUD programs maybe
identified by calling Greensboro, 378-5361. The Hertford
County FmHA Office is in Winton, at 358-7611.
31

MOBILE HOMES (Title I)
Federal insurance of loans to finance the purchase of mobile homes.
Nature of Program: To facilitate financing of mobile home purchases,
thereby providing alternative lower -cost housing, HUD insures mobile
home loans by private lending institutions. Loans may be insured
for up to $18,000 and 15 years on single -module units, and for
$27,000 over 20 years for double -module units. The maximum
allowable interest on both types is 1311 percent.
Applicant Eligibility: Any person able to make the cash investment
and the mortgage payments.
Legal.Authority: Section 2, Title I, National Housing Act (1934),
(P.L. 73-479).
Application Date: Anytime.
32

HOME IMPROVEMENT LOAN INSURANCE (Title I)
Federal Insurance of loans to finance home improvements.
Nature of Program: HUD insures loans to finance major and minor
improvements, alterations and repairs of individual homes and
non-residential structures (whether owned or leased). The loans
may be up to $15,000, bear interest up to 13 percent, and be paid
back over 15 years. Loans on apartment buildings may be as high
as $7,500 per unit, but the total for the building may not exceed
$37,500, and the term may not exceed 15 years. Loans may also
finance new construction for agriculture or non-residential use.
Lenders determine eligibility for and process these loans. Loans
of not more than $7,500 are generally unsecured personal loans.
Legal Authority: Section 2, Title I, National Housing Act (1934),
(P.L. 73-479) as amended by Housing Act of 1956 (P.L. 84-1020).
Application Date: Anytime
REHABILITATION MORTGAGE INSURANCE (REVISED) SECTION 203(k)
Mortgage insurance to facilitate rehabilitation of one -to -four -
family properties.
Nature of Program: HUD insures rehabilitation loans to (1) finance
rehabilitation of an existing property; (2) finance rehabilitation
and refinancing of the outstanding indebtedness of a property;
(3) finance purchase and rehabilitation of a property. An eligible
rehabilitation loan must involve a principal obligation not
exceeding the amount allowed under Section 203 (b) home mortgage
insurance.
Applicant Eiigilibty: Any person able to make the cash investment
and the mortgage payments.
Legal Authority: Section 203(k), National Housing Act (1934),
as amended by Section 101(c), Housing and Community Development
Amendments of 1978, (P.L. 95-557).
Application Date: Anytime
33

I
MORTGAGE INSURANCE FOR HOUSING FOR THE ELDERLY
Federal mortgage insurance to facilitate financing of rental housing
for the elderly or handicapped.
Nature of Program: To assure a supply of rental housing suited
to the needs of the elderly or handicapped, HUD insures mortgages
to build or rehabilitate multi -family projects consisting of
eight or more units.
Applicant Eligibility: Investors, builders, developers, public
bodies, and non-profit sponsors may qualify for mortgage insurance.
'
Persons at least 62 years old are eligible to rent such units.
Legal Authority: Section 231, National Housing Act (1934),
'
(P.L. 73-479), added by Section 201 Housing Act of 1959
(P.L. 86-372).
Application Date: Anytime.
DIRECT LOANS FOR HOUSING FOR THE ELDERLY OR HANDICAPPED (SECTION 202)
To provide housing and related facilities for the elderly or
handicapped.
Nature of Program: Long-term direct loans to eligible, private
non-profit sponsors finance rental or cooperative housing facilities
for elderly or handicapped persons. The current interest rate is
based on the average rate paid on Federal obligations during
the preceding fiscal year. (Until the program was revised in
1974, the statutory rate was 3 percent). Participation in the
Section 8 rental housing program is required for a minimum of
'
20 percent of the Section 202 units.
Applicant Eligibility: Private, non-profit sponsors may qualify
for loans. Households of one or more persons, the head of which
is at least 52 years old or is handicapped, are eligible to live
in the structures.
Legal Authority: Section 202, Housing Act of 1959 (P.L.-86-372).
