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HomeMy WebLinkAboutAgenda - 06-16-2009 - 4ddORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 16, 2009 Action Agend~~ Item No. SUBJECT: Impact Fee Reimbursement -Habitat for Humanity DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes, (919) 245-2490 PURPOSE: To approve the impact fee reimbursement request from Habitat for Humanity of Orange County; NC, Inc. for $15,000 for five new homes. BACKGROUND: On November 1, 1995, the BOCC approved a policy for impact fee reimbursement to local non-profit organizations that meet the established eligibility criteria. This policy was last revised on March 4, 1998. The policy requires the following: 1. Housing must be developed for first-time homebuyers with incomes at or below 80% of HUD published median income for the Raleigh-Durham-Chapel Hill, NC MSA; 2. Affordable housing is defined as owner-occupied housing which can be purchased for no more than 2.5 times annual family income; and 3. The non-profit organization must certify in writing that, for owner-occupied housing, it will remain affordable to the anticipated beneficiary or beneficiaries for a period of a minimum of ninety-nine (99) years. A Declaration of Restrictive Covenants will secure this requirement. 4. The non-profit organization is responsible for providing documentation of impact fee payment. The County has received a reimbursement request for $15,000 from Habitat for Humanity of Orange County, NC, Inc. (HHOC) for five (5) new homes recently built in the Highland Woods in Hillsborough. HHOC has provided evidence that the impact fee for all homes has been paid and the houses have been sold to low-income homebuyers. The request has been reviewed in accordance with the above stated eligibility criteria and determined eligible for reimbursement. Results of Eli ibilit Review 1. Household Income: a. Family #1: Family of five Annual Income: $20,800 b. Family #2: Family of four Annual Income: $26,000 c. Family #3: Family of three Annual Income: $24,960 d. Family #4: Family of five Annual Income: $31,200 e. Family #5: Family of three Annual Income: $29,328 All incomes are less than 60% of the area HUD published median income. 2. First Mortgage Amount: $67,500 3. Certification of 99 year Affordability: Habitat for Humanity of Orange County, NC, Inc. certifies in writing that the five homes will remain affordable to families earning less than 80% of the area median income for at least ninety-nine (99) years. 4. Documentation of Impact Fee Payment Yes. The fee was paid at the time the building permit was issued. Actual reimbursement will take place at the time that the Impact Fee Agreement is executed by Habitat for Humanity and recorded in the Register of Deeds Office. FINANCIAL IMPACT: The current balance from the FY 2008-2009 appropriation for impact fee reimbursements is $54,000. Expenditure of $15,000 for these reimbursements will leave a balance of $39,000. RECOMMENDATION (S): The Manager recommends the Board approve the impact fee reimbursement request from Habitat for Humanity of Orange County, NC, Inc. for $15,000 for five (5) newly constructed homes.