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Home My WebLink AboutAgenda - 04-19-2011 - 5lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 19, 2011 Action Agenda Item No. ~ -1 SUBJECT: HOME Investment Partnership Program -Deed of Trust Modification - Substitution of Collateral DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): INFORMATION CONTACT: Annette Moore, 245-2317 Tara L. Fikes, 245-2490 PURPOSE: To approve the execution of three (3) Deed of Trust Modification -Substitution of Collateral documents to secure funding provided to a homeownership project sponsored by Habitat for Humanity. BACKGROUND: Habitat for Humanity of Orange County, NC, Inc. is currently developing low and moderate income housing opportunities in the Phoenix Place subdivision in Chapel Hill. Many federal, state and local funding programs are being utilized to provide the capital necessary to complete this project. Specifically, Orange County has awarded Affordable Housing Bond funds to this project for infrastructure construction and the Orange County HOME Consortium has provided funding for second mortgages for homebuyers in an effort to reduce the cost of their first mortgage. Inadvertently, during a closing for one of the homebuyers, the Deed of Trust was not recorded correctly by the closing attorney. Thus, there is a need to correct that error in order to continue home sales in the subdivision. Deed of Trust Modification -Substitution of Collateral documents have been prepared by Habitat's closing attorney and reviewed and approved by the County Attorney's office. The documents require the signature of the Board Chair since the County Manager is not authorized to sign these materials. FINANCIAL IMPACT: The Deed of Trust Modification documents secure a $15,900 HOME Program investment, a $9,000 Affordable Housing Bond program investment, and a $7,616 County impact fee reimbursement. RECOMMENDATION(S): The Manager recommends that the Board authorize the execution by the Chair of three (3) Deed of Trust Modification -Substitution of Collateral documents to secure funding provided to a homeownership project sponsored by Habitat for Humanity.