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HomeMy WebLinkAboutAgenda - 12-07-1999 - 9de 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 7, 1999 Action Agenda Item No. SUBJECT: Housing Bond Program Awards DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Evaluation Criteria Evaluation Criteria Summary Project Summaries Complete Project Proposals INFORMATION CONTACT: Tara L. Fikes, ext 2490 (under separate cover) TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336 -227 -2031 PURPOSE: To approve projects for the Orange County Housing Bond Program. BACKGROUND: In November 1997, Orange County voters approved a $1.8 million dollar housing bond issue. Funds are to be used for affordable housing initiatives in three areas: land acquisition, housing development, and homeownership programs. This is the first housing bond issue approved in the County. On April 7, 1998, the Board of County Commissioners appointed a Housing Bond Policy Task Force with membership from a representative of the seventeen (17) local non -profit housing organizations and associations. The Task Force developed a proposed Housing Bond Policy that was approved by the Board on December 15, 1998. After the policy was completed, Request for Proposals were solicited from existing county housing non- profit organizations. Approximately, ten (10) proposals were received in July, August, and September from interested organizations. The Project Review Committee has reviewed these proposals and make the following recommendations. Project Title Funding Recommendation Number of Units a. New Construction i. Orange Community Housing $450,000 32 townhouses Corporation — Meadowmont ii. Scarlett Drive $140,000 14 townhouses b.Land Acquisition i. Habitat for Humanity — $460,000 44 single family dwellings Efland/Cheeks ii.EmPOWERment, Inc. — $90,000 4 condominiums Pine Hill Drive c. Existing Programs i.Rental Property Acq/Rehab a. EmPOWERment, Inc. $100,000 8 standard, one - bedroom Sykes /Gomains Street apartments b. Hargraves Street $100,000 11 standard apartments c. OPC Mental Health $ 80,000 2 condominiums ii. Urgent Repair Program $100,000 30 owner-occupied dwellings TOTAL $1,520 000 TOTAL 145 units A summary of each project is provided with this abstract. Full copies of all proposals are available under separate cover. Additionally, two other projects were reviewed by the committee but not recommended for funding at this time. These projects were submitted by Pines Community Center, Inc. and EmPOWERment, Incorporated. A summary of the committee findings is also included with this abstract. FINANCIAL IMPACT: The proposed projects total $1,520,000 and is leveraged by approximately $8,194,947. This recommendation represents the commitment of all but $280,000 of housing bond funds. OTHER IMPACTS: 1. The County has recently developed a Fair Housing Plan which identifies impediments to fair housing choice within the jurisdiction, and, outlines appropriate actions to overcome the effects of any impediments identified through the analysis. There is no direct correlation between the approval of bond projects and the approval of the Fair Housing Plan. However, the County should expect non -profit agencies receiving bond funding to affirmatively further fair housing in the implementation of their housing activities. 2. Two organizations, Habitat for Humanity of Orange County, Inc. and EmPOWERment, Inc. have advised of the expiration of land options in December 1999. Failure to receive an allocation of bond funds and subsequently close on these land purchases will cause these organizations to lose available property. (See attached letters). 3. On November 8, 1999, Congressman David Price announced the award of a Economic Development Initiative (EDI) grant in the amount of $250,000 to the Community Land Trust of Orange County, Incorporated. This grant was not solicited by the Community Land Trust, thus, there are no current plans for the expenditure of grant funds. Presently, the Land Trust and the Orange Community Housing Corporation are researching the program regulations to determine the type of activities eligible under this grant in order to begin planning for future projects. Additionally, most HUD funding is laden with compliance requirements that will require substantial "start-up" time which could be six months to one year based on the experience of other localities. RECOMMENDATION(S): The Manager recommends approving the recommended projects for the Orange County Housing Bond Program within a time frame that allows these expenditures to be included in the bond sale scheduled for the Spring of 2000. Approval at the December 7, 