HomeMy WebLinkAboutAgenda - 05-08-2002 - 9b ORANGE COUNTY BOARD OF COMMISSIONERS _
ACTION AGENDA ITEM ABSTRACT
Meeting Dale: May 8.2002
Action Agenda
Item him 9-6
SUBJECT: Housing Bond Promised—Change in Location
DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
1997 Bond Program Status Repent Tara L. Fikes, ext. 249D
Letter from Chds Moran
Memorandum from Lane Sarver
Floor Plana TELEPHONE NUMBERS:
Hillsborough 7324181
Chapel HIII Hill
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To approve the transfer of the appropriated of$300,000 In Housing Bond
funding from the Freedom Park Apartments sponsored by the Inter-Faith Council m the Club
Nova Single Room Occupancy Project being sponsored by the Orange-Person-Chatham
(OPC) Foundation and the N . Menial Health Association.
BACKGROUND: In November 1997, Orange County voters approved a $1.8 million dollar
housing bond issue. Affordable housing projects were awarded funding in December 1999
and June 2001. A Status Report ofthese projects is attached to this abstract.
Among the projects awarded in June 2001, the Board of County Commissioners (BOCC)
approved $300,000 in housing bond funds W assist in the development of a proposed 20l
Single Room Occupancy (SRO) apartment complex to be known as Freedom Park
apartments. The proposed site were adjacent to the existing Freedom House Recovery Center
and the project sponsors were Inter-Faith Council IFC)and Freedom House. Simultaneously,
IFC applied for approximately $400,000 in permanent housing funds from the US.
Department of Housing and Urban Development (HUD) for the project last summer.
Unfortunately, that application was not approved. Subsequently, the Freedom House Boats
of Directors decided not to develop the SRO project due to the HUD decision among other
reasons. Nevertheless, they are still supportive of the concept and support finding another
sponsor and location for the project. (Seethe attached letter from Chris Moran.)
Specifically, IFC is asking the BOCC to approve the transfer of the dollars allocated to the
Freedom House apartments to the SRO project presently proposed by the OPC Mental Health
Foundation and the NC Mental Health Association in Carefree. The specific project Proposes
the constructed of 24 SRO units to be built at 103 West Main Street in Carl behind the
existing Club Nova building. All units will serve families with disabilities and with incomes
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below 30% of Orange County's median income level. The Town of Carbone approved 3
Conditional Use Permit far the project on April B. 2002. More specific protect information is
provided in the attached memorandum from Lane Sarver.
FINANCIAL IMPACT: Bond funds areal to this project represents an expenditure of
$300,000 of the $1.8 million dollar Affordable Housing Bond approved in November 1997.
RECOMMENDATION(5): The Manager recommends the approval of the transfer of the
appropriation of$300,000 in Housing Bond funding from the Freedom Park Apartments tc the
Club Nova Single Room Occupancy Project being sponsored by the OPC Foundation and the
N.C. Mental Health Association
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(919)929-8388,Ina: (919) 933-1112
April as,2002
Chair Barry Jambe and Commueionera
Orange County BOmd of Cammieaiooew
pO Boa 8181
Hillebcrough,NC=78
Our Chair Jacobs and Commissioners:
Atyour Septemberr9,Boonmeeting you uvumm sslvpasaeda formal resolution
organizations ggth e t hat t had cre Co uanv c il Orange Comety Co m(Ii�vuu em n d o f o ther Committee
(C
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cantuoIran al bowleg;e s for baseness families Ayou th
e r rgani approved and eril applicationto the art of
Housing and ur ban Development(HUD)last October HUD approved ou comprehea w
play and w Lions submitted for Project Homemrt and OPC Mental Health Area
program's Shelter Plus Ca reservices. Ul mely,our affordable housing application
requesting$400,000 for a 20-not t Si ngle Roo m Oompnty project at Freedom House was
not approved. -
IFC aiaaa submitted other affordable housing applications in mnjunetlov with HUD
exhibim to support the SRO project.The Board of Commiwbvere aodthe North Carolina
Ho gFinanm AgmU(NCHPA)appr dommbivedromlof$"o,000tobuild SRO
decider the PreedomhoSR leCtijece The Freedom HOUSens HUD's funding decided retobu8dthe SRO projector tiedproparty support HUD'shording detlnd and
for otherreason.Theoboard and e o wholeheartedly support project mthmdnd
another location thm caul dwelthe COCsgoalto develop aeco mendalnthe mmOrnage.
