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HomeMy WebLinkAboutAgenda - 10-04-1993 - VI-A 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION AGENDA ITEM ABSTRACT Meeting Date: October 4, 1993 SUBJECT: Housing Development Grant Application DEPARTMENT: Housing/Community Dev., PUBLIC HEARING YES: x NO: ATTACHMENT(S) : INFORMATION CONTACT: Tara L. Fikes Application Summary Extension 2490 Resolution TELEPHONE NUMBER- - Hillsborough - 732-8181 Chapel Hill - 968-4501 Mebane - 227-2031 Durham - 688-7331 PURPOSE: To receive comments from the public regarding the proposed; FY 1993 Housing Development Grant Application for the Magnolia Place subdivision; adopt a resolution authorizing submission of the formal application document by October 15, 1993; and authorize the Chair to sign the application document on behalf Of the Board upon approval by the County Attorney. BACKGROUND: The N.C. Department of •Commerce has announced the availability of Community Development Block Grant funds for Housing Development projects. A public hearing was held on September 7, 1993 to receive citizen comments prior to developing a grant application. Based on comments received during this hearing, staff has prepared a Housing Development Grant Application in the amount of $250, 000 for the proposed Magnolia Place subdivision. Magnolia Place is a planned 42 unit subdivision in Hillsborough sponsored by the joint venture of Orange Community Housing Corporation (OCHC) , a local non-profit housing development corporation, and Development Research Corporation (DRC) , a Wake County developer. Homes built will be affordable to families with incomes below 80% of the area median family income, with a special emphasis on families at and below 60% of the area median. Grant funds will be used to assist with the site improvement costs related to this project. The Department of Commerce requires applicants to conduct a second public hearing after the grant application has been prepared in order to receive additional comments prior to application submission. The application document is due October 15, 1993 . RECOMMENDATION(S) : The Manager recommends: 1 . Receive citizen comments as additional information. 2 . Adopt the resolution authorizing submission of the Magnolia Place Housing Development Application by October 15, 1993 and authorize the Chair to sign the application document on behalf of the Board upon approval by the County Attorney. 2 APPLICATION SUMMARY Orange County proposes to provide funds to Magnolia Place subdivision to create opportunities for first-time homebuyers. Magnolia Place is located on Oakdale Drive in the southern part of Hillsborough, off Old N.C. 86 between Interstates 85 and 40. Homes will be sold to families with incomes below 80% of the area median family income, with a special emphasis on families at and below 60% of the area median. The preliminary budget estimates homes priced at approximately $80,000, with first mortgages approximately $63,250. These homes would be affordable to families with incomes of approximately$23,000, approximately 50%of the area median income for a family of four. Families with incomes as low as $20,000 may qualify for mortgages in Magnolia Place. The proposed site is owned by Magnolia Place General Partnership, a partnership between Orange Community Housing Corporation (OCHC), a local non-profit housing development corporation,and Development Research Corporation (DRC),a Wake County developer. The site is zoned for single family development, and has received subdivision approval from the Town of Hillsborough for 42 single family homes. The 42 units in Magnolia Place will have 3 bedrooms and 2 bathrooms, and will range in price from $78,000 to $85,000, with an average second mortgage of approximately $16,000 for at least 20 buyers, consisting of$10,000 in HOME funds* and $5,882 in CDBG funds. Those 20 units will have a first mortgage payment of approximately $575, including property taxes, insurance, and a small homeowners association fee to cover costs of maintaining the common area. CDBG funds are requested in the amount of $247,050 to allow Orange County to construct public water and sewer service, storm drainage, and streets on the site. The County will enter into agreements with both the owner/developer and applicable contractors to complete the work as needed. Additionally, $2,950 will be requested for grant administration for a total grant request of $250,000. *HOME funds in the amount of $200,000 have been awarded to the Orange HOME Consortium for use at Magnolia Place, to partially finance the development and construction phase, to purchase the property and prepare the lots for development, including soft costs as allowed by HOME. These funds would then remain as second mortgages to the homebuyers to promote long-term affordability. ESTIMATED BUDGET 09/27/93 3 SINGLE FAMILY SUBDIVISION: Hillsborough Unit Count: 42 Uses of Funds Current Estimate Current Per Unit Raw Land Cost 72,000 1,714 Sales Commission on Land 0 0 Other Costs of Land Purchase 0 0 Site Improvements 269,685 6,421 Including: Site Grading and Earthwork 0 0 Erosion Control/Storm Drainage 22,750 542 Streets and Sidewalks (no sidewalks) 63,500 1,512 Water-On Site 51,000 1,214 Sanitary Sewer-On Site 69,800 1,662 Landscaping/Buffers/Entrance/Sign 12,500 298 Replace Dam 15,000 357 Contingency(15%) 35,135 837 Land Development Loan Interest 30,000 714 Subdivision/Special Use Permit Application Fees 5,000 119 DRC Construction Management 30,000 714 Water and Sewer Impact Fees/Off-site contribution 93,250 2,220 County School Impact Fees 31,500 750 Recreation Equip./Pmt-in-Lieu 7,500 179 Planning and Engineering Design Fees 35,700 850 SUBTOTAL LOT DEVELOPMENT 574,635 13,682 Average Builder Contract Price (incl. profit/OH) 2,100,000 50,000 Plus: Additional water lateral cost 42,000 1,000 Additional lot preparation/foundation 0 0 Additional unit landscaping cost 10,500 250 Other costs not included above 42,000 1,000 Building Permits and Other Fees 21,000 500 Construction Loan Interest 84,000 2,000 SUBTOTAL HOUSE CONSTRUCTION 2,299,500 54,750 Project Legal Expenses 16,800 400 Project Financing Fees and Closing Costs 16,800 400 Taxes During Construction 12,600 300 Inventory Maintenance 12,600 300 Model Operations (Rent, Utilities, Phone, Maint.) 21,000 500 Marketing/Construction Management(OCHC) 42,000 1,000 Sales/Marketing/Advertising Expenses 42,000 1,000 Sales Commissions or Referral Fees on Homes 33,600 800 Buyer Closing Costs 84,000 2,000 SUBTOTAL OTHER EXPENSES 281,400 6,700 Contingency/Developer Fee 210,000 5,000 TOTAL PROJECT COSTS 3,365,535 80,132 Current Per Unit Current Per Uni Sources of Funds Current Estimate with HOME no HOME First Mortgages SOURCE: Private 2,876,485 63,250 72,119 Buyer Contribution/Downpayment 42,000 1,000 1,000 Second Mortgages SOURCE: HOME(20 units only) 200,000 10,000 0 Third Mortgages SOURCE:CDBG 247,050 5,882 5,882 Units w/no HOME funds need additional downpymt 0 0 1,131 and higher first mortgages TOTAL SOURCES OF FUNDS 3,365,535 80,132 80,132 4 r , 85 /7' D TT° TTT . AKp R > 133 DR. • W SITE ViCINITY . MAP SCALE: 1 " = 1000' • ORANGE COUNTY COMMISSIONERS P.O. Box 8181 HILLSBOROUGH, N.C. 27278 Moses Carey,Jr. 732-8181 Alice M. Cordon 968-4501 Stephen H. Halkiotis 688-7331 Verla C. Insko 227-2031 Don Willhoit 644-3004 (Fax) October 15, 1993 Robert Chandler, Director DATE / Division of Community Assistance ® y N.C. Department of Commerce P.O. Box 12600 ITEM Raleigh, N.C. 27605-2600 Re: FY 93 Housing Development Application Dear Mr. Chandler: Orange County is pleased to submit this Fiscal Year 93 Small Cities Community Development Block Grant Application for review and consideration by your staff. Funds would be used to assist a local non-profit housing development corporation construct a 42 unit single family subdivision which will provide homeownership opportunities for first time homebuyers earning between 60 -'80 percent of area median income. This request for funding has the full support of the Orange County Board of Commissioners and represents a continuing, longstanding commitment on behalf of the Board to secure funds:,to improve the living conditions of low and moderate income citizens. Should you have questions regarding this application, do not hesitate to contact Tara L. Fikes, Housing and ' Community Development Director at (919) 732-8181, Extension 2490. Sincerel , Moses arey, Jr. Chair / YOU COUNT IN ORANGE COUNTY ! APPLICATION SUMMARY .1.. APPLICANT 2. DATE 1• Name: Orange County • -_X—Original, dated: 10-15-93 • b. Stre-et/P. 0. Box: P.O. Box 8181 Amendment, dated: c, City: Hillsborough • 3. TYPE OF APPLICANT 'd. Zip Code: 27278 City c. County: Orange • X County f. Contact Person: Tara L. Fikes g. Telephone No.: (919) 732-8181 h. Preparer of Application: Tara L. Fikes, Housing/Community Development Director, 4, PROGRAM CATEGORY 5. PROJECT 6, PROJECT NAME 7. CDBG FUNDS CODE NUMBER REQUESTED • HD 1 Magnolia Place . 