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HomeMy WebLinkAboutAgenda - 03-20-2001-5aA r ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 20, 2001 Action Agen a Item No. .- SUBJECT: Orange Community Housing Corporation (OCHC)/Community Land Trust in Orange County (CLTOC) Merger DEPARTMENT: Housing/Comm. Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Letter Tara L. Fikes, ext 2490 Resolution TELEPHONE NUMBERS: Hillsborough 732181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To adopt a resolution in support of the merger of the Orange Community Housing Corporation and the Community Land Trust in Orange County. BACKGROUND: The Board of Commissioners has received the attached letter from the Board Chairs of the Orange Community Housing Corporation (OCHC) and the Community Land Trust in Orange County indicating their desire to merge the two organizations. The Orange Community Housing Corporation was incorporated in 1990 to address the affordable housing needs in the County. Specifically, the mission of the organization is to initiate and support the construction, conversion, or rehabilitation of both rental and owner- occupied housing units for families and individuals in Orange County with incomes at or below 80% of the area median income. The Community Land Trust in Orange County (CLTOC) was incorporated in May, 1999 to provide a way to create a permanent stock of affordable housing for low and moderate income families in the community. The two organizations have worked together, utilizing the same staff, since the inception of the CLTOC; thus the proposed merger is not expected to cause any change in the tangible housing projects implemented by both organizations. Rather, this merger is proposed in order to have greater organizational efficiencies by operating as one entity. FINANCIAL IMPACT: There is no immediate financial impact. The Board of County Commissioners presently provides administrative financial support to both organizations through the annual non-departmental budget. Should the merger occur, the cumulative total will be requested by one organization. 2 RECOMMENDATION(S): The Manager recommends that the Board adopt a resolution in support of the merger of the Orange Community Housing Corporation and the Community Land Trust in Orange County. s Board o Directors Kcifh D. Cavk Chairman Wsyarre Kurecl vice-Chairman ,jai Gurlifz secn:raiy 1Pvbri I~clrey 1`reasua+er Marian Br~av~cs Jmr F,srnhsnit J;rtt Gillen weedy Farring~vn Jae Her~enl;~rg R~cliael Murphey GarrySrnnae Jahn 7,Jvi~/1 aob w~ Executive Director Ro1~ Dlvwlitg ~~'pFEB232001 la ebruary 21, 2001 Board of County Commissioners Chapel Hill Town Council Carrboro Board of Aldermen Hillsborough Town Board Dear Orange County Elected Officials: This letter comes to you from Orange Community Housing Corporation (OCHC) and the Community Land Trust in Orange County (CLTOG). As you already know, OCHC has provided staring for CLTOC since the inception of the land trust in May 1999. After several months of consideration, we believe both organizations would significantly benefit by merging to form one nonprofit corporation. We are writing to request your endorsement of this merger. The primary, and compelling, motivations for merging OCHC and CLTOC aze as follows: 1. A merged organization with one board of directors will possess greater clarity of mission and purpose. 2. A merged organization will allow greater operational efficiencies. The merger would be lazgely transparent to you, our government fenders. A board of directors that will include an appointee from each of the local governing boards will still govern OCHC (which may possibly be renamed in the course of the merger). In fact, we expect many of the existing board members from both OCHC and CLTOC to remain with the new organization. We will retain the same staff and will continue to work on existing projects like Legion Road, Meadowmont, Milton Avenue, the TANF program, etc. However, direction to the staff will come from a single board, rather than two independent boards. The new organization will be free to pursue projects within the land trust structure (which will be preferred) ar outside of the land trust if necessary. We will also pursue collaborations with other providers of affordable housing. On the advice of our accountant, we hope to make the merger effective on July 1, 2001, the start ofthe new fiscal year. This will simplify accounting matters for OCHC, CLTOC and the new organization. As we prepare far this possible merger, we wanted to be sure you were all aware of our plans. We very much appreciate the support you have provided us over the years and we hope to work even more closely with all of you in the future. 3 P.O. fox 347 ~ I44-C,Janes FerryKd ~ Cazrbvin, NC Z7SI0 ~ 9I9-967-1545 ~ fsx 9I9-968 4434 4 In order for us to continue our progress toward a merger, we would like your endorsement as soon as possible. We are happy to provide a presentation or answer any questions you may have. Please let us know how we should proceed. Thank you again for your support. Please feel free to call Keith at 471-1537, Alison at 962-6979 or Robert Dowling at 967-1545 if you have any questions. Sincerely, -, ~~ ith D. Cook Board Chair OCHC ,~ . Alison Weiner Board President. CLTOC 5 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION IN SUPPORT OF THE MERGER OF THE ORANGE COMMUNITY HOUSING CORPORATION AND THE COMMUNITY LAND TRUST IN ORANGE COUNTY WHEREAS, the Orange Community Housing Corporation was incorporated in 1990 as anon-profit organization established address the affordable housing needs in the County; and WHEREAS, the Community Land Trust in Orange County was incorporated in May 1999 as anon-profit organization to provide a way to create a permanent stock of affordable housing for low and moderate income families in the County; and WHEREAS, the Orange Community Housing Corporation has served as the administrator of the CLTOC since its inception; and WHEREAS, each organization has operated with an independent Boazd of Directors and separate Bylaws; and WHEREAS, after several months of operation, it has become appazent to the two independent Boazds of Directors that it would be more operationally efficient to merge the two groups into one group; and WHEREAS, the two organizations have worked together, utilizing the same staff, since the inception of the Community Land Trust; and WHEREAS, further analysis of situation reveal that a merged organization with one Boazd of Directors will possess greater clarity; and WHEREAS, current housing project activities of the two organizations will not be diminished by the proposed merger to be effective July 1, 2001; NOW, THEREFORE BE IT RESOLVED by the Orange County Boazd of Commissioners, that the proposed merger of the Orange Community Housing Corporation and the Community Land Trust in Orange County, NC as described in the February 21, 2001 letter from the Board Chairs of the two organizations has the support of this Board. This the 20`h day of March 2001.