HomeMy WebLinkAboutAgenda - 03-22-2012 - 5dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 22, 2012
Action Agenda
Item No. ~_
SUBJECT: impact Fee Reimbursement Request
DEPARTMENT: Housing, Human Rights and
Community Development
PUBLIC HEARING: (Y/N) No
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 Eliqibilitv Review
1. Income Eligibility
Family # Annual Income Family Size Percentage of
Median Income
1 $41,780 4 < 50%
2 $35,000 4 < 50%
3 $29,037 2 < 50%
4 $28,479 4 < 50%
5 $48,244 8 < 60%
6 $36,060 3 < 60%
7 $42,702 5 < 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 has 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 $116,688 and the expenditure of
$53,312 will leave a balance of $63,376.
RECOMMENDATION(S): The Manager recommends that the Board approve $53,312 for
impact fee reimbursement to Habitat for Humanity of Orange County, NC, Inc.
• ' ` Habitat
,~ for Humanity~
Orange County, NC
Februazy 24, 2012
Dr. Tara Fikes, Dii~ector
Orange County Housing and Community Development
P.O. Box 8181
Hillsbomugh, NC 27278
Dear Tara:
88 Vilmm Center Drive, Suite L110
Chapel Hill, NC 27514
P (919) 932-7077, F (919) 932-7079
www.orangehaUitat.org
infoCs~orangehabitatorg
o~~~on~
FEB 2 9 2012 ~
By
This letter is to request reunbursement for impact fees for seven new homes constructed and sold
by Habitat for Humanity of Orange County in the Phoenix Place subdivision in Cha~e] Hill. The
total amount requested is $53.312.00. All of the homes closed in August and September of 2011,
and recorded Agreements and Deeds of Trust should have been sent to you.
The impact fees of $7,616 per home were paid to the Town of Chapel Hill on Jvly 29, 2010 and
December 14, 2010. The receipts for payment are attached.
The names, addresses, and demographic and income information for the buyers is attached as
well as the actual cost of construction for the homes,
Please let me know if there is any other information you need. I look forward to hearing from
you.
Sincerely,
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