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Home My WebLink AboutAgenda - 09-20-1995 - VIII-D 1 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. V=- ACTION AGENDA ITEM ABSTRACT Meeting Date: September 20, 1995 SUBJECT: Ownership of Property by an Area Authority DEPARTMENT: OPC Mental Health PUBLIC HEARING: YES: NO: X A'1'rAZ'��'141EN'I�:----------�6I�1�TI�N-C�'�AZ"i':------------ I. Brochure MaryWinne Sherwood (919) 918-1105 II. N.C.G.S. 122C-147 III. Real Estate Specs. IV. Budget V. Resolution TELEPHONE NUMBER - Hillsborough -732-8181 Chapel Hill -968-4501 Mebane -227-2031 Durham -688-7331 P�3 0 grange-person- at ham ea Authority seeks-to puree a house in Siler City to develop a three-quarter house for substance abusers, called Oxford House, Inc. A three-quarter house is a residential recovery facility without professional staff; it is operated by the residents. (See Attachment I) According to N.C. General Statutes 122C-147, (see Attachment II), all of the respective Boards of County Commissioners must approve the purchase and ownership of property by the area authority (OPC Mental Health Center). BACKGROUND: OPC Mental Health Center has applied for a $113,000 grant from the North Carolina Housing Finance Agency to purchase and renovate the house located at 316 West Third Street, in Siler City, (see Attachment III), to use as a residential substance abuse recovery program known as Oxford House, Inc. Oxford House is a self- supporting, self-run substance recovery program. There is currently only one Oxford House in Orange County, located in Carrboro, with a capacity for 5 males. There are other similar facilities in Durham and Raleigh. The proposed house in Siler City will have a capacity for nine males. i E' 2 The grant will fund the purchase and renovation costs minus 15 percent. This is expected to result in a mortgage debt of $15,000 to $20,000. The residents of the Oxford House, who are required to be employed, will support the monthly mortgage payments, taxes, utilities, insurance and other operating costs with their rent payments. According to Oxford House, Inc. the average range for rent is 45.00 to $70.00 per week. (See Attachment IV) There will be no budgetary impact to the County. OPC Mental Health Center will hold title to the property and will use rental income from the residents to pay the mortgage debt and other associated costs. However, as a condition of the grant award, all Boards of County Commissioners must have approved the purchase of the property by the area authority. The Resolution, (Attachment V), will allow OPC Mental Health to proceed with the purchase and renovations to the property. RECOIVIMENDATION(S): The Manager recommends that the Board approve the Resolution and authorize the chair to sign. 3 ATTACHMENT II GENERAL ASSEMBLY OF NORTH CAROLINA 1993 SESSION RATIFIED BILL CHAPTER 592 MOUSE BILL 536 AN ACT TO ALLOW AREA MENTAL HEALTH, DEVELOPMENTAL DISABII.MES, AND SUBSTANCE ABUSE AUTHORITIES TO PURCHASE PROPERTY BY INSTALLMENT CONTRACTS. The General Assembly of North Carolina enacts: Section 1. G.S. 122C-147, as amended by Section 220 of Chapter 321 of the 1993 Session Laws., reads as rewritten: L22C-147. Financing and title of am audwity property. gal Repealed by Session Laws 1993, c. 321,s.220(i). Unless otherwise specified by the Secretary►, State appropriations to area authorities shall be used exclusively.for the operating costs of the area authority: mvided however. . (1) The Secretary may that designated State funds may be used by area authorities (t for the purchase, alteration, improvement, or rehabilitation of real estate to be used as a 24-hour and day facility or (ii) in contracting with a private. nonprofit corporation that operates 24-hour and day facilities