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HomeMy WebLinkAboutAgenda - 05-19-2015 - 6c 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:May 19, 2015 Action Agenda Item No.6-c SUBJECT: Impact Fee Reimbursement Requestfrom Habitat for Humanity DEPARTMENT:Housing, Human Rights &PUBLIC HEARING: (Y/N)No Community Development ATTACHMENT(S):INFORMATION CONTACT: Letter of Request from Habitat for Humanity Audrey Spencer-Horsley, Director, (919) 245-2490 PURPOSE: To consider the reimbursement of impact fees as requested by Habitat for Humanity in the amount of $97,007for nine (9) homes recently constructed in the Countyfor low income persons. BACKGROUND: On November 1, 1995the BOCC approved a policy for impact fee reimbursement to local non-profit organizations that met the established eligibility criteria. This policy was last revised on March 4, 1998. The policy requires the following: Housing for first-time homebuyers with incomes at or below 80% of the HUD published area median income (AMI) for the Raleigh-Durham-Chapel Hill, NC Metropolitan Statistical Area (MSA); Affordable Housing is defined as owner-occupied housing which can be purchased for no more than 2.5 times annual family income;and The organization requesting impact fee reimbursement must certify in writing that the owner-occupied housing will remain affordable to the anticipated beneficiary or beneficiaries for a period of a minimum of twenty (20) years or at least as long as required by applicable HUD policy. The County received a reimbursement request for $97,007from Habitat for Humanity for the construction of nine (9) single-family, owner-occupied homes: seven (7)in Phoenix Place,one (1) inRusch Hollow and one (1) in the Fairview community. The reimbursement request has been reviewed and is eligible for reimbursement in accordance with the above-stated criteria. Specifically, Habitathas provided evidence that the impact fees 2 for thereferenced propertieshavebeen paid and the homes were purchased and are occupied by qualifying low-income families. INCOME ELIGIBILITY Family #Annual Family Size% of AMI * Income 1$31,1704<50% 2$25,3344<50% 3$20,1513<50% 4$37,7486<50% 5$44,8794<80% 6$28,4647<50% 7$28,0803<50% 8$40,4797<50% 9$34,1112<80% *Based on the 2014 HUD Area Median Income for Orange County (Durham-Chapel Hill Metro Area) In addition to the above, there is a recorded Declaration of Restrictive Covenants stating that the homes constructed by Habitat will remain affordable for a 99-year period. FINANCIAL IMPACT: During the County’s budget formulation, local non-profit affordable housing providers have submitted estimates of the anticipated need for impact fee reimbursements. The County has budgeted money for reimbursements based on these estimates. This reimbursement process enables non-profits to pay impactfees without passing the costs on to the prospective low income renters or homebuyers.Agencies benefiting from such reimbursements include Habitat for Humanity, Community Home Trust and The Arc of Orange. The current balance in the FY2014-2015 Impact Fee Reimbursement budget is $167,284. An expenditure of $97,007would leave a balance of $70,277. RECOMMENDATION(S): The Manager recommends that the Board approve the reimbursement of impact fees for Habitat for Humanityin the amount of $97,007. 3 4 5 6 7