HomeMy WebLinkAboutAgenda - 12-11-2012 - 5i 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 11, 2012
Action Agenda
Item No. 5-i
SUBJECT: Impact Fee Reimbursement Request
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 $104,720 for eleven (11) 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 $104,720 from Habitat for
Humanity of Orange County, Inc. for eleven (11) 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.
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Results of Eliqibilitv Review
1. Income Eligibility
Family # Annual Income Family Size Percentage of
Median Income
1 $20,952 4 < 50%
2 $41,392 4 < 60%
3 $32,464 5 < 50%
4 $30,899 3 < 60%
5 $32,474 4 < 50%
6 $27,283 3 < 50%
7 $36,904 3 < 60%
8 $32,429 6 < 50%
9 $39,125 4 < 60%
10 $32,323 6 < 50%
11 $47,934 5 < 60%
2. All homes have the required recorded Declaration of Restrictive Covenants that
provides a 99 year long-term affordability provision.
3. Documentation of Impact Fee Payment Yes. Habitat has paid the fee 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 2012 — 2013 budget is $233,376, and an expenditure of
$104,720 leaves a balance of$128,656.
RECOMMENDATION (S): The Manager recommends that the Board approve $104,720 for
impact fee reimbursement to Habitat for Humanity of Orange County, NC, Inc.
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November 6, 2012
Dr. Tara Fikes, Director
Orange County Housing, Human Rights,
and Community Development
P.O. Box 8181
Hillsborough, NC 27278
Dear Tara:
This letter is to request reimbursement for impact fees for eleven new homes constructed and
sold by Habitat for Humanity of Orange County in the Phoenix Place subdivision in Chapel Hill.
The total amount requested is $104,720. All of the homes have closed and recorded Agreements
and Deeds of Trust should have been sent to you.
The impact fees of$9,520 per home were paid to the Town of Chapel Hill on January 13, 2012
and June 6, 2012. The receipts for payment are attached.
The names, addresses, and demographic and income information for the buyers is attached as
well as the actual average 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,
Susan Levy
Executive Director