for the mentally ill, developmentally disabled, or substance abusers and according to .the term of* the contract between the area authority and the private, nonprofit corporation, for , the purchase, alteration. improvement, rehabilitation of real estate or. to make a lump sum down payment or periodic payments on a real property mortgage in the name of the private, nonprofit corporation. (2) Upon cessation of the use of the 24-hour and day facility by the area authority, if operated by the area authority, or upon termination, default. or nonrenewal*of the cone act if operated by a contractual agency, the Department shall be reimbursed to accordance -with rules adopted by the Secretary for the Department's participation in-the purchase of the 24-hoar and day (c) All real property purchased for use by the area authority shall be provided by kcal or federal funds unless otherwise allowed ander subsection (b) of this section. The title to this real property and the authority to acquire it is held by the county were the property is located. The authority to hold title to real property and the authority to acquire it " " cl in thi t . an installment contract under G-S l A-2U may be held by the area- ority with 4he eon =royal of the board or boards of commissioners of all the counties whieh at .comprise the area :authority. The M3W of a of =jX commMogners shall be by resolution of-the al£eeted board or beards Men, e0in,nii—s-ionen and may have any necessary or proper conditions, including Z 4 t provisions for distribution of the proceeds in the event of disposition of the property by the area authority_ Real 2t=srty may not be acquired by means of an installment contractgnd_cr G.S. I60A-20.unless the i:oca Government �Qmmission has a2Lyed the acquisition. No deficiency iudgment-may bQ rendered gainst aM unit of local =ern ment in anv action for breach_ a contractual obligation authorized by this subsection god the taxing no=r of a unit of local government is trot and marmot bP edad directiX o r indirectly to h due ttnd a Sgntract auth9dZ24 t C—d n. ed The area authority may lease real property. e Equipment necessary for the operation of the area authority may be obtained with local,State, federal, or donated funds,or a combination of these.. (f) The area authority tray acquire or lease personal " nroRCM. Are Muiskifon amay- accomolkh {�y an installrnenr.contract under G_S- MA 20 or by a lease.purchase agreement. An area authority �aY_not aconite personal p,�rgRM-by means of*an installment corttraet under U.S. "160A-2Q without ft"pproval of the board or boards of commissioners o_f_41 the counties that comprise the area authority. The apgrovat of a board of county commissionen Ahall be v resolutiQn of the board_and may hay-e-any- ecMMM or 12LO r nditi ludin r vi i s for d' uti n in i of dis its n of the ^peter y by, JIB_ area authority, The area authority may TMt acquire RMMII roUerty hv_means of an installment contract nnd'er.G.S. 160A--2-0 31hoRLIM approval f the Local Government Commission. when r ui;gd„ by that statute. ivy_ deficiency jUdrment may be rendered agai�y chit of'loca.l gov_ernmeni in any AC69n for breach of a contractual obligation authorized by this subsection and the„taxinQ flower at a- unit of local government is not and mLv. on t be pledged Ai=ly or indirectly to secure anv mone-vs due under, a contract authorized,_bv this subsection. "l-isle to personal property may be held by the area authority. . (g) All area authority funds shall be spent in accordance with the rules of the Secretary. Failure to comply with the rules is grounds for the Secretary to stop participgaatitton in the funding of the particular program. The Secretary may withdraw funds froAt a specific p of services not being administered