1999 or January 18, 2000 meeting should be adequate to meet the deadline for the bond sale. 3 Habitat for Humanity Orange County, NC, Inc. P.O. Box 459 • Hillsborough, NC 27278 • (919) 732 -6767, a►x: (919) 732 -2337 • ochabitat@aol.com November 23, 1999 Ms. Tara. Fikes, Director Housing and Community Development Orange County P.O. Box 8181 Hillsborough, NC 27278 Dear Tara: At their November 22 working session, the Board of County Commissioners requested information regarding deadlines facing the developers of projects being recommended for funding through the affordable housing bond program. Habitat for Humanity, as you know, has requested $460,000 to be used for the purchase of a 41 acre tract in Efland, and the development of a portion of the infrastructure for the 44 affordable home subdivision that we propose to build there. Our contract with the seller of the tract was to expire on November 30, 1999. One of Habitat's contingencies in the contract is that we receive approval from the Board of County Commissioners for our funding proposal. Without this approval, the Habitat for Humanity Board of Directors is not willing to go to closing, since the bond funding is essential to the financial feasibility of the project. At the time that the contract was drawn up, we had anticipated, based on conversations I had with you about the timetable for decision making, that the Commissioners would have made their funding decisions by the end of October 1999. The seller agreed at the time to wait until the end of November to close. When I received word that the Commissioners would not be considering housing.bond proposals until their December 7h meeting, I immediately contacted the seller and asked him for an extension. He was willing, reluctantly, to grant an extension on the contract until the end of December (closing to occur no later than Dec. 30, 1999). However, he made it clear that he must close in the current tax year in order for the sale to be beneficial to him. If we were to delay the closing beyond the end of the year, he would let the contract expire, and we would have to renegotiate price and terms with him. This would certainly result in an increased cost of the property, and would also allow other interested parties to make offers on the property. We stand to lose not only the property, but also our investment of time and money in the development of the concept plan for the subdivision. We have to date incurred expenses in excess of $15,000 to get to the stage we are at in planning the subdivision. We therefore respectfully request that the Board of County Commissioners take action at their December 7t' meeting on our housing bond proposal. If their decision about our proposal is an affirmative one, which we certainly hope it will be, then we will 4 be able to close by the contract deadline. We will use funds that we have available on a short term basis to purchase the land, with the understanding that we would be reimbursed as early in the new year as possible. In order for the Commissioners to make an informed decision on December 7t', I would be more than willing to provide any information about the project which they would like to have before hand. Please let me know if there is anything I can do in this regard. Sincerely, usan Levy Executive Director enclosuvt; adc%ndurn �f h"�e- e,Mr-nS/on on Con "Cf 5 ADDENDUM FOR TIME EXTENSION 0.1 THIS ADDENDUM FOR TIME EXTENSION is entered into this Y day of November, 1999, ty and between Habitat for Humanity, Orange County, NC, Inc.; Buyer, and David Qraffunder and Rebecca Cmdrunder, Seller, Parties to the Offer to Purchase and Contract for the purchase and sale of 40.96 acre tract of land in cheeks Township. Orange County, North Carolina, dated July 15,1999. Buyer and Seller agree as followsd: �. The date by which Buyer must cancel the contract based on the inability to satisfy the contingencies set forth in the contract, without forfeiting its eurn,est money deposits is hereby Oxtended from November 20, 1999 to December 20, 1999. i 2. The date on or before which all parties agree to execute any and all documents and papers necessary in connection with closing and transfer of title is hereby extended to December 30, t999. 