HomeMy WebLinkAboutAgenda - 02-04-2014 - 6j 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 4, 2014
Action Agenda
Item No. 6-j
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 $114,053 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 $114,053 from Habitat for
Humanity of Orange County, Inc. for nine (9) homes built in the Phoenix Place subdivision in
Chapel Hill and two (2) homes built in the Fairview Community. 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 Eligibility Review
1. Income Eligibility
Family# Annual Income Family Size Percentage of
Median Income
1 $26,570 2 < 60%
2 $26,029 3 < 50%
3 $32,510 3 < 60%
4 $24,232 6 < 50%
5 $25,300 4 < 50%
6 $25,043 2 < 50%
7 $33,421 5 < 50%
8 $29,120 2 < 60%
9 $25,300 5 < 50%
10 $35,933 3 < 60%
11 $51,418 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 2013 — 2014 budget is $298,656, and an expenditure of
$114,053 leaves a balance of$184,603.
RECOMMENDATION(S): The Manager recommends that the Board approve $114,053 for
impact fee reimbursement to Habitat for Humanity of Orange County, NC, Inc.
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pig�� 88 V i I com Center Drive, &A i to L 110
Chapel Hi11, NC 27514
Habitat P(9 19)932-7077, F(919)932-7079
for' ' i gehabitat.or g
www.oran
County, NC info®rangehabitat.org
January 7, 2014
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
and in the Fairview community in Hillsborough in 2013. The total amount requested is $114,053.
All of the homes have closed and recorded Agreements and Deeds of Trust should have been
sent to you.
The impact fees of$11,423 per home for nine homes were paid to the Town of Chapel Hill The
receipts for payment are attached. Impact fees of$5,623 per home for two homes in
Hillsborough were paid to Orange County, and the receipts are also 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