HomeMy WebLinkAboutLetter to Chair dated 3/8/1995 from OCHC re Manager's recommended Capital Improvements Program for FY 1995-96 Orange Community Housing Corporation
Post Office Box 307 • 116B West Main Street • Carrboro, NC 27510-0307
Donna L. Dyer Telephone: 919/947-1545
Executive Director FAX: 919/968.4030
March 8, 1995
Mr. Moses Carey, Jr., Chairman
Orange County Board of Commissioners
Post Office Box 8181
Hillsborough, NC 27278
Dear Chairman Carey:
Tonight the Commissioners will receive the Manager's recommended Capital
Improvements Program for FY 1995-96. Orange Community Housing Corporation
requests that the CIP be amended to include funds up to $50,000 to be set aside to
purchase property for affordable housing.
Last fall, OCHC was offered the opportunity to purchase 10 lots in rural Orange
County for a reasonable price. While County staff was supportive of this project, no
local funds were available to be used to purchase these lots from the current year's
budget. Staff agreed to pursue a Community Development Block Grant for purchase
of the property and installation of public improvements; however, the seller was not
willing to wait until July to close the sale, and we were unable to purchase the lots.
These lots may still be available after July 1 and we will still pursue them, but if not,
others can be found.
Providing affordable homeownership opportunities in this high cost area is difficult
even in the rural parts of the county. If we have funds that can be readily accessible
for purchase of land for affordable housing, we can take advantage of opportunities
when they are presented to us. This funding can be structured as a short-term
revolving fund or as a long-term second mortgage financing program. Either way, we
would have more flexibility to respond to a seller within the usual 3 or 4-month period
needed to find financing for individual lots.
While the full $50,000 would allow us the opportunity to purchase 6 to 10 lots, even a
lesser amount would help in our efforts to provide affordable homeownership
opportunities. We hope the Commissioners would make this affordable housing fund
an ongoing part of the Capital Improvements Program. Habitat for Humanity is
another organization that is always looking for low-cost building lots, and other groups
also have need for a land purchase fund.
March 8, 1995
Page 2
We apologize for entering this process after the Manager's recommendation was
prepared; we were unaware of the CIP as a general source of capital for housing until
recently. If we can provide further information, please let us know. We appreciate
your consideration of our request.
Sincerely,
'"f,
Keith E. Aldridge, Chair
OCHC Board of Directors