3. All other terms and conditions of the Offer to Purchase and Contract shall remain unchanged end in trill force and effect. This the !Fday of November, 1999. Buyer: Sell Habitat. or Humanity, Orange County, NC, Inc. eal) did Graffunder By: (Seal) c ( ) Rebecca Graff under M EmPOWERment, Inc. Reclaiming the POWER of our Communities BOMD OF DIRiCT'ORB Prvi n S. Fomhee, President NwAW&Camsmu�YAxwak w Stepney Edward:, Vice President Mrdrey B-i-Shop AxhL-y 0sn=t, SecreftLy AMwgm McSwr# & O=W Jane Stein, Treasurer CAW C"Mff Septa Fsaardabin SAM Brooks REALTOR Barbara Brown Cor C#Wf Ndgb6wd ead Atwdab'ox nk.tw Bumette LVdSbadN -r h&r,�A —madon Paul Caldwell Nwd%ik Gmm Ai6,Atsadadwa Rev. Robert C npbeR Rogan RandNdgbl-d A —dad- Matthew Feanington LA!)asbadN -ghiv 6aadA,rs A*- Beth Flora GarCoastNg0iv �A=akWw Myles Presley Dbwt*r Mamcine Machell Commtad# D- bpwntt Spada&d Terry Carver P- Shannon Smmden Yoid O vvivr Jeff Caiola Lgkm ADD>3 705-A West Rosemary Street Caaboro, NC 27510 Phone: (919) 9674rM Fax (919) 967-0710 empowemnen6 -@D indspymg oonz November 23,1999 TO: Tara Fikes FROM: Myles Presley 199 NOV 24 RE: Bond Requests I am writing to update you on the status of our proposed Pine H II Drive condominium development. We are under contract to dose on this property by December 15, 1999. The sellers have patiently waited for us to mobilize project financing but are unwilling to delay further. We have been under contract to purchase this property since April. As you know, our approach to housing development focuses on purchasing existing homes and infill property. It is rare that a seller is willing to wait 8 months to dose a deal. This is why our request for Bond funding for the Community Revitalization Loan Fund is so important. We hope the Board will approve our request for Pine Hill Drive, and that the staff will quickly complete review of the Loan Fund guidelines so that the Board can consider our funding request for that initiative. Please contact me should you have any questions. 6 7 A. Evaluation Criteria The evaluation criteria below will be used in reviewing and ranking housing bond fund proposals. Additional guidelines may need to be added to these in the actual solicitation package depending upon the location and nature of the project. I. Affordabilily (30 points) The degree to which the proposed project would serve those with incomes below the maximum and the period of time over which the project would remain affordable to that income group. a. Income targeting - 20 points ➢ If the project is designed to serve households earning less than 50% of the area median income, the full 20 points will be awarded. ➢ If the project serves household earning less than 60% of the area median income, 15 points will be awarded. ➢ If the project serves household earning less than 70% of the area median income, 10 points will be awarded. ➢ If the project serves household earning less than 80% of the area median income, 5 points will be awarded. ➢ (BONUS) If 100% of the units in a project serves households earning less than 25% of the area median income, 5 points will be awarded. b. Affordability -10 points ➢ If the project is designed to remain affordable for over 40 years, the full 10 points will be awarded. The period of affordability will be reinforced by deed restrictions. ➢ If a project is designed to remain affordable for 31 - 40 years, five points will be awarded. The period of affordability will be reinforced by deed restrictions. 11. Leveraging-(20 points) The degree to which the proposed project includes funding from other sources and minimizes County Bond funds required, given the income groups served. All outside 0 funding sources must be committed within six (6) months of the date of the project proposal. ➢ If 90% of total project cost is financed by outside sources and 10% is financed by bond funds, the full 20 points will be awarded. ➢ If 80% of total project cost is financed by outside sources and 20% is financed by bond funds, 18 points will be awarded. ➢ If 70% of total project cost is financed by outside sources and 30% is financed by bond funds, 16 points will be awarded. ➢ If 60% of total project cost is financed by outside sources and 40% is financed by bond funds, 14 points will be awarded. ➢ If 50% of total project cost is financed by outside sources and 50% is financed by bond funds, 12 points will be awarded. ➢ If 40% of total project cost is financed by outside sources and 60% is financed by bond funds, 10 points will be awarded. ➢ If 30% of total project cost is financed by outside sources and 70% is financed by bond funds, 8 points will be awarded. ➢ If 20 % of total project cost is financed by outside sources and 80% is financed by bond funds, 6 points will be awarded. ➢ If 10% of total project cost is financed by outside sources and 90% is financed by bond funds, 4 points will be awarded. ➢ If a project is funded 100% with bond funds, 0 points will be awarded. 