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HomeMy WebLinkAboutAgenda - 06-06-2000-8hORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 6, 2000 Action Agenda Item No. ~_ SUBJECT: Housin Band Pro am -Pine Hill Drive DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/l~ No ATTACHMENT(S): 1. Letter from EmPOWERment, Inc. 2. Qriginal Bond Application 3. Amended to Development Agreement 4. Amended Deed of Trust and Security Agreements 5. Amendment to the Declaration of Restrictive Covenants INFORMATION CONTACT: Taza L. Fikes, ext. 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: Approve an amendment to the Development Agreement Amendment for the Pine Hill Drive Bond Project and authorize the County Manager upon the County Attorney's review and approval, to execute a Development Agreement Amendment and an Amendment to the Declazation of Restrictive Covenants with EmPOWERment, Inc. on behalf of the County. BACKGROUND: 4n January 18, 2000, the Board of Commissioners authorized the expenditure of $90,000 in housing bond funds to EmPOWERment, Inc. for the Pine Hill Drive Project. This project involves the acquisition of a tract of land an Pine Hill Drive in Carrboro where four condemned mobile homes will be demolished, and four (4) new condominium units will be built for sale to first-time homebuyers. EmPOWERment, Inc.'s original proposal indicated that these properties would be mazketed to families earning between 52% and 58% of the area median income. Thus, the Development Agreement between the County and EmPOWERment, Inc. indicates that the units constructed in this project would be sold to families in that income range. Since that time, EmPOWERment has stated that they thought that these properties could be sold to families earning 70% and less of the area median income. Thus, they are asking that the Development Agreement be amended to allow far sales to this income group. The current Bond Program Guidelines allow funds used far land acquisition and new construction to benefit families earning up to $0% of the azea median income. The total scare received by the Pine Hill Drive project during the Bond Program Evaluation was d5. The original proposal was rated with the presumption that these properties would be marketed and sold to families between 52% and 58% of area median income. Thus, the proposal received 15 points in the Income Targeting section of the Bond Program Evaluation Process. If income targeting had been 2 evaluated with families earning less than 70% of median income, the proposal would have received 10 points in the Income Targeting section and the total score would have been 60. After consultation with the County Attorney, it has been determined that the Development Agreement; the Declazation of Restrictive Covenants; and the Deed of Trust and Security Agreement must be amended to revise the definition of eligible homebuyers to include families earning less than 70% or area median income. The County Attorney has prepared the necessary documents for the Boazd's review and approval. FINANCIAL IMPACT: None. RECOMMENDATION(S): The Manager recommends approving a Development Agreement Amendment for the Pine Hi11 Drive Bond Project and authorizing the County Manager, upon the County Attorney's review and approval, to execute a Development Agreement Amendment; and an Amendment to the Declazation of Restrictive Covenants with EmP~WERment, Inc, on behalf of the County. 3 Erg Btw~o op o11a~cTORs V;rimt S. Fottshee, prrsidnnt Na+hredr Cantrr~aly.9sowalioK titepoey Ldwatds. Vicx i',r:u;dc~c Miaeap BardaSlt~ MnHluw Fnauigto~ Set:cetary c~sn~ NSA. ]arn: Stedn, T~-k C.Irur. C:atraar Seams Fe~tdekar: SA M 13~m,k~ RF:.1i,'Tl7N ,, a~ Cmr Lays Nr~bdwdieuf flrnda/iore Alvaler Aumelle i 1s~d.3'bref Nd~hberbdsd/Lrreai~tq'ara Rrv. xotiatc C:ampbdl ~ Rgpf Ne{eh6wfnad ,4tiardliota Miion MmirikwC Lle~ Smxr Ney~w/wvd A~liw Nob;n Nutlcat Narenek Caru~ra~y.4uaYda~r ~~ My~ ~~ um<r~ Maxtxinr Mitchell f.si.ir.nriry Ilrw/gpnwat Sptrmditr ~1~eay l:ariet J+,g~ar nlauggr fplpll 7US-A~/eat ltoecmary street C:ucbor0. NL: 2751U Phone: (91'1) 967-67'79 I~px: (91'>) 967-U'71U empowrr[nentinc®mindtprin~eote mint INC. Reclaiming the POWER of our Communities Apri104, 2000 Ms. Tara Fikes 17irector of Housing and. Community Deveiopmept Qrangc County PO $181 Hillsborough, NC 27298 Dear Tara: I am writing to request an amendment ro our contract for Aond funding for the Pinc Hill Drive project. In our original application for bond funds we stated that units would be priced at a level affordable to families earning between 52-58% of area median incom~c. It was not our intention to enter into