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POLICY FOR INSERTION INTO THE POLICY MANUAL <br />c`O <br />MEETING DATE: March 4, 1998 NUMBER: A: 0321 v~~ ~ <br />EFFECTIVE DATE: March 4. 1998 REVISIONS: March 4, 1998 <br />POLICY: IMPACT FEE REIMBURSEMENT POLICY CONCERNING <br />AFFORDABLE HOUSING FOR LOW INCOME INDIVIDUALS <br />Guidin Principles for the Poli~~ <br />Reimbursements made under this policy must satisfy the public purpose requirement for <br />spending County money. <br />2. All reimbursements are made subject to budgetary constraints, and are limited solely to <br />the County's annual appropriations for reimbursement. Thus there is no entitlement <br />to these reimbursements even for projects that qualify. <br />Eli ibility Criteria: <br />1. A 501(c)(3) non-profit organization which (1) develops affordable housing to be <br />owner-occupied by first-time homebuyers with incomes at or below 80% of the <br />HUD published area median income for the Raleigh-Durham-Chapel Hill, North <br />Carolina MSA, or (2) develops affordable rental housing for persons with incomes <br />at or below 60% of the HUD published area median income for the <br />Raleigh/Durham -Chapel Hill, North Carolina MSA. <br />2. Affordable Housing is defined as (1) owner-occupied housing which can be purchased <br />for no more than 2.5 times annual family income, or (2) rental housing for which <br />the occupant pays no more than 30% of gross income for all housing costs, <br />including utilities. <br />3. An organization requesting impact fee reimbursement must certify in writing that, for <br />owner-occupied housing, it will remain affordable to the anticipated beneficiary or <br />beneficiaries for a period of a minimum of twenty (20) years or longer if required <br />by applicable HUD policy. For rental housing, the certification period is <br />ninety-nine (99) years. The rental housing certification must be secured by a "deed <br />covenant," requiring repayment to Orange County of the impact fee if the rental <br />housing does not remain affordable during the period of affordability, which <br />covenant will be further secured by a note and deed of trust. Evidence must be <br />provided that agency and/or program guidelines are in place to assure affordability <br />compliance. <br />Procedure: <br />