HomeMy WebLinkAboutAgenda - 04-07-1998 - 9bORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. ~_
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 7, 1998
SUBJECT: Request for Impact Fee Reimbursement -UCC Living Centers, Inc.
DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/N) 1Vo
BUDGET AMENDMENT: (Y/N) No°,
ATTACHMENT(S): INFORMATION CONTACT:
None Tara L. Fikes
TELEPHONE NUMBERS: - -ext. 2490
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE:
To consider approval of an impact fee reimbursement request from United Living Centers, Inc. in
the amount of $120,000.
BACKGROUND:
UCC Living Centers, Inc., a 501(c)(3) organization, is nearing completion of a 40 unit apartment
complex for elderly citizens with very low incomes through the HUD sponsored Section 202
Program. The complex has been named Covenant Place and is located in Carrboro at the corner of
Culbreth and Smith Level Roads. The anticipated completion date is Apri128, 1998. UCC Living
Centers, Inc. has formally requested that the Board of Commissioners reimburse the cost of the
$3,000 school impact fee that is due on each of the 40 new housing units.
The apartments will provide subsidized rental housing for elderly persons 62 and older with income
at 50% or below of the median income for the Raleigh, Durham, Chapel Hill, NC Metropolitan
Statistical Area. Thus, according to the 1998 HUD published median income for this area, this
housing will be available to an individual earning $19,150 or less, or a couple earning $21,900 and
less. The monthly rent for these one bedroom apartments is scheduled to be $355 including utilities
which is well below the HUD published Fair Market Rent of $474. At this rent level, no family will
pay more than thirty (30) percent of their income for housing costs.
On March 4, 1998, the BOCC approved a revised Impact Fee Reimbursement Policy Concerning
Affordable Housing for Low Income Individuals. UCC Living Centers, Inc., as a 501(c)(3)
organization developing affordable rental housing for persons with incomes at or below 50% of
area median income, meets the eligibility criteria as outlined in the Reimbursement Policy. Further,
while HUD requires the property to remain affordable for 20 years, UCC Living Centers, Inc. has
agreed to certify that the property will remain affordable for a period of 99 years as required by the
policy.
Also, procedurally, the Reimbursement Policy requires organizations to budget the cost of impact
fee when developing housing development projects and include these fees in all grant and loan
applications. The UCC Living Centers, Inc. application for funding under the HUD 202 Housing
for the Elderly Program did not include the school impact fees as a construction related expense.
Therefore, a waiver would be required in the recently revised Impact Fee Reimbursement Policy
provision that reimbursement applicants must include the cost of impact fees in their federal grant
applications.
If the Board approves the request for reimbursement of impact fees, the Manager recommends that
the Board appropriate the $120,000 from undesignated fund balance in the School Capital Project
Fund. This amount would be repaid over time through the transfer from the General Fund to the
School Capital Project Fund of annual half cent sales tax revenue received in excess of the amount
budgeted.
RECOMMENDATION(S):
The Manager recommends approval of the impact fee reimbursement request from UCC Living
Centers, Inc. in the amount of $120,000, with funding to come from undesignated fund balance in
the School Capital Reserve Fund.