HomeMy WebLinkAboutAgenda - 03-12-2013 - Agenda r"
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Joint Work Session
Orange County Board of County Commissioners (BOCC)
Orange County Affordable Housing Advisory Board (AHAB)
Southern Human Services Center
2501 Homestead Rd.
Chapel Hill, NC
Tuesday, March 12, 2013
5:30 pm (Dinner)
6:00 pm (Meeting begins)
Agenda
L Introductions and Opening Comments Barry Jacobs, BOCC Chair
Patsy Barbee, AHAB Chair
Comprehensive Plan Housing Goals
Housing Overarching Goal: Opportunity for all citizens of Orange County to rent or
purchase safe, decent, accessible, and affordable housing.
Housing Goal l: A wide range of types and densities of quality housing affordable to all
in all parts of the County.
Housing Goal 2: Housing that is useable by as many people as possible regardless of
age, ability or circumstance.
Housing Goal 3: The preservation, repair, and replacement of existing housing supply.
Housing Goal 4: Development ordinances and incentives that promote inclusionary
practices and housing options for all income levels.
IL Community Home Trust Tara L. Fikes, Housing/CD Director
Housing Bond Program —Greenbridge
HOME Program —Live/Work and First-time Homebuyer Requirements
IILAffordable Housing Awareness Campaign Katherine Doom, AHAB Member
IV.Proposed Affordable Housing Clearinghouse James Stroud, AHAB Member
V. Other Discussion Items
VI.Closing Statements
VII. Adjourn
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December 18, 20121
Chair Barry Jacobs and the Board of County Commissioners
Orange County
Hillsborough, NC 27278
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Dear Chair Jacobs and Board Members:
Community Home Trust was approved for$200,000 of County bond funds way back
in 2005 (1 believe). We asked that those funds be available to reduce the prices of
BOARD OF Home Trust homes. I have purposely not tapped into those funds because as local
DIRECTORS funds, they are more flexible than federal funds. However, we expect to access
$13,000 of bond funds in the next 30 days to reduce the price of an existing Home
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R.Alan Lee Trust property.
President
Gloria Beissinger
I would like to ask the Commissioners to re-purpose a portion of these bond funds
Treasurer to address a situation that just became known to us. As members of the Board
know, the Home Trust implements the inclusionary housing programs in Chapel Hill
Bruce Runberg and Carrboro. One of our inclusionary developments is Greenbridge, where we sold
Secretary fifteen condominiums to low income households. Board members may also be
Donna Bell aware that Greenbridge was foreclosed upon and sold to an out of state investor
earlier this year.
Jess Brandes
Cresha Cianciolo In recent weeks, we have learned that the HVAC systems that were installed at
Greenbridge have been problematic and are not under warranty. In fact,the
Jennifer Ferris system is no longer supported by the manufacturer and parts are not very available.
As a result, the new owners of Greenbridge are installing new systems in some of
Jacquelyn Gist
the yet-to-be-sold market rate condominiums. These sytems cost about$11,000 to
Eric Hallman install. This is clearly unaffordable to our homeowners.
Pam Hemminger The Home Trust has assisted some owners with repairs of their existing systems.
Lisa Inman We are prepared to continue to assist homeowners with relatively inexpensive
repairs as necessary. We are hopeful that these inexpensive repairs, which have
Jaimie Lee involved replacing system sensors, will allow these systems to reach a useful life of
Jim Merritt 15 to 20 years. Of course, at that time the replacement costs will be much higher
than $11,000—and will still represent a prohibitive financial burden for a low-
Maryann Toone income owner.
Jonathan Weiler j
At my request,the Home Trust board approved a request to the County
Executive Director Commissioners that$75,000 of bond funds already allocated to Community Home
Robert Dowling Trust be re-purposed to address this financial challenge. These funds are
insufficient to replace fifteen systems, but they will provide a necessary
downpayment, when those systems need to be replaced.
