HomeMy WebLinkAboutAgenda 02-17-2026; 8-j - Resolution Amending the 2020 Affordable Housing Bond-CIP Funding for Homestead Gardens 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 17, 2026
Action Agenda
Item No. 8-j
SUBJECT: Resolution Amending the 2020 Affordable Housing Bond/CIP Funding for
Homestead Gardens
DEPARTMENT: Housing
ATTACHMENT(S): INFORMATION CONTACT:
2020 Bond/CIP Resolution Blake Rosser, Housing Director
Proposed Resolution 919-245-2492
PURPOSE: To approve a resolution amending the 2020 Bond/Capital Investment Plan (CIP)
awards to allow for more straightforward contracting for the Homestead Gardens project. Staff is
proposing to change the recipient of $1.51VI in funding from the Center for Community Self-Help
to a combination of CASA and Community Home Trust.
BACKGROUND: In the 2020 round of Affordable Housing Bond/CIP funding, the Center for
Community Self-Help (Self-Help) was awarded $1.51VI for the following purpose:
"Funds will be allocated to the Center for Community Self-Help as a grant for development of 2200
Homestead Road, a mixed-income rental and homeownership development in Chapel Hill with
113 affordable units and four (4) market-rate units. Affordable units will be leased or sold to
households earning less than thirty percent (30%) and up to eighty percent (80%) of the area
median income."
Unspecified in the resolution was that Self-Help would use these funds for site development of
the multi-partner Homestead Gardens project, which has been in development for several years.
While site development is nearly ready to begin, a complication arose when the County began
developing the contract with Self-Help. The property at 2200 Homestead Road is owned by the
Town of Chapel Hill and is to be ground leased to Affordable Housing (AH) developers CASA and
Community Home Trust (CHT) for vertical development. Self-Help is responsible purely for the
site development, and will not have any interest in either the land or buildings. This means that
once the site is developed, Self-Help would have no responsibility or capacity for maintaining
affordability, and therefore could not be held responsible with any penalty should the affordability
of the project lapse before its contracted time.
County staff has worked with Town of Chapel Hill (Town) staff to find a solution to this problem
and had explored an interlocal agreement that would make the Town ultimately responsible for
the project's affordability. However, it was determined that it would be unfeasible for the Town to
become liable for the affordability of buildings it will not own. Therefore, County and Town staff
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believe the best resolution will be to substitute awardees for the County funding, awarding the
money to CASA and CHT instead of Self-Help. This is feasible because the Town has already
committed funds to all three (3) partners, and a contract between the Town and Self-Help will be
much more straightforward since Town owns the site to be developed.
The Town has awarded $1 million in funds to CASA for vertical development, and over $500,000
to CHT. Therefore staff is proposing that the Board approve awarding those amounts to CASA
and CHT, respectively, instead of the original awarded amount of $1.5M to Self-Help. Staff
rationale is that the same amount of funds will ultimately be going to the same project that was
originally awarded. It is only the distribution between funders and recipients that is changing.
FINANCIAL IMPACT: There will be no financial impact to the County, as the awarded amount of
$1.5M will remain the same, as will the awarded project.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 3: HOUSING FOR ALL
OBJECTIVE 1. Allocate predictable funding sources to contribute or support adding to
affordable housing stock.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the
Chair to sign the attached resolution amending the 2020 Bond/CIP awards and directing
$1,000,000 to CASA and $500,000 to Community Home Trust, redirecting $1,500,000 originally
allocated to Self-Help.
3-01
RES-2020-067 �0
RESOLUTION AWARDING FUNDS FOR THE 2020
ORANGE COUNTY AFFORDABLE HOUSING BOND PROGRAM
BE IT RESOLVED,'by the Orange County Board of Commissioners,upon
recommendation by the Orange County Affordable Housing Advisory Board, approve the
following awards for the 2020 Affordable Housing Bond Program:
Center for Community Self-Help
Funds will be allocated to the Center for Community Self-Help as a grant for development of
2200 Homestead Road, a mixed-income rental and homeownership development in Chapel Hill
with 113 affordable units and four(4)market-rate units. Affordable units will be leased or sold
to households earning less than thirty percent(30%) and up to eighty percent(80%) of the area
median income.
