HomeMy WebLinkAboutAgenda - 05-18-1993 - VIII-B 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. Vim-S
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 18, 1993
SUBJECT: Request from Orange Community Housing Corporation (OCHC)
DEPARTMENT: Commissioner's Office PUBLIC HEARING YES: NO: x
ATTACHMENT(S) : Letter from OCHC INFORMATION CONTACT: Moses Carey, Jr.
Erwin Village Pre-Development
Expenditures TELEPHONE NUMBER-
Hillsborough - 732-8181
Chapel Hill - 968-4501
Mebane - 227-2031
Durham - 688-7331
PURPOSE: To consider a request from the Orange Community Housing
Corporation asking the County to contribute to the pre-
development losses incurred for the proposed Erwin Village
affordable housing project.
BACKGROUND: The Orange Community Housing Corporation (OCHC) had planned
to build a twenty (20) unit single family subdivision known
as Erwin Village on Erwin Road in Chapel Hill. The project
was designed to provide homeownership opportunities to
first time homebuyers with incomes at 80% and below of
median income. Financing for this project were to be
derived from various state, local and private sources. An
important source of funding was scheduled to be received
from the Town of Chapel Hill.
The Town pledged funding to the project last fall, however,
in the interim, anticipated development costs increased,
thus, OCHC increased their funding request in an effort to
keep the project affordable. In February 1993, the Town
Council decided not to commit funds to the Erwin Village
development citing their desire to participate in
homeownership opportunities for families at 60% and below
of median income. The loss of this funding source caused
the project to be infeasible.
At that time, OCHC had incurred pre-development expenses of
approximately $45,000. (See Erwin Village Pre-Development
Expenditures. ) OCHC requested reimbursement of these costs
from the Town of Chapel Hill and in March the Town Council
granted the agency $35,000 for incurred losses. OCHC is now
asking the County to contribute to the pre-development
losses as well —including but not limited to reimbursement
of the $696.00 application fee paid to the County for the
required sedimentation and erosion control permit
application. (See letter from OCHC Board Chair. )
RECOMMENDATION(S) : As the Board decides.
io-
Orange Community Housing Corporation
Post Office Box 307 • 1168 West Main Street • Carr6oro, NC 27510-0307
Donna L. Dyer Telephone: 919/967.1545
Executive Director FAX: 919/968-4030
RECEIVED
April 27, 1993
MAY — 31993
Mr. Moses Carey, Chairman Ans'd.
Orange County Board of Commissioners
Post Office Box 8181
Hillsborough, North Carolina 27278
Dear Chairman Carey:
In 1992, Orange Community Housing Corporation worked hard on developing Erwin
Village, a 20-unit single family subdivision on Erwin Road in Chapel Hill. In order to
make that project affordable to families with incomes below 80% of the area median,
we needed both federal HOME funds, which we received through the HOME
consortium program, and a substantial additional commitment of loans and grants
from the Town of Chapel Hill. While both the Town staff and council were supportive
of Erwin Village throughout the review process, the Town Council decided the ultimate
prices of homes were too expensive to warrant their commitment of funds.
To prepare the plans and documents for Erwin Village, OCHC spent $45,000 in pre-
development costs. Most of those funds were to the engineering firm that designed '
the plans and specifications; a complete list of these expenditures is attached. One of
the expenditures of funds is a $696.00 fee paid to the County for a sedimentation and
erosion control permit. The Town of Chapel Hill reimbursed OCHC for $35,000 of
those costs and requested that we ask the County to contribute to the pre-
development losses as well. If funds are available to reimburse some of these costs
to OCHC, please consider this request for funding.
If you would like to talk with us further regarding the uses of these funds and the
Erwin Village subdivision generally, please contact me at 919-361-8000, or Donna
Dyer, Executive Director, at 967-1545. We would be happy to provide any information
you may need to consider this issue.
Sincerely,
Keith E. Aldridge, Chair
Board of Directors
Attachment
cc: John Link
Tara Fikes
ERWIN VILLAGE PRE—DEVELOPMENT EXPENDITURES Date Prepared: 03/01/93
PAID TO PURPOSE AMOUNT
Newsom Graham Law- Firm Land Deposit to accompany purchase contract 1,000.00
N.C. Housing Finance Agency Application Fee for N.C. Housing Trust Fund 250.00
Weir Associates Market Study required by NCHFA application 1,200.00
Newsom Graham Law Firm Legal (Site development contracts, general) 1,044.20
Poyner and Spruill Law Firm Legal (501(c)(3) status wrt development activities) 525.51
Northen Biue Law Firm Legal (Enforcing purchase agreement) 250.00
Geotechnologies, Inc. Engineering (Pond removal, soils analysis) 802.20
Pete Thom Consulting (Bidding process, site work contractors) 2,385.00
John R. McAdams Company Engineering and Planning 36,564.05
Orange County Erosion Control Application Fee for erosion control permit 696.00
TOTAL EXPENDITURES 44,716.96