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HomeMy WebLinkAboutAgenda - 08-05-1996 - VIII-S 1 Orange County Board of County Commissioners Action Agenda Item No. Action Agenda Item Abstract Meeting Date: August 5, 1996 Subject: CDBG Program/Development Agreement Amendment Department: Housing/Community Development Public Hearing Yes No % Budget Amendment Needed Yes No Aftachment(s) Information Contact: Tara L. Fikes, ext. 2490 Amendment Telephone and Extension Number Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 Purpose: To approve an Amendment to the Development Agreement under the CDBG Program with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision. Background: The Board of County Commissioners approved a Development Agreement with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision. Magnolia Place, located in Hillsborough, is a planned 42 unit subdivision for first time homebuyers. CDBG funds are being utilized for the construction of public improvements and will remain in the project as a second mortgage for prospective homebuyers, thereby, reducing the amount of the buyer's first mortgage. Eleven homes have been completed and sold with approximately 14 lots presold, under construction, and/or under contract to qualified buyers. In addition, the Rural Housing and Community Development Service (formerly known as Farmers Home Administration) is providing mortgages to some buyers. The original agreement provided second mortgages in the amount of $12,352.50 to twenty perspective homebuyers for a total of $247,050.00. However, OCHC has provided second mortgages in the $12,500 to ten first-time homebuyers. In order to reconcile the difference, the remaining 10 second mortgages will have to be in the amount of$12,205.00. Further, the original completion date for Magnolia Place was specified as December 31, 1995. The project has not been completed, however, development seems to be progressing well and OCHC projects a June 30, 1997 completion date. In order to incorporate the above changes, the original Agreement must be amended. An amendment has been prepared for the Board's approval. Recommendation: The Manager recommends approval of an Amendment to the Development Agreement under the CDBG Program with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision and authorizes the Chair to sign the amendment on behalf of the Board after the review and approval of the County Attorney. 2 NORTH CAROLINA AMENDMENT#1 ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT AMENDMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and ORANGE COMMUNITY HOUSING CORPORATION, a North Carolina nonprofit corporation (hereinafter referred to as "OCHC"). The date of this Agreement Amendment is August 5, 1996. WITNESSETH WHEREAS, Orange County was awarded $250,000 in Community Development Block Grant (CDBG) funds in February 1994, for the purpose of providing public improvements for the Magnolia Place subdivision, and WHEREAS, the County, entered into a Developrent Agreement with the Orange Community Housing Corporation for Magnolia Place on or about March 15, 1994; NOW, THEREFORE, the County and Orange Community Housing Corporation agree that Paragraph 7 and 9 of the Agreement is amended to read as follows: 7. OCHC shall then market and sell the lots, construct homes for the selected buyers, and complete the sale of the homes on the targeted twenty lots by June 30, 1997. 9. At the closing of the sale to a homebuyer, OCHC shall repay the County with a credit to the homebuyer. There shall be credits in the amount of eighteen (18) credits for $12,500.00 and two (2) credits of $11,025.00. The credits to the homebuyer shall be documented by a promissory note from the homebuyer to the County which note shall be secured by a Deed of Trust on the property naming the County as beneficiary. The County shall provide a release deed to OCHC at the closing of each sale to a homebuyer, releasing the parcel to be sold from further obligation under the master note and deed of trust between OCHC and the County. The County agrees to subordinate its mortgage on each home to a first lien private mortgage acquired by the buyer. The promissory notes and deed of trust shall be substantially in the form of Exhibit B to this Agreement. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written. 3 COUNTY OF ORANGE, NORTH CAROLINA (SEAL) Moses Carey, Jr., Chairman Orange County Board of Commissioners ATTEST: Beverly A. Blythe Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY This is to certify that on this day personally came before me Beverly A. Blythe, with whom I am personally acquainted, and being by me duly sworn, says that Moses Carey, Jr., is the Chairman of the Orange County Board of Commissioners, and that she the said Beverly A. Blythe, is the Clerk to the Board of Commissioners of the County of Orange, the body politic and corporate named within and which executed the foregoing instrument; that she knows the common seal of said County; that the seal affixed to said instrument is said common seal; that the name of Orange County was subscribed thereto by the said Chairman of the Orange County Board of Commissioners and that the said Chairman of the Orange County Board of Commissioners and said Beverly A. Blythe subscribed their names hereto and said common seal was affixed, all by order of the Board of County Commissioners of Orange County and that said instrument is the act and deed of Orange County. Witness my hand and notarial seal, this the day of 11996. Notary Public My commission expires: ORANGE COMMUNITY HOUSING CORPORATION (SEAL) Keith D. Cook, Chair Board of Directors 4 ATTEST: Secretary, Board of Directors NORTH CAROLINA ORANGE COUNTY I, Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me ' with whom I am personally acquainted, who, being by me duly sworn, says at he/she is Secretary and that Keith D. Cook is Chair of the Board of Directors of Orange Community Housing Corporation, a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 11996. Notary Public My commission expires: