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HomeMy WebLinkAboutAgenda - 08-19-2008 - 4wORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 19, 2008 Action Age a Item No. - SUBJECT: Housing Bond Program -Orange Community Housing and Land Trust DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Bond Program Update INFORMATION CONTACT: Tara L. Fikes, 919-245-2490 PURPOSE: To consider awarding housing bond funds in the amount of $200,000 to Orange Community Housing and Land Trust (OCHLT) to provide subsidy to Land Trust homebuyers. BACKGROUND: The County received an application from OCHLT for $200,000 in County bond funds to subsidize buyers of 13 Land Trust homes that are projected to sell in Fiscal Years 2008 and 2009. The plans are to supplement Community Development Block Grant Funds, HOME funds, and internal subsidies available for resales during these years. The Land Trust has long discussed with the County the need to subsidize the sales of homes in order to make these homes affordable to families with incomes of approximately 65% to 80% of area median income. The Land Trust is unable to identify the homes that will be resold in the coming years; however, Land Trust staff note that there is a particular need for subsidies for resales in Legion Road,. Vineyard Square, and the Greenway Condominiums. As required by the Orange County Housing Bond Policy, the Project Review and Selection (PRS) Committee held apre-application conference with staff from OCHLT to discuss the proposed application and reviewed the submitted applications. The Executive Director was then notified of the committee's recommendation and offered the opportunity to discuss the committee's funding recommendation. That offer was declined since there were no outstanding questions from the committee or OCHLT officials. Members of the Project Review and Selection Committee include: County Staff Members: Willie Best, Paul Thames, Craig Benedict, Perdita Holtz, and Tara Fikes; Commissioner Valerie Foushee; and Affordable Housing Advisory Board Members Barbara Mull, Jabrina Robinson, and Gary Gaddy. The Committee also includes representatives from the Towns of Carrboro, Chapel Hill, and Hillsborough in the person of James Harris, Loryn Barnes, and Margaret Hauth respectively. After review of the application, the Committee recommends the allocation of the remaining bond funds - $185,707 -for mortgage subsidies. The Committee also recommends that if the remaining amount of the initial request - $14,293 -becomes available from reductions in previous bond program commitments, then that amount should be awarded to OCHLT in order to fulfill the total request of $200,000. 2 FINANCIAL IMPACT: There is currently approximately $185,707 available from the FY 2001 Affordable Housing Bond Program. This amount is less than the OCHLT original request of $200,000. At this time, some applicants have indicated that they will not use their full allocation; therefore additional funds may be available to fund the remaining portion of the request or $14,293. A spreadsheet detailing all Affordable Housing Bond Program Financial Activity to date is included with this abstract as additional information. RECOMMENDATION (S): The Manager recommends that the Board award housing bond funds in the amount of $185,707 to Orange Community Housing and Land Trust (OCHLT) to provide subsidy to Land Trust homebuyers. 2001 Housing Bond Program Uptlate Pro act Name S onsor _ Commitment Date Commitment Amount Ex endltures Remaining Funds Completion Date Completed Non-Landbanking Pro acts Rental Property Ac uisition Ch salis Foundation 6/17/2003 $260,000 $260,000 Dec-04 Orange County, NC Rental Prope Acquisition Weaver Comm Housin Assoc 6/17/2003 $220,000 $220,000 Oct-03 Canboro, NC New Construction Rusch Hollow Habitat for Humanity 5/20/2003 $170,000 $170,000 Jan-05 Chapel Hill, NC Prope Acqufsitlon • Milton Avenue OCHLT 5/1/2008 $100,000 $100,000 Jun-08 Chapel Hill, NC Property Ac uisition -Rental CASA, Inc 3/18/2008 $632,300 5632,300 Aug-08 Cha el Hill, NC Pritchard Avenue Apartments New Construction -Sykes Street Pro act EmPOWERment, Inc 5/20/2003 $90,000 $90,000 Jun-08 Chapel Hill, NC Subtotals 57,472,300 51,472,300 Incomplete Projects New Construction - Purefoy Drive Habitat for Humanity 4/24/2007 $450,000 $450,000 Chapel HIII, NC Rental Property Ac uisition Affordable Rentals 6/17/2003 $300,000 $172,300 $127,700 Orange County, NC New Construction -Rental Chrysalis Foundation 1/15/2008 $130,000 $130,000 Chapel Hill, NC Rusch Hollow Second Mortgage Assistance - N. Fairview Habitat for Humanity 5/1/2008 $180,000 $180,000 Hillsborou h, NC New Construction -Rental Banks Law Firm 6/5/2008 $1,000,000 $1,000,000 Hillsborough, NC Eno Haven Subtotals 52,060,000 5172,300 S1,667,700 Completed Projects -Land Bankin Pro a Ac uisition EmPOWERment, Inc 11/3/2005 131,243 129,930 1,313 Cha el Hill, NC Pro arty Acquisition Habitat for Humanit 12/19/2005 $205,000 $205,000 Chapel Hill, NC Prope Acquisition Habitat for Humani 6/26/2006 $116,250 $116,250 Hillsborou h, NC Pro arty Acqufsitlon - N. Fairview Habitat for Humanit 5/1/2008 $182,000 $154,000 528,000 Hillsborou h, NC Sub-total 5634,49) 560b,180 529,313 Total Commitments $4,166,783 52,249,780 Total Commitments - Undisbureed 51,917,013 Bond Funds Available Total 2001 Housin Bonds $4,000,000 Unallocated 1997 Housin Bonds $352,500 TOTAL 54,362,600 less Total Commitments 54,766,783 less OCHLTApplication Under Review 5200,000 remainin Housing Bond funds -574,293 Some a plicants have indicated that the will not use their full allocation and those reductions will cover this pro'ected shortfall. l.:'r'J as of 8/7/2008