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HomeMy WebLinkAboutAgenda - 06-26-1996 - VIII-Q 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No ACTION AGENDA ITEM ABSTRACT Meeting Date: June 26, 1996 SUBJECT: HOME Program - Abbotts Colony/Creel Street_ ------------------------------------------------------------------------------------- DEPARTMENT: Housing/Comm. Dev. PUBLIC HEARING YES NO x ------------------------------------------------------------------------------------- ATTACHMENT(S) : INFORMATION CONTACT Letter from JOCCA Tara L. Fikes, x 2490 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 -------------------------------------------------------------------------------------- PURPOSE: To authorize County staff and the County Attorney to explore possible options with the Orange Community Housing Corporation regarding the disposition of the Abbotts Colony and Creel Street properties. BACKGROUND: On July 27, 1993, the County entered into a Development Agreement with the Orange Community Housing Corporation (OCHC) . This agreement provided $50,000 in County HOME funds to acquire three lots in the Abbotts Colony subdivision in Chapel Hill and obligated OCHC to build three houses on these lots for sale to first-time homebuyers. OCHC, in turn, should have constructed three homes for selected buyers and completed the sale of the homes by December 31, 1994. Due to nonperformance, the agreement was amended to change the completion date to September 30, 1995. One house was constructed and sold to a qualifying family, however, the remaining two lots have not been developed. Further, on February 15, 1994, the County entered into a Development Agreement with the Orange Community Housing Corporation. This agreement provided $32,000 in County HOME funds to acquire two lots on Creel Street in Chapel Hill and obligated OCHC to build two houses on these lots for sale to first-time homebuyers. OCHC, in turn, should have constructed two homes for selected buyers and completed the sale of the homes by June 30, 1995. OCHC did not fulfill this obligation. On January 16, 1996, the BOCC approved the transfer of two lots in Abbotts Colony and one lot on Creel Street, from the Orange Community Housing Corporation to the Joint Orange Chatham Comprehensive Community Action Agency, Inc. (JOCCA) and the transfer of one lot on Creel Street to Habitat for Humanity. Both organizations had expressed interest and willingness to develop this property. Since that time, JOCCA has declined to accept and develop the two remaining lots in Abbotts Colony and one lot on Creel Street. (See attached letter.) The Orange County HOME Council has discussed this matter and in consideration of a June 1997 compliance deadline, it is imperative that the County explore all available options for development of this property. REC ATION: The Manager recommends authorizing County staff and the County Attorney to explore possible options with the Orange Community Housing Corporation regarding the disposition of the Abbotts Colony and Creel Street properties. 2 ti OINT ORANGE-CHATHAM COMMUNITY ACTION, INC. P.O.BOX 27 • PrMBORO,NORTH CAROLINA 27312 •(919)542.4781 • FAX(919)542-0563 •(ORANGE COUNTY(919)9294)494) C. GLORIA M.WII.IUMS Executive Director May 16, 1996 Ms.Tara Fikes,Director Orange Co.Housing/CD Dept. Post Office Box 8181 Hillsborough,North Carolina Dear Ms.Fikes: This letter saves as our final disposition on the proposed donation Of three[3) lots to our agency. V,(hile JOCCA's Board of Directors and staff are appreciative of the collaborative actions and efforts made by the Orange County Board of Commissioners, Mr. James Harris, and you to support our housing efforts, we must respectfully decline your offer. As you are aware,field visits were made to each of the three property sites on May 1, 1996 by me and my administrative housing staff. During these visits, assessments and evaluations were made to discern the suitability of these lots for development. Our observations were correlated with the environmental requirements, regulations and rules prepared by the Town of Chapel Hill for Conservation Districts. Regrettably, our findings indicate that the two [2] lots located in Abbott's Colony are located within a Conservation District; the lots do not meet the minimum acreage requirement for development. In addition, neither of the lots comply with the environmental standards and/or requirements. As to the lot on Creel Street,it is our opinion that it is not feasible to construct an affordable house on this site. The topographical features, e.g. steep slope, huge trees, etc. necessitate extensive predevelopment work and additional costs. The additional predevelopment cost would significantly increase the construction cost, and subsequently the purchase price of the house. Thus,it would not be affordable to a moderate income family. Again, we appreciate your continued support and efforts to coordinate with our agency in addressing the housing needs of low-moderate income families and individuals. Please contact me or John Holmes if you Have questions. Sincerely, ria M. Willi Executive Director GMW:jh xc: John Holmes,III,PhD James R Edwards James Harris n I u,we.ewar A UNITED WAY AGENCY RECYCLED PAPER