to accordance with an approved plan and udget after written notice and subject to an appeal as provided by G.S. 122C-145 and Cha ter iSOB of the General Statutes (h) Notwithstanding subsection F) of this section and in addition to the purposes listed in that subsection, the funds allocated by the Secretary for services for members of the class identified in Willie M., et al. vs. Hunt, et al. (C-C-79-294, Western District) may be used for the purchase. alteration, improvement. or rehabilitation of rest property owned or to be owned by a nonprofit corporation and used or to be used as a facility. (i) Notwithstanding subsection (c) of this section and in addition to the purposes Iisted in that subsection. foods allocated by the Secretary for services for members of the class identified in Willie M.,"et al. vs: Hunt, et al. (C-C-79-294, western District) may be used for the purchase, alteration, improvement, -err rehabilitation of real Property used by an area authority as long as the title to the real property is vested in the county where the property is located or is vested in another governmental entity. If the property ceases to be used in accordance with the annual plan,the unaa=ortized part of funds spent under this subsection for the purchase, alteration, nnprovement, or ret:abi3uation of real property shall be returned to the Deparammeut, in accordance :with the rules of the-Secretary. . (j3 Notwithstanding subsection (c) of rids section the area authority`, with the approval of the Secretary, may use local funds for the alteration, improvement•, and rehabilitation of real property owned by a nonprofit corporation under contract with the area authority and used or to be used as a 24-hour and day facility. Prior to the Page 2 Douse Bill 536 1 � 5 1 use of county appropriated funds for this purpose, the area authority must obtain consent of the board or boards of commissioners of all the counties which comprise the area authoritY. The consent shall be by resolution of the affected board or boards Of county COMmLwoners and may have any necessary or proper conditions, including provisions for distribution of the proceeds in the event of disposition of the property:' Sec_ 2. G.S. 160A-20(h) reads as rewritten_ "(h) As used in this section, the terra `unit of local government' Means any of the following: 11) A county. " 2 A city. 3) A water and sewer authority created under Article I of Chapter 162A of the General Statutes. (4) An airport authority whose situs is entirely within a county that has_(i) a population of over,120,M according to the most recent federal decennial census and (ii) an area of less than 200 square miles. (3) An airport authority in a county in' which there are two incorporated municipalities with a population of more than 63,000 according to the most recent federal decennial census. (6) A local school administrative unit (i) that is located in a county that has a population of over 90,000 according to the most recent federal decennial census and (ii) whose board of education is authorized to levy a school tan. JZ An_ area mental health, develoDmental disabilities. and substance_ abuse authority. actin4 in accordance with *,S 1220-147 " Sec. 3. 'nis act is effective upon ratification. July, 1994. In the General Assembly read three times and ratified this the 1st day of MINIMS A WICKER Dennis A. Wicker President of the Senate Daniel BIue,Jr. Speaker of the House of Representatives House Bill 336 Page 3 Attachment III 6 w /►, � PrvCL f ACKNEY 919-14'-3422 ERRING 144 NORTH CHATHAM Avg REALTOf� lMl P.O.BOX 746 FAX 919-142.2754 INSURANCE & REALTY CO. SILER CITY,NC 27344 ID# Address ?J `L LL) . �'N.�Q� — Price bit cot City Locale WE JW43 Zone _ �) Lot Size�$'� l�, Age ,q1 D Rooms 16 Bedrooms 4 Baths 'L• Legal Descri t' '8Ot71t' �� -- Q e9 P General Condition ROOMS 1st Floor 2nd Floor Floor Covering Style 2 f j'�Q� Exterior AA rju f a Entry Gar�CP� . f✓� b&-6N.JR.So las 1�X1�f Iq Living Room - -- CA�L/j' A/C tbinV.A.l.l)OIaN Insulation (ELI / e �DVTS�l bining Room Root Age 1 ye Fireplace 2 _ Kitchen i n� --- U�VDL- Water C1Ty Range -- Family Room _ �� - Sewage L�'C`i Refrigerator N() Bath 11�t� L(�aL - Washer/Dryer LTJN�• Trash Compactor AU Bath p Closets (0 Dishwasher Bedroom - ---- — � - -- ----_ - Driveway Disposal Bedroom I Othr , ' _ � �1f4�N7 Other t ------- G�OQ.V 410 jow --- ----- Bedroom Q� t}LM�� - e� Other buLM SAGI WA lk ----_ —_ Est.Prop.Tax po Est.Heated School Square Ft. 2�ik Mort.Assum. Yes [] No [� Owner Fin. Yes E] No EZ Residential-Information Believed To Be Accurate But Not Warranted I ISO sQ JP no CDV&U Y60,1' MA -03LO SA tV- MD A10�t� IN �IJ�l'[tt��1 i I LLr : IN . i- ._�E� Yom. •a `.- .. ':x� � . ..? �y '�►�\ r �—�. ��` _a_ �' �, ��t� ti ,. ,. t. � i,... . , I�L�.-.�. l♦ � ♦t. 1.l.._l _ s rr.t l.: ..: �'Ll_i c::�-'t •�--.-,:� 8 414 QooF ail 3� ��I PlQ1LL� Wtl1l ` M�I�c t2 1-4 �L'YC 1a u i «u lf aEa1��EUr�. bf fn(t" i3rt'1.1011 ___---- -- 2,1 T13 9 ail •� I11 i� loot G i Q DQCy. . Dix L ImOL IWO- s r �I• JA�I1.�o�160. Y IICti�(N 3 Ito V! II ?. FLJ, is acv V S 14 1a d I►u�+1 / I & -- --- ! z . UAi.I�A�i �t►�IC- t�QtclC 163 I't 4 e L Chi. SL WAtI. � � clr+rtol� i i. e I Qp 1 n ti Nat ow at Aig ' `� Q� BAS�nlEslf 11M AM It st �tQ►P O��IL ��f y �ne�t•f 3b1 FUCA �JWt11L r W bJO r�:A7a i. • --� --� , t':� t ' ,� �� -romp WAtIL ' - 9 d �rtoe�lt. l Z it I C� MA L i Noy. W�t,1oa9 • 5� AA R,► rIA NAU�M� IIN ILA 14 l2 va AaeE� Il�wmD U�"�T1A1Q5 '�,� '' It, ' ,;1 � • ;� • r ' r. I! S+►d k •; .... .— .. -..•:<�.=, - Syr: �_ . ... ... _.. -- '- -• - - --..��__ _. _. . , _._;�' a. rAMkiilA Pj Its b Rs At Off r•'r iJ r-!:!cr apt AJ lrWN4 XV1 t1fi� 1� �d t�rt,;�'y //1s►� /his �e+l�/ wed l�M�e�ed ,/rem a�+#�u�r/ ts`wrv/ • �,t',S�i ��`' Attachment IV 11 ORANGE-PERSON-CHATHAM MENTAL HEALTH, PHN# (919) 918-1111 DEVELOPMENTAL DISABILITIES, SUBSTANCE ABUSE AUTHORITY • FAX# (919) 918-1112 Thomas J. Maynard, Area Director SILER CITY OXFORD HOUSE PROPOSAL DEVELOPMENT BUDGET 9/5/95 BUILDING ACQUISITION $65,000 REHAB $21,300 CONTRACTOR OVERHEAD AND PROFIT $ 2,000 TOTAL BUILDING COST $88,300 CLOSING COSTS $ 3,000 FURNISHINGS $ 5,000 (donated) RENT RESERVES $ 1,350 OPERATING RESERVES $ 5,389 (5%) OPC OVERHEAD 5% $ 5.389 TOTAL DEVELOPMENT COSTS $108,535 The North Carolina Finance Housing Agency will fund only 85% of the total development costs, so 15% or $16,280 must be financed. This will be done with a commercial mortgage of @ 8 5/8 %. The residents of the house will pay the PITI on the mortgage each month with the rent that is collected. 101 East Weaver Street, Suite 300 Carrboro, North Carolina 27510 12 ORANGE-PERSON-CHATHAM MENTAL HEALTH, 40 PHN# (919) 918-1111 DEVELOPMENTAL DISABILITIES, SUBSTANCE ABUSE AUTHORITY I • •S FAX# (919) 918-1112 Thomas J. Maynard, Area Director SILER CITY OXFORD HOUSE PROPOSAL OPERATING BUDGET 9/5/95 INCOME BASED ON $50 PER WEEK PER RESIDENT 9 residents $1800 per month 8 residents $1600 per month 7 residents $1400 per month EXPENSES (MONTHLY) UTILITIES $300 REPAIR $ 50 MAINTENANCE $ 50 GROUNDS $ 30 TAXES $ 36 ($432/year) INSURANCE/LIABILITY $ 50 (600/year) MORTGAGE(PI 8}') $300 LOAN PAYBACKS $125 to Oxford House $200 to NCFHA RESERVE $200 DUES TO CHAPTER $ 15 TOTAL EXPENSE $1,356 WHAT WEEKLY RENT WILL COVER THIS EXPENSE? $37.67 if nine beds are full $42.38 if eight beds are full $48.43 if seven beds are full $56.50 if six beds are full Residents will pay a security deposit and one or two weeks rent in advance, possibly supported by VR. The grant requires that there be a reserve