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HomeMy WebLinkAboutAgenda - 02-16-2021; 8-g - Approval of a Resolution Authorizing a Revision in the Resolution Adopted April 21, 2020 That Authorized the Orange County FY 2020-2021 HOME Program Design 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 16, 2021 Action Agenda Item No. 8-g SUBJECT: Approval of a Resolution Authorizing a Revision in the Resolution Adopted April 21, 2020 That Authorized the Orange County FY 2020-2021 HOME Program Design DEPARTMENT: Department of Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Mark-up Resolution Emila Sutton, Director, Housing and Authorizing a Revision in the Community Development, (919) 245- Resolution Adopted April 21, 2490 2020 That Authorized the Orange County FY 2020- 2021 HOME Program Design Attachment 2: Clean Resolution Authorizing a Revision in the Resolution Adopted April 21, 2020 That Authorized the Orange County FY 2020-2021 HOME Program Design PURPOSE: To approve a revision in the resolution adopted April 21, 2020 that authorized the Orange County FY 2020-2021 HOME Program Design. BACKGROUND: Several revisions to the resolution to approve the project activities for the 2020- 2021 HOME Program, adopted by the Board on April 21, 2020, are proposed due to project changes and funding source requirements. The first revision is to the award of $94,138 to Habitat for Humanity of Orange County (Habitat) to provide deferred payment, zero interest second mortgages for three (3) homes in the Fairview Community in Hillsborough and Northside Neighborhood in Chapel Hill. Habitat has determined that it will be able to assist more than three (3) homebuyers with the allotted funds. As such, it is requested that the language be revised to read "at least three (3) homes." The second revision is to the award of$200,000 to CASA to provide gap financing for a forty-eight (48) unit rental development on Merritt Mill Road. CASA has determined that it no longer requires 2 the $200,000 gap financing, and has requested to return that award. As such, it is requested that the resolution be revised to remove the award to CASA. The final revision is to the award of $56,228 in HOME Community Housing Development Organization (CHDO) set-aside funds to EmPOWERment, Inc. as a predevelopment loan for a proposed rental development on Johnson Street in Carrboro (PEACH Apartments). After the resolution was approved and further research pursued by Orange County Housing and Community Development into funding restrictions on CHDO funds, it was determined that a predevelopment loan in that amount is not allowable per HOME regulations. As such, it is requested that the resolution be revised to read "development loan" rather than "predevelopment loan." These revisions are reflected in the attached "mark-up" resolution amendment (Attachment 1) and "clean" amendment (Attachment 2). FINANCIAL IMPACT: There is no negative impact to the County. The $200,000 of the returned HOME award will be available for reallocation to another eligible HOME use. 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 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. Affordable housing options allow individuals to reduce risks associated with being un-housed. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts applicable to this item. RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the Chair to sign the resolution (Attachment 2) authorizing a revision in the resolution adopted April 21, 2020 that authorized the Orange County FY 2020-2021 HOME Program Design. 3 RES-2021-011 Attachment 1 RESOLUTION AUTHORIZING A REVISION IN THE ORANGE COUNTY FY 2020-2021 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as the lead entity of the Orange County HOME Consortium approves the revisions in the Resolution adopted April 21, 2020 to allow for more than three(3)homes to be assisted through the Homeownership Assistance activity; to remove the award allocated to CASA for Rental Development; and to revise the language in the award to EmPOWERment, Inc. to read "development loan" rather than "predevelopment loan", such that the FY 2020-2021 HOME Program Design reads as follows in its entirety: Homeownership Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment, zero interest second mortgage for at least an esti .a4e three (3)homes in the Fairview Community in Hillsborough and the Northside Neighborhood in Carrboro. Homes will be sold to households earning between thirty percent(30%) and sixty percent(60%) of the area median income. (Requested amount: $390,000) $94,138 Rental Development Funds will be alleeated to CASA to provide gap finaneing for a fiarty eight (4 8) unit f!ental development on Meffitt Mill Read in Chapel 1441 a-ad Gafr-ber-o. Units will be !eased households eafning between thirty per-eenA 0 xty pefvent 0 ) of the area inedia (Reg-uest d a $35 nnm $20", 00 P-r-edDevelopment Loan Funds will be allocated to EmPOWERment, Inc. as a pr€development loan for a proposed rental development with eight(8)to ten(10)units on Johnson Street in Carrboro. Units will be leased to households earning between thirty percent (30%) and eighty percent(80%) of the area median income. (Requested amount: $200,000) $56,228 Program Administration $37,485 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of this plan and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the day of , 2021 Renee Price, Chair Orange County Board of Commissioners SEAL 4 RES-2021-011 Attachment 2 RESOLUTION AUTHORIZING A REVISION IN THE ORANGE COUNTY FY 2020-2021 HOME PROGRAM DESIGN BE IT RESOLVED, by the Orange County Board of Commissioners as the lead entity of the Orange County HOME Consortium approves the revisions in the Resolution adopted April 21, 2020 to allow for more than three(3)homes to be assisted through the Homeownership Assistance activity; to remove the award allocated to CASA for Rental Development; and to revise the language in the award to EmPOWERment, Inc. to read "development loan" rather than "predevelopment loan", such that the FY 2020-2021 HOME Program Design reads as follows in its entirety: Homeownership Assistance Funds will be allocated to Orange County Habitat for Humanity to provide deferred payment, zero interest second mortgage for at least three (3) homes in the Fairview Community in Hillsborough and the Northside Neighborhood in Carrboro. Homes will be sold to households earning between thirty percent(30%) and sixty percent(60%) of the area median income. (Requested amount: $390,000) $94,138 Development Loan Funds will be allocated to EmPOWERment, Inc. as a development loan for a proposed rental development with eight(8) to ten(10)units on Johnson Street in Carrboro. Units will be leased to households earning between thirty percent (30%) and eighty percent(80%) of the area median income. (Requested amount: $200,000) $56,228 Program Administration $37,485 BE IT FURTHER RESOLVED, that the County Manager is hereby designated as the authorized representative of the County to act in connection with the submission of this plan and to provide such additional information as may be required by the U.S. Department of Housing and Urban Development. This is the day of , 2021 Renee Price, Chair Orange County Board of Commissioners SEAL