HomeMy WebLinkAbout2015-289 Co. Manager - Carrboro, Chapel Hill, Hillsborough interlocal Agreement Community Home Trust NORTH CAROLINA
ORANGE COUNTY
Inter-Local Agreement for the Community Home Trust
THIS AGREEMENT made and entered into by and among the County of Orange (hereinafter
"County"), the Town of Carrboro, the Town of Chapel Hill, and the Town of Hillsborough
(hereinafter "Towns"), each being a general local governmental unit of the State of North
Carolina, and is made pursuant to North Carolina Statutes, Article 20 of Chapter 160A.
WHEREAS, the County and Towns agree that it is desirable and in the interests of their citizens
to provide affordable housing to low and moderate income individuals and families, to ensure
that such housing remains affordable in perpetuity and to have much of that housing
administered and managed by a non-governmental entity;
WHEREAS, the County and Towns were responsible for the creation of the predecessor
organization to the Community Home Trust (CHT) in 1990; and
WHEREAS, CHT revised its organizational structure and model for providing affordable
housing in 1999 at the behest of the County and Towns; and
WHEREAS the County and Towns are committed to creating successful affordable housing
opportunities in Orange County;
NOW, THEREFORE, the County, the Towns agree as follows:
Section I. Definitions
A. Low Income means households that earn 80% or less of the Area Median Income (AMI)
in the Metropolitan Statistical Area (MSA) in which Orange County resides, as published
by HUD.
B. Moderate Income means households that earn more than 80% AMI but not more than
115% of the Area Median Income in the Metropolitan Statistical Area (MSA) in which
Orange County resides, as published by HUD.
C. HUD means the United States Department of Housing and Urban Development.
D. Inclusionary housing refers to local policies and ordinances of the Towns and County that
require or incentivize the inclusion of housing that is deemed affordable for purchase by
low and moderate income households within market-rate housing developments.
NOW, THEREFORE, the County and Towns agree as follows:
Section II. Purpose
The purpose of this Agreement is to confirm the County and Town's affordable housing goals
for homeownership throughout Orange County. Since all of CHT's homes are in Orange County,
and since virtually all of CHT's work is driven by inclusionary housing policies that are
supported by the County and Towns, this Agreement is intended to establish a shared set of
expectations as to what affordable housing functions CHT will provide to the County and
Towns. The County and Towns recognize that a shared and agreed upon set of expectations and
responsibilities will reduce uncertainties and allow the County and Towns to best utilize the
expertise and experience of CHT.
Section III. Agreement.
A. Term of Agreement - The term of this Agreement begins on July 1, 2015 and is may
be renewed annually.
B. CHT Board Representation by County and Towns — The governing bodies of the
County and Towns are each entitled to appoint a representative to the board of
directors of CHT. According to the CHT bylaws, one-third of the board of directors
will be CHT homeowners, one-third will be appointed persons (by County, Towns and
the University of North Carolina at Chapel Hill [hereinafter UNC]), and one-third of
the directors will be members of the community who support the work of CHT. The
County and Towns' appointees to the board of directors enable the County and Towns
to remain informed of the work of CHT and, in fact, to exert influence over that work.
C. CHT Responsibilities
It is agreed that CHT's responsibilities include the following:
1. Create and maintain homes that are affordable for purchase by low and moderate
income households earning up to 115% of AMI;
2. The CHT Board of Directors is responsible for the financial health and well-being of
the organization to ensure the organization is well managed and able to meet the
expectations of the County and Towns;
3. CHT agrees to generate a portion of its own funding each year. The principal
sources of this revenue are fees from sales of new homes added to the portfolio, re-
sales of homes already in the portfolio, ground lease fees and fundraising efforts.
4. The CHT Board of Directors will hire, periodically evaluate and, as necessary,
replace the organization's Executive Director;
5. Sell homes using the community land trust (CLT) model, wherein homes are
conveyed to buyers using a 99-year ground lease. The CLT model enables homes to
remain affordable to future generations of low and moderate income households.
CHT will be expected to continually revise its model to meet changing
circumstances and to reflect best practices;
6. Advocate for affordable housing policies at the local, state and national levels.
7. Create affordable housing opportunities, whether through purchase and rehab, or
otherwise, that are outside the inclusionary housing realm;
8. Implement and manage inclusionary housing programs as requested by the Towns
and County.
D. Responsibilities of the Towns and County
1. Annual Funding
The County and Towns agree that their annual funding of CHT will gradually grow and
annually be adjusted, starting in fiscal 2015-16, from the fiscal 2014-15 levels (Orange
County $149,000, Town of Chapel Hill $200,000, Town of Carrboro $35,000 and Town of
Hillsborough $2,500) to allow CHT to maintain a minimum required operating cash balance.