Courowill remember,the development of SA ed in t eir O recommendation of the Orange
Covnty ABmdabk Housing Task POrm outlined N their Oemberar,soar roport.
IFC now asks thatthe Board of Commissioners approve a request for"a change oflocawn"
se the funds you have allocated to the MC can be used for the Club Nova SRO project.The
SRO project will be a th as-smry samples-24 single-mom afficievry aputmevb—lacerd
behind Club Nave at log Wet Blain Street m Carrboro.Odle elmdev tithe architect who
designed the SRO projesb Your decision to approve our request will enable this praisel to
go forward to help the growing number of individuals with disabilities to resins affordable
housing.NCHPA staff ban supported Me request for "a change of location"to Club Nova.
They are recommending that the NCHPA Board give Heal approval m its May meeting.
Approval will include a supportive housing allomtim of$4a0,00 o that en be used by the
OFC Foundation and the Mantel Health Association of North Caroline,Inc.who are the
primary developers for the 24 affordable SRO unite at the Club None
5
April 21,2002 Letterer the Orange County Board of Commissleaers
Page 2
location.Acombination of county,state and tax credit dollars will provide all of me capital
seem needed for this SRO.Major benedm earn by the IFC Include:
• A greener pumber of affordable wire—aq in all;
• Durect involvement of Club Nova members in the planning of the SRO project;
• A committed partnership between the In,the OPC Foundation,On Mental
Health and the Mental Health Association of North Carolinc;
• Tower of Carrboro unanimous approval and a Conditional Use Permit to be issued by
May to for the SRO project;
• The Club Nova location is more UNIVEDy located for SRO residents to em®e
community services such as by IFC,On Mental Health,Club Nova support stuff,
Orange County Literary Connell,Skills Center,the 0mnge County Mental Heal th
Association and Piedmont Health Services;
• Noalkre public transportation is available for residents m access;community
senses,jabs,downtowns stone and medical services;
• North Carolina Housing Finance Agency has allocated$00.ono to the IFC for the
SRO project and will approve"a cbange in location"uema mwdation by a tbe¢
May meeting.
Chair Jambe and Commissioners,as you know, IFC boa developed and sponsored many
affordable housing projects over the yearn.Most rescuily,we were a co-spons ring
partner for the Manly Estates 202 housing project on Merritt Road Our role here,
however,has been to help non-pro&groups was Orange County to attract mere
affordable housing dollars into the community for persons who are either homeless,
disabled and low-income.The 24-unit Club Nova development is an Ideal housing
model that the Affordable Housing Task Force and 6e 00 bas been working for in
Orange County.With your approval,an affordable bousing dream will come trues
Please do not hesitamm commit me for wore information,or ask me your questions.
Sincerely,
in
P C�f'_
Chris Mom,Executive Director
InmM1Faith Council for Social SeMm
m: John M.link,County Manager
Two Agars,Housing Director
John Tote,Mental Health Association of NC Director
Omtchem Davis,On Foundation Dlratm
Tom Maynard,On Mental Health Area DireGOr
WO C FrankEV Sqw
1629 E.FraMliv Street 6
Chapel Hin. NC 275 145y)8
(919) 967-5520 FAX (919) 967-5506
e-mail:L bar er@aoLasn
L. Lane Sarver, Inc.
April 21, 2002
MEMO
TO: Tara likes, Director
Orange County Housing and Community Development Department
FROM: L. lane Sarver, ALA, AICP, Housing Consultant
RE: Fact Sheet on Site Transfer Request of Funds Allocated To
Interfaith Council for Social Service, Carrigan, North Carolina
Request of site transfer from Parkslde Drive, Chapel HILL, NC to
103 West Main Street, Carrboro, NC
Conditional Use Permit Unanimously Approved by Board of
Aldermen, Town of Carrborn on 9 April, 2002
Revised Configuration of Project
24 units, Single Room Occupancy (SRO)
Three story building, eight units per floor. Copy of Plans Attached.
