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HomeMy WebLinkAbout2018-130-b Housing - CASA until transferV I 111�[IjIjIIIIIIiIijgIJjIIICillllll 20180904000169630 ASGM Bk:RB6517 P9:183 09/04/2018 11:38:34 AM 1112 FILED Mark Chilton Register of Deeds, Orange Co,NC Recording Fee: $26.00 NC Real Estate TX: $.00 ^ Prepared by and RETURN TO: James Bryan, Orange County Attorney's Office P.O. Box 8181, Hillsborough, NC 27278 NORTH CAROLINA PINs: 9789 -38- 5658.014 (Unit 111B) 9789 -38- 5658.027 (Unit 336H) ORANGE COUNTY Ad ASSIGNMENT, ASSUMPTION AND CONSENT TO TRANSFER REAL PROPERTY This Assignment, Assumption and Consent to transfer real property is between CASA [formerly known as Community Alternatives for Supportive Abodes], a North Carolina Non - Profit corporation (hereinafter referred to as "CASA ") organized and operated exclusively for charitable and educational purposes and which has established its tax exempt status under Section 501 (c)(3) of the Internal Revenue Code, and which is successor in interest to The Chrysalis Foundation for Mental Health, Inc. [formerly known as OPC Foundation for Mental Health, Inc.], a North Carolina Non - Profit corporation (hereinafter referred to as "Chrysalis "); Town of Chapel Hill, a local municipality in the State of North Carolina (hereinafter referred to as "Town of Chapel Hill ") and the County of Orange, a local political subdivision of the State of North Carolina (hereinafter referred to as "Orange County "). WITNESS THAT: Whereas CASA is a non - profit corporation established for the purpose of providing safe, decent, stable and affordable housing and support for persons with long term and persistent mental illness, mental retardation or developmental disabilities, a substance abuse disorder and /or children with severe emotional problems; providing such persons with housing facilities and support specifically designed to meet their physical, social and psychological needs; and to promote the health, security, happiness and usefulness of persons with aforementioned disabilities; and Whereas Orange County, through its Housing and Community Development Department, provides funding to qualified organizations to expand the supply of affordable housing in Orange County; and 1�11jiljlll�lii iljll[�J�j 11111ill 1 111111111ii ll ill RB6517 184 2/12 Whereas Orange County provided partial financing to OPC Foundation for Mental Health, Inc., predecessor in interest to Chrysalis, for twenty (20) housing units in Orange County previously owned by Chrysalis and now owned by CASA; of which eight (8) of the housing units were financed with HOME Investment Partnership funds totaling $413,625 and twelve (12) of the housing units were financed with Orange County Affordable Housing Bonds funds totaling $560,000; and Whereas Orange County, to assure the long term affordability of these properties, caused the properties to be encumbered by various means including development agreements, declaration of restrictive covenants, deeds of trust and promissory notes; and Whereas a Deed of Trust and Security Agreement, recorded in Book 3405, Page 180, Orange County Registry, secures said funds advanced by Orange County to Chrysalis [then operating under the legal name of OPC Foundation for Mental Health, Inc.] in the principal sum of $300,000 for the Property [hereinafter described] and other properties, (the "Deed of Trust ") and evidenced by a Promissory Note (the "Note ") of even date, the final payment of which is due, together with interest thereon, as provided in the Note; and Whereas, the portion of the $300,000 principal funds as evidenced by the Note and secured by the Deed of Trust, attributable to the Property is the principal sum of $75,000; and Whereas certain Declaration of Restrictive Covenants, recorded in Book 3405, Page 166, Orange County Registry, (the "Declaration "), including the requirements of the Development Agreement which is attached as Exhibit B of the said Declaration, and reiterated and incorporated herein and the Orange County HOME Program provides that the owner may transfer the Property to a non - profit corporation of like purpose which is organized and operated exclusively for charitable and educational purposes and which has established its tax exempt status under Section 501 (c)(3) of the Internal Revenue Code, provided the owner obtains written agreement, in a form satisfactory to Orange County, from the person or entity acquiring the Property agreeing that such acquisition is and will be subject to the requirements of the Declaration, the Development Agreement and the Orange County HOME Program; and Whereas, CASA entered into an Assignment, Assumption and Consent to Transfer Real Property Agreement with Chrysalis and Orange County in accordance with the Deed of Trust, the Note, the Declaration, the Development Agreement and the Orange County HOME Program; said Agreement is recorded in Book 4867, Page 171, Orange County Registry; and Whereas CASA now desires to transfer two dwelling units, located at Unit 111, Building B and 336, Building H, Ashley Forest in Chapel Hill, North Carolina to Town of