111. Design (10 points) The quality of the design of the site plan and housing units, with respect to attractive appearance, functionality, and compatibility with the surrounding area. ➢ If the project is designed to be energy efficient according to the NC Housing Finance Agency Energy Efficiency Criteria, 5 points will be awarded. (See Attachment 1 for NCHFA Energy Standards) ➢ If the project fits well into the surrounding area in terms of building style, design, and materials, 5 points will be awarded. ➢ (BONUS) If the project meets the accessibility needs of persons with disabilities, 5 points will be awarded. IV. Community Sponsorship/ Support (10 points) The degree to which the sponsoring organization demonstrates plans for strong community participation throughout the development of a project. ➢ If the applicant coordinated its application with other organizations to compliment and /or support the proposed project, 4 points will be awarded. ➢ If the applicant involved the intended beneficiaries of the project in the development of the application, 2 points will be awarded. ➢ If the applicant demonstrates that it has been actively involved, or if not currently active, the steps it will take to become actively involved in the Community's Consolidated Planning process to identify and address a housing need / problem that is related in whole or part, directly or indirectly to the proposed project, 2 points will be awarded. ➢ If the applicant developed or plans to develop linkages with other activities, programs or projects related to the proposed project (i.e. support services) to coordinate its activities so solutions are holistic and comprehensive, 2 points will be awarded. ➢ (BONUS) If the applicant will involve persons with disabilities in the development and operation of the project, 2 points will be awarded. V. Project Feasibility (15 points) The degree to which the project has the following characteristics: cohesiveness; timeliness with regard to construction scheduling; zoning requirements; innovation; and completeness of the proposal submitted for review. ➢ Minimum requirements include site control and a complete application. ➢ If everything is in place (commitment letter, proper zoning, site control, complete project proposal, the full 15 points will be awarded. ➢ If all funding is in place, 10 points will be awarded. If proper zoning is in place, 5 points will be awarded. ➢ (BONUS) If the applicant has contractor commitments and necessary building permits, 5 bonus points, will be awarded. M VI. Developer Experience (15 points) The scope, extent and quality of the Sponsor's experience in housing or related services to those proposed to be served by the project and the scope of the proposed project (i.e. number of units, services, relocation costs, development, and operation) in relationship to the Sponsor's demonstrated development and management capacity, as well as its financial management capability. This includes the Sponsor's utilization of minority and women -owned businesses, and other allied small businesses in the planning and development of the project. Partnerships by local organizations will be encouraged. The amount of experience of the project sponsor and the proposed development team in carrying out similar projects in a successful fashion, particularly with respect to reasonably meeting project budgets and timetables on such projects. This would include review of the organization's track record in handling projects which used town or county local funds and /or funds awarded to the local governments in Orange County by the federal or state government. In the case of rental projects, the amount of experience the project sponsor and management company have in managing low income housing including an adequate management plan for dealing with special population needs and special community needs. The minimum acceptable number of points is 60 with points awarded from five of the six evaluation categories. Project Review and Selection A County Committee will evaluate project proposals and make funding recommendations to the County Manager. The County Committee would include the: Assistant County Manager (Human Services); County Engineer; Finance Director; Housing and Community Development Director; and the Planning Director. In addition, local planning department personnel from the planned project's jurisdiction will be invited to review proposals, as well as a member of the Orange County Housing Coalition who is unassociated with any existing housing non - profit organization. All housing bond projects must be approved by the Board of County Commissioners. Project proposals recommended for funding by the staff committee, with the concurrence of the County Manager, will be placed on a regular Board of County Commissioners