HomeMy WebLinkAboutAgenda - 06-04-2002 - 8j ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 4, 2002
Action Agenda
m No. _
SUBJECT: Housing Trust Fund —Approve Transfer of Appropriation
DEPARTMENT: HousinglCOmm. Development PUBLIC HEARING (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Tare L. Fikes, exl. 2490
Leffer from Robert Dowling
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968.4501
Durham 688-7331
Mebane 336.227-2031
PURPOSE: To approve the transfer of the appropriation of 40,000 In Housing Trust Fund
money from the Meadowmont Townhouse project sponsored by Orange Community Housing
and Land Trust to two (2) acquisition projects sponsored by the same organization.
BACKGROUND: In June 2001, the Board of County Commissioners (BOCC) awarded
$50,000 in housing trust fund money to the development of 32 townhouse units In the
Meadowmont subdivision In Chapel Hill. This project is sponsored by the Orange Community
Housing and Land Twat (OCHLT) and will provide first-time homeownership opportunities for
families with incomes below 80%of area median income. In Apol 2002, OCHLT Indicated that
it is expected that the project will came In under budget: thus they do not anticipate needing
the housing trust funs awarded to the Meadowmont project. The anficipated savings in this
project is $430,000. Thus, OCHLT Is now asking that some of these funds be reallocated
to two(2) proposed acquisition projects.
Specifically, 01 is asking the Board to approve the use of 540,000 of the $50,000
awarded to the Meatlowmont project to enable them to acquire two unite In the County, place
them in Oe Land Twat and recall them ro a low income first-time homebuyer thus ensuring
their long-term affordability. One unit is located in Canhoro and the other in the Magnolia
Place subdivision in Hillsborough. More specific project information is provided in the
attached letter from Executive Director Robert Dowling.
FINANCIAL IMPACT: Approximately $50,000 has already been set-aside in the local
Housing Trust Fund for use by the Orange Community Housing and Land Trust. The Fund
has a balance of approximately$278,000.
RECOMMENDATION(S): The Manager recommends the approval of the transfer of the
appropriation of $40,000 in Housing Twat Fund money tram the Meatlowmont Townhouse
project sponsored by Orange Community Housing and Land Trust to two (2) acquisition
projects sponsored by the same organ"lion.
r
May 21,2002
Ms,Tara Fikes
Director
Orange County Housing and Community Development
PO 0ox 8131
Hillsborough,NC 27298
Dear Tara:
Please accept this letter as a formal request to reallocate$90,000 of
funds from our Meadowmont Townlemmes to assist in the purchase
and rehab of two single-family homes that may become part of the
land trust. As discussed in my letter to the Commissionees on April
11,2002,we expect to complete the Meadowmont Townhontes well
underbudget.
We are requesting this reallocation because two homeowners have
recently approached us about buying their homes in order to keep
theat affordable, One home is a renal property,currently vacant,
located at 300 Broad Street in Carrboro. It is located in a section of
Carriacou,near the Chapel PBB border,that would benefit B this house
were w
nvertcd into a homeownership opportunity. We have
presented an Offer to Pr¢cbase to the owner and are awaiting a
response.
The served home is located in Magnolia Place,which(XHC
developealmA996. Thehomeownwis willing to workwithus(and
has verbally agreed to the selling price)to retain the home as
permanently affordable. However,to do so will require a small
amount of subsidy.
B both acquisitions are success",the$90,W0 will be used as follows:
300 Broad Street:
Oar purchase price $17),000
Required renovations $8,000 (includes new roof and HVAC)
Closing k soft costs $3,000 (legil,inspectlon,apprabel,mr)
Total Project Costs $138,000
Adman fee to OCHLT $2,000
Total Investment $19Q000
Less:
Grant brain Orange County $30.000
Net price to new buyer $110,p10
a
Thus,530,000 of subsidy will allow us to convert an existing house m a
pivotal neighborhood into a permanently affordable homeowncrsNp
opportunity. This three bedroom,two-bath Manic is ideally suited for
a fondly with children.
2118 Magnolia Lane'.
Our purchase price $128,000
Less existing second mortgage 412,500
Base price of home to new buyer 5115,500
Plus dosing&soft costs 51,500
Total project costs 5111.000
mss:
Grant from Orange County $10A00
Net price to new buyer !dw'Ilfp
thus,for an investment of$10,000(in addition to the$12,500 of
subsidy already in place),we can retain this home as a permanently
affordablehome. Furthermore,we may be able to replicate this
approach as other homes come onto the market in Magnolle Place.
I believe these are both wonderful opportunities to capture homes into
the land oust that are in danger of becoming unaffordable. H the
Com usaioners are willing to treat the subsidies as a grant,it greatly
imphfies the transaction for the new homeowners. Naturally,we
would execute a grant agreement as we did with Legion Road and
Meadowmont to guarantee permanent affordability.
Again,we are asking that the$40,M be reallocated from our
Meadowmont Iowrdmmes,which received funding from both the
19W County Band($350,000)and from the Housing Trust Fund
(M,000).
1'hstdc you for your consideration of this request. Nyou need
additional infomwtion,l will be happy to provide it.
Sincerely, .
Rabat Dowling
Executive Director