HomeMy WebLinkAboutAgenda - 04-18-2006-5fORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 18, 2006
Action Agenda¢
Item No.
SUBJECT: Impact Fee Reimbursement
DEPARTMENT: Housing/Comm, Development PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Site Map
INFORMATION CONTACT:
Tara L. Fikes, (919) 245-2490
PURPOSE: To approve the impact fee reimbursement request from Orange Community
Housing and Land Trust and the Affordable Housing Group for $63,328 far anticipated
construction of 32 new apartment units in the proposed Dobbins Hill II rental development in
Chapel Hill pending approval of the proposed Low Income Housing Tax Credit application.
BACKGROUND: On November 1, 1995, the BOGC approved a policy far 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 for rental development:
A 501(c)(3) non-profit organization which develops affordable rental housing for persons
with incomes at or below 60% of the HUD published area median income for the
Raleigh/Durham -Chapel Hill, North Carolina MSA,
2, Affordable Housing is defined as rental housing for which the occupant pays no more
than 30% of gross income for all housing costs, including utilities.
3. An organization requesting impact fee reimbursement for rental housing must certify that
the property will remain affordable for ninety-nine (99) years, The rental housing
certification must be secured by a Declaration of Restrictive Covenants requiring
repayment to Orange County of the impact fee if the rental housing does not remain
affordable during the period of affordability, which covenant will be further secured by a
note and deed of trust, Evidence must be provided that agency and/or program
guidelines are in place to assure affordability compliance,
4. The non-profit organization is responsible for providing documentation of impact fee
payment prior to reimbursement.
The County has received a reimbursement request for $63,328 from Orange Community
Housing and Land Tn~st and The Affordable Housing Group (a non-profit organization located
in Charlotte, NC) far the proposed construction of the Dobbins Hill II apartment complex on
Dobbins Drive in Chapel HiII, The development will provide 32 apartments with 16 units
affordable for families earning 40% or less of the Area Median Income (AMI) and 16 units far
families earning less than 60% of AMI. One (1) bedroom apartments will rent for $475, two
(2) bedroom units at $550, and three (3) bedroom units at $600.
The Affordable Housing Group (TANG) is currently preparing a Low Income Housing Tax
Credit application to the N,C, Housing Finance Agency (NCHFA) to provide financing for
construction for submission on May 5, 2006, (The existing Dobbins Hill apartment complex
also received an allocation of tax credits to provide construction financing.) Receipt of impact
fee reimbursement for impact fee can improve the likelihood of receiving tax credits in a very
competitive process. This is due to the NCHFA policy of providing points far applicants with
local fund contributions, If the tax credits are received this year construction is scheduled to
begin in ,January 2007 with completion by December 15, 2007, TANG will develop, own and
oversee the management of the property for the initial 15 year compliance period required by
the low-income housing tax credits, After the 15 year period they will give the Orange
Community Housing and Land Tnist (OCHLT) the Right of First Refusal to purchase the
property at a significant discount at the end of the 15 year tax credit cycle, OCHLT plans to
purchase the property and retain ownership and maintain affordability the remaining 84 years
of the 99 year affordability period,
This property is adjacent to the existing Dobbins Hill Apartments developed in 1994 by
Crosland, Inc. and Orange Community Housing Corporation, That project received tax credits
as well and provides 55 affordable units to families at 60% and less of AMI, A site map of the
project area is attached as additional information,
This request has been reviewed in accordance with the above stated eligibility criteria and it
has been determined that it is eligible for impact fee reimbursement, Additionally,
documentation has been reviewed to confirm that The Affordable Housing Group is a 501 (c)
(3) organization,
FINANCIAL IMPACT: The current balance from the FY 2005-2006 appropriation for impact
fee reimbursements is $60,105. The remaining dollars required ($3,523) is included in the
proposed FY 2006-2007 appropriation for impact fee reimbursement. Actual reimbursement
would not be necessary until approval of the tax credit application or January 2007 at the
earliest,
RECOMMENDATION(S): The Manager recommends that the Board approve the impact fee
reimbursement request from Orange Community Housing and Land Trust and the Affordable
Housing Group for $63,328 for anticipated construction of 32 new apartment units in the
proposed Dobbins Hill II rental development in Chapel Hill pending approval of the proposed
Low Income Housing Tax Credit application.
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