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HomeMy WebLinkAboutAgenda - 04-05-2016 - 6-i - Community Home Trust Request – Housing Bond Program 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 5, 2016 Action Agenda Item No. 6-i SUBJECT: Community Home Trust Request— Housing Bond Program DEPARTMENT: Housing, Human Rights & Community Development ATTACHMENT(S): INFORMATION CONTACT: Audrey Spencer-Horsley, Housing, 1. Letter from Robert Dowling, CHT Human Rights and Community Executive Director Development Director, (919)245-2492 2. June 4, 2013 Agenda Materials 3. Excerpt of BOCC June 4, 2013 Minutes 4. Community Home Trust Invoice PURPOSE: To clarify the terms of assistance provided to Community Home Trust to utilize $75,000 reallocated Housing Bond funds for repairs to heating, ventilation and air conditioning (HVAC) systems at the Greenbridge Condominiums as grant funds. BACKGROUND: On June 4, 2013, the Board of County Commissioners received a letter (Attachment 1) from Robert Dowling, Executive Director of Community Home Trust (CHT), describing the dilemma with some heating, ventilation and air conditioning (HVAC) systems at the Greenbridge Condominiums in Chapel Hill. Some of the HVAC systems have experienced problems and have needed to be repaired. CHT anticipates the replacement of existing systems when necessary in the 15 units occupied by low income homebuyers at approximately $11,000 per replacement unit. The Board of County Commissioners approved the request to use Affordable Housing Bond funds in the amount of $75,000 allocated to Community Home Trust. The agenda item abstract presented on June 4, 2013 (Attachment 2) referenced only second mortgage assistance in the item. In preparing a recent amendment by the County in response to a request from Mr. Dowling to begin using the funds to repair HVAC systems, Mr. Dowling was advised that the use of funds were to be in the form of second mortgage assistance. Mr. Dowling contacted staff and indicated the request was intended to use the funds as a grant and not second mortgage assistance. Therefore, staff is requesting clarification from the Board and recommending the $75,000 be used as grant funding. FINANCIAL IMPACT: The subject $75,000 of the Affordable Housing Bond Funds of $200,000 have already been committed to CHT, thus no additional financial impact is anticipated. 2 SOCIAL JUSTICE IMPACT: The following Social Justice Goals are applicable to this agenda item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. The creation and preservation of affordable housing options helps to meet a basic need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. Affordable housing options allow individuals to reduce risks associated with being unhoused. • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. RECOMMENDATION(S): The Manager recommends that the Board approved the request of Community Home Trust to use the approved reallocated $75,000 of Affordable Housing Bond Funds for anticipated repairs to the HVAC systems at Greenbridge Condominiums as grant funding. 3 Attachment 1 moo 4 /////////////// li December 18, 2012 / `/ Chair Barry Jacobs and the Board of County Commissioners f Orange County 1 11111)11„ 1 Hillsborough, NC 27278 H OM MI Dear Chair Jacobs and Board Members: Community Home Trust was approved for$200,000 of County bond funds way back in 2005 (I believe). We asked that those funds be available to reduce the prices of BOARD OF Home Trust homes. I have purposely not tapped into those funds because as local DIRECTORS funds, they are more flexible than federal funds. However, we expect to access $13,000 of bond funds in the next 30 days to reduce the price of an existing Home R.Alan Lee Trust property. President Gloria Beissinger I would like to ask the Commissioners to re-purpose a portion of these bond funds Treasurer to address a situation that just became known to us. As members of the Board know, the Home Trust implements the inclusionary housing programs in Chapel Hill Bruce Runberg and Carrboro. One of our inclusionary developments is Greenbridge, where we sold Secretary fifteen condominiums to low income households. Board members may also be Donna Bell aware that Greenbridge was