an agreement with the County that we would only sell units to families within this income range- We had been operating under the assumption that County housing programs were available to families earning less than 70% of arra [t1Cdlan 111COme. The typical family in our program earns slightly mare than SO% of area median, but we have served families up to the 70°Yo level with County support. In fact, one of the first families we spoke with about the Pine Hiil Urive project last May works at UNC and earns slightly above 60% of area median. We do not want to prevent her from buying one of these units. As }roe know, our backs were against the wall when we finally closed on this property, and the sellers were literally a day or two away from lolling the lot to Dickie Andrews. Had we had monc time to work with the staff we would have identified and addressed this issue, and the resale restrictions, prior W closing. We hope that we can amend our contract to allow us to work with families earning up io 70ai6 of area median income. I have enclosed our original bond application and the Purancial projections we submitted last August_ i can certainly sec why you would have thought that we would only market these units to families earning between 52-5$% of Alid], but our goal was simply to highlight that the units would bt afTordable to families in that income bracket. Please let me knave haw to proceed with this request. 4 Land Acquisition Program . 100 Pine Hill Drive EmPOWERment, Inc. is requesting an allocation of $90,000 of Bond funds th purchase a tract of land on ,Pine Fi'iU Drive in Carrboro. The lot is appro~dmately 17,000 square feet, but due to an existing non- conformity we can build four new condomnium units th replace the existing dilapidated mobile homes. We propose tD construct four, 1188 square foot units affordable to families earning between 5296 - 58% of median income, Bond funds will leverage an additional $330,424 in construdtion and permanenrt financing, and will comprise just 21 % of the to#al project These units will replace four condemned properties that have been linked th repeated drug problems over the last several years: The pol'~ce have an extensive file on this property and the inspections department is pursuing condemnation because these units have not been maintained th any minimum standards, and presenk a safety threat b the entire comrwnity. The surrounding neighborhood is of moderate income with a ma of housing styles, including one story ranch-style hones and two story modulars. These four condominium units win most dosdy match the newer two story modular units. Afio . The condominium units will be marketed tp families earning 52-58% of area median. income. Det~led financial information is attached on the Development Budget Our projections are based on a sales price of $83,ti0fi, with an interest rate of 7.7596 and $50 in homeowner's dues. The minimum household income required to afford this home is 530,9fi0, or 52% of median for a family of four and 58% of median for, a family of three. These three bedroom units will be primarily marketed t4 families with tour or more members. The minimum downpaymentwill be 51,000. Bond funds will be used to purchase the propergr and will serve as a $22,500, 0% inberest second mortgage on each condominium unit This ropes 2196 of the tofial cost of each home. These funds will be secured by a 40-year Deed of Trust If a fami~ sells their home within the 40-year period of affordability they must repay both the entire principal balance of the second mortgage, plus 21 % of the appreciation nn their home. We fed that this approach to resale wtll enable low-wealth famtlies th butld equity on their investimentwhile protiecting the.pubiic investmentforfuturre use. Leveraginq~nanano Bond funds of $90,000 will leverage an additional $330,424 in construction and permanent financing and will comprise just 21.4% of the~total project cost. The actual leverage is significantly higher as the builder is discounting his construction costs to help provide affordable housing in Orange Courwty. His costs of $62Isf are at least $81sf below market average. The value of his contribution is approximately $38,016, which would decease the Count}~s imrestment to 19.6% of the project cost. BB~T wifi provide construction financing, They typically offer PmPOWERment, Inc. construction loans of up to 85% LTV with only a $100 loan fee, 5 Dest~n These four condonuruum units are reasonably sized, fur~tional and agr~tive and will fit well with the surrounding neighbort~ood. The single largest impact is that they wiq replace four condemned mobile homes with a