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HomeMy WebLinkAboutAgenda - 06-22-1998 - 9cORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. q - C ACTION AGENDA ITEM ABSTRACT Meeting Date: June 22, 1998 SUBJECT: HOME Program - Scarlett Drive DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/N) ;'�9 BUDGET AMENDMENT: (Y/N) ATTACHMENT(S): INFORMATION CONTACT: Development Agreement Tara L. Fikes Preliminary Sketch TELEPHONE NUMBERS: - - eat. 2490 Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 227 -2031 PURPOSE: To approve a Development Agreement with Orange Community Housing Corporation for HOME funding available for new construction activities on Scarlett Drive in Chapel Hill. BACKGROUND: The Orange County HOME Consortium designated $50,000 of 1996 -97 HOME funding to Orange Community Housing Corporation to assist with new housing construction related activities on Scarlett Drive in Chapel Hill. The Scarlett Drive property is currently owned by the Town of Chapel Hill and the Public- Private Partnership is an interested partner in this development with Orange Community Housing Corporation. Currently, there are plans for approximately fourteen (14) townhomes to be built for first -time homebuyers with incomes at or below 60% of area median income. OCHC should have the preliminary planning processes including all Town of Chapel Hill planning approvals by the Spring of 1999. It is estimated that actual construction will be completed by the Summer of 2000. RECOMMENDATION(S): The Manager recommends approving the Development Agreement with Orange Community Housing Corporation and authorizing the Chair to execute the Development Agreement with this agency on behalf of the Orange County HOME Consortium upon the County Attorney's review and approval. 1L u u NORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT I!/ This is an AGREEMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and ORANGE COMMUNITY HOUSING CORPORATION, a North Carolina nonprofit corporation (hereinafter referred to as "OCHC "). The date of this Agreement is June 22, 1998. WITNESSETH WHEREAS, the Orange County HOME Consortium has designated $50,000 in FY 1996 -97 HOME funds for the purpose of conveying these funds to OCHC to acquire and develop the Scarlett Drive property, which property is more particularly described in Exhibit A attached hereto and made a part of this Agreement (hereinafter referred to as the "Property"); and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated August 27, 1992, and amended January 26, 1993, and July 28, 1993, and as such is the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance with the Title II of the Cranston - Gonzalez National Affordable Housing Act (Pub. L. 101 -625), (42 U.S. C. 3535(d.) et. §e g.) (hereinafter referred to as the "Act "), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and WHEREAS, OCHC intends to purchase and develop the Property for the purpose of constructing homeownership opportunities for first -time homebuyers. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: OCHC agrees to develop the property and secure financing for the construction of the project. 2. OCHC agrees to prepare a marketing plan prior to the closing date for the purchase of the property, which will be incorporated into this document upon approval of the Orange County HOME Program Consortium. The Consortium recognizes the difficulty in determining marketing strategy, thus the plan will include activities to be undertaken by other parties. 3. Once potential purchasers are identified through marketing efforts specified in the marketing plan, OCHC will perform all activities necessary to complete the sale, including but not limited to: prequalifying the potential purchasers for a mortgage, 3 obtaining credit information, providing homeownership education, preparing a sales contract and other necessary documents. 4. OCHC agrees to sell the homes to qualified buyers whose incomes do not exceed 80% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and amended from time to time. At the closing of the sale to a homebuyer of each lot, OCHC shall repay the County, $3,571.43 in the form of a credit to the homebuyer. The credit to the homebuyer shall be documented by a promissory note from the homebuyer to the County which note shall be secured by a deed of trust on the property naming the County as beneficiary. The County agrees to subordinate its mortgage interest on each lot to a first lien private mortgage acquired by the buyer. The period of affordability for HOME funds in accordance with the Acts, its regulations and State Program Requirements shall be 20 years from the date of execution of this Agreement. The default interest rate shall be 7% per annum. OCHC shall provide to Orange County prior to closing the sale of each home documentation, satisfactory to the County, verifying the income of each buyer. 10. Miscellaneous Provisions. a. Termination of Agreement. The obligations of the parties hereunder and the specific obligation of OCHC to construct homes thereon shall terminate upon the completion of the sale of the targeted fourteen townhomes to qualified buyers. Continuing obligations of the buyers shall be contained in the note and deed of trust to be recorded at the time of closing of the sale of each home. Notwithstanding the foregoing, the parties hereto may terminate this Agreement at any time by a mutual agreement to that effect in writing. b. Default, Remedies. This Agreement may be terminated by a non - defaulting party upon an event of default hereunder, after written notice thereof and thirty (30) days grace period in which the defaulting party may act to cure. As used herein, the term "an event of default" shall mean and refer to a failure or act of omission by either party with respect to any undertaking, obligation, covenant