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Home My WebLink AboutAgenda - 02-21-1995 - VIII-B 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda �B ACTION AGENDA ITEM ABSTRACT Item No Meeting Date: February 21, 1995 SUBJECT: Habitat for Humanity Funding Requests ----------------------------------------------------------------------- DEPARTMENT County Manager PUBLIC HEARING YES NO X -------------------------------- ------------------------------- ATTACHMENT(S) INFORMATION CONTACT Habitat Letters County Manager, ext 2300 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 ----------------------------------------------------------------------- PURPOSE: To consider two requests for funding from Orange County Habitat for Humanity. BACKGROUND: Habitat for Humanity has requested that the County provide $13,000 to assist with the construction of a gravel road that will serve a five house Habitat development in the Perry Hills subdivision in Cheeks Township. Habitat has also requested that the County provide $3,000 in funding to match the amounts paid for school impact fees on four new houses in 1994. The County has approximately $28,000 set aside that could be used for affordable housing purposes such as the ones cited in the Habitat requests. These funds come from the sale of a County owned piece of property in Mebane last year, and from funds remaining from the Chestnut Oaks subdivision paving project. These funds could be included in an Affordable Housing Project Ordinance in the Housing and Community Development Fund. RECOMMENDATION: The Manager recommends that the Board approve $16,000 in funding for Habitat to be included in an Affordable Housing Project Ordinance. 2 ` Habitat for Humanity •n• Orange County,North Carolina,Inc. January 24, 1995 Managers Office Mr. John Link County Manager P.O. Box 8181 Hillsborough, NC 27278 Dear Mr. Link: At their December 20, 1994 meeting, the County Commissioners directed Habitat for Humanity, Orange County, NC, Inc. to send you a request for reimbursement for impact fees paid to date on homes constructed by Habitat for low income homebuyers. Enclosed are receipts for two homes completed in the 1994-95 fiscal year, one at 2526 Gemena Road in the Chestnut Oaks Subdivision, and one located on Sanders Road in Efland. In addition, I am enclosing a copy of a cancelled check written to the Town of Chapel Hill for two Impact fees on homes which we will complete next month in Culbreth Park in Chapel Hill. The Town of Chapel Hill requires that the impact fee be paid upfront, when the building permit is applied for. We did not receive a receipt from the Town, and I hope that the cancelled check will suffice as evidence that the impact fees were paid on these two homes. It is my understanding that the Commissioners wish us to include in our request for non-departmental funds the cost of impact fees to Habitat for homes to be built in the 1995- 96 fiscal year. We will therefore increase our request for funds this year by the appropriate amount, based on the number of homes we plan to build. Thank you for your attention to this matter. Please let me know if you require any further information or verification. Sincerely, AusLevy Executive Director cc: Mr. Moses Carey, Chairman, Orange County Commissioners Mr. John Hartwell, Board of Directors, Habitat for Humanity, Orange County, NC,Inc. 200 Davis Road ♦ Hillsborough, North Carolina 27278 ♦ 919-732-6767 3 Habitat for Humanity 111irrOrange County,North Carolina,Inc. January 30, 1995 Received Mr. John Link County Manager Mar►agrs �t�'` Orange County P.O. Box 8181 Hillsborough, NC 27278 Dear Mr. Link: In a letter to you dated June 13, 1994, I outlined a request from Habitat for Humanity of Orange County for $13,000.00, the remaining balance of the funds which Habitat used to fund the road construction in the Chestnut Oaks Subdivision. Habitat would use these funds to construct a gravel road in the minor subdivision which we are now developing in Cheeks Township in the Perry Hills community. Habitat will build five new single family homes for low income families over the next two years on this eleven acre tract. Subsequent to my sending you the June 13, 1994 letter, I have had several conversations with Tara Fikes in which we explored the possibility of applying for new Community Development Block Grant funds to cover the cost of developing the road. We met on January 19, 1995 with Pam Wilson in the Division of Community Assistance to discuss applying for funds through their Housing Development program. Following this meeting, it became clear to me that because of the timing of the availability of those funds and because of some of the other requirements that the program would impose upon Habitat, Habitat would not be able to pursue new CDBG funds for this project. After discussing this conclusion with Ms. Fikes, we both agreed that Habitat should reinstate our request to use for this project the $13,000 set aside by the County to help develop affordable housing. I have enclosed a detailed Sources and Uses of Funds Statement for the entire project, including the construction of five homes. In addition to the proposed $13,000 from the County to help pay the cost of paving the road, $37,500 will come from the Federal Home Loan Bank's Affordable Housing Program, through Hillsborough Savings Bank. The remainder has already come or will come from Habitat for Humanity ( from our Land Fund; from our Partnership program in which churches, businesses, etc. sponsor a Habitat house by providing the funds and the labor to build it; and from our general operating budget.) The total estimated cost for building the road is $16,450. With the County providing $13,000 of that cost, Habitat will be able to cover the difference of $3,450 from its 1994-95 general operating funds. 200 Davis Road ♦ Hillsborough, North Carolina 27278 ♦ 919-732-6767 9 4 John Link January 30, 1995 The first home, which is being funded by an anonmymous individual, will begin construction in February or March 1995. We hope to begin construction on the second home in late spring, but we cannot begin construction on it until the road has been put in. Therefore, we are asking that you speed along this request as much as possible. If approved, we would hope to have the funds available in time to begin construction on the road some time in March of this year. The development of this subdivision, which will provide five low income families (those earning less than fifty percent of the area median income) with decent, affordable, stable housing and will add five new homeowners to the tax base, represents a tangible effort to fulfill the County's affordable housing goals. Therefore, we hope that the County will act favorably and promptly upon our request for the aforementioned funds. I will call you next week to discuss this request and answer any questions you might have. Thank you for your consideration of this request. Sincerely, A '�. usan Levy Executive Director Enclosure cc: Tara Fikes 5 Habitat for Humanity, Orange County, NC, Inc. Sources and Uses of Funds for Cheeks TownshipDevelopment Five Units of Single Family, Owner Occupied Housing Uses of Funds Site Acquisition Land Acquisition 21,500 Survey 1,500 Legal 500 Subtotal, acquistion costs 23,500 (already paid, Habitat Land Fund) Subdivision Development Surveying, Engineering Donated Septic Site Approvals 600 Orange County Fees 450 Subtotal, Subdivision Dev. Costs 1050 (already paid, Habitat general operating funds) Road Improvements Clearing, Grading, Storm Drain. 14,000 (contract price from grading contractor) Erosion Control 300 Seeding 650 10% Contingency 1,500 Subtotal, Road Improvements 16,450 House Construction 4 homes, 3 BR 188,000 1 home, 4 BR 52,000 Subtotal House Construction 240,000 Total Uses of Funds 281,000 Sources of Funds Habitat for Humanity Land Fund 23,500 Habitat for Humanity First Mortg. 202,500 FHLB AHP Second Mortgage 37,500 Orange County Funds 13,000 Habitat for Humanity General Operating Funds 4,500 Total Sources of Funds 281,000