250,000 • • • • 8. LOC A L Of T10 NA ACTIVITIES. E 15 • 9. TOTAL 2 TA 250,000 000 10. CERTIFICATION b. Typed Name and Title of Chief Elected Official; • a. To the best of my knowledge and belief, data in this Moses Carey, Jr., Chair application is true and correct, the applicant hu Orange County Board of Commissioners provided opportunities for citizen participation and c. Si:'a .re access to information concerning the proposed • activities, the document has been duly authorized by A / the governing body of the applicant and the applicant Fr comply with the attached certifications if the d. .Date • assistance is approved. 10/15/93 / FOR DCA USE ONLY 11. DATE RECEIVED 13, ACTION TAKEN 14. AMOUNT FUNNED a. Community R.evttvlizanon f Funded b, Ecotxxnic Development S Not Funded c x Manning d. Urgent NeedsKontingency $ 12. APPLICATION NUMBER Withdrawn e_ Local Option $ • • f. Housing Development • $ • • • g. Total $ ' • • • • .CDBG 86•.1 Rev 2/90 • • • Disclosure Report for Federally Assisted Projects Small Cities Community Development Block Grant Program HOME Investment Partnerships Program 1. Applicant/Recipient, 2. Check one: xx Initial Report Name, Address, and Phone: Update Report Orange County 3. Social Security Number or P.O. Box 8181 Employer ID Number: Hillsborough, N.C. 27278 56-6000327 4. Project Name and Location: Magnolia Place; Hillsborough, NC 5. Total Amount requested/received (including anticipated program income): $ 6. Other government assistance. Check one: No other government assistance is, or is expected to be, provided for this project; xx All other government assistance provided for this project is listed on the attached pages(s). 7. Interested Parties. Check one: • • xx No parties have a reportable financial interest in this project. Interested parties • include developers, contractors, consultants, individuals, entities including units of government with a financial interest greater than $50,000 or 10 percent of the assistance (whichever is lower; being a party to a contract procured under Federal procurement regulations at 24 CFR Part 85 does not, by itself, constitute:a reportable financial interest). All parties with a reportable Financial interest are listed on the attached pages(s). 8. All expected sources of funds available or expected to be available for the project or activity and all reportable uses of funds are included in the application for finds and on attached forms (check all that apply): . CDBG-5A LOCAL COMMITMENT FORM, Page 1 (CR Application) x CDBG 88-(6) PROJECT BUDGET (CR or HD Application)• X CDBG 87-4 PROJECT SOURCE AND USE FORM (HD Application) x SINGLE FAMILY COST AND FINANCING FORM (HD Application) MULTI-UNIT COST AND FINANCING FORM (HD Application) HOME Budget Form • HOME Developer Cost Form HOME Proforma Assumptions Other attachment(s). Describe • 9. Certification: I he t certify that aI formation in this report and its attachment is true and complete: Signature: l � / Date: Disclosure Report for Federally Assisted Projects - Attachments Small Cities Community Development Block Grant Program HOME Investment Partnerships Program 6. Other Government Assistance (Attachment) • (Note: Disclosures must be complete and accurate, but need be made only once for this report. If assistance is reported in the Sources and Uses disclosure section, then it need not also be reported here. If there is assistance reportable here, but reported only in the Sources and Uses disclosure, check here: x Assistance is disclosed in Sources and Uses Attachments Agency Name Program and Amount and Address Type of Assistance Requested/Received • • 7. Interested Parties (attachment) Type of Name and Address Participation Interest ($ and %) • • • • • 6 RESOLUTION AUTHORIZING AN APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS NOW, THEREFORE BE IT RESOLVED by the Board of County Commissioners of Orange County, that an application for Housing Development Grant funds from the N.C. Department of Commerce is hereby authorized. The target project is Magnolia Place and the amount to be requested is $250,000. The application will be submitted on or before October 15, 1993. FURTHER, the Board of Commissioners of Orange County authorizes the Chair of the Board of County Commissioners to sign the application document upon approval by the County Attorney. 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