HomeMy WebLinkAboutAgenda - 04-06-2021; 8-g - Merritt Mill Apartments Development Updates 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 6, 2021
Action Agenda
Item No. 8-g
SUBJECT: Merritt Mill Apartments Development Updates
DEPARTMENT: Housing and Community
Development
ATTACHMENT(S): INFORMATION CONTACT:
Emila Sutton, Director, Housing and
Community Development, (919) 245-
2490
PURPOSE: To receive an update on changes to the Merritt Mill developments being financed in
part with Affordable Housing Bonds Funds and consider authorizing the developments to move
forward as detailed.
BACKGROUND: In the fall of 2016, Orange County voters approved a $5 million Affordable
Housing Bond. Half of the bond funds ($2.5 million) were awarded in 2017, with CASA, a 501(c)3
affordable housing developer, receiving two allocations totaling $1,373,366 for the construction of
affordable rental units. CASA's Merritt Mill East project was awarded $636,533 to fund the
development of 12 new rental units and Merritt Mill West received $736,833 to construct 16 new
rental units. Both developments were proposed to serve families earning at or below 50% of the
area median income, with priority for people with disabilities and/or experiencing homelessness.
Since 2017, the projects have evolved to provide more affordable housing opportunities for low-
and moderate-income Orange County residents. The two separate projects have merged into one
48-unit apartment development to serve families and individuals earning less than 60% of the
area median income, and in 2020, CASA received a Low-Income Housing Tax Credit award from
the North Carolina Housing Finance Agency to finance the project.
Due to these changes, all future documents such as development agreements will need to be
executed between the County and Merritt Mill Apartments, LLC rather than CASA. CASA will be
the managing member of the LLC. The ceremonial groundbreaking for Merritt Mill is scheduled
for April 2021, with construction to begin later in the spring. CASA has consistently communicated
its progress on this development with County staff, and requests approval from the Board to make
the necessary changes to the development agreement for County Bond funding in order to
execute the agreement.
FINANCIAL IMPACT: There are no financial impacts anticipated with this item.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to
this item:
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• 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.
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts applicable to this item. Before implementation, all proposed projects will undergo review
according to applicable planning, zoning, and environmental health authorities.
RECOMMENDATION(S): The Manager recommends that the Board approve the changes
described herein to the Merritt Mill Apartments development agreement and authorize the County
Manager to sign the agreement and all other necessary legal documents associated with the Bond
awards to CASA following approval by the County Attorney's office.