P-0320 - Impact Fee Reimbursement Policy for Affordable Housing 03-04-1998-9a

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POLICY FOR IMPACT FEE REIMBURSEMENT ^^~r FOR AFFORDABLE HOIISING • Eligibility Criteria: 1. ~ A 501(c)(3) non-profit organization which (1) develops ei-egle-T affordable housing for first-time homebuyers with incomes at or below 80~ of the HUD published area median income for the Raleigh--Durhamf-Chapel Hill, North Carolina MSA, or (2) develops affordable rental housing for persons with incomes at or below 60~ of the HIID published area median income for the Raleigh/Durham - Chapel Hill, North Carolina MSA. 3 2. Affordable Housing is defined as (1) owner-occupied housiag which can be purchased for no more than 2.5 times annual family income, or (2) rental housing for which the occupant pays no more thaw 30`k~ of gross income for all housing costs, including utilities. 3. ~ An organization$ requesting impact fee reimbursement must certify in writing that, for owner-occupied ~e housing, it will remain affordable to the anticipated beneficiary or beneficiaries for a period of at-=e~~ a minimum of twenty (20) years or at least as long as required by applicable HIID policy. For rental housing, the certification period is ninety-nine (99) years. The rental housing certification must be secured by a "deed covenant,u requiring repayment to Orange County of the impact fee if the rental housiag does not remain affordable during the period of affordability, which covenant will be further secured by a note and deed of trust. Evidence must be provided that agency and/or program guidelines are in place to assure affordability compliance. Procedure• 1. An organization requesting impact fee reimbursement must anticipate reimbursement needs for a given fiscal year and submit a request for fee reimbursement at the time for submission of the County's annual budget, non-departmental funding requests. Further, at no time should an organisation presume impact fee reimbursement, and in particular, presume a lump sum reimbursement payment or totah:reimbursement payments in one fiscal year. Therefore, the cost: of impact fees should be considered when developing housiag development projects and should be included in all gram axed loan applications . Written request for impact fee reimbursement should be submitted to the Orange County Housing and Community Development Department prior to the anticipated date the building permit will be obtained. The request should include all information necessary for a determination of eligibility, including so much of the following that is pertinent: a description of the anticipated beneficiary (homeowner or tenant), a detailed i~r~-i~=~~-1 ~-te~~ construction budget, a~ an estimated completion date, the house selling price or the proposed rent schedule, including utility costs.