Located on property owned by O-P-C Foundation for Mental Health,
Inc
Sponsors:
O-P-C Foundation for Menial Health, Inc. &
Mental Health AmWation in North Carolina, Inc.
Plruvdng and Homing Comuhmd Services to Nonprofit Providers of Affordable Housing since 1976
1
Estimated Project Cost $7,526,125.00
Uses of Funds:
1. land Cost $ 156,000.00
2. land Improvements 38,000.00
3. Construction Costs 967,990.00
4. Total Soft Coles 72,430.00
5. Total Other Costs (Arrtg.,fax Opinion,Tmpact Fees) 93,307.00
6. Operating and Start-up Reserves 821560.00
7. Developer Fee Items (Contingency, Planning, Aden) 115.R38.00
TOTAL DEVELOPMENT COST $ 1,526,125.00
Sources of Funds:
1. Orange County HOME Consortium (OP(:) $58,560.00
2. North Carolina Housing Finance Agency
Energy Efficiency Deferred/FOrgfveable [man 180,000.00
3. North Carolina Housing Finance Agency
Supportive Housing Program Zero% Loan 220,000.00
4. Equity Investment through Low Income Housing
Tax Credit Program- Section 42 Federal
Tax Credit Purchasers 607,565.00
5. Orange County Low Income Housing Bond Funds 300,000.00
6. Mortgage Loan from Bank 160.i1fN1 no
'AYI Al- SOURCES S 1,526,125.00
Rents will be set at Section 8 Fair Market Rents - 5545.00
All residents will have access to Section 8 Vouchers or Shelter+ Care
Rental Assistance. Residents will pay 30%of their income for rent.
Most residents will have incomes hmlled to SM of apprmz $525.00
per month; their rent will he 3096 of$525.00,or $158.00 per
month.
8
SECTION 5. PROJECT' OPVELOPIvIENT COSTS (continued) 24
Compare tee fol cos[infolmatbn as 4.21 02
OpC FounMd con&MHAMC 0118 NOVA AprS, CartMro, NC
A. USES OF pUNOS
CMT REMS COST TO PROJECT PER UNIT COST
1 Land $156,000.00 $6,500.00
20rreite improvements $38,000.00 $1,583.33
3 offsite im rorements $0.00 $0.00
fl3ALd$IPIFUVE1}Eri , -,, ,< , ,� „ ,. ''. .1[ $8,083.33
5 building ac uaRlpn $0.00 $0.00
6 rehabllihtbn rost$ $0.00 $0.00
7 new puldings $901.295.00 $29,220.63
8 consxmction Conn In develo ra fee $000 $0.00
9 general reulrementa $59,143.60 $2.464.32
10 Control averFead(2 ) & Mft 8% $76,043.86 $3,168.49
1l architect -desn (4%of line 6 or 7 e 9) $34,979.30 $1,457.47
II ammett -m mor mm 1%of Ilne 2 & 6-10 $8,744,52 $364.37
13.1 other constmcnOn costs(oord,fees) • $87,783,90 $3,657.66
,•.::'Y - ; '" '"' ::.°e .% 9.`v18.. $40332.94
14 real estate attornal SISAWOO $641.67
15 corstntont(Indeveloperfee). $0.00 $0.00
16 surn s $4,000.00 $166.67
17 commmaion insurance $121500.00 $520.83
18 NC FA Loan Ongration Fee (1%of Ni bon) $4,000.00
19 constructor per o ' (nation fee $7,676.00 $319.83
20 construction loan Interest @ 5.5% $10,554.00 $439.75
21 real estate taxes $1200,00 $50.00
22 pernnarent loan o manor fee $1,600.00 $66.67
23 pearl loan credit he $0.00 $0.00
24 title eM ral Ol Me lro) $5,000.00 $208.33
25 these I Env. Assmt. $1 500,00 $62.50
26 orarerre soemaai 44,000.00 $166.67
27 COST CertiNcatbn Fee $2,500.00 $10417
28 Otter_SMIe 1neen T $21500100 $104.17
;�29 0$ , E s ' ::4s s a e 1 a��v$T ,4 $3,017.92
o
30 Developers Fee (Max 10%Ina 127 Was 35&10 $115837.66 $4,826.57
