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HomeMy WebLinkAboutAgenda - 12-13-1999 - 5ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 1999 Action Agenda Item No. 5 SUBJECT: Housing Bond Program Awards DEPARTMENT: County Manager/Housing and PUBLIC HEARING: (Y/N) No Community Development ATTACHMENT(S): Letters of Commitment (under separate cover) INFORMATION CONTACT: Albert Kittrell, ext 2300 Tara Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving letters of commitment of bond funds for two affordable housing projects. BACKGROUND: At their meeting on December 7, 1999, the Board of Commissioners considered applications from various agencies for the use of a portion of the $1.8 million approved by voters in November 1997 for affordable housing projects. The Board deferred action on most of these applications, but indicated a desire to act now to support two time- sensitive projects. The first is a proposal from EmPOWERment to construct 4 condominiums in their Pine Hill Drive project in Carrboro. The second proposal from Habitat for Humanity involves the purchase of a 42-acre tract in the Efland-Cheeks area and construction on that tract of a subdivision with 44 single-family dwellings. County staff is preparing two letters for the Board's approval that would indicate the Board's commitment to provide bond funds for these two projects - $90,000 for the Pine Hill Drive project, and $460,000 for Habitat's project in Efland-Cheeks. The draft letters of commitment and relevant background material will be distributed prior to the December 13 work session, under separate cover. FINANCIAL IMPACT: The funds committed to these projects will come from the $1.8 million in approved affordable housing bonds. RECOMMENDATION(S): The Manager recommends that the Board approve the two letters of commitment and authorize the Chair to sign them. ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 1999 Action Agenda Item No. SUBJECT: Housing Bond Program Award Commitment DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Commitment Letter Capital Project Ordinance INFORMATION CONTACT: Tara L. Fikes, ext. 2490 Donna Dean, ext. 2151 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: a. To approve the commitment letter confirming the award of $90,000 in Housing Bond funds to EmPOWERment, Inc. for the purchase of a tract of land on Pine Hill Drive in Carrboro for future affordable housing development. b. To authorize the County Manager, the County Attorney, and the Housing and Community Development Director to prepare a Performance Agreement governing this expenditure and authorize the County Manager to execute the Agreement on behalf of the County. c. Approve the Capital Project Ordinance authorizing the expenditure of $90,000 in housing bond funding. BACKGROUND: On December 7, 1999, the Board of Commissioners committed $90,000 in housing bond funds subject to approval of a Performance Agreement with the non-profit organization EmPOWERrrient, Inc. for the purchase of a tract of land on Pine Hill Drive in Carrboro for future affordable housing development. EmPO~WERrrient, Inc. has indicated the need to close on this property this month or risk losing the deal. In order to facilitate the actual expenditure of funds for this project, two actions are required. First, the BOCC must approve a Capital Project Ordinance appropriating funds to this project. A Capital Project Ordinance has been prepared to accomplish this task and is included with this abstract for the Board's consideration. Second, a Performance Agreement must be executed between the County and EmPOWERrrient, Inc. which secures and governs the bond funds. This agreement will be developed by the County Manager, the County Attorney and the Housing and Community Development Director by December 29, 1999 and will be presented to EmPOWERrrient, Inc. on that day for execution. To assist EmPOWERrrient, Inc. in the interim, a commitment letter has been drafted for the board's approval. FINANCIAL IMPACT: This action represents an expenditure of $90,000 of the $1.8 million dollar Affordable Housing Bond approved in November 1997. 2 RECOMMENDATION(S): The Manager recommends the following: a. Approve the. commitment letter confirming the award of $90,000 in Housing Bond funds to EmPOWERment, Inc. for the purchase of a tract of land on Pine Hill Drive in Carrboro for future affordable housing development; b. Authorize the County Manager, the County Attorney, and the Housing and Community Development Director to prepare a Performance Agreement governing this expenditure and authorize the County Manager to execute the Agreement on behalf of the County; and c. Approve the Capital Project Ordinance authorizing the expenditure of $90,000 in housing bond funding. • December 13, 1999 Myles Presler, Executive Director EmPOWERment, Inc. 705-A Rosemary Street Carrboro, NC 27510 Dear Mr. Presler: The Orange County Board of Commissioners hereby commit $90,000 to EmPOWERment, Inc. for the purchase of a tract of land, for subsequent housing development, on Pine Hill Drive in Carrboro as identified in their Housing Bond Program Application dated July 8, 1999. The actual disbursement of funds is contingent upon the execution of a Performance Agreement between the County and EmPOWERment, Inc. that will have the following components: 1. Project Description 2. Purpose of Funding 3. Security Provisions; e.g. Deed of Trust -Promissory Note 4. Construction Timetable 5. Compliance wi#h applicable zoning and building code requirements 6. Project Budget 7. Statement regarding Minority and Women-Owned Business Participation 8. Fair Housing Certification 9. Anti-Displacement Certification 10. Dissolution Requirements -What happens to project property of EmPOWERment, Inc. is dissolved? 11. Reporting Requirements 12. Long-Term Affordability Requirement a. The bond investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of forty years. b. The period of affordability will be 99 years and will be secured by a deed covenant. c. Aright of first refusal will be incorporated into. the deed covenant that may be exercised by EmPOWERment, Inc. and/or Orange County. d. Equity will be shared at a rate of 50/50. 13. Other requirements as necessary to promote the Board of County Commissioners goals. The County Manager will present to your organization the Performance Agreement, form of Promissory Note, form of Deed of Trust, and the form of the Deed Covenant on Wednesday, December 29, 1999 for execution. The $90,000 funding award will be disbursed within five (5) working days after receipt by the County of a fully executed Performance Agreement. Sincerely, Moses Carey, Jr., Chair Affordable Housing Program Capital Project Ordinance Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to fund housing activities in the following categories: land acquisition; housing development; and homeownership. The project is financed by proceeds from the 1997 voter approved bond referendum. Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Through FY Through FY Section 4. The following amount is appropriated for this project: Through FY Through FY Section 5. This ordinance, originally adopted December 13, 1999, shall remain in effect until June 30, 2000. Adopted this thirteenth day of December 1999.