Application Date: Anytime.
I
1 34

ASSISTANCE TO NON-PROFIT SPONSORS OF LOW AND MODERATE INCOME HOUSING.
Technical assistance and loans to sponsors of certain HUD -assisted
housing.
Nature of Program: To stimulate the production of housing for low
and moderate income families, HUD provides information and technical
advise to non-profit organizations that sponsor such multi -family income
housing.
HUD also makes interest -free "seed money" loans to non-profit sponsors
or public housing agencies to cover 80 percent of the preliminary
development costs. Current HUD regulations limit these loans
to non-profit sponsors of Section 202 housing for the elderly or
handicapped. Loans may be used to meet typical project development
costs, such as surveys and market analysis, site engineering,
architecture fees, site acquisition, and application and loan
commitment fees. Loans are made from a revolving low and moderate
Income Sponsor Fund.
Applicant Eligibility: Non-profit sponsors eligible under HUD
regulations and public housing agencies.
Legal Authority: Sections 106(a) and (b), Housing and Urban
Development Act of 1968, (P.L. 90-448).
Application Date: Anytime.
35

LOWER -INCOME RENTAL ASSISTANCE (SECTION 8)
A rent subsidy for lower -income families to help them afford decent
housing in the private market.
Nature of Program: HUD makes up the difference between what a lower -
income household can afford and the fair market rent for an adequate
housing unit. No eligible tenant need pay more than 25 pervent
of adjusted income toward rent. Housing thus subsidized by HUD
must meet certian standards of safety and sanitation, and rents
for these units must fall within the range of fair market rents as
determined by HUD. This rental assistance may be used in existing
housing, in new construction, and in moderately or substantially
rehabilitated units. Different procedures apply in each case.
Local public housing agencies administer the existing housing and
moderate rehabilitation programs, certifying eligible tenants,
inspecting the units proposed for subsidy, and contracting with
approved landlords for payment. (Tenants execute separate leases
with landlords to pay their share of rent). In the Moderate Rehab
program, local public housing agencies also provide technical assistance
to owners of units being rehabilitated.
Non-profit and profit -motivated developers, alone or together with
public housing agencies, submit proposals for rehabilitation or
new construction in response to invitations from HUD; or they may
apply to their State housing finance agency. On approval of the
proposals, HUD contracts to subsidize the units to be occupied by
eligible families.
Applicant Eligibility: Tenants must be lower -income households
with incomes amounting to 80 percent of the area median income or
less. Project sponsors may be private owners, profit -motivated
and non-profit or cooperative organizations, public housing agencies
and State housing finance agencies.
Legal Authority: Section 8, U.S. Housing Act of 1937, (P.L. 73-479),
as added by Housing and Community Development Act of 1974, (P.L.
93-383).
Application Date: Anytime.
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HOMEOWNERSHIP ASSISTANCE FOR LOW AND MODERATE INCOME FAMILIES
(Section 221(d)(2))
Mortgage insurance to increase homeownership opportunities to low
and moderate income families, especially those displaced by urban
renewal.
Nature of Program: HUD insures lenders against loss on mortgage
loans to finance the purchase, construction or rehabilitation of low
cost, one -to -four family housing. Maximum insurable loans for
an owner -occupant are $31,000 for a single-family home (up to
$36,000 in high cost areas). For a larger family (five or more
persons), the limits are $36,000 or up to $42,000 in high costs
areas.. Higher mortgage limits apply to two -to -four -family housing.
Applicant Eligibility: Anyone may apply; displaced households
qualify for special terms.
Legal Authority: National Housing Act (1934), (P.L. 73-479), as
added by Section 123, Section 221 (d)(2), Housing Act of 1954
(P.L. 83-560).
Application Date: Anytime.
SUPPLEMENTAL LOANS FOR MULTI -FAMILY PROJECTS AND HEALTH CARE FACILITIES
Federal loans insurance to facilitate financing of improvements to
multi -family rental housing and health care facilities.