foreclosed upon and sold to an out of state investor earlier this year. Jess Brandes Cresha Cianciolo In recent weeks, we have learned that the HVAC systems that were installed at Greenbridge have been problematic and are not under warranty. In fact, the Jennifer Ferris system is no longer supported by the manufacturer and parts are not very available. As a result, the new owners of Greenbridge are installing new systems in some of Jacquelyn Gist the yet-to-be-sold market rate condominiums. These sytems cost about $11,000 to Eric Hallman install. This is clearly unaffordable to our homeowners. Pam Hemminger The Home Trust has assisted some owners with repairs of their existing systems. Lisa Inman We are prepared to continue to assist homeowners with relatively inexpensive repairs as necessary. We are hopeful that these inexpensive repairs, which have Jaimie Lee involved replacing system sensors, will allow these systems to reach a useful life of Jim Merritt 15 to 20 years. Of course, at that time the replacement costs will be much higher than $11,000—and will still represent a prohibitive financial burden for a low- Maryann Toone income owner. Jonathan Weiler At my request, the Home Trust board approved a request to the County Executive Director Commissioners that $75,000 of bond funds already allocated to Community Home Robert Dowling Trust be re-purposed to address this financial challenge. These funds are insufficient to replace fifteen systems, but they will provide a necessary down payment, when those systems need to be replaced. P.O.Sax 307,Carrboro,NC 27510 1 919-967-1545 II1JO11111D11D11011J1!111JJJ1111JJJ 1111JU11J 1J1J 1J JJ D11DI11D111°l»�D111,»'1JJJJJJJJJJJJJIJ�Jll11l1JJJJ JJJJ�I»»J1lJJJ�IJII ��U�1i�ll��JflfJJlflliJ,Jl»1,J11J�111b11Jr1�lJfl�fl;l/i�/�Ilii/l�l��aliii�lilf������f 4 I realize that it may be problematic to allocate these funds as requested because we will not be spending the funds immediately to purchase new systems. However, I am hopeful that we can work something out to enable this re-allocation of funds. I would be happy to work with Dr. Fikes and County staff to assist in this determination. We, of course would provide an annual report to the Commissioners detailing any expenditures of these funds. As always, thank you for your support and your consideration of this request. Sincerely, Robert Dowling Executive Director Cc: Mr. Frank Clifton, Dr. Tara Fikes R?.0.Box 307,CcrrrRsoro,NC 27510 1 914-967-1545 IOJI111111D11DJJlIIVJIi!111J1J1111JJJ11111U11J 11111)JJDIIDI1 1D11 1°l»D111,»'1JJJJJJJ�JJJJJJIJ�J�M11�1JJJJJJJJJJI»»J1lJJJ�IJII ��111ill JflfJJl flliJ,J l»1,J11J111b11Jr1lJflfl; NU) Yikiiii�lilf�����f ATTACHMENT 2 5 ORANGE COUNTY CPY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: ; / , „i Action Agenda Item No. 5-e SUBJECT: Community Home Trust Request — Housing Bond Program DEPARTMENT: Housing, Human Rights & PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): Letter from Robert Dowling, Executive INFORMATION CONTACT: Director Tara L. Fikes, 245-2490 PURPOSE: To consider a request from the Community Home Trust to utilize $75,000 of bond funds allocated to the Community Home Trust for second mortgage assistance for repairs to the heating, ventilation and air conditioning (HVAC) systems at the Greenbridge Condominiums. BACKGROUND: The Board of County Commissioners received the attached letter from Robert Dowling, Executive Director of Orange Community Home Trust (CHT), describing the dilemma with some HVAC systems at the newly constructed Greenbridge Condominiums in Chapel Hill. As detailed in the letter, some of these systems have experienced problems that have needed repair and CHT anticipates that, in the future, expensive replacements (approximately $11,000) may be necessary which would be unaffordable to the low income homeowners in that development. CHT has therefore requested to use bond funding to assist with the replacement of the existing systems when necessary in the 15 units occupied by low income homebuyers. This request has been discussed by the Affordable Housing Advisory Board. During that discussion questions arose regarding the responsibilities of the Greenbridge developer and original system warranties. The