HomeMy WebLinkAboutAgenda - 06-07-2005-5ddORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: .June 7, 2005
Action Agee
Item No.
SUBJECT: Housing Bond Program Award to EmPOWERment, Inc. for Land Banking
Project
DEPARTMENT: Housing/Community Dev
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Committee Recommendation
Status Report - EmPOWERment, Inc,
INFORMATION CONTACT:
Tara L, Fikes, ext 2490
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider awarding housing bond funds in the amount of $129,930 to
EmPOWERment, Incorporated to purchase land in the Pine Knolls community in Chapel Hill
and authorize the Manager in consultation with the County Attorney to enter into a Development
Agreement detailing the conditions of award.
BACKGROUND: In .June 2004, the Bcard of County Commissioners (BOCC) approved a
revision to the Affordable Housing Bond Policy that incorporated a Land Banking Program that
provides the opportunity for local organizations to utilize bond money to purchase land that
becomes available in the community prior to the establishment of a firm development plan. A
total of $260,000 in FY 2001 Housing Bond funds was allocated far this program,
The first application for Land Banking funds was received on March 23, 2005 from
EmPOWERment, Incorporated requesting $135,000 to purchase two properties in the Pine
Knolls community of Chapel Hill. The two properties are located at 122 and 124 .Johnson
Street. EmPOWERment plans to construct a total of four new homes on these lots to include
three new condominium units and one single family dwelling by June 30, 2008.
As required by the Orange County Hotasing Bond Policy, the Project Review and Selection
(PRS) Committee held apre-application conference with staff from EmPOWERment to discuss
the proposed application, reviewed the submitted application, and then met with the
organization to discuss the committee's funding recommendation. Members of the Project
Review and Selection Committee include: County Staff Members: Gwen Harvey, Ken
Chavious, Paul Thames, Craig Benedict, and Tara Fikes; Commissioners Valerie Foushee and
Barry Jacobs; and Affordable Housing Advisory Board Members Brian Crawford, Jabrina
Robinson, and Allan Rosen, The Committee alsc includes representatives form the Towns of
Carrboro, Chapel Hill, and Hillsborough in the person of James Harris, Loryn Barnes, and
Margaret Hauth respectively,
z
After review of the application as well as supplemental material submitted by EmPOW ERment,
the Committee recommends the allocation of up to $129,930 in housing bond funds to assist in
the purchase of the Johnson Street properties. This amount is less than the original request of
$135,000 due to the calculation of appraised value for the lots. Attached to this abstract is the
detailed recommendation from the committee. Also included is a current status report of
projects underway by EmPOWERment, Incorporated as additional information.
FINANCIAL IMPACT: Funds are currently available in the approximate amount of $260,000 for
the Land Banking Program within the FY 2001 Affordable Housing Bond Program.
RECOMMENDATION(S): The Manager recommends that the Board award housing bond
funds in the amount of $129,930 to EmPOWERment, Incorporated to purchase land in the Pine
Knolls community in Chapel Hill and authorize the Manager in consultation with the County
Attorney to enter into a Development Agreement detailing the conditions of award..
3
Orange County
Mousing and Community Development
Date: May 31, 2005
To: Orange County Board of County Commissioners
From: Project Review and Selection Committee
Subject: Land Banking Application dated March 23, 2005
cc: John M. Link, Jr„ County Manager
The Project Review and Selection (PRS) Committee has reviewed the above referenced
application regarding the purchase of 122 and 124 Johnson Street in Chapel Mill. The
following details the committee's recommendation for bond funding for this project based
on the original application, the post-review recommendation conference, and additional
application material dated May 27, 2005,.
The original application asked for $135,000 in Orange County Affordable Housing Bond
Program for the purchase of the two Johnson Street properties with a total cost of
$154,900. After review, the committee recommends contributing to the cost of land only
for the project, The cost of the two properties including the reconstituted third lot is
calculated as follows,
122 Johnson Street Value $30,000
(includes existing dwelling)
Appraised value of land only: $30,000
124 Johnson Street Value $30,000
(vacant property)
Appraised Value: $30,000
Creel Street Value: $66,000
(vacant property)
Appraised value: $66,000
The Committee is recommending using bond funding to purchase the lots only at
$126,000 plus applicable closing costs associated with the purchase of the lots, which
appear to be $5,243, for a total of $131,243,. Please be advised that all band projects
require some leveraging of funds from other sources.. Thus, the maximum bond funding
must equal an amount up to 99% of the total acquisition costs or in this case $129,930,
All band funding would be provided as a grant with a development agreement that would
contain grant requirements.
Page 2 I `t'/
Additionally, all bond awards require, at a minimum, an appraisal, title opinion, a site ~%
inspection, and survey as well as a Phase I environmental report, before the award can
be granted. The PRS Committee also requested a status report of your organization's
current projects including an inventory of currerit property holdings with a projected
completion schedule.. This report is attached to this Memorandum.
If you have additional questions, please feel free to Tara L. Fikes, Housing/Community
Development Director.
5
C
d
U
G
N
~.
0
d
d
W
O
O
N
1!')
O
O
N
L
W
C
a
c:
z
v
x
LL
0
0
N
N
d
V
V
u~
0
0
N
N N
N
V
C
r ~
w
U
C
y
C
f0
CO
N D
C
m
J
w
O
l9
N ~
o.
n
Q
c rn
O C
U (p
2 ~
N ~
C
N
O
U ~~
0
~- c
~ mo
°' ~ m
o d
i