Chapel Hill; (being the "Property "), and more particularly described in EXHIBIT A, which is attached hereto and incorporated herein; and Whereas the Town of Chapel Hill is not such a non - profit corporation, and therefore Orange County Board of Commissioners voted on February 6, 2018 to approve this transfer [a copy of the minutes of the Board of Commissioners approval is attached hereto as EXHIBIT B and incorporated herein]; and I��leeltseeleli eeeelee lei ie llll 11 l'Illlllllll (I�I RB6517 185 3112 Whereas CASA desires to transfer the Property to Town of Chapel Hill, subject to the requirements of the Deed of Trust, the Note, the Declaration, the Development Agreement, and the Orange County HOME Program, as such requirements relate to the Property; and Whereas CASA desires to assign to Town of Chapel Hill its obligations contained in the Deed of Trust, the Note, the Declaration, the Development Agreement and the Orange County HOME Program, as such obligations relate to the Property; and Whereas Town of Chapel Hill desires to accept the transfer of Property from CASA subject to the requirements of the Declaration, the Development Agreement and the Orange County HOME Program, as such requirements relate to the Property; and Whereas Town of Chapel Hill desires to accept from CASA the assignment of the obligations contained in the Deed of Trust and the Note, as such obligations relate to the Property; and Whereas Orange County, as evidenced by its execution of this instrument, consents to the transfer and acceptance of the transfer of Property subject to the requirements the Declaration, the Development Agreement and the Orange County HOME Program along with the assignment of the obligations contained in the Deed of Trust and the Note, as such requirements and obligations relate to the Property; NOW THEREFORE, CASA, successor in interest to Chrysalis, a North Carolina Non - Profit corporation does hereby: (1) give, transfer, assign, and deliver unto Town of Chapel Hill, and its successors, nominees and lawful assignees all of its rights, title and interest, and all addenda, modifications and amendments thereto, in and to the Property described in EXHIBIT A; and (2) assign and transfer to Town of Chapel Hill, its obligations, as such obligations relate to the Property, contained in the Declaration, the Development Agreement, the Deed of Trust and the Note, and the obligation to pay money due and to become due upon the Note, with interest. Said assignment is subject to all terms and conditions found in the Deed of Trust, the Note, the Declaration, the Development Agreement, and all addenda, modifications and amendments thereto and shall remain in effect under this assignment and for any successor assignor or any successor assignee who shall assume all duties and obligations of the original borrower. FURTHER, Town of Chapel Hill, a local municipality in the State of North Carolina, does hereby assume the obligations, as such obligations relate to the Property, contained in the Declaration, the Development Agreement, the Deed of Trust and the Note, and the obligation to pay money due and to become due upon the Note, with interest. Said assumption is subject to all terms and conditions found in the Deed of Trust, the Note, the Declaration of Restrictive Covenants, the Development Agreement, and all addenda, modifications and amendments thereto and shall remain in effect under this assumption and for any successor assignor or any successor assignee who shall assume all duties and obligations of the original borrower. RB6517 186 4/12 IN WITNESS WHEREOF, the signatories below have caused this instrument to be signed in their corporate names by duly authorized officers. By execution hereof, Orange County specifically consents to the assignments to Town of Chapel Hill contained herein. This the T1 t" _day of August, 2018. [SIGNATURE PAGES TO FOLLOW] II���Ij��II�I�����III�IIIIIIIIIIIIIIIAIIIIII 'd RB6517 187 5/12 CASA [formerly known as Community Alternatives for Supportive Abodes] By: Jean SeydaXEO NORTH CAROLINA ORANGE COUNTY (Seal) I, rr1V `. L-0v (xxV1 a Notary Public of the State of North Carolina, County of \,�j C \N , do hereby certify that Mary Jean Seyda , personally appeared before me this day and acknowledged that (s)he is CEO of CASA [formerly known as Community Alternatives for Supportive Abodes], a North Carolina Non - Profit corporation, and further acknowledged that by authority duly given, (s)he signed the foregoing and annexed instrument in its name on behalf of the said Non - Profit corporation. Witness my hand and official seal, this the �� day of , 20 (Official Seal or Stamp) \0 11 /viii r,, O N0 TAR � PUBLIC i10 Notary PuMc My Commission Expires: Q 0 ZZ-- TOWN OF CHAPEL HILL LF Town Manager TOWN SEAL Town Clerk attests date this the 24 day of AUdtg ST , 20� . Approved as to Form and Authorization 19a,V, '�. �6t TOWT< LEGAL STAF III��II��I�I)����I����II�IIII I IIIININIIII III RB6517 188 6/12 This instrument has been pre- audited in the manner required by the Local Government Budget and Fiscal Control Act. FINANCE OF ICER NORTH CAROLINA ORANGE