attached letter from David Rooks, an attorney at Northen Blue, LLP, indicates that given the financial position of the developer, any warranty claims against it would be unsuccessful. Thus, AHAB recommends that the requested $75,000 in bond funds be reallocated for the purpose of replacing HVAC systems in Greenbridge when the need arises. FINANCIAL IMPACT: The subject Affordable Housing Bond Funds ($200,000) have already been committed to CHT, thus no additional financial impact is anticipated. RECOMMENDATION(S): The Manager recommends the Board approve the request of Community Home Trust to reallocate $75,000 of Affordable Housing Bond Funds for anticipated repairs to the HVAC systems at Greenbridge Condominiums. 6 n' DEC 18 2012 December 18, 2012 3Y _ OF 11 Chair Barry Jacobs and the Board of County Commissioners MN Orange County AI— Hillsborough, NC 27278 U0,7111114,7_, Dear Chair Jacobs and Board Members: Community Home Trust was approved for$200,000 of County bond funds way back in 2005 (I believe). We asked that those funds be available to reduce the prices of BOARD OF Home Trust homes. I have purposely not tapped into those funds because as local DIRECTORS funds,they are more flexible than federal funds. However, we expect to access $13,000 of bond funds in the next 30 days to reduce the price of an existing Home R.Alan Lee Trust property. President i Gloria Beissinger I would like to ask the Commissioners to re-purpose a portion of these bond funds Treasurer to address a situation that just became known to us. As members of the Board know, the Home Trust implements the inclusionary housing programs in Chapel Hill Bruce Runberg and Carrboro. One of our inclusionary developments is Greenbridge, where we sold Secretary fifteen condominiums to low income households. Board members may also be Donna Bell aware that Greenbridge was foreclosed upon and sold to an out of state investor earlier this year. Jess Brandes Cresha Cianciolo In recent weeks, we have learned that the HVAC systems that were installed at Greenbridge have been problematic and are not under warranty. In fact, the Jennifer Ferris system is no longer supported by the manufacturer and parts are not very available. As a result, the new owners of Greenbridge are installing new systems in some of Jacquelyn Gist I the yet-to-be-sold market rate condominiums. These sytems cost about$11,000 to Eric Hallman install. This is clearly unaffordable to our homeowners. Pam Hemminger The Home Trust has assisted some owners with repairs of their existing systems. Lisa Inman We are prepared to continue to assist homeowners with relatively inexpensive repairs as necessary. We are hopeful that these inexpensive repairs, which have Jaimie Lee involved replacing system sensors, will allow these systems to reach a useful life of Jim Merritt 15 to 20 years. Of course, at that time the replacement costs will be much higher than $11,000—and will still represent a prohibitive financial burden for a low- Maryann Toone income owner. Jonathan Weiler At my request, the Home Trust board approved a request to the County Executive Director Commissioners that$75,000 of bond funds already allocated to Community Home Robert Dowling Trust be re-purposed to address this financial challenge. These funds are insufficient to replace fifteen systems, but they will provide a necessary downpayment, when those systems need to be replaced. P.O.Box 307,Carrboro,NC 27510 1 919-967-1545 Www.torantunilybometrust.ora 7 I realize that it may be problematic to allocate these funds as requested because we will not be spending the funds immediately to purchase new systems. However, I am hopeful that we can work something out to enable this re-allocation of funds. I would be happy to work with Dr. Fikes and County staff to assist in this determination. We, of course would provide an annual report to the Commissioners detailing any expenditures of these funds. As always,thank you for your support and your consideration of this request. Sincerely, `I Grp L( �� C�'G� Robert Dowling Executive Director Cc: Mr. Frank Clifton, Dr. Tara Fikes I P.O.Box 307,Carrboro,NC 27510 1 919-967-1545 ,�z• . .co unite► tm 8 I A 1.,AUTTRts'LIARATTY PAR.TISTatStiTP ATTCOOTATS