history of drug activity. The amractive design wiq complement two new two-story units recently built at the won of Pine Hiq Drive and Main Street. Bugdng plans are attached. We wiq construct two units with elevation 2 and two with elevation 3. Each unit will have vinyl siding, front and rear decks, and will be landscaped appropriately. Because these are two story units they will not be accessible tp individuals wikh mobilrty impairments. Units will meet NC HFA Energy Standards. Commun' EmPOWERment, Inc, has maintained contact with od~er non-profit developers such as Habikat for Humanity and Orange Community Housing Corporation b coordinate appgcations for Bond funds. This project grows out of nearly two years of experience providing affordable housing th working farr~es in Orange County, and has been tailored tri address the needs of farrtilies in our Homebuyers Club. These units wiq be sold th graduates of this infiensive five-week program, and wiq have worked exfiensively with our staff th prepare for the challenges and oppor6unitieS of homeownership. We have found that there is a market for attached housing where families wiq not bear the sole burden for main6enance expenses. This properly is conveniently located on Main Sheet in Carrboro, with dose proxirrdty th bus routes, shopping and other services. No provisions have been made for supportive services because the primary need of these farr~lies is simply affordable housing. Should any famgy require addria'onal assistance we wiU work with them th secure supportive services. EmPOWERmerrt, Inc. has played a strong role in local ~scussions and planning about a~Ordable housing, including the Bond Task Force, the Comprehensive Plan and the Land Trust among others. Development Team and Devebper Experience F1nPOWERmer~ Inc. wr~l serve ~ the ownerJdeveloper of the Pine Hip project, and wql market the four units th graduates of o~ Homebuyers Club. In the past 18 months ~ have helped 16 farrr~es ~ buy their first home. By month's end, three additional families wip become homers. We are ~+owing quiddy while maintaining high standards for excellence in our work. Our Hon~ebuyers Club has now served oar 125 families and we r~ecentiy launched our fist class in Spanish. As you wip see from the attached irnormation about oru Horrreowrnrrship Program, EmPOWERmerd, Inc., has leveraged significant funding. th promotie affoordable housing in Orange County. In the past year alone we have secured $100,000 in second mortgage financing from the NC Housing Fnance Agency, nearly X300,000 in k~wirrterest loans from the Mr~4uley Institu6e, $50,000 in low-intierest loans Trom the Marianist Sharing Fund, and signficant funding from local lenders such as BB&T and Wachovia Our growth and sucxess is based upon our holistic approach and our strong abilityr th forge partrterships. We receive no funding from loci governments, and always 'seek project funding from a wide range ~ sources th provide maximum leverage. EmPOWERment, Inc. is stratiegicagy capitalizing on our strengths and assets; leveraging resources to encourage the private sec6ar m build affordable housing. We focus on 6 preparing families fio buy homes, securing financing, and structuring deals that work for working families and local builders. The Peloquin Construction Company will build these four units. We are now completing our first partnership, project wsth Peloquin, afour-bedroom home on Creel Street in Chapel Hill. Jeff Peloquin has 12 years of experience and has butit 80 homes in the Triangle area. He has an excellent reputation for qualityr and has earned the respect of our primary lending partner, BB~T. The Pine Hill project team will include: Myles Presser and Terry Carver of F1nPOWERmerrt, Inc., Jeff Peloquin of Peloquin Construction, and Cynthia Shriner as our at6orney. Additional professional services will be subcontracted by Jeff Peloquin. Conclusion An investment of $90,000 in Bond funds wiH leverage an additional $330,424 in construction and permanent finanang m construct four three-bedroom condominiums in Carrboro. EmPOWERment, Inc. will use these funds th purchase the land and will finance the balance through BB~T. Construction c~ commence within 45 days of receipt of ,Bond funds.' Bond funds will serve as a $22,500 0~ .interest second mortgage secured by a Deed of Trust for 40 years. Resale provisions will ensure that Bond funds and a corresponding proportion of the appreciation wiA be n~umed to the County if the property is sold within 40 years. F~nPOWERment, Inc. is growing quickly ,and has established a strong track record of success. We hope that the Board of County Commissioners win become a partner in the Pine Hdl Drive project Attachment 1: FlaQr Plans ~ Development ProFonna 8 100 Pine; Hill Drive Development Budget ~ wr Unlt Total Acquisition s 22,500 s so,ooo car~sauctian s r~,~s s 294,sza wa{er~sewer rep $ 3,oao s +z,oao Impact few s s - ~' s +,eoo~ s x,200 ~ cam s 2,+~a s e,wo oevelppment fee s 2.000 s e,oo0 raW s +~,+oe s a2aa~l ~ I~ s +o5,tas ~ ~+a s 2,om Total cast to tjuyer 9 ioi,t06 Iesy tW,yer ~ution s +,000 lase 2nd mare S 22,50D Rra! nrorlgago s 85,t1GA ipant rMtartgage g ~.