(Requested amount: $1,500,000) $1,500,000
EmPOWERment,Inc.
Funds will be allocated to EmPOWERment, Inc. as a grant for development of PEACH
Apartments, a rental development with eight(8)units on Johnson Street in Carrboro.Units will
be leased to households earning less than thirty percent(30%) and up to sixty percent(60%) of
the area median income.
(Requested amount: $700,000) $700,000
Habitat for Humanity of Orange County
Funds will be allocated to Orange County Habitat for Humanity as a grant for development of
Weaver's Grove, a mixed-income,mixed-use homeownership development in Chapel Hill with
100 affordable units and 136 lots to be sold for market-rate development. The 100 affordable
homes will be sold to households earning between thirty percent(30%) and eighty percent (80%)
of the area median income.
(Requested amount: $1,500,000) $134,160
Interchurch Council Housing Corp
Funds will be allocated to Interchurch Council Housing Corp as a grant for repair of the stairwell
at Chase Park Apartments, an affordable rental property in Chapel Hill with 40 affordable units
leased to households earning less than thirty percent(30%) and up to sixty percent(60%) of the
area median income.
(Requested amount: $1,500,000) $165,840
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RES-2026-013
RESOLUTION AMENDING A NOVEMBER 2020 RESOLUTION REGARDING THE
2020 ORANGE COUNTY AFFORDABLE HOUSING BOND PROGRAM
BE IT RESOLVED, by the Orange County Board of Commissioners,upon
recommendation by Orange County Housing Staff, approve the following amendment to the
awards for the 2020 Affordable Housing Bond Program:
CASA
Funds will be allocated to CASA as a grant for development of 2200 Homestead Road, a mixed-
income rental and homeownership development in Chapel Hill with 113 affordable units and
four(4) market-rate units. Affordable units will be leased or sold to households earning less than
thirty percent(30%) and up to eighty percent(80%) of the area median income.
(Requested amount: $1,000,000) $1,000,000
Community Home Trust
Funds will be allocated to the Community Home Trust as a grant for development of 2200
Homestead Road, a mixed-income rental and homeownership development in Chapel Hill with
113 affordable units and four(4) market-rate units. Affordable units will be leased or sold to
households earning less than thirty percent(30%) and up to eighty percent (80%) of the area
median income.
(Requested amount: $500,000) $500,000
EmPOWERment,Inc.
Funds will be allocated to EmPOWERment, Inc. as a grant for development of PEACH
Apartments, a rental development with eight (8)units on Johnson Street in Carrboro. Units will
be leased to households earning less than thirty percent (30%) and up to sixty percent(60%) of
the area median income.
(Requested amount: $700,000) $700,000
Habitat for Humanity of Orange County
Funds will be allocated to Orange County Habitat for Humanity as a grant for development of
Weaver's Grove, a mixed-income, mixed-use homeownership development in Chapel Hill with
100 affordable units and 136 lots to be sold for market-rate development. The 100 affordable
homes will be sold to households earning between thirty percent (30%) and eighty percent (80%)
of the area median income.
(Requested amount: $1,500,000) $1345160
Interchurch Council Housing Corp
Funds will be allocated to Interchurch Council Housing Corp as a grant for repair of the stairwell
at Chase Park Apartments, an affordable rental property in Chapel Hill with 40 affordable units
leased to households earning less than thirty percent (30%) and up to sixty percent(60%) of the
area median income.
(Requested amount: $1,500,000) $165,840
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This 17th day of February, 2026.
Jean Hamilton, Chair
Orange County Board of Commissioners
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