AT I.,*Aw THE EXCHANGE,AT MEADOWMONT 1414 RALEIGH AI JOHN A.NORTHE.N SUITE 435 J,WILLIAM EsLuE,JR MAILING ADDRESS: DAVID M.ROOKS CRAP.EL ItaL,NORTH CAROLTN*117517. P.G.BOX.2,208 cHARLES H,THIElAur CHAPEL HILL,NC 2751S-2205 CAROL J. HOLCOMS VICKI,L.PARROT-7 TeLEPHONE C910)05-4441 C.WEAH7M4rO/IO TEL Cp19)6,42.66o sTePHANis ( 13•001,1 -FRopP3A -rd*AluiriOnbrirt».com SAMANTHA HYATT CABE FehrParY 111013 Mr.Itobert Dowling Community Home Trust: PA Box 307 Carrhoro,,,Ne -27510 Re: areofirtilgeHVAC Claims Dear RObert:. You asked me to look iritnpotential remedies Community Home Trust("CHT") might have for the failing or potentially failing FIVAC systems,setvhig.individual CHT units in Greenbridge. The first purchaser of any new.reSiclenee may ionic to the seller on warranty claims for up to six years atter the purchase depending on whether:the warranty was express or implied and eqtess;for hew long Greettbridge-Developments;Ixc included an express warranty in its contract with CHI running for up to six years that the units had been constructed in"a good and workmanlike manner according to sound engineering and construction standards,free from detective materials,So as to meet the standard of workmanlike quality prevailing in Orange County,North Carolina" This obligation runs solely between Oreenbridge D.OVelOpmentS and.CHT. SMA,GreetibridgP Owner,LLC,the foreclosure sale purchaser of the unsold units in the development,has no obligation to honor the Oreenbridge Developments'warranty obligations to CHT or any of the other purehasers. CHT'S valid warranty Clain against Greenbridge Developments has value only to the extent Greenbridge Developments has assets left. Greenbridge Development has not filed bankruptcy in either the Middle or Eastern Districts of North Carolina but it has filed artieles.of dissolution with the Secretary of State.I do not find where.Greenbridge Development owns any real estate in Orange County after the foreclosure and I could not find any record that it owned non-real estate assets. This would he consistent with the practice in the real estate developmenttominunity of forming single purpose entities to own and develop specific projects. 9 It is theoretically possible to pursue the principals of GreeubridgeDevelopment for amounts owed by the company but this remedy is available only in rare cases where there is clear evidence that the principals.in the company disregarded the formalities of the corporate structure.I am not aware of any evidence that this was the case. In summary,I do not think CBI has a warranty claim it might assert successfully against any solvent defendant. I.wish I had better news for you Please call me if you have any quetiOns. Sincerely, North en Blue,LL P • ..Rooks DMR/ccn I I � I II APPROVED 915/2013 MINUTES Attachment 3 10 BOARD OF COMMISSIONERS EXCERPT of REGULAR MEETING Approved Minutes June 4, 2013 7:00 p.m, The Orange County Board of Commissioners met in regular session on Tuesday, June 4, 2013 at 7:00 p m at the DSS offices, in Hillsborough, N C. COUNTY COMMISSIONERS PRESENT: Chair Jacobs and Commissioners Mark Dorosin, Alice M. Gordon, Barry Jacobs, Earl McKee, Bernadette Pelissier, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers Michael Talbert, Clarence Grier and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERICS OFFICE 1, Additions or Changes to the Agenda The Chair went through the items at the County Commissioners' places: - Pink sheet — for Item 7c, additional information for Refund Requests for Inaccurate Square Footage Calculation - White sheet- PowerPoint — for Item 4-b, Potential Orange County Fair — Preliminary Background Report White sheet- for item 7b, Unified Animal Control Ordinance - White sheet-for item 6a, Executive Summary - CDBG Program— North Carolina Tomorrow Grant A motion was made by Commissioner Price, seconded by Commissioner Gordon to add a closed session to the agenda for the purpose of: "To consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee" NCGS § 143-318 11(a) (6). VOTE: Ayes, 3 (Commissioner Price, Commissioner Gordon and Chair ,Jacobs); Nays, 2 (Commissioner Pelissier and Commissioner McKee) Commissioner Rich and Commissioner Dorosin had not yet arrived PUBLIC