~ s 58a Taxes s +ao Insurm~ce s ao Fbmecwne~s Dues s 50 Tool S Tl4 Income Tugetl~ Ninnnum M#-I Intone s 30,9fi0 !6 median family ~ 4' 52!<i 9G melon iam~r of 3 5B9i ' homes wil ba 3 bedrean, 2 txldh and ptirnar~y largshd at fames of four or mare memt~. ldirumum NM income repia comtxned irxama neceassgy to pay no mane than 30+i iamiy inaana an hausog costs. 9 ' NORTH AMERICAN HOUSING PLANS & RENDERING SHOWMARE CONCEPTIONAL REFER TO SPECIFICATIONS FOR STANDARD FEATURES AND OPTIONS ELEVATION ~g '"'~ ~..-18----I 1 1 FONT KITCHEN TOWNHOUSE 1833 ~' ALT. CRAWI. SPACE Re-r. 5-94 ALL ROAR PLANS AND ROOM SIZES ARE APPROXIMATE P.O. $OX 145 P.Q. BOX 25 PO1NT OF ROCKS.I4II] 21T/7 ~ HbONES MII.L_ vA 24065 FIRST FLD01~ PLAN SECOND FLOOR- PLA~I- 1188 S.F. 10 At~hment 2: Homeownership Statistics ~ ~ _ ~ g ~ ~n "!i p~ ~ ^^ ~ ~ Y y ~~yy chi ~ t nn~~ c7i ~ ~ i Q o o ~ ~ A~ ~ ~ ~ N~' ~ A ~ O ~ ~~ qp o ~ -i 1~~y ~ C7 ~ ~ ~ ~ ~ p ~ ~ - Od ~ tlf f ~ ~ m 6f 0~ ~ f i m ~ ~ v~ tia ~ 0 0 0 0 0 0 0 ~ ~ N ~a ~ o to a ~. x N !7 G N ~ ~ Nyy P ~ N ~ ~C M !~aVp N M (p~p O M ~ f~app OI M ~ N M ~ # N {.~ ~ M ~ ~ M ap~ 9 N ~ ~ N ~m + M ~ ~ N ~ ~ N ~ M :r 4/ N ~ ~i $ 3i 7 ~ ~ ~ ~ ~ ~ n~j ~ ~7yT~' ~ ~ i i ~ i _ 00 d ~ ~ S N p~ M ~ ~ N -1 M N M Q~ M ~ N ~ ~ N H ~ N ~ ~ iA ~ (] r! tOa N ~ M ~ M N ~ N ~ N ~ ~p CD M 7 M ~ .~. g gV b V ~ ~Qi ~j ~ji ~ _~i ~ g~ 4 ~ ~ mm p ~ S~ 8 O ~ g+ 8 o~ O ~ ~gi O ~p !$~l O g~ 6 ~g 4 ~i ~ g~ O ~l gW O ~ N Q if [(C~] Q N ~~Ojj ~ N ~*~ ~ N ~ M ~ i- M M A N ~ N aaas N ~ N p N gQ M M N iA ~ ~ pe ~ ~ ~ ~ !~ i ~ i ~ ~ i ' ~ ~ ~ ~ ~ ~ ~ ~' ~ ~ Assp 25 A~ N N en a M N ~ !It N M M ~ N O ~ ~ ~ G 9 V cn N 4 ~ N ~ N cr ilf 4 ~ M s ~ N ~ N S M ~ N ~ M Q 25 N ~ M QQ t5 N s ~ N ~ M $ M ~' N u' N ~ M g g 3 x a r~ !~ 11 Q~ w 12 Attachment 3: Board Informadan 13 Board a# Din~ctors Vnrian Foushes (President), Psychotherapist Northside Communit)- Assoaati~on 505 Churn Sfr~ Chapel Hip, NC 27516 (919) 942-1217 10/97/99 Stepney Edwards (Vice President), Midway Barber Shop 707 West Rosemary Street _ Carrboro, NC 27510 (919) 968-8207 1298-1112000 Ashley Osnrent (Treasurer); McSurely and Osment Board, Rayita de Luz Spanish Immersion Premdiod 415 Patterson Place Chapel Hpl, NC 27516 (919) 96&1278 6197,5199 Jane Stein (secretary), Mel'~ora Assoaates Board Member, Common Sense Faundaticn 222 Vance Street Chapel Hill, NC 27516 (919)929-1614 719Fr12/99 Barbara Browrr, UNC Hospitals Carr Court Neighbahaod Associadai 102 Eugene Street Carrbor+o, NC 27510 (919) 929-1564 121918-11/2000 Alvater Bumette, Chapel HiAlCarrboro Sdrods Lloyd Stre~ Neighborhood Assoaatiorr 102 Hip Stre~ Carrboro, NC 27510 (919) 929-1584 12198-11/2000 Paul Caktwdl, Security Guard Northside Community Association 6~ Church Street Chapel hill, NC 27516 942867 IANA II Mnnw Betsy Farringmn, UNC Hospitals Naihside Community Assoaation 201 N. Graham Street Chapel H~, NC 2751 fi (919) 942-7738 12198.11/2000 Matthew Fearringfon, UNC Hospit~s loyd Street N~ghborhaod Assoaation 116 Starpte Drive Carrboro, NC 27510 (919) 9421 5198-4IZ000 Ger~dine Papa, R~red Vice Pre.ident, Carr Caurt.Neighborhaod Association 107 Eugene Street Carrbaro, NC 27510 (919) 967-0050 10V96.2l99 O.J. Rouse, Cab Driver, Airport arrd Inform Taxi 1417 Ferguson Road Chapel HB, NC 27516 (919) 933-5219 11/9f~1199 Rev. Wayne Weathers AssoaaEs Minis6ar, Second Baptist Church 104 Park Road Chapel H~, NC 27518 (919) 932459 5/97199 Direcbr Maxeane Mitchep Community De+mlopment Spep2~ist Terry Carver Prn~ect Manager 14 Prepared Hy: Geaffrey $. Gledhill, Attorney at Law, P.O. Drawer 1529, Hillsborough,, NC 27278 After recording return ta: Geoffrey 8. Gledhill, P.O. Drawer ].529, Hillsborough, NC 27278 NORTH CAROLINA ORANGE COUNTY AMENDMENT TO DEVELOPMENT AGREEMENT This is an amendment to the March 3, 2000 AGREEMENT ("the Development Agreement") between Orange County, a body politic and corporate,. a political subdivision of the State of North Carolina, (hereinafter referred to as "County" or "the County") and EmFOWERment, Incorporated, a North Carolina non-,profit housing organization (hereinafter referred to as "EmPOWERment"). The effective date of this amendment is WTTN73SSETH