Loading...
HomeMy WebLinkAboutAgenda - 03-10-20; 8-h - Approval of the Transfer of Ownership of One (1) Manufactured Home Unit to Empowerment, Inc. 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 10, 2020 Action Agenda Item No. 8-h SUBJECT: Approval of the Transfer of Ownership of One (1) Manufactured Home Unit to EmPOWERment, Inc. DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Resolution Emila Sutton, Director, Housing and Community Development, (919) 245- 2490 PURPOSE: To approve a resolution transferring from Orange County to EmPOWERment, Inc. the ownership of one (1) manufactured home purchased under the previously approved Orange County Land Banking/Manufactured Home Park Initiative's Displacement Mitigation Assistance Program (DMAP). BACKGROUND: On November 20, 2017, the Affordable Housing Land Banking/Mobile Home Park Work Group presented the Board of County Commissioners (BOCC) with its recommendations on strategies for mitigating resident displacement and relocation challenges due to park closures and redevelopment efforts. On March 20, 2018, the BOCC approved entering into an agreement with EmPOWERment, Inc. to assist the Housing and Community Development Department with Relocation Coordination Services under the County's new Displacement Mitigation Assistance Program (DMAP). Given the proposed closing of a manufactured home park along NC 86 South and the number of families who initially needed to relocate and the condition of their existing units, two (2) new manufactured home units were purchased. One family was relocated and another family chose not to relocate but continued to work with the park owner, who changed his mind about closing the park. Therefore, the County collaborated with Habitat for Humanity as it related to providing assistance to a unit owner living in the Tar Heel Mobile Home Park in Chapel Hill. Partnering with Habitat, the County utilized the unit purchased earlier to provide assistance to a single-parent household with a school-aged child who was experiencing medical issues give the indoor air quality of their existing unit. The existing unit was beyond repair and exceeded the unit lifespan as determined by the manufacturer. 2 The Tar Heel Mobile Home community was sold approximately 20 months ago. At that time the new owners shared with the tenants the vision to build a gas station and a three-story storage unit. The owners shared at that time some residents were going to be re-located in other parts of the park and also warned some leases were not going to be renewed. One of those families is the recipient of this third manufactured home. The family has two working adults and five children living in the home, and have lived in the current home for almost 15 years. Per the landlord, leaving the park was their only option, and as such, EmPOWERment determined this family was a candidate for the DMAP program. The Displacement Mitigation Assistance Program (DMAP) has a lease-purchase component that allows for manufactured home park tenants who received a replacement unit under the program to purchase units after twelve (12) months of successful renting. The home must be affordable and payments must not exceed thirty percent (30%) of the household income. The proposed transfer of ownership of the one (1) new manufactured home units to EmPOWERment, Inc. would allow for the activation of the lease-purchase component. The formula for calculating the purchase price for each of the units is as follows: • Purchase price shall not exceed seventy percent (70%) of the original base purchase price and the mortgage shall be for a period of 10 years with a zero percent interest rate. 0 3-Bedroom Unit: $30,824 X 70% _ $21,576.80. $21,576.80/10= $2,157.68. $2,157.68/12 = $179.81 per month. 0 2-Bedroom Unit: $29,633 X 70% _ $20,743.10. $20,743.10/10= $2,074.31. $2,074.31/12 = $172.86 per month Note that the above monthly amounts paid by tenants to EmPOWERment, Inc. under the lease-purchase component will be transferred to the County on a monthly basis. To date, one tenant has expressed interest in purchasing the manufactured home. FINANCIAL IMPACT: There is no negative impact to the County. However, the value of the asset or manufactured homes will be transferred to EmPOWERment, Inc., but all mortgage payments will be returned to Orange County. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. The creation and preservation of affordable housing options helps to meet a basic human need and advances economic self-sufficiency. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. 3 Affordable housing options allow individuals to reduce risks associated with being in unstable housing or experiencing homelessness. