HomeMy WebLinkAboutAgenda - 09-08-2011 - 5dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 8, 2011
Action Agenda
Item No. ~j -G~
SUBJECT• Impact Fee Reimbursement Request -Habitat for Humanity
DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) No
Community Development
ATTACHMENT(S):
Letter from Habitat for Humanity
INFORMATION CONTACT:
Tara L. Fikes, (919) 245-2490
PURPOSE: To consider an impact fee reimbursement request from Habitat for Humanity of
Orange County, NC, Inc. for $53,312 for seven (7) homes recently constructed in the County.
BACKGROUND: On November 1, 1995, the BOCC approved a policy for impact fee
reimbursement to local non-profit organizations that met 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 recently received a reimbursement request for $53,312 from Habitat for
Humanity of Orange County, Inc. for seven (7) homes built in the Phoenix Place subdivision in
Chapel Hill. The request has been reviewed in accordance with the above stated eligibility
criteria and determined eligible for reimbursement. Specifically, Habitat has provided
evidence that the impact fee for all homes has been paid and the houses have been sold to
low-income homebuyers.
Results of Eligibility Review
1. income Eligibility
Family # Annual Income Family Size Percentage of
Median Income
1 $25,114 5 < 50%
2 $45,480 5 < 80%
3 $44,614 5 < 80%
4 $30,040 4 < 50%
5 $39,874 6 < 60%
6 $46,902 4 < 60%
7 $50,000 4 < 70%
2. All homes have the required recorded Declaration of Restrictive Covenants that
provide a 99-year long-term affordability provision.
3. Documentation of Impact Fee Payment Yes. Habitat paid the fees at the time of
issuance of the Certificate of Occupancy. Actual reimbursement will take place at the
time that the County's Impact Fee Agreement is executed by the Habitat for Humanity
of Orange County, NC and recorded in the Register of Deeds Office.
FINANCIAL IMPACT: During the County's budget formulation process every fiscal year, local
non-profit organizations developing affordable housing have provided estimates of the
anticipated need for impact fee reimbursements based on their construction plans. The
County has then budgeted money for this purpose based on the availability of funds. Over the
years, requests for reimbursements have primarily come from the Community Home Trust and
Habitat for Humanity.
The current balance in the FY 2011 - 2012 budget is $170,000 and expenditure of $53,312
will leave a balance of $116,688.
RECOMMENDATION (S): The Manager recommends that the Board approve $53,312 for
impact fee reimbursement to Habitat for Humanity of Orange County, NC, Inc.
88 Vilcom Center Drive, Suite L110 3
~ ~' ~ ° ~~~ Chapel Hill, NC 27514
P (919)932-7077, F (919) 932-7079
~Ot' ~~~,,~{~~~~'~ www.orangehabitat.org
.. .. info@orangehabitat.org
August 8, 2011
Dr. Tara Fikes, Director
Orange County Housing and Community Development
P.O. Box 8181
Hillsborough, NC 27278
Dear Tara:
This letter is to request reimbursement for impact fees for 7 new homes constructed
and sold by Habitat for Humanity of Orange County in the Phoenix Place subdivision in Chapel
Hill. Theimpact fees paid to the County for the homes was $7,616 per home. The total amount
requested is $53,312.00.
The fee has been paid for each of the homes, and the receipts for payment are
attached. The names, addresses, and demographic and income information for the buyers is
attached as well as a construction budget for the homes.
All of the homes closed prior July 31 201 i, and recorded Agreements and Deeds of
Trust should have been sent to you.
Please let me know if there is any other information you need. I look forward to
hearing from you.
Sincerely,
Susan Levy
Executive Director