fund to support lost rent and any needed repairs. Oxford House provides a start up loan up to $4000, and the Raleigh based Oxford House Chapter will help the house with rent if there is a short month. The Chapter will also refer potential residents if there are vacancies and work to assure that every house is full and solvent. The Chapter will also provide auditing services and financial guidance. The residents buy their own food, and have their own, marked shelf in the refrig- erator. Usually, thereare two refrigerators in each house. The residents elect officers which rotate periodically, and they are each assigned chores and responsibilities. The house residents organize and manage their own internal living, including who does chores, how bills get paid, when rent is due, who does kitchen duty and what the penalties are for not following through. 101 East Weaver Street, Suite 300 Carrboro, North Carolina 27510 13 Oxford House has three rules that must be adhered to and all other rules determined by the residents themselves. The three immutable rules are: 1. No drinking or use of any illegal drugs 2. Always pay your rent on time. 3. No violent behavior. Attachment V 14 RESOLUTION FOR THE ESTABLISHMENT OF OPC MENTAL HEALTH CENTER OXFORD HOUSE LOCATED IN SILER CITY, NC WHEREAS; OPC Mental Health Center, Substance Abuse Program has developed a proposal to purchase a house located at 316 West Third Street in Siler City, North Carolina; and WHEREAS; The purpose of purchasing this house is to establish a men's three quarter house for recovering addicts, called OXFORD HOUSE; and WHEREAS; OPC has applied for grant funding from the North Carolina Housing Finance Agency to purchase and renovate this house; and WHEREAS; Oxford House, Inc. has been in existence for 20 years and has established Oxford Houses in all states throughout the nation; and WHEREAS; The Oxford House Program helps recovering individuals start self supporting, self governing recovery houses by accessing start-up funds from the state and by providing personnel to help in developing the program; and WHEREAS; All residents will pay rent which will cover the full cost of the mortgage, utilities, food, and other operating expenses; and WHEREAS; The house in Siler City has been inspected by representatives of Oxford House, Inc. and considered to be well suited for an Oxford House Program; and WHEREAS; Renovations to the house will be covered by the grant. Inspections will be conducted to consider danger or costs involved regarding asbestos siding and lead paint. (If there are costs, OPC may apply for them to be covered by the grant); and WHEREAS; Negotiations are proceeding with the owners in order to reach agreement on purchase price (requesting $68,000) and contingencies; and WHEREAS; The grant will cover the purchase price and renovation costs, up to 85% of the total cost of the project; and WHEREAS; OPC will finance the remaining 15%, which is estimated to be between $15,000 and $20,000. Any mortgage cost (PITT) will be paid by the residents from their weekly rent contributions; and WHEREAS; OPC will hold title to the property and use rental income from the residents for payment of mortgage debt and operating expenses; and 15 WHEREAS; N.C.G.S. 122C-147 requires that all County Boards of Commission in the area authority approve the purchase and ownership of property by the area authority; and WHEREAS; The property located at 316 West Third Street in Siler City, NC has been deemed appropriate for use as an Oxford House. NOW, THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners approve the purchase of said property for the establishment of an Oxford House. This the day of September 1995. Moses Carey, Jr, Chair Orange County Board of Commissioners