31 Rent Up Reserves $0.00 50.00
32 Operating Reserves $82,560.00 $3,440.00
33 FurniaN s and EquRarnent $0.00 $0.00
34 Escrows $0.00 $0.00
35 OtMr(ACCOUnti , Le al Tax con,Iml Fees) 593,307.00 1 ,887.79
36 .e..ea „"2, • . '^; t "' �. . $12.150..36
w2 m ^sXP;�SiT2Sifi !:, $63.588.55
SUCHON S. PRO)P.CT DEVEWPMENT COSTS (contlivi
OPC PoUnda[on&MH4/NC • CWBNWAAPT3CarrEwo NC Revised 4.21 02
B. SIXIRIFS OF FIWpS Amamt Merest Loan Amort¢ing Repayment Ron Comma-
ofLoa Rate Term PWOd in Slruqure enI Y/N
38 Bark Loan 1GO 000 8.00% 30 360 360 Iwn N PmtlM
39 NCHFA Guarani Horsing Bev.Program 220,000 0.0096 30 360 Iwn ffmd Ngl
40 Other Oaths Onc -OraneHOME Cram 58,560 0% 30 360 1 deferred bm I Y
41 Founrbnon/Prleate 0 0% 30 0 1 nom N
42 NCHFA Sapportivi NaaYg Oev. Program 180,000 deferred loaf N (PoWf )
Deferred Payment Lcand 0 0 0 0 Na
43 than Fed.i 607565 0 0 0 ne Na
44.1 Other State IIWC 0 0 0 0 hi Ma
442 0llm Or eC NOuT Bond FUnds 300000 0% 30 360 deferred lam N Forum mi
45 TOTPL SWPCFS Atltl llnes3)-03:Ina 44 1,526,125
must mial Line 36,imal Development Gst MMM
'Allocated funds requested for site croange to this location.
10
SECTION 6. PROJECT OPERATING PROFORMA
OK Fourltlatitxr& MI-A/W • C NOVA APTS, Carrbora, NC Revised 421.02
In the sMbl,describe resident fees/rents,other project Imcrtce,the suppoKrve services Weser and
the operating Whet as insGUVted in each adaectim,and create a five-year rash flow for your project.
A. PROJECT OPERATING INCOME NUmted of Units: 24
(a) Type of Income b Source of Income c Monthl d Annual
Income to Mcone
Monthly Unit Rent incl utlF— $545.00 Project (C x 12)
1 Resident feeVmm 30%Resident Income $13,080.00 $156.960.00
2 Rental As55tance S B Pro' Bard in t above in 1 above
3 0 mdn uladdy to prolea None $0.00 $0.00
4 Semmes sulany to project None $0.00 $0.00
5 Other_ None 50.00 $0.00
6 Other_ None JkMc
2 PROJECP INCOME TOTAL $13,080.00 S1561960.00
R. PROJECT OPERATCVG EXPENSES
(a)Operating 6 rise (b)Pmvicler of c) Month (d) Annual Cost
Operathno Rem con to Pro c x 12)
8 ACministfac've/O rations M mtA nt(Contram $1,120.00 $13,440.00
9 Supplied Milint A nt(Comraa $50.00 $600100
10 Utilities Rents(Section 8) $1,306.00 $15,622.00
11 Trash Rernoval none 50.00 $0.00
12 Re it/Maintenance Rents Section 8 5300.00 $3 600.00
13 Pm /Liadli Insurance Rents(Seeded 8) $236.00 S&632 C0
14 Gromltls Rents Section 8 $100.00 SL200.00
15 O[her(Utermimatin ) Rent; Section 8) $150.00 $11800.00
16 Other-Real Estace Term Rants (Second 6) $1,000.00 $12,000.00
12 at 50.00 40.00
IB Otter rune $OAO S0.00
19 Re ve
acement Resers Ren[s5ec[iw8 4500.00 $60000
0.
20 ONer $0100 00
2l Operating H nu9 Total
E5,2fi2W $fi3,144.(10
Per Unit= $219.25 1 $2,631.00
Per Unit W/or erveslwmetc.-i $156.25 1 $1,881.00
SECTION 6, PROJECT OPERATING PROFORMA (continued)
OPC Foundation& MHA/NC • CLUB NOVA ARTS, Carrboro, NC Revised: 4.21 02
C. SUPPORIWE SERVICES EXPENSES 4,21 02
NOTE: Supportive Case Management Services wil be provided] by(kange-Person Chatham
Area Mental Hea1M Audaonty. Project cash flow will cover cost of se"ice.