or condition as set forth in this Agreement. With respect to any event of default, the non - defaulting party may exercise any right available to it at law or in equity with respect to such default. C. Books and Records. Each party shall keep and maintain books, records and other documents relating directly to the receipt and disbursement of grant funds and the fulfillment of this Agreement. Each party agrees that any authorized representative of the County, the State, the U.S. Department of Housing and Urban Development and Comptroller General of the United States shall, at all reasonable times, have access to and the right to inspect, copy, audit and examine all of the books, records and other documents relating to the grant and the fulfillment of this Agreement for a period of three (3) years following the completion of the Project. El d. Conflict with HOME Agreement. Notwithstanding anything herein to the contrary, the parties hereto acknowledge the due execution of a HOME Program Agreement between the County and the U.S. Department of Housing and Urban Development and agree that any conflict between the provisions, requirements, duties or obligations of this Agreement and the HOME Agreement shall be resolved in favor of the HOME Agreement. e. Notices. Any Notice shall be in writing and shall be given by depositing the same in the United States mail, post -paid and registered or certified, and addressed to the party to be notified, with return - receipt requested, or by delivering the same in person to an officer or principal of such party. Notice deposited in the mail in the manner here in above described shall be effective upon mailing. For purposes of Notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: To the County: Orange County c/o Housing and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director To OCHC: Orange Community Housing Corporation P.O. Box 307 Carrboro, NC 27510 -0307 ATTN: Executive Director Either the County or OCHC may change the person or address to which any future Notice shall be given as herein provided. f. No Assignment. No transfer or assignment of OCHC's interest in this Agreement shall occur without the prior written consent of the County. g. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. h. Entire Agreement; Modification. This Agreement, with all exhibits and attachments hereto, constitutes the entire agreement between the County and OCHC. No modification or amendment to this Agreement shall be binding upon either party unless made in writing and executed by each party. i. No Joint Venture or Agency. The County and OCHC each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, 5 any act of the County or OCHC under this Agreement, shall be deemed or construed to create any relationship of joint venture, partnership or agency between the parties. j. Effect of Waiver or Forbearance. No failure by the County to insist upon the strict performance of any term or condition of this Agreement, or to exercise any right or remedy upon the breach by OCHC of any of its obligations, agreements, or covenants hereunder, shall be a waiver of such affected term or condition or of such breach; nor shall any forbearance by the County to seek a remedy for any breach by OCHC be a waiver by the County of its rights and remedies with respect to that or any other breach. k. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of North Carolina. Any litigation arising out of this Agreement shall be brought in courts sitting in North Carolina, with venue in Orange County. I. Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by the fact that for any reason any other provision may be invalid or unenforceable in whole or in part. If any provision of this Agreement or the application thereof to any person or circumstances shall, to any extent, be or become invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. The County and OCHC agree to substitute for such provision of this Agreement or the application thereof determined to be invalid or unenforceable, such other provision as most closely approximates, in a lawful manner, such invalid, illegal or unenforceable provision. If the County and OCHC cannot agree, they shall apply to a court of competent jurisdiction to substitute such provision as the court deems reasonable and judicially valid, legal and enforceable. Such provision determined by the court shall automatically be deemed part of this Agreement ab initio. M. Equal Opportunity. OCHC shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. n. Headings. Headings are for convenience only and shall not be used to interpret or construe its provision. o. Gender; Singular and Plural. As used herein, the neuter gender includes the feminine and masculine. The masculine includes the feminine and neuter, and the feminine includes the masculine and neuter and each includes a corporation, partnership or other legal entity when the context so requires. The singular number includes the plural and vice versa, whenever the context so requires. (SEAL) ATTEST: 8 ORANGE COMMUNITY HOUSING CORPORATION Keith Cook, Chair Board of Directors Secretary Board of Directors NORTH CAROLINA ORANGE COUNTY I, , Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me ' with whom I am personally acquainted, who, being by me duly sworn, says at she is Secretary and that Keith Cook is Chair of the Board of Directors of Orange Community Housing Corporation, a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 199_ Notary Public My commission expires: 10, TYPE B - BUFFER yK T" w CKVQ hu — 1-1 =—I 10' TYPE B BUFFER wAt,cA!A,%V,& u a DUMPSTER---7 IL.:%r 0 > 1 r rn 15' SETBACK BUILDING (6 UNITS) ;cl I'M 15' ALTERNATE TYPE C BUFFER if 15' BUILDING SETBACK 15' ALTERNATE TYPE C BUFFER TYPICAL UNIT 16' X 40' NORTH I SITE PLAN it 40 OW nAN C-1 .f I tow I nil