HomeMy WebLinkAboutAgenda - 05-01-2008-4dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 1, 2008
Action Agenda
Item No. _~~
SUBJECT: Housing Bond Program -Habitat for Humanity
DEPARTMENT: Housing/Community Dev.. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Location Map
INFORMATION CONTACT:
Tara L. Fikes, 919-245-2490
PURPOSE: To consider awarding housing bond funds in the amount of $362,000 to Habitat for
Humanity to purchase land in the Northern Fairview community in Hillsborough and to provide
nine deferred second mortgages to first-time homebuyers in this community.
BACKGROUND: An application for Land Banking funds was received on March 13, 2008 from
Habitat for Humanity requesting $182,000 to purchase fifteen (15) parcels of land in the
Northern Fairview community of Hillsborough. The total acquisition cost is $223,600. Attached
to this abstract is a map highlighting the location, of the property. Habitat has plans to construct
a total of 15 single-family dwellings on this property for families earning up to 60% of area
median income by December 31, 2008.
Ten (10) of these parcels are in the Town of Hillsborough and have access to the Town's water
and sewer system.. The remaining five (5) parcels are currently outside of the Hillsborough
Town limits, but Habitat plans to request voluntary annexation by the Town of Hillsborough. The
Town of Hillsborough, after annexation; has committed to extending the sanitary water and
sewer to these lots using a combination of HOME Program funds and its own funds. In recent
years, Habitat has been very active in this community with the development of the Highland
Woods subdivision and this application to purchase additional lots in that community is an
extension of its current development activities.
On April 9, 2008, the County received a second application from Habitat for Humanity for
$180,000 in deferred second mortgage funding for nine (9) single family homes that will be built
on nine (9) of these parcels to' be purchased in the Northern Fairview community. These homes
will be sold to families earning less than 60% of the area median income. It should be noted
that Habitat for Humanity originally applied for HOME funds to provide these second mortgages.
However, due to the volume of applications, the HOME Program was not able to provide funding
for second mortgages for all of these properties, but did provide $120,000 for six dwellings.
Thus, the addition of this bond funding will provide all funding necessary ($300,000) to provide
second mortgage assistance for the fifteen (15) homes built on lots in the Fairview Community.
As required by the Orange County Housing Bond Policy, the Project Review and Selection
(PRS) Committee held apre-application conference with staff from Habitat to discuss the
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proposed application and reviewed the submitted applications. The Executive Director was then
notified of the committee's recommendation and offered the opportunity to discuss the
committee's funding recommendation. That offer was declined since there were no outstanding
questions from the committee or Habitat officials. 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, Jabrina Robinson, and Gary Gaddy. The Committee also includes
representatives from the .Towns of Carrboro, Chapel Hill, and Hillsborough in the persons of
James Harris, Loryn Barnes, and Margaret Hauth respectively.
After review of the application, the Committee recommends the allocation of $362,000 in
housing bond funds to assist in the purchase of land in the Northern Fairview community in
Hillsborough and to provide nine deferred second mortgages to first-time homebuyers in this
community.
FINANCIAL IMPACT: There is currently approximately $1.59 million available from the FY
2001 Affordable Housing Bond Program. This expenditure will leave a balance of
approximately $1.2 million dollars.
RECOMMENDATION (S): The Manager recommends that the Board:
1. Award housing bond funds in the amount of $362,000 to Habitat for Humanity to
purchase land in the Northern Fairview community in Hillsborough and to provide nine
deferred second mortgages to first-time homebuyers in this community; and
2. Authorize the Manager in consultation with the County Attorney to enter into a
Development Agreement detailing the provisions of the award.
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