P.O.Box 307,Carrbo%NC 27510 1 919-967-1545
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NoRTHEx BLuE, L.L.P
A LIMITED'LIABILITY PAIRTN'.F.RSHIP
ATT0RXFYS AT LAw
THE EXCHANGE AT MEAOOWMONT
1-414 RALEIGH ROAD
JOHN A, NQRTHEN SUITE 435 MAILING ADDRESS:
J,WILLIAM BLUE,JR. CRAI-11.1, HILL,NORTH C AROLINA 27517 P.0. BOX 2208
DAVID M.ROOKS CHAPEL HILL,NC P7515-2208
CHARLES H.THIBAUT
CAROL J. HOLCOMB TELEPHONE:(910)968-4441 j
VICKI L.PARROTT TELEFAX(919) 942-6603
EMILY C.WEATHERFORD
STEPHANIE OSBORNE-RODGERS
SAMANTHA HYATT CABE February 1,2013
Mr.Robert Dowling
Community Home Trust
P.O.Box 307
Carrboro,NC 27510
Re.- Greenbridge HVA C Claims
Dear-Robert'.
You asked me to look into potential remedies Community Home'.Frust("CHT")
, .
might have for the failing or potentially failing FIVAC systems serving in dividual CHT
units in Greenbridge.
The first purchaser of any new residence may look to the seller on warranty I
claims for up to six years after the purchase depending on whether the warranty was
express or implied and if express,for how long. Greenbridge Developments,LLC
with years the
included an express warranty in its contract CHT rum ng for up to six ye s that
units had been constructed in"a good and workmanlike manner according to sound
engineering;and construction standards,free from defective materials,so as to meet the
standard of workmanlike quality prevailing.in Orange County,North Carolina." This
obligation runs solely between.Greenbridge Developments and CHT, SMA Greenbridge
Owner,LLC,the foreclosure salepurchaser of the unsold units in the development,has
no obligation to honor the Greenbridge Developments' warranty obligations to CHT or
any of the other purchasers.
CHT's valid warranty claim against Greenbridge Developments has value,only to
the extent Greenbridge Developments has assets left. Greenbridge Development has not
Bled bankruptcy in either the Middle or Eastern Districts.of North Carolina but it has
filed articles of dissolution with the Secretary of State.I do not find where Greenbridge
Development owns any real estate in Orange County after the foreclosure and I could not
find any record that it owned non-real estate assets. This would be consistent with the
practice in the real estate development community of forming single purpose entities to
own and develop specific projects.
........... .............
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It is theoretically possible to pursue the principals of Greenbridge Development
for amounts owed by the company but this remedy is available only in rare cases where
there is clear evidence that the principals in the company disregarded the formalities of
the corporate structure. I am not aware of any evidence that this was the case.
In summary,I do not think CfIT has a warranty claim it might assert successfully
against any solvent defendant. I wish I had'better news for you. Please call me if you
have any questions.
Sincerely,
Northen Blue, LLP
Rooks
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USA- Date: December 18, 2012
By _
To: HOME Review Committee and Chapel Hill Town Council
From: Robert Dowling, 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, j
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,Carrboro,NC 27510 1 919-967-1545 "��
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Orange County Affordable Housing Clearinghouse
Vision:
To be a network of community groups and public agencies that connects Orange County citizens to all
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available affordable housing services.
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Implementation:
The project will not initially have the funding to begin offering all the functions listed below, or the
staffing and information to immediately begin receiving all individuals seeking services related to
affordable housing in our county. We hope to slowly gain that capacity but begin as a referral service
for all local housing groups,to begin collecting data, and to be a central location offering pre-and post-
purchase counseling and classes, and rental listings.
Goals and Functions:
1. To be a one stop information and referral center for citizens of Orange County for all affordable
housing needs. Will offer few actual services itself but have counselors who know all County
housing organizations and their available services.
2. To be a central repository for statistics and data pertinent to Orange County housing that can be
accessed by nonprofits working in afford able housing, housing counseling agencies and
developers interested in creating housing and affordable housing in Orange County.
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3. A central location offering pre-purchase and post-purchase housing counseling available to
clients of all Orange County housing servicers,and nonprofits.
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4. A central place for individuals or organizations to list affordable housing rental, leasing, buying
and selling opportunities and property, including an up to date list of all available affordable
and subsidized rental properties.
5. To create a ready-made space for discussion between all organizations involved in providing or
facilitating affordable housing in Orange County, and to foster greater communication and
cooperation between those organizations, advertizing programs and events related to
affordable housing j
We are hoping to create a planning committee with representatives of local housing groups interested
in a clearinghouse. If you are interested please leave us your contact information and thoughts and
comments about what you would like to see in an Orange County Housing Clearinghouse:
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