meeting agenda for their consideration. ORANGE HOUSING BOND PROGRAM EVALUATION SUMMARY 11 Maximum Possible Score -100 points; Minimum Acceptable Score is 60 points awarded from five of the six evaluation categories. EVALUATION CRITERIA Income Targeting Community Project (20 pts.) Sponsorship Feasibility Developer Affordability Bonus 5 Leveraging Design (10 pts.) (10 pts.) (15 pts.) Experience PROJECTS (10 pts) pts. (20 pts.) Bonus 5 pts Bonus 2 pts. Bonus 5 pts. (15 pts.) TOTAL Orange Comm. Housing Corporation New Construction - Meadowmont 5 5 20 5 6 5 15 61 Orange Comm. Housing Corporation New Construction - Scarlett Drive 10 5 20 6 8 8 15 72 Habitat for Humanity Land Acquisition - Efland- Cheeks 10 15 18 15 10 8 15 91 EmPOWERment, Inc. Rental Acquisition - Pine Hill Drive 5 15 16 10 4 5 10 65 EmPOWERment, Inc. Rental Acquisition - Sykes/Gomains St. 5 20 18 5 2 5 10 65 EmPOWERment, Inc. Rental Acquisition - Hargraves Street 5 20 18 5 2 5 10 65 OPC Mental Health Rental Acquisition 10 20 14 10 4 5 5 68 Orange Comm. Housing Corporation Urgent Repair Program 0 20 10 6 6 10 15 67 EmPOWERment, Inc. Community Revitalization Program 10 15 16 5 5 5 10 66 Pines Community Center Land Acquisition - No Scoring Maximum Possible Score -100 points; Minimum Acceptable Score is 60 points awarded from five of the six evaluation categories. 12 Housing Bond Project Summara Applicant: Orange Community Housing Corporation Project Title: Meadowmont Request for Bond Funds: $450,000 Total Project Costs: $3,739,250 Bond Fund Leverage: 12% bond funds; 88% other funding sources Project Description: Orange Community Housing Corporation proposes construction of a 32 unit townhouse development in the Meadowmont development in Chapel Hill. Meadowmont is a mixed -use development located off Highway 54 in Chapel Hill. In the approval process, the Town of Chapel Hill required the developer, East West Partners to provide land for 32 affordable townhouses. The developer has agreed to donated the land to develop the townhouses. OCHC is proposing that bond funds be loaned to OCHC for construction and converted to second mortgages at $14,000 per unit in order to lower the cost of the first mortgage of the first time homebuyers. Target Population/Projected Outcome: 32 first time homebuyers with incomes at or below 80% of median income Project Schedule Obtain building permits - Second Quarter 2000 Groundbreaking - Third Quarter 2000 Begin home sales - Early 2001 Project Completion - Late 2001- Early 2002 Long Term Affordability Vehicle Second mortgages, deed restrictions and equity sharing arrangements will be used to insure affordability for at least 40 years. 13 Housing Bond Project Summary Applicant: Orange Community Housing Corporation Project Title: Scarlett Drive Request for Bond Funds: $140,000 Total Project Costs: $1,678,520 Bond Fund Leverage: 8% bond funds; 82% other funding sources Project Description: Orange Community Housing Corporation (OCHC) proposes to develop fourteen townhouses on land currently owned by the Town of Chapel Hill at the corner of Legion Road and Scarlett Drive. The -homes will be developed in cooperation with the Community Land Trust in Orange County and will be the first land trust project in Orange County. OCHC is asking that bond funds be granted to the development to be used for project construction costs. Target Population/Projected Outcome: 14 first time homebuyers with incomes below 80% of median income Project Schedule Groundbreaking - January 2000 Project Completion - March 2001 Long Term Affordability Vehicle The townhouses will remain affordable because they will be in a land trust. The land trust will own the land and lease it to the homeowners who purchase the townhouse for a renewable 99 year term. Included in the land lease is a resale formula which determines how much appreciation the homeowners will receive when they resell their homes. 14 Dousing Bond Project Summary Applicant: Habitat for Humanity of Orange County, NC, Inc. Project Title: Efland - Cheeks Land Acquisition Program Request for Bond Funds: $465,000 Total Project Costs: $2,060,000 Bond Fund Leverage: 18% bond funds; 82% other funding sources Project Description: Habitat for Humanity proposes to use $460,000 in Orange County Housing Bond funds to purchase a 42 acre tract in the Efland - Cheeks area of Orange County. Bond funds would be used for the acquisition of the property; engineering work necessary for approval of a 44 affordable home subdivision to be built on the tract as well as for approximately 50% of the infrastructure costs. The subdivision will be known as Richmond Hills. Target Population/Projected Outcome: 44 