WHEREAS, the County and EmPOWERment entered into a Development Agreement, a Declaration of Restrictive Covenants, a Promissory Note and a Deed of Trust and Security Agreement, all dated March 3, 2000 all related to the Property described in Exhibit A; and WHEREAS, EmPOWERment has requested authority from Orange County to change the affordability provisions in the Development Agreement; .and WHEREAS, Orange County, by this amendment, agrees to permit EmPOWERment to make the replacement dwelling units that are the subject of the Development Agreement, to be made available to first-time homebuyers earning up to 80~ of HUD area median income. NOW, THEREFORE, in consideration of the mutual covenants, promises and representations contained herein, it is agreed between the parties hereto that all of the terms and conditions of the Development Agreement are herein reaffirmed and incorporated herein by reference and amended as follows: 1. Paragraph 1.b. of the Development Agreement is rewritten to read as follows: b. EmPOWERment shall sell the newly constructed dwelling units to qualified buyers whose income is up to 80~ of the area median household income by family size, as 1 15 determined by the U.S. Department of Housing and Urban Development at the time of the sale. 2. Paragraph 5 of the Development Agreement is rewritten to read as follows: 5. Resale Provisions. EmPOWERment shall assure compliance with affordability of the Project dwelling units through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants shall include at least the following elements in the Property resale provisions: 5.1 If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e., a low-income household, one whose combined income does not exceed 80~ of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the transfer, to use as their principal residence. 5.2 However, if the property is sold during the term of affordability to a non-qualified homebuyer, the Right of First Refusal provision of the New and Existing First-Time Homebuyer Program portion of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County. 5.3 The resale provision shall remain in effect for the full affordability period -- 99 years. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written. 2 16 COUNTY OF ORANGE, NORTH CAROLINA (SEAL) John M. Link, Jr., County Manager ATTEST: Beverly A. Blythe Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY This is to certify that on this day personally camp before me Beverly A. Blythe, with whom I am personally acquainted, and being by me duly sworn,' says that John M. Link, Jr. is the County Manager of orange County, NC, and that she the said Beverly A. Blythe, is the Clerk to the Board of Commissioners of the County of Orange, the body politic and corporate named within and which executed the foregoing instrument; that she knows the common seal of said County; that the seal affixed to said instrument is said common seal.; that the name of Orange County was subscribed thereto by the said County Manager of Orange County, NC and said Beverly A. Blythe subscribed their names hereto and said common seal was affixed, all by order of the Board of County Commissioners of Orange County and that said instrument is the act and deed of Orange County. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: EmPOWERmexzt, Iac . (SEAL) President ATTEST: Secretary 3 17 NORTH CAROLINA ORANGE COUNTY I, Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me with whom I am personally acquainted, who, being by me duly sworn, says at he is Secretary and that is President of EmPOWERment, Inc., a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: Approved as to form and legality Geoffrey Gledhill, County Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. Kenneth Chavious, Finance Director lsg:orangecovnty\amendmtagreeeiap.doc 4 18 Exhibit A Property Description Beginning at a stake on the southeast side of Pine Hill Drive, said stake mazking the northwest comer of the property of I.W. Durham as shown on the plat hereinafter referred to; thence along and with the northeast property line of I.W. Durham, South 56 degrees 52 minutes East 151.42 feet to a stake; thence North 35 degrees 12 minutes East 122 feet to a stake marking the southernmost comer of Lot 8 as shown on the plat hereinafter referred to; thence along and with the southwest property line of said lot, North 51 degrees. 