COUNTY • U1 I, Atm.4 T• 1 Q(J"C, , a Notary Public of Orano. County, North Carolina, certify that personally came before me this da and acknowledged that she is the 6te4pg4 Town Clerk of the Town of Chapel Hill, a North Carolina municipal corporation, and that by authority dul given and as the act of the corporation, the foregoing instrument was signed in its name by twjw L. n ,j its (Pep"+y� Town Manager, sealed with its corporate seal and attested by her as its (ae4rrgj town Clerk. Witness my hand and notary seal, this the Z8 day of 2018. N ty Public My Commission Expires: _a�1S .2020 : C-) _ ;.0 PUBV G.' z 4NCi E C OOH ORANGE COUNTY, NORTH CAROLINA Mark Dorosin, C air RB6517 189 7/12 Orange County Board of Commissioners i ATTEST: Clerk to the %Board of Commissioners Approved as to form and legality Orange Cou ty Aftorhey's Office NORTH CAROLINA ORANGE COUNTY I, a V I A ALkn , a Notary Public of the County and State aforesaid, certify that nn 0 3C, ke4-- personally came before me this day and acknowledged that s/he is Clerk/Deputy Clerk to the Board of Commissioners for Orange County, North Carolina and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chair of said Board of Commissioners and attested by her/him as Clerk/Deputy Clerk to said Board of Commissioners. Witness my hand and notary seal, this the day of Lk, 20�. t Notary Public My Commission Expires: - OFFICIAL SEAL Notary Public, North Carolina ORANGE COUNTY °DAVID HUNT Expires Exhibit A �4R'dbJ9tl IdNS'4'4�dlllllllllll 190 8/12 Being known and designated as Unit 111, Building B, as shown on Plat or Plats entitled "Ashley Forest" recorded in condominium and unit ownership Book 40 at Page 78 through 80, in the Office of the Register of Deeds of Orange County, North Carolina, reference to which is hereby made for a more particular description, and an undivided 1.61290323% fee simple interest in and to the common area shown on the reference recorded plat. PIN 9789 -38- 5658.014 (Unit I I IB) Being known and designated as Unit 336, Building H, as shown on Plat or Plats entitled "Ashley Forest" recorded in condominium and unit ownership Book 40 at Page 78 through 80, in the Office of the Register of Deeds of Orange County, North Carolina, reference to which is hereby made for a more particular description, and an undivided 1.61290323% fee simple interest in and to the common area shown on the reference recorded plat. PIN 9789 -38- 5658.055 (Unit 336H) 17 u '�1�1��';�;NIu��INO�►Y��►n Exhibit B COPY OF MINUTES OF ORANGE COUNTY BOARD OF COMMISSIONERS (February 6, 2018, Approved March 8, 2018) APPROVED 318/2018 MINUTES BOARD OF COMMISSIONERS REGULAR MEETING February 6, 2018 7:00 p.m. RB6517 192 10/12 The Orange County Board of Commissioners met in regular session on Tuesday. February 6', 2018 at 7:00 p.m. at the Whitted Building, in Hillsborough, N.C. COUNTY COMMISSIONERS PRESENT: Chair Dorosin and Commissioners Mia Burroughs, Barry Jacobs, Earl McKee, Mark Marcoplos, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below) Chair Dorosin called the meeting to order at 7:01 p.m. 1. Additions or Changes to the Agenda The following items were noted at the Commissioners' places: - PowerPoint for item 4 -b - PowerPoint and script for item 5 -a: SUP public hearing - PowerPoint for item 6 -b: NCHIP - PowerPoint for item 6 -c - PowerPoint for item 7 -a: 2045 MPO Plan - Revised abstract for item 7 -b - PowerPoint for item 7 -b: Broadband 11 -a- GoTriangle Applicants PUBLIC CHARGE Chair Dorosin dispensed with the reading of the public charge. Arts Moment- Pam Baggett Chair Dorosin read the introduction for Pam Baggett: Pam Baggett's chapbook, Wild Horses, was a runner -up for the 2017 Cathy Smith Bowers Chapbook Contest and will be published by Main Street Rag in 2018. Recent poems appear in Atlanta Review, Cold Mountain Review, Crab Orchard Review, Greensboro Review, and Tar River Poetry. Work also appears in anthologies, including Forgetting Home: Poems About Alzheimers and The Southern Poetry Anthology Volume VII: North Carolina. Ms. Baggett is a Pushcart Prize nominee, a recipient of the 2017 Ella Fountain Pratt Emerging Artists Grant, and a 2017 recipient of an Artist Project Grant from the Orange County Arts Commission. She co -hosts the Second Thursday Reading series at Flyleaf Books in Chapel Hill, and teaches free poetry workshops at the Orange County Main Library in Hillsborough. Pam Baggett read two short poems. 