CHT's minimum required operating cash balance will be the sum of the industry-standard six
months of operating expenses ($350,000 as of July 1, 2014) plus special project reserves
necessary for CHT to safeguard its portfolio of homes ($550,000 as of July 1, 2014). Each
year, CHT will re-determine these amounts and include them in its budget proposal.
Funding payments from the County and Towns to CHT will be made quarter-annually in
equal amounts on or about July 1, October 1, January 1 and April 1.
2. CHT Staff Compensation
The County and Towns agree that the CHT budget will include CHT staff compensation
based upon compensation paid by the County and Towns.
3. Funding Formula
Although it is recognized that each local government will vote independently to approve this
Agreement, it is expected that each jurisdiction will approve the same funding formula.
Furthermore it is agreed that funding will be determined as follows:
a. The sharing of the County and Towns' portion of the annual funding will be
determined by a two tier formula. First, the County will provide 33% of the total
and the Towns will provide 67% of the total. Second, the Towns will share their
67% portion based on the ratio of CHT homes within each town to the total number
of CHT homes. The number of homes will be determined as of January 1 prior to
each fiscal year.
b. For example, if CHT's budget is $800,000 and the number of homes in the CHT
portfolio on the prior January ls` is 250, with 200 of those homes in Chapel Hill, 50
of those homes in Carrboro and none of those homes in Hillsborough, and CHT
budgets providing $200,000 of revenue itself, then Orange County will be required
to pay 33% of$600,000 ($800,000 less $200,000), or $198,000, Chapel Hill will be
required to pay 67% of$600,000 multiplied by 200/250, or $321,600; Carrboro will
be required to pay 67% of $600,000 multiplied by 50/250, or $80,400 and
Hillsborough will be required to pay 67% of$600,000 multiplied by 0/250, or $0.
4. Portfolio Management
a. The Towns and County agree to consult with the CHT staff when new
developments are proposed that would include homes that would become a part of
the CHT portfolio. CHT staff will provide input on any affordable housing
proposals or options if requested by the Towns or County.
b. The County and Towns agree to consult with the CHT staff prior to implementing
policies or regulations that will impact CHT's work.
5. Operating Guidelines
a. Unrestricted Fee Simple Deed of Trust
The Towns and the County agree to allow use of an unrestricted fee simple deed of
trust on CHT properties to facilitate greater lending options to CHT buyers. If a CHT
home is foreclosed upon, the Towns and County agree to cancel all affordability
restrictions recorded against the property and the home would be sold by the lien
holder on the open market.
b. Resale of CHT homes
A CHT home subsidized by local or Community Development Block Grant funds
may be resold to households earning up to 115% of the AMI without a requirement of
repaying local funds. Homes sold to households earning up to 115% of AMI will
continue to be required to maintain the affordability requirements consistent with the
elected bodies at that time.
CHT will notify the appropriate jurisdiction prior to exercising this provision and will
report the resale in its quarterly reports.
c. Selling CHT homes out of the affordable housing inventory
The Towns and County acknowledge that there could be properties that the CHT
would want to sell from its inventory. Prior to selling a home out of its inventory, the
CHT would consult with the appropriate jurisdiction(s) to discuss the challenges of
the property and options for consideration (i.e. subsidy repayment, legal implications
with Special/Conditional Use Permits)he Towns and County agree that the Managers
shall have the authority to approve sale of homes outside of the affordable housing
inventory and will notify its elected officials.
Section IV. Execution
A. All governing boards have duly approved this Agreement and pursuant to such approval
and the proper officials having signed this Agreement. The parties hereto agree to be
bound by the provisions herein set forth. The terms and provisions of this Agreement are
authorized by applicable laws and regulations.
The County and Towns have authorized this Agreement to be duly executed under seal and have
set their hands and seals on the day and year specified below.
TOWN OF CARRBORO
lz�oi4�
David Andrews
Town Manager
of"CAR,9%��•,
ATTEST: `\`��.o��..,........,•.8� ��i
/-z. ORPORgrFO;O
1911
NORTH CAROLINA CARP���`�
ORANGE COUNTY nnuu►►►
This is to certify that on this day personally came before me CAtterine W1 �SOn
with whom I am personally acquainted, and being bey me duly sworn, says that David Andrews
is the Town Manager, and that she the said(aX (i n e WI I SW , is the Town Clerk of
the Town of Carrboro, the municipal corporation named within and which executed the
foregoing instrument; that she knows the common seal of said corporation; that the seal affixed
to said instrument is said common seal; that the name of corporation was subscribed thereto by
the said Town Manager and that the said Town Manager and said04tbff nc wi ISOPTown Clerk
subscribed their names hereto and said common seal was affixed, all by order of the Board of
Alderman of the Town of Carrboro and that said instrument is the act and deed of said
corporation.