Operation Ex bj Frevid"of Operation Item c) MOnthl Cos[ tl Anrwal LOSt
22 Gse Manager OPC Area Mental Health Authority $3,348.80 $40IBS.60
23 Counseling Case Manager 0 mkt to nubIcier
24 Clad Care Net A livable
25 Medical Care Case AhMandr to refer 0 Health DhaLMC Or Riadmont Health Center
26 Medication Assistance Case Manager,to refer He Nth Lk I and/or Mental Heath
27 Meade Chb Nova Lerch an OPC Bu at
28 Transfbortaton ghwal MU Transit;TTA $0.00
29 Legal Advocacy Case Mawoer to refer to legal aid
30 Jab tralmn / dacement Club Now,Job Servvice, Voc Rehab 1 $1,650.83 1 $22,210.00
31 Educational Assistance Case Manager to refer to DT{ Sardine Comm Cc#
32 Cutler: ______
33 Otlaer
3459 ortwe Service ES nu Total $5,199,63 $62395.60
$216.65 $50.00
O. DEBT SERVICE
a Source of Financin b Loan Amoun[ (c) Interest d Loan Term (e Month (f)Annual
Rate (months) I PaymA$l r12)
350ran HOME Consortium SSB,560.00 0.00% 360 deferred .00
36 NLHFASupportive HS funds $22000000 0.00%' 360 $fi .33
38 NCHFA Sews Hs Energy Fun $1 80,000.00 0.00% 360 dekmetl .00
39 Bank won $160000.00 8.00% 3fi0 $1,0 .62 40 Oan Count Housn Bonds $300,000.00 0.00% 360 deferr ed .00
41 Debt Service Total $ tl ¢..
Note: Amortization of Principal Only
r
SECTION 6. PROJECT OPERATING PROFORIYA (continued)
OPC Foundation& MMINC • CLIMB NOVA AM.Canbom,NC Revised 4.3.02
E. PROJECT CASH FLOW _
The Agency will use a set of standard assumptions in analyzing pr0lect cash flow to determine financial feasibility
of the Project. These should be used in completing Years 2-5 of the Project Cash Flow
The applicant most submit in vanitg Imagination for modifying any of the falbwng assumptions:
• vocanry,allowance of7W5% if devebpment has project based rental an[sta USE 5% M3.00%
• annual rent increase of 3% USE 3.00%NOTE: Services Provided by Orange-Person-Chatham Area M.H Ann,annual op exp increase of 4% USE 4%• debt coverage rata=1.15
• annual many ling cost. hetween$1,8UO ard$2.400 per wit priatk 1ng resonant, Was And WrV(Le5)• paramunt mi mry=$250 Per Unit Pei Year=
(a) (b) (c) (d) (e) (f)
Cash How Item Year 1 Year 2 Year 3 Year 4 Year 5
42 Total Project Income $156,960.OD $161668.80 $166.518.86 $171,514.43 $176,659.86
43 Vacancy Rate 5%) $7,848.00 $8,083,44 $81 $8,5]5]2 $8,832.99
44 Operating Ex ere $63.144.00 $65,669.]6 $60296.55 $]1,028.41 $]3,869.55
455u sm Senate Expense $62,395.60 $64.26747 $66195.49 $68,1181.36 $70,226.80
46 Total Experts $133,38].60 $138020.6] $142,817.99 $14],]85.49 $152,929.34
47 Met O erau Income $23,572.40 $23648.13 $23,700.88 $23,728.94 $23,731152
48 Total Debt Service $201 $20,49295 $20,492.95 $20,492.95 $20,492.95
49-Net Profit or Lan $3,079.45 $3155.18 $3,20].93 $3,235.99 $3,23].5]
500eb[CSVem eRatb 1.1503 1.1540 1.1565 1.1579 1.1580
'NOTE'. Can Management Servce provided directly to residents by Orange Person Chatham Area Mental Health Autroty,
Section 8 Voucher Payments will be applied to Snares budget of OK Area Mental Heath Authority.
Total Can Management Cost equal to $50.00 per resident per week
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