Nature of Program: HUD insures loans made by private lending
institutions to pay for improvements to apartment projects, nursing
homes, hospitals or group practice facilities that carry HUD -insured'
mortgages. By law, projects in the above categories may also obtain
FHA insurance on loans to expand housing opportunities to provide
fire and safety equipment or energy -related improvements regardless
of whether HUD insured the original mortgage, though HUD regulations
currently restrict the program to insured or Secretary -held mortgages.
Applicant Eligibility: Qualified owners of projects and health care
facilities (as specified above) may apply for insured loans after
conferring with their local HUD office.
Legal Authority: Section 241, National Housing Act (1934),
(P.L. 73-479), as added by Section 307, Housing and Urban Developemnt
Act of 1968 (P.L. 90-448).
Application Date: Anytime.
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MULTI -FAMILY RENTAL HOUSING FOR LOW AND MODERATE INCOME FAMILIES
(Section 221(d)(3) and (4)
Mortgage insurance to finance rental or cooperative multi -family
housing for low and moderate income households.
Nature of Program: To help finance construction or substantial
rehabilitation of multi -family (5 or more units) rental or cooperative
housing for low and moderate income or displaced families, HUD conducts
two related programs. Both insure project mortgages at the FHA
ceiling interest rate. Projects in both cases may consist of
detached, semi-detached, row, walk-up, or elevator structures. The
insured mortgage amounts are controlled by statutory dollar limits
per unit which are intended to assure moderate construction costs.
Units financed under both programs may qualify for assistance under
Section 8 if occupied by eligible low-income families.
Currently, the principal difference between the programs is that
HUD may insure 100 percent of total project cost under Section 221
221(d)(3) for non-profit and cooperative mortgagors but only 90
percent under Section 221(d)(4) irrespective of the type of mortgagor.
Applicant Eligibility: Sections 221(d)(3) and 221(d)(4) mortgages
may be obtained by: public agencies; non-profit, limited -dividend
or cooperative organizations, private builders or investors who
sell completed projects to such organizations. Additionally, Section
221(d)(4) mortgages may be obtained by profit -motivated sponsors.
Tenant occupancy is not restricted by income limits, except in the
case of tenants receiving subsidies.
Legal Authority: Sections 221(d)(3) and (4), National Housing Act
(1934), (P.L. 73-479), as added by Housing Act of 1954, (P.L. 83-560).
Application Date: Anytime.
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30MEOWNERSHIP ASSISTANCE FOR LOW AND MODERATE INCOME FAMILIES
(REVISED SECTION 235)
Mortgage insurance and interest subsidy for low and moderate income
home buyers.
Nature of Program: To enable eligible families to purchase new
homes that meet HUD standards. HUD insures mortgages and makes monthly
payments to lenders to reduce interest to as low as 4 percent. The
homeowner must contribute 20 percent of adjusted income to monthly
mortgage payments and must make a downpayment of 3 percent of the
cost of acquisition. There are dollar limits on mortgage loans
and sales prices. Mortgage limits are $32,000 ($38,000 for homes
for 5 or more persons), and in high cost areas $38,000 ($44,000
for homes for 5 or more persons). The income limit for initial
eligibility is 95 percent of.the area median income for a family of
four and the sale price may not exceed 125 percent of the mortgage
limit.
Applicant Elgibility: A home buyer's adjusted family income may
not exceed a certain percentage of local median income, dependant
upon family size. There is no restriction on assets.
Legal Authority: Section 235, National Housing Act (1934),
as added by Section 101, Housing and Urban Development Act of 1968,
(P.L. 90-448).
Application Date: Anytime.
d
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LOW TO MODERATE INCOME HOUSING LOANS -- HOMEOWNERSHIP
(SECTION 502 and 504 RURAL HOUSING LOANS)
Type of Assistance: Guaranteed/Insured Loans
Uses: Loans can be used to purchase a new or existing
structure or to build, rehabilitate, or relocate an owner -
occupied single family dwelling. The loan includes the cost
of buying a "minimum but adequate site". Low and moderate
income families are eligible who cannot obtain credit on
reasonable terms elsewhere.