Witness my hand and notarial seal, this the day of 3 U0 C , 20 15 .
Notary Public
My Commission expires:
TOWN OF CHAPEL HI L
Rog Sta cil
Town anager
ATTEST:
NORTH CAROLINA
ORANGE COUNTY
This is to certify that on this day personally came before me 'j3g 66 ruc f'(, 0 1."t., ,
with whom I am personally acquainted, and being by me duly sworn, says that Roger Stancil is
the Town Manager, and thatShe the said �` 4,r; is the Town Clerk of the
Town of Chapel Hill, the municipal corporation named within and which executed the foregoing
instrument; that she knows the common seal of said corporation; that the seal affixed to said
instrument is said common seal; that the name of corporation was subscribed thereto by the said
Town Manager and that the said Town Manager and said Sr-kw,nj&IA.(j�-e7own Clerk subscribed
their names hereto and said common seal was affixed, all by order of the Town Council of the
Town of Chapel Hill and that said instrument is the act and deed of said corporation.
Witness my hand and notarial seal, this the 6 day of , 201S
0 1-1..-,"I. k\a'11
Notary Public
My Commission expires: m l �j cac 20
TOWN OF HILLSBOROUGH
E 'lPdersfon
ot114"n-Ma,�ager
N ji
ATTEST: �,, � dF `S'40,''',,
�.F #-Z 'Posen G
of
ffh
NORTH CAROLINA
ORANGE COUNTY a�2�
This is to certify that on this day i i ore me mk W1.C hZ44 ,
with whom I am personally acquainted, At hy%Mn duly sworn, says that Eric Peterson is
the Town Manager, and that she the said , M. " , is the Town Clerk of
the Town of Hillsborough, the municipal corporation named within and which executed the
foregoing instrument; that she knows the common seal of said corporation; that the seal affixed
to said instrument is said common seal; that the name of corporation was subscribed thereto by
the said Town Manager and that the said Town Manager and said Al CAjkujown Clerk
subscribed their names hereto and said common seal was affixed, all by order of the town Board
of the Town of Hillsborough and that said instrument is the act and deed of said corporation.
Witness my hand and notarial seal, this the P7 day of J u-f+� , 20
N4/y Public
M y Commission ex p fires:
D 7
%%IOTA#*
-O
' f
ORANGE COUNTY
Bonnie Hammersley
County Manager
ATTEST:
NORTH CAROLINA
ORANGE COUNTY
This is to certify that on t 's day personally cam before Donna Baker, with whom I am
personally acquainted, and being by e duly sworn, s s that Bonnie Hammersley is the County
Manager, and that she the said , is the erk to the Board of Commissioners of the
County of Orange, the body politic a d corpo to named within and which executed the
foregoing instrument; that she knows the mm n seal of said County; that the seal affixed to
said instrument is said common seal; that the me of corporation was subscribed thereto by the
said County Manager and that the said Coun anager and said Donna Baker subscribed their
names hereto and said common seal w of ed' all by order of the Board of County
Commissioners of Orange County and tha said inst ment is the act and deed of Orange County.
Witness my hand and notarial al, this the day of , 20
Notary Public
My Commission expires:
iF
ORANGE COUNTY
Bonn• ley
0
Co a r�
c �
ATTEST• r
17 52
Clerk to a B o-arcrof om ssioners
NORTH CAROLINA
ORANGE COUNTY
This is to certify that on this day personally came before F0 1,Q• JAanr►n%C#-S[y✓ ,
with whom I am personally acquainted, and being by me duly sworn, says that Bonnie
Hammersley is the County Manager, and that she the said 7onN� T3a ke�e- , is
the Clerk to the Board of Commissioners of the County of Orange,the body politic and
corporate named within and which executed the foregoing instrument; that she knows the
common seal of said County; that the seal affixed to said instrument is said common seal; that
the name of corporation was subscribed thereto by the said County Manager and that the said
County Manager and said ( ew k -6 +L*. goaw-j subscribed their names hereto and
said common seal was affixed, all by order of the Board of County Commissioners of Orange
County and that said instrument is the act and deed of Orange County.
Witness my hand and notarial seal, this the day of
2015.
OFFICIAL SEAL
Notary Public,North Carolina
ORANGE COUNTY
Otary Public �_�• DAVID HUNT
My Commission Expires
My Commission expires: -T �e- 7_ 2-O ( q