HomeMy WebLinkAboutAgenda - 06-03-2008-6bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 3, 2008
Action Age~a
Item No.
SUBJECT: Housing Bond Program
DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Location Map Tara L. Fikes, 245-2490
PURPOSE: To consider awarding housing bond funds in the amount of $1,000,000 to the TBLF
Eno Haven LLC to assist in the construction of Eno Haven, a 76-unit multi-family rental complex
in Hillsborough and authorize the Manager in consultation with the County Attorney to enter into
a Development Agreement detailing the conditions of award.
BACKGROUND: An application for Housing Bond funds was received from The Banks Law
Firm (the Firm) requesting $1,000,000 in housing bond funds to facilitate the construction of a
90 unit multi-family rental complex in Hillsborough to be known as Eno Haven. The site for this
project is an 11 acre tract on U.S. Hwy 70A near the site for the Central Orange Senior Center
as denoted on the attached Location Map. The developer, herein after referred to as The Firm,
is also applying to the N.C. Housing Finance Agency for Low Income Housing Tax Credits to
assist with funding this project with estimated costs of $8.9 million dollars. Once built, .the
apartments will be available for lease to low-income elderly and/or disabled individuals only
After application submission, the Firm received the results of a marketing study indicating that
the local market could not absorb 90 rental units for elderly/disabled persons. Thus, after further
analysis, the Firm revised the project to reduce the total number of units to 76. (This did not
result in a decrease. in the original funding request because many costs including acquisition
costs remain the same.) There will be 44 one bedroom units and 32 two bedroom units. All
units will be available for persons earning no more than 60% or the area median income.
It is important to note that this housing bond application is the County's first application from a
for-profit entity since amending the Affordable Housing Bond Policy to allow applications from
private, for-profit companies. The Banks Law Firm is a minority-owned business located in
Research Triangle Park that has completed seven (7) projects of comparable scope in North
Carolina with the eighth one now underway.. Eno Haven will. be their first project in Orange
County. For accounting purposes, the Firm has created a Limited Liability Corporation (LLC) as
the sponsor/owner for each apartment complex. For this project, the corporation is named
TBLF Eno Haven LLC.
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As required by the Orange County Housing Bond Policy, the Project Review and Selection
(PRS) Committee held apre-application conference with staff from The Banks Law Firm to
discuss the proposed application, reviewed the submitted application, and then met. with the
organization to discuss the committee's funding recommendation. Members of the Project
Review and Selection Committee include: County Staff Members: Willie Best, Paul Thames,
Craig Benedict, Perdita Holtz, and Tara Fikes; Commissioner Valerie Foushee; and Affordable
Housing Advisory Board Members Barbara Mull and Gary Gaddy. The Committee also includes
representatives from, the Towns of Carrboro, Chapel Hill, and Hillsborough in the person of
James Harris, Loryn Barnes, and Margaret Hauth respectively. The Committee notes that
Affordable Housing Advisory Board member Jabrina Robinson is also a member of the Review
Committee; however, she did not participate in the review of this application because she is an
employee of The Banks Law Firm.
Thus, after review of the application as well as supplemental material submitted by The Banks
Law Firm, the Committee recommends the allocation of up to $1,000,000 in housing bond funds
to facilitate the construction of the Eno Haven Apartments in Hillsborough in the form of a
deferred, forgivable loan contingent upon the award of Low Income Housing Tax Credits by the
N.C. Housing Finance Agency. Additionally, TBLF Eno Haven LLC will be required to provide
the County with an annual accounting of project income and expenses and may be required to
repay to the County a portion of any excess program income beyond normal maintenance
reserves.
FINANCIAL IMPACT: There is currently approximately $1.3 million available from the FY 2001
Affordable Housing Bond Program. This expenditure will leave a balance of approximately
$314,720.
RECOMMENDATION (S): The Manager recommends that the Board award housing bond funds
in the amount of $1,000,000 to TBLF Eno Haven LLC to assist in the construction of Eno Haven
a 76-unit multi-family rental complex in Hillsborough and authorize the Manager in consultation
with the County Attorney to enter into a Development Agreement detailing the conditions of
award.
Eillsborough, NC, United States of America -Google Maps
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Hillsborough, NG
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