Eligible Sponsors: Non-profit or private corporations
How to Apply: Contact County Farmers Home Administration
Supervisor
RURAL RENTAL HOUSING LOANS (SECTION 515)
Type of Assistance: Guaranteed/Insured Loan
Uses: Construct, purchase, improve, or repair rental or
cooperative housing. Can also be used to provide recreational
and service facilities appropriate for use in connection with
housing and to buy and improve land on which buildings are to
be located.
Eligible Sponsors: Individuals, cooperatives, non-profit
organizations, or corporations unable to finance with
either their own resources or with credit obtained from
private resources.
How to Apply: Letter to County Farmers Home Administration
Supervisor with preliminary market data, cost estimates,
and financial statements and plans, if available.
Documentation required: 1) comprehensive market analysis
showing need; 2) legal capability to incur the obligation and
operate the housing; 3) sound budget; 4) is unable to obtain
funds from other sources.
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RURAL HOUSING SITE LOANS (SECTIONS 523 and 524)
Type of Assistance: Loans
Uses: To purchase and develop sites including necessary
equipment which will become part of the site; for water and
sewer facilities; payment of necessary engineering, legal and
closing fees.
Purpose: To assist public/private non-profit organizations
to acquire and develop lands in rural areas to be subdivided
as adequate building sites and sold on a non-profit basis
to eligible low and moderate income families, cooperative
and non-profit applicants.
Eligible Sponsors: A private/public non-profit organization
that will provide the developed sites to qualified borrowers
on a non-profit basis.
How to Apply: Contact County Supervisor for FmHA. Submit
letter with supporting information and costs included.
Documentation required: 1) market analysis showing need
for such services; 2) legal capacity to borrow funds and
develop land for sale; 3) a sound budget.
RURAL SELF-HELP TECHNICAL ASSISTANCE (SECTION 523 TECHNICAL
ASSISTANCE)
Type of Assistance: Project grants
To provide financial support for the program of technical and
supervisory assistance which will aid needy low income
individuals and their families in carrying out mutual self-help
efforts in rural areas.
Uses: Hire personnel to carry out a program of technical
assistance for self-help housing in rural areas; pay reasonable
and necessary office and administrative costs; make essential
equipment such as power tools available to families; to pay
fees for training self-help group members in construction
techniques or for other professional services.needed.
Elgibile Sponsors/Applicants: Local government or public/
private non-profit corporations
How to Apply: Letter to County FmHA Supervisor fully
documenting needs and proposed amount needed. Attachments
relating to size of project, estimated costs, budgets and
need are also required..
Must provide evidence of need for such services, have legal
capacity to incur the obligation and operate proposed project,
and be unable to obtain necessary funds from other sources.
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Objective 4: Spatial Configuration of the Residential Sector
a. To achieve the spatial distribution called for in the Winton Land
Use Plan and specified in the 1982 Winton Zoning Ordinance.
b. To discourage the segregation of housing patterns.
c. To identify concentration of blight and undertake concentrated
renewal strategies by 1987.
d. To avoid undue concentration of assisted housing in areas containing
a high proportion of low income persons.
Alternative Strategies for Achieving Spatial Configuration Objectives.
(1) Promote development where capacity to serve (water and sewer) already
exist, particularly in the older sections of town.
(2) Identify 10 choice plats for residential development, especially
within the already developed municipal boundaries, and
Work with owners to determine propensity to sell.
Work with developers/builders and realtors to reach agreements
with willing owners.
Consider tax deferments for residential development on choice lots
(as a Town policy).
Acquire lots and hold for resale for residential development.
Consider using municipal powers of condemnation and eminent domain
to achieve spatial configuration objectives in the public interest.
Protect existing established residential areas from intrusions of
incompatible uses.