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: 1) approve and authorize the Chair to sign the resolution transferring ownership of the one (1) manufactured home unit to EmPOWERment, Inc.; and 2) authorize the County Manager to execute any agreements or other required documentation subject to legal review and approval by the County Attorney as it relates to transferring the property to EmPOWERment, Inc. 4 R ES-2020-014 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION AUTHORIZING THE CONVEYANCE OF COUNTY- OWNED PERSONAL PROPERTY BY PRIVATE SALE TO EMPOWERMENT PURSUANT TO N.C.G.S. § 160A-279 TO PROVIDE AFFORDABLE HOUSING TO PERSONS OF LOW OR MODERATE INCOME WHEREAS, Orange County owns manufactured homes identified by Serial Number CWP039516TN; and WHEREAS, the manufactured homes in question were purchased by Orange County pursuant to the Affordable Housing Land Banking/Manufactured Home Initiative Development Agreement ("Development Agreement") between Orange County and EmPOWERment, Inc. ("EmPOWERment"); and WHEREAS, the Development Agreement permits Orange County to transfer ownership of manufactured homes purchased pursuant to the Development Agreement to EmPOWERment, a North Carolina not-for-profit corporation engaged in providing quality housing to low and moderate persons in Orange County; and WHEREAS, EmPOWERment will lease the manufactured homes to low to moderate income persons in Orange County facing displacement and relocation challenges due to manufactured homes park closures and redevelopment efforts within Orange County; and WHEREAS, North Carolina General Statute § 160A-279 provides that whenever a county is authorized to appropriate funds to any private entity which carries on a public purpose, the county may, in lieu on appropriating funds, convey for private sale to such entity any personal property which is owns provided that it attach a covenant which will assure the property will be put to a public use by the recipient entity; and WHEREAS, North Carolina General Statute § 153A-378 provides that assisting with providing housing to persons of low or moderate income is a public purpose; and WHEREAS, North Carolina General Statute § 160A-279 requires that the procedural provisions of North Carolina General Statute § 160A-267 shall apply, which statute requires that the Board adopt a resolution authorizing appropriate officials to dispose of the property by private sale at a negotiated price, and that a notice summarizing the contents of the resolution be published once after its adoption, and that such sale be consummated no earlier than ten (10) days after the publication of said notice; and WHEREAS, the Orange County Board of County Commissioners has determined that it would be in the public interest and appropriate to use this statutory authorization to convey the manufactured homes to EmPOWERment. NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of Commissioners that the following procedures and standards for affordable housing are hereby adopted and shall be followed: 5 1. That the County Manager is hereby authorized, subject to legal review and approval by the County Attorney, to execute the necessary documents to convey the above- described manufactured home to EmPOWERment for the price of one dollar ($1.00) with the covenant that EmPOWERment shall rent the manufactured home to low income families earning up to 80% of the HUD area median income, including entering into lease-purchase agreements with eligible tenant families to facilitate homeownership by persons of low or moderate income in Orange County, pursuant to Orange County's Displacement Mitigation Assistance Program ("DMAP"). Tenants participating in DMAP's lease-purchase component shall spend no more than thirty percent (30%) of their total household income on the purchase of the unit. EmPOWERment shall further covenant to return to Orange County on a monthly basis all payments made by tenants who will be purchasing their replacement manufactured home unit under the lease-purchase component of the Displacement Mitigation Assistance Program (DMAP), not including the monthly maintenance fee or lot rental fee. 2. That the Clerk to the Board is directed to publish a notice summarizing the contents of the resolution once after its adoption, and that the transfer of the manufactured homes to EmPOWERment not be consummated until at least ten (10) days after its publication. Adopted this the 10th day of March, 2020. Penny Rich, Chair Orange County Board of Commissioners ATTEST: Donna Baker, Clerk to the Board Approved as to form and legal sufficiency: County Attorney's Office