first time homebuyers: 13 with incomes 51% - 80% of median income 31 with incomes at or below 50% of median income Project Schedule Property Acquisition Deadline - December 31, 1999 Begin infrastructure improvements - July 2000 Begin construction of seven (7) homes - March 2001 Begin construction of eight (8) homes - September 2001 Begin construction of fifteen (15) homes - June 2002 Begin construction ten (10) homes - August 2002 Project Completion - June 2003 Long Term Affordability Vehicle The two options under consideration by the Board of Directors of Habitat for Humanity of Orange County are: 1) have the land owned and held in trust by the newly formed Community Land Trust for Orange County, thus ensuring the permanent affordability of all homes; and 2) utilize deed restrictions to ensure affordability for homebuyers earning at or below 80% of area median income for 41 -50 years on all homes. 15 Housing Bond Project Summary Applicant: EmPOWERment, Inc. Project Title: Pine Hill Drive Request for Bond Funds: $90,000 Total Project Costs: $420,424 Bond Fund Leverage: 21% bond funds; 79% other funding sources Project Description: EmPOWERment proposes to use $90,000 in Orange County Housing Bond funds to purchase a tract of land on Pine Hill Drive in Carrboro that will be converted to second mortgages for the potential homebuyers. There are four condemned mobile homes at this site that will be demolished and EmPOWERment will build four (4) new condominium units to sale to first time homebuyers. Target Population/Projected Outcome: 4 first time homebuyers with incomes between 52% and 58% of median income Project Schedule Property Acquisition Project Completion - December 31, 1999 - June 2000 Long Term Affordability Vehicle Bond funds will be secured by a 40 year Deed of Trust. If a family sells their home within the 40 year period of affordability, they must repay both the entire principal balance of the second mortgage, plus 2 1 % appreciation on their home. 16 Housing ing Bond Project Summary Applicant: EmPOWERment, Inc. Project Title: Sykes /Gomain Street Apartments Request for Bond Funds: $100,000 Total Project Costs: $409,803 Bond Fund Leverage: 24% bond funds; 76% other funding sources Project Description: EmPOWERment proposes to use $100,000 in Orange County Housing Bond funds to purchase two (2) existing apartment buildings on Sykes and Gomains Street in Chapel Hill, renovate them and rent them to families earning less than 50% of median income. The buildings have eight (8) one bedroom apartment units. Target Population/Projected Outcome: 8 rental households with incomes at or below 50% of median income Project Schedule Project Completion - December 2000 Long Term Affordability Vehicle EmPOWERment, Inc. will own the property and will ensure that these units remain affordable for at least 40 years. 17 Housing Bond Project Summary Applicant: EmPOWERment, Inc. Project Title: Hargraves Apartments Request for Bond Funds: $100,000 Total Project Costs: $658,250 Bond Fund Leverage: 15% bond funds; 85% other funding sources Project Description: EmPOWERment proposes to use $100,000 in Orange County Housing Bond funds to purchase two (2) existing apartment buildings at 103 Hargraves Street in Carrboro, renovate them and rent them to families earning less than 50% of median income. The buildings have eleven units: 10 two bedroom apartment units; and one (1) three bedroom unit. Target Population/Projected Outcome: 11 rental households with incomes at or below 50% of median income Project Schedule Project Completion December 2000 Long Term Affordability Vehicle EmPOWERment, Inc. will own the property and will ensure that these units remain affordable for at least 40 years. 18 Housing Bond Project Summary Applicant: OPC Area Program & Orange Person Chatham Foundation for Mental Health Project Title: Rental Housing Acquisition Program Proposal Request for Bond Funds: $160,000 reduced by the Review Committee to $80,000 Total Project Costs: $480,000 Bond Fund Leverage: 17% bond funds; 83% other funding sources Project Description: The Orange Person Chatham Area Program and the Orange Person Chatham Foundation for Mental Health is seeking a deferred loan in the amount of $160,000 for acquisition and necessary rehab costs to provide rental property to persons with disabilities residing in Orange County including the Towns of Carrboro, Chapel Hill, and Hillsborough Target Population/Projected Outcome: Acquisition of two condominiums for lease to families with incomes below 25 % of the area median income. Project Schedule Project Completion - June 2000 Long Term Affordability Vehicle No Statement was provided by the applicant. 