8 minutes West 95.2 feet to a stake in the southeast right-of--way of Pine Hill Drive, thence along and with the southeast right-of--way of Pine Hill Drive, South 47 degrees 5 minutes West 9.6 feet to a stake, the beginning of a curve; thence continuing with the southeast right-of--way of Pine Hill Drive, in a general southwesterly direction, along a clockwise curve having a radius of 169.87 feet, a distance of 79.86 feet to a stake; thence continuing with the southeast right-of--way of Pine Hill Drive, South 62 degrees 27 minutes West 65.4 feet to a stake mazking the northwest comer of the property of I.W. Durham the point and place of beginning, and BEING all of Lot 9, P1NE HILL DEVELOPMENT, Property of I.W. Durham, as per plat and survey thereof by William E. Dopier, Registered Surveyor, dated January 9, 1961, and recorded in Plat Book 9, Page 45, Orange County Registry, to which plat reference is hereby made for a mare particulaz description. Prepared By: Geoffrey 8. Gledhill, Attorney at Law, P.O. Drawer ~ 1529, Hillsborough, NC 27278 After recording retura to: Geoffrey S. Gledhill, P.O. Drawer 1529, Hillsborough, NC 27278 NORTH CAROLINA ORANGE COUNTY AMENDED DEED OF TRUST AND SECURITY AGREEMENT 19 THIS AMENDED DEED OF TRUST AND SECURITY AGREEMENT ("the Amended Deed of Trust" or "this Deed of Trust") is made as of this day of 2000 by and among EmPOWERment, Inc., a North Carolina non profit corporation whose address is 705A W. Rosemary Street, Carrboro, North Carolina 27510 ("Borrower"), Geoffrey E. Gledhill whose address is P.O. Drawer 1529, Hillsborough, North Carolina 27278 ("Trustee"), and Orange County, whose street address is 200 S. Cameron Street, Hillsborough, North Carolina 27278 ("Lender"). WHEREAS, Borrower, Trustee and Lender are parties to a Deed of Trust and Security Agreement dated March 3, 2000 and recorded at Book 2049, Page 551 of the Orange County Registry ("the Deed of Trust"); and WHEREAS, Borrower, Trustee and Lender have agreed to amendments to some or all of the Loan Documents secured by the Deed of Trust and to amendments to the Deed of Trust. NOW, THEREFORE, in consideration of the Loan, and other valuable consideration, the receipt of which is hereby acknowledged, Borrower hereby grants and conveys to Trustee his successors and assigns all buildings, improvements, the equipment and all other real and personal property, of every kind and nature now or hereafter attached to or used in connection with the premises situated on real property located in Orange County, North Carolina, said real property being more particularly described in Exhibit "A", attached hereto and made a part hereof by this reference, including by way of example and not limitata.on, all plumbing, heating, lighting and air conditioning fixtures, refrigerators, ranges, hot water heaters, draperies and carpets (hereinafter collectively referred to as "the Premises"). TO HAVE AND TO HOLD the Premises with all privileges and appurtenances thereunto belonging to Trustee, his successors and assigns, upon the trusts, terms and conditions and for the purposes hereinafter set out. Borrower covenants with Trustee that Borrower is seized of and has the right to convey the Premises, in fee simple; that the Premises are free and clear of 1 20 all encumbrances, except, as described on Exhibit "B" attached hereto and made a part hereof by this reference; and that Borrower will" warrant and defend title to the Premises against the lawful claims of all persons whomsoever. Upon payment in full of all sums secured by this Deed of Trust and the Deed of Trust, Lender shall cancel this Deed of Trust and the Deed of Trust, of record at the request and cost of Borrower. Tf, however, there shall be a default in any of the terms, covenants or conditions of the Loan Documents or any advance secured hereby, and such default is not made good within any cure period specifically granted in the Loan Documents, if any, all sums owing to Lender under the Loan Documents shall immediately become due and payable, without notice, at the option of Lender; and, on request of Lender, Trustee shall foreclose this Deed of Trust by judicial proceedings or, at Lender's election, Trustee shall sell (and is hereby empowered to sell) the Premises at public sale to the last and highest bidder for cash (free of any equity of redemption, homestead, dower, curtesy or other exemption, all of which are expressly waived by Borrower) after compliance with applicable North Carolina laws relating to foreclosure sales under power of sale and shall execute a conveyance in fee simple to the successful purchaser at said sale. The proceeds of any such sale shall be applied in the manner and in the order prescribed by applicable North Carolina laws. 