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HomeMy WebLinkAboutAgenda - 05-07-2013 - 5f 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 7, 2013 Action Agenda Item No. 5-f SUBJECT: Community Home Trust Request — Homebuyer Requirements DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: December 18, 2012 Letter from Robert Tara L. Fikes, 245-2490 Dowling, CHT Executive Director PURPOSE: To consider a request from the Community Home Trust (CHT) to modify the homebuyer requirements for properties sold by the organization using federal, state, and local housing program funding, including the Affordable Housing Bond Program and the HOME Investment Partnership Program. BACKGROUND: The Board of County Commissioners received the attached letter from Robert Dowling, Executive Director of Orange Community Home Trust with two requests to assist the organization to sell homes in the tight real estate market. First, CHT is requesting that the first- time homebuyer requirement be waived after a property has been on the market for 90 days or longer without a contract. Presently, the County's housing programs require that the homebuyer be a first-time purchaser to qualify for homebuyer assistance. Secondly, the Home Trust is asking that the live/work requirement be waived after 90 days as well. Presently, the homebuyer has to live or work in Orange County for one year in order to qualify for this program. Initially, potential homebuyers had to live or work in the County for one year to be eligible. As indicated in Mr. Dowling's letter a tight credit market and low interest in homeownership are the reasons for both requests. The HOME Program Review Committee recently discussed this matter and agreed to allow the proposed waivers for a trial period of one year. Additionally, the Orange County Affordable Housing Advisory Board (AHAB) has reviewed and fully discussed this request as well. FINANCIAL IMPACT: No immediate financial impact is anticipated; however, should these properties stay on the market for long periods of time, funding will be required to provide subsidy for potential lower income buyers. RECOMMENDATION (S): The Manager recommends the Board: 1) Approve the request of Community Home Trust to modify the homebuyer requirements for properties to enable sales to non-first-time homebuyers and to persons that do not live or work in Orange County after the home has been on the market for 90 days; and 2) Request that the CHT Board and Staff revisit their existing housing program to determine its feasibility in the current economic climate to include the impact of housing acquired through inclusionary housing practices and rising homeowner association dues, and also meet and coordinate with the Affordable Housing Advisory Board to discuss and address these issues. —� 2 3 CEC 18 21Z Date: December 18, 2012 To: HOME Review Committee and Chapel Hill Town Council From: Robert Dowlin g, Executive Director Re: Selling homes to non-first time homebuyers The board of directors of Community Home Trust has approved this request to both the Home Review Committee and the Town Council to request relief from the first- time homebuyer requirement. Specifically,the Home Trust requests a waiver of the first time home buyer requirement after a home has been on the market for 90 days without a contract. We ask that this waiver apply to all sources of subsidy, BOARD OF including HOME funds, CDBG funds and local funds. DIRECTORS As we are all aware,the housing market has been weak for several years. The R.Alan Lee environment for Home Trust properties has worsened as lenders have tightened President borrowing requirements and prospective buyers have shown less interest in home Gloria Beissinger ownership. In addition, in the past year,we lost our go-to lender when RBC was Treasurer purchased by PNC Bank. PNC does not make loans to our buyers. Bruce Runberg As a result of all these factors,selling Home Trust homes has become much more Secretary difficult. As I write this memo,we have sixteen properties for sale, only five of Donna Bell which are under contract. The sellers of these properties, whether developers of new properties or homeowners of existing Home Trust homes,frequently become Jess Brandes impatient and unhappy with Home Trust staff. This situation places our staff under Cresha Cianciolo great pressure from unhappy sellers—which has been ongoing for many months. Jennifer Ferris Allowing us to sell homes to non-first time buyers will broaden our market of buyers Jacquelyn Gist only slightly. However, in this difficult environment, any broadening of the market of buyers is welcome. Eric Hallman Earlier this year the Town Council approved a revision to the requirement that Pam Hemminger buyers must live or work in Orange County for one year prior to purchasing a home. Lisa Inman The Council allowed us to waive that requirement for a home that had been on the market for 120 days. I would like to ask that the live/work requirement be waived Jaimie Lee after just 90 days of marketing a home. That allows consistency for our staff for Jim Merritt both the live/work requirement and the first time homebuyer requirement. Maryann Toone Lastly, I would like to ask the HOME Review committee to approve this same waiver Jonathan Weiler —that after 90 days without a contract,the live/work requirement is waived. Again, this change will not make a big difference to our sales efforts, but it will be helpful Executive Director in some instances. Robert Dowling Thank you all for your consideration of these requests. I am happy to answer questions and address your concerns P.O.Box 307,Carrbo%NC 27510 1 919.967.1645 I i