20 RB6517 193 11/12 Commissioner Price and Commissioner Burroughs agreed to this amended language. A motion was made by Commissioner Price, seconded by Commissioner Burroughs to approve the Special Use Permit and the Board of County Commissioners imposes recommended conditions as detailed within Attachment 4 of the abstract package (pages 225- 226). VOTE: UNANIMOUS 6. Regular Agenda a. Approval of Transfer of Rental Property from CASA to the Town of Chapel Hill for Continued Affordable Housing Use The Board considered approving CASA's transfer of four (4) scattered site condos in Chapel Hill to the Town of Chapel Hill for continued affordable housing use. The request is being made based on CASA's current Agreement with the County and its requirement for having the Board of County Commissioners' (BOCC) approval when transfers to entities other than a non - profit occur. Sherrill Hampton reviewed the background information below: BACKGROUND: In 2009, CASA assumed ownership of 20 units of scattered -site housing in Orange County when a local non - profit dissolved. CASA collaborated with Orange County to ensure that the units remained in use as affordable housing. CASA undertook extensive interior rehab work on all the units. At the present time, CASA feels that individual condos are not a sustainable model for affordable rentals. In the condo model, the owner does not control the costs of the HOA dues and special assessments or the schedule of preventive maintenance and capital replacements. The current status of the 20 -unit portfolio is as follows: 1 unit, a single- family home in Hillsborough at 2308 Redbird Lane, was sold to EmPowerment in 2017. As the transfer was to another non - profit, per CASA's current Agreement with Orange County, the Board of County Commissioners did not need to approve the transaction. • 1 additional scattered site condo was also transferred to EmPowerment in 2016. * 3 scattered site condos in Carrboro are proposed to be sold in 2018. • 4 additional scattered site condos in Chapel Hill are to be sold in 2018. EmPowerment is considering the acquisition of these units. • 4 scattered site condos in Chapel Hill are proposed for transfer to the Town of Chapel Hill and are the subject of this Abstract. 7 units will continue to be held by CASA, including: o 2 duplexes in Chapel Hill (4 units) c 2 homes on one lot in Carrboro (3 units) All properties that are being considered for disposition are small, aging and/or scattered site and are not consistent with CASA's current business model. The proposed disposition allows CASA to capture the value in the properties and reinvest in other rental properties that are more cost - efficient to manage. The disposition also allows for other entities with the correct business model and capacity to take ownership and maintain the units as affordable housing. 21 �4NII51I0194 NI���W��II�����A��ll�ll����l The proposed disposition of the four (4) scattered site condos to the Town of Chapel Hill is only a transfer in ownership - no sale proceeds will be generated. If the proposed transfer is approved, restrictions regarding "affordability" under the current Agreement will be assumed by the new owner. The units are occupied and the Town intends to keep all current tenants in place. However, when vacancies occur, the Town will utilize the units as transitional housing for families preparing to move out of Public Housing as their economic situation improves. The maximum allowable income for an individual or family occupying the units would be 50% of the area median income (AMI). The Town of Chapel Hill will manage the units, perform annual tenant certifications and conduct routine maintenance. The Town had the units inspected by a licensed home inspection company. All units are in need of some level of rehabilitation, ranging from light/moderate to substantial. The Chapel Hill Town Council has adopted a resolution accepting the transfer of the four (4) units, and authorizing up to $65,000 to be used toward renovation costs and the satisfaction of a private mortgage on the units, if the BOCC approves the transfer. Commissioner Price asked if there was any other rationale for the second part of the recommendation. Sherrill Hampton said this was before her time, and she said expediting these processes can assist these non - profits in pursuing properties. Commissioner Price asked Commissioner Jacobs if he remembered. Commissioner Jacobs said he assumed that it was just a tracking process. A motion was made by Commissioner McKee, seconded by Commissioner Price for the Board to approve CASA's request to transfer the four (4) scattered site condos to the Town of Chapel Hill, The Manager also recommends that the Board allow CASA to make future transfers of any remaining units to Orange County local jurisdictions without subsequent Board review and approval. Furthermore; the transfer of ownership must allow for continued affordable housing use or meet another identified community need. VOTE: UNANIMOUS b. Resolution Authorizing the Participation in the North Carolina Health Insurance Pool (NCHIP) The Board considered approving the Manager's recommendation to join the North Carolina Health Insurance Pool (NCHIP) effective July 1, 2018_ NCHIP is a new health risk pool coordinated through Gallagher Benefit Services, which provides economies of scale and risk pooling to provide greater financial stability among participating North Carolina counties, cities, and towns, and authorize the Chair to sign. Brenda Bartholomew, Human Resources Director, said Wes Grigston and Gregg Aleman, Gallagher Benefit Services, will make the following PowerPoint presentation: North Carolina Health Insurance Pool (NCHIP) February 6, 2018 What is NCHIP? • Intergovernmental agreement • Allowed by the State, Regulated by the DOI.