Place priority on use of housing assistance programs upon areas
where there is undue concentration of minorities and low income families.
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Objective 5: Amenities
a. To increase the employment base in Winton so as to increase the
ability to afford housing by 1987.
b. To improve recreational and cultural amenities (mini -park or
neighborhood recreational sites) by 1984.
c. To improve streets by 1987.
d. To maximize the potential of the new water system and forthcoming
wastewater treatment systems as a stimulant to,development,
through developing extension policies which entice developers to take
advantage of already located services, and advertising the location
of cost-effective lots.
e. Improve the public (regional) impact of Winton as a place to live
(as well as work) by 1983.
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C. Recommended Course of Action
' From the aforementioned alternative actions, the following are selected
and recommended as a three year work program for the Town of Winton,
toward the goals and objectives of this residential development guide.
Year 1:
(1) Adopt the North Carolina model housing code and contract with the
County to enforce it. (Obtain model code from N.C. Department
of Insurance) .
(2) Undertake a demolition volunteer program consistent with the Winton
Land Use Plan, page 21. Assign town staff responsibility to ensure
implementation.
(3) Work with developers of low cost housing (multi -family or
manufactured or modular units) to develop a strategy for the Town.
(4) Work with the Roanoke-Chowan Housing Authority to support their
current plans to construct additional units of public housing in the
Town.
(5) Conduct a survey of employees of Carolina Aluminum and Hertford
County Government to determine why they don't currently live in
Winton and what they want:.in order to begin living there.
(6) From survey results, design and undertake strategies to meet the
relocation needs of those employees. This could include improving
conditions in Winton which are perceived as barriers. Focus on
both short run (quick success) issues and long-term projects.
(7) Encourage the application of conservation measures (reduce home
operating costs( through energy audits and energy conservation.
financing in existing housing units.
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Year 2:
(1) Promote development of multi -family housing by recruiting developers
and selecting financial institutions for participation in HUD 234(d)
(see page 26); HUD 213 (page 27) and FmHA 523 and 524.
(2) Establish a non-profit cooperative ownership housing corporation
and select private lending institutions to use HUD 213 (see page 27).
(3) Recruit private developers and select lending institutions to
build rental multi -family units, using HUD 207 (see page 28).
(4) Support efforts by the Roanoke-Chowan Housing Authority to establish
housing for the elderly, using HUD 202 (see page 34).
(5) Promote development where capacity to serve (water and sewer) already
exist, particularly in the older sections of town.
(6) Identify 10 choice plats for residential development, especially
within the already developed municipal boundaries, and
Work with owners to determine propensity to sell.
Work with developers/buildiers and realtors to reach agreements
with willing owners.
Consider tax deferments for residential development on choice lots
(as a Town policy).
Acquire lots and hold for resale for residential development.
Consider using municipal powers of condemnation and eminent domain
to achieve spatial configuration objectives in the public interest.
Protect existing established residential areas from intrusions of
incompatible uses.
Place priority on use of housing assistance programs upon areas
where there is undue concentration of minorities and low income
families.
Year 3:
(1) Investigate and determine the feasibility of ways in which the Town's
tax exempt status can:. leverage mortgage money with banks, and other
lending institutions such as the North Carolina Housing Finance Agency.
Banks.could loan money to the town for expressed public purposes.
(See the Local Government Fiscal Control Act).
(2) Establish a local Housing Development Corporation or a Community
Development Commission responsible for leveraging and managing
money for housing and development.
(3) Prepare a Community Development Block Grant application for housing
rehabilitation (1982).
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(4) Establish a non-profit housing corporation locally (or regionally)
designed to borrow money from FmHA for the purpose of acquiring land,
constructing houses or apartments, selling, conveying, assigning,
mortgaging or leasing any real or personal property. Coordinate the
operation of this agency with the Roanoke Chowan Housing Authority
and ARPDC.
(5) Establish. or assist a low interest revolving loan fund of $20,000
to be insured by HUD Title I loan insurance and HUD 203(K) (see
page 33).
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