CHARGE The Chair dispensed with the reading of the public charge Commissioner Dorosin arrived at 7:04pin 2. Public Comments a. Matters not on the Printed Agenda Bill Fiolmberg read the following prepared letter: Hello Commissioners and thank you for hearing me. In regard to the proposed site of the White Cross fire station on Neville Rd , I simply want to state ,e following 11 A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to approve a resolution recognizing Jan Sassaman for his volunteer service on the Solid Waste Advisory Board and authorize the Chair to sign. VOTE: UNANIMOUS > 5. Consent Agenda Removal of Any Items from Consent Agenda Commissioner Price asked to remove Item 4-d.. --> Approval of Remaining Consent Agenda A motion was made by Commissioner Dorosin, seconded by Commissioner Rich to approve the remaining items on the consent agenda. VOTE: UNANIMOUS Discussion and Approval of the Items Removed from the Consent Agenda Item 4-d- Revisions to Orange County Voluntary Farmland Protection Program Ordinance (Code of Ordinances Chapter 48) The Board considered approving minor changes to the wording of the Orange County Voluntary Farmland Protection Program Ordinance (Chapter 48, Orange County Code of Ordinances) to help prospective farm owners better understand the renewal process for farms enrolled in the County's Voluntary Agricultural District (VAD) Program Commissioner Price referenced page 11 of the abstract and said she was concerned with the language about contract termination Pete Sandbeck said the language was adjusted to make it consistent with the state language regarding the EVAD.. He said that the process is further clarified elsewhere in the agreement.. He said termination can be done by submitting a letter Commissioner Gordon said she feels this is a very good way to present an amendment or a change to an ordinance. She noted that there is a detailed explanation as well as a clear definition of what the change is. She wanted to acknowledge the clarity and the writing out of the department names. A motion was made by Commissioner Price, seconded by Commissioner Gordon to approve the minor changes to the wording of the Orange County Voluntary Farmland Protection Program Ordinance (Chapter 48, Orange County Code of Ordinances)to help prospective farm owners better understand the renewal process for farms enrolled in the County's Voluntary Agricultural District (VAD) Program. VOTE: UNANIMOUS a. Minutes None b.. Motor Vehicle Property Tax Releases/Refunds The Board adopted a resolution,which is incorporated by reference, to release motor vehicle property tax values for twenty-five (25)taxpayers with a total of twenty-five (25) bills that will result in a reduction of revenue. c.. Property Tax Releases/Refunds The Board adopted a resolution, which is incorporated by reference, to release property tax values for two (2) taxpayers with a total of eight (8) bills that will result in a reduction of revenue. > e. Community Home Trust Request— Housing Bond Program The Board approved a request from the Community Home Trust to utilize $75,000 of bond funds allocated to the Community Home Trust for second mortgage assistance for repairs to the heating, ventilation and air conditioning (HVAC) systems at the Greenbridge Condominiums f. Locally Coordinated Human Service Transportation Plan 1 2 Attachment 4 Invoice: Page#: 17/Xektorieed eOfteteite014, 90X 12604 Invoice Date: 07/08/15 Due Date: 08/07/15 RALEIGH SERVICE DEPARTMENT Terms: Net 30 days 5808-108 DEPARTURE DR RALEIGH, NC 27616 (919)1902990 Fax:(919)790-2991 Bill To: COMMUNITY HOME TRUST (OHT) PO BOX 307 CARBORRO,NC 27510 Work Order:4527 Service Location: Greenbridge Building 601W Rosemary St Chapel Hill NC 27516 Work Description: TA1-7-.;40443tE:04r5:-E,A4,:4 7::::2:-W510*-1470-431e TP:71; e7crwl:,*.c4043-7444, Customer PO:GRBR 208 Scope I Description: REPLACE 1 5 TON WSHP IN CONDO#208 FP Flat Price 10 500 00 10,500 00 Labor Subtotal 10 500 00 10,500 00 itY /If / ItZ 121.6 ZOO ,agrILR ) 71 c „ thla11:...mt4:d Project Reserves Remit All Payments to: InvoiceTotal: 10 500 00 Mechanical Contractors,Inc Sales Tax is included in above material pricing. P.O..Box 562357 Charlotte,NC 28256 Page 1 of 1