19 Housing Bond Project Summary Applicant: Orange Community Housing Corporation Project Title: Orange County Urgent Repair Program Request for Bond Funds: $100,000 Total Project Costs: $268,700 Bond Fund Leverage: 37% bond funds; 63% other funding sources Project Description: Orange Community Housing Corporation (OCHC) requests a grant in the amount of $100,000 to provide support to their existing Urgent Repair Program (URP) during the next three years. Bond funds would be used for hard costs including materials and labor; and project management and administration costs. Target Population/Projected Outcome: 30 owner- occupied houses would be repaired under this program. The owner occupants would have incomes at or below 50% of area median income. 25% of the funds would be targeted to the incorporated areas of Carrboro and Chapel Hill; the remaining 75% would be targeted to the remaining areas of the County. Project Schedule Project Completion - June 2001 Long Term Affordability Vehicle No statement was provided by the applicant. 20 Applicant: EmPOWERment, Inc. Project Title: Community Revitalization Program Request for Bond Funds: $270,000 Total Project Costs: $1,012,680 Bond Fund Leverage: 27% bond funds; 73% other funding sources Project Description: EmPOWERment proposes to use $270,000 in Orange County Housing Bond funds to purchase and rehabilitate at least 12 single family houses in Orange County for resale to low - income families. Target Population/Projected Outcome: 12 first time homebuyers with incomes at or below 60% of median income Project Schedule Project Completion - June 2001 Long Term Affordability Vehicle Bond funds will be secured by a 40 year Deed of Trust. If a family sells their home within the 40 year period of affordability, they must repay both the entire principal balance of the second mortgage, plus 21% appreciation on their home. Bond Committee Recommendation The Bond Committee does not recommend this project for funding at this time for the following reason. This program is designed to operate in accordance with the existing Community Revitalization Loan Program currently operated by Orange County on behalf of the Orange County HOME Consortium. At this time, all program activities have been suspended in order to re- examine the guidelines for this program to assure compliance with all federal regulations, to ensure that the Program operates smoothly, and to incorporate "lessons learned ". Specifically, the following issues are under review: a) rehabilitation costs; b) property appraisals; c) property inspections; d) rehabilitation financing; and e) environmental requirements. This review should be completed by the end of the 1999 calendar year. Thus, the Bond Committee decided to postpone a funding recommendation until the review is completed so that the applicant is fully aware of the program guidelines prior to any potential bond award. 21 Housing Bond Project SummarX Applicant: Pines Community Center, Inc. Project Title: Land Acquisition — Park Road Request for Bond Funds: Scenario 1: $ 55,000 Scenario 2: $ 84,400 Scenario 3: $355,000 Total Project Costs: No Total Project Budget Bond Fund Leverage: Scenario 1: 15% bond funds; 85 % other funding sources Scenario 2: 24% bond funds; 76% other funding sources Scenario 3: 90% bond funds; 10% other funding sources Project Description: Pines Community Center, Inc. proposes to use Orange County Housing Bond funds to retire the current indebtedness for land it presently owns on Park Road in Chapel Hill and develop condominiums to serve up to twelve low to moderate income families. Target Population/Projected Outcome: 12 first time homebuyers with incomes at or below 70% of median income Project Schedule Project Completion - December 2001 Long Term Affordability Vehicle If a family sells their home within the first five (5) years, 90% of the equity would be retained by Pines Community Center; after five years, 60% of the equity would be retained by Pines Community Center. Further, the non - profit organization would have the right for first refusal. Bond Committee Recommendation The Bond Committee does not recommend this project for funding at this time for the following reasons. 1. Applicant submitted three different funding scenarios instead of one funding proposal. 2. Key components of the application submission were missing, thus, hindering review. These included the lack of clear site development information regarding housing design, site improvement and construction budgets, clear development plans, a construction schedule, and a full description of the applicant including the development team or potential team.