'The Trustee's commission shall be five pErcent (5~) of the gross sales price for completed sale for all services performed by him hereunder. Lender may bid and become the purchaser at any sale under this Deed of Trust. At any such sale, Trustee may at its election require the successful bidder to immediately deposit with Trustee cash or certified check in an amount equal to all or any part of the successful bid, and notice of such requirement need not be included in the advertisement of the notice of such sale. Borrower covenants with Trustee and Lender (and their respective heirs, successors and assigns) as follows: all of the terms and conditions of the Deed of Trust are herein reaffirmed and incorporated herein by reference and amended as follows: 1. Paragraph 12.d. of the Deed of Trust is amended to read as follows: 12. Events of Default. Any of .the following shall constitute an "Event of Default" hereunder: 2 21 d. the death, dissolution, merger, consolidation or termination of existence of Borrower or any guarantor hereof or the transfer of any beneficial interest in Borrower without Lender's prior written consent (if Borrower is a married couple, the death of Borrower means the death of the survivor of the married couple); 2. Paragraph 15 of the Deed of Trust is amended to read as follows: 15. An~al_iCation of _Payments._ All payments and other sums of money received by Lender shall be applied by Lender first to amounts due Lender for Advancements or Attorney's Fees pursuant to this Deed of Trust, then to interest payable on the Note, then to the principal of the Note, then to other payments due under the Loan Documents including equity payments provided for in the Development Agreement and the Declaration of Restrictive Covenants. IN WITNESS WHEREOF, Borrower has caused this instrument to be signed in its corporate name by its duly authorized officers and its seal to be hereunto affixed by authority of its Board of Directors. E~nPOWSRment, Iac . (SEAL) President ATTEST: Secretary NORTH CAROLINA ORANGE COUNTY I, , Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me with whom I am personally acquainted, who, being by me duly sworn, says that he is Secretary and that is President of EmPOWERment, Inc., a North Carolina 3 22 corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: lsg:orangecounty\amendmtdeed.doc 4 23 Exhibit A Property Description Beginning at a stake on the southeast side of Pine Hill Drive, said stake mazking the northwest comer of the property of I.W. Durham as shown on the plat hereinafter referred to; thence along and with the northeast property line of I.W. Durham, South S6 degrees 52 -minutes East 151.42 feet to a stake; thence North 35 degrees 12 minutes East 122 feet to a stake mazking the southernmost comer of Lot $ as shown on the plat hereinafter referred to; thence along and with the southwest property line of said lot, North 51 degrees 8 minutes West 95.2 feet to a stake in the southeast right-of--way of Pine Hill Drive, thence along and with the southeast right-of--way of Pine Hill Drive, South 47 degrees 5 minutes West 9.6 feet to a stake, the beginning of a curve; thence continuing with the southeast right-of--way of Pine Hill Drive, in a general southwesterly direction, along a clockwise curve having a radius of 169.87 feet, a distance of 79.86 feet to a stake; thence continuing with the southeast right-of--way of Pine Hill Drive, South 62 degrees 27 minutes West 65.4 feet to a stake mazking the northwest corner of the property of I.W. Durham the point and place of beginning, and BEING all of Lot 9, PINE HILL DEVELOPMENT, Property of I.W. Durham, as per plat and survey thereof by William E. Dozier, Registered Surveyor, dated January 9, 1961, and recorded in Plat Book 9, Page 45, Orange County Registry, to which plat reference is hereby made for a more particulaz description. 24 Exhibit S Exceptions 1. Declaration of Restrictive Covenants recorded at Book 2049, Fage 510, Orange County Registry 2. Development Agreement recorded at Book 2049, Page 517, Orange County Registry 3. Deed of Trust and Security Agreement recorded at Book 2049, Page 551, Orange County Registry 25 Prepared By: Geoffrey $. Gledhill, Attoraey at Law, P.o. Drawer '~ 1529, Hillsborough, NC 27278 After recording return to: Geoffrey B. Gledhill, P.O. Drawer 1529, Hillsborough, NC 27278 NORTH CAROLINA ORANGE COUNTY AMENDMENT TO DECLARATION OF RESTRICTIVE COVENANTS This is an amendment to the DECLARATION OF RESTRICTIVE COVENANTS ("the Declaration"), dated March 3, 2000 by EMPOWERMENT, Inc. and its successors and assigns (Owner), and is given as a condition precedent to the amendment of the Development Agreement related to the award of Affordable Housing Bond funds by Orange County, North Carolina. RECITALS: WHEREAS, Owner is the owner of property located in the Town of Carrboro, Orange County, State of North Carolina (hereinafter referred to as "the Property"), more particularly described in Exhibit "A" hereto; and WHEREAS, EmPOWERment has requested authority from Orange County to change the affordability provisions in the Development Agreement related to the Property; and WHEREAS, Orange ,County agrees to a change to the Development Agreement that will permit EmPOWERment to make the replacement dwelling units that are the subject of the Development Agreement to be made available to first-time homebuyers earning up to 80~ of HUD area median income; and WHEREAS, the Property is subject to the Declaration, which is recorded at Book 2049, Page 510 of the Orange County Registry. NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner intends, declares, and covenants that the regulatory and restrictive covenants set forth in the Declaration related to the Property, recorded at Book 2049, Page 510 of the Orange County Registry, as amended by this amended Declaration of Restrictive Covenants, governing the use, occupancy, and transfer of the Property shall be and are covenants pertaining to the Property and running with the land for the term stated herein and are binding upon all subsequent 1 26 owners of the Property and for such term, except as specifically provided herein, and are not merely personal covenants of Owner. Owner hereby covenants with Orange County, North Carolina (and their respective heirs, successors and assigns) as follows: all of the terms and conditions of the Declaration are herein reaffirmed and incorporated herein by reference and amended as follows: 1. SECTION 4 B. of the Declaration is amended to read as follows: S. Resale Provisions a. If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e., a low-income household, one whose combined income does not exceed 80~ of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the transfer, to use as their principal residence. b. However, if the property is sold, during the term of affordability to a non-qualified homebuyer, the Right of First Refusal provision of the New and Existing First-Time Homebuyer Program portion of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County. c. The resale provisions shall remain in effect for the full affordability period - 99 years. IN WITNESS WHEREOF, Owner has caused this Declaration to be signed by its duly authorized representative, on the day and year first above written. 2 27 EmPOwERment, znc. (SEAL) President ATTEST: NORTH CAROLINA ORANGE COUNTY Secretary I, Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me with whom I am personally acquainted, who, being by me duly sworn, says at he is Secretary and that is President of EmPOWERment, Inc., a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested 'to by its Secretary. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: Approved as to form and legality Geoffrey Gledhill, County Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. Kenneth Chavious, Finance Director lsg:orangecouaty\ameadmtdeclreatr.doc 3 28' Exhibit A Property Description Bea nnin_g at a stake on the southeast side of Pine Hill Drive, said stake marking the northwest comer of the property of I.W. Durham as shown on the plat hereinafter referred to; thence along and with the northeast property line of I.W. Durham, South 56 degrees 52 minutes East 151.42 feet to a stake; thence North 35 degrees 12 minutes East 122 feet to a stake marking the southernmost comer of Lot 8 as shown on the plat hereinafter referred to; thence along and with the southwest property line of said lot, Narth 51 degrees 8 minutes West 95.2 feet to a stake in the southeast right-of--way of Pine Hill Drive, thence along and with the southeast right-of--way of Pine Hill Drive, South 47 degrees 5 minutes West 9.6 feet to a stake, the beginning of a curve; thence continuing with the southeast right-of--way of Pine Hill Drive, in a general southwesterly direction, along a clockwise curve having a radius of 169.87 feet, a distance of 79.86 feet to a stake; thence continuing with the sautheast right-af--way of Pine Hill Drive, South 62 degrees 27 minutes West 65.4 feet to a stake rra~rldng the northwest comer of the property of I.W. Durham the point and place of beginning, and BEING all of Lot 9, PINE HILL. DEVELOFMENT, Property of I.W. Durham, as per plat and survey thereof by William E. Dozier, Registered Surveyor, dated January 9, 1961, and rtcarded in Plat Book 9, Page 45, Orange County Registry, to which plat reference is hereby made for a mare particular description.