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addition to our inclusionary housing work, we develop our own housing. For example we are <br /> planning to build two affordable homes in Carrboro early in the new year. They will sell for <br /> about $125,000. <br /> We are currently required to pay an impact fee of approximately $4,400 on each home. We <br /> include this cost in our development budget, but we typically are reimbursed for the fee after <br /> the home is sold. I have two questions about the proposed fee increase: <br /> 1. If the fee is increased, will the County be increasing the amount of funds available <br /> for reimbursement to nonprofit organizations? <br /> 2. Does the County have a policy on reimbursing these fees? It has never been clear <br /> to me if we are guaranteed reimbursement of impact fees or if reimbursement is <br /> based on availability of funds. I am under the impression that the policy is the <br /> latter. <br /> If reimbursement is based on availability of funds, then it makes it difficult for nonprofit housing <br /> developers to budget for these fees. If reimbursement is uncertain, then we have to include <br /> the fees in our costs and increase our subsidy requirements to offset the fees (should they not <br /> be reimbursed). This is not an insignificant concern with the fee at $4,400. Obviously it <br /> becomes a bigger concern as the fee increases. Any clarity that the Board can offer is much <br /> appreciated. <br /> I hope my concerns are clear and again, I'm sorry that I will not be at this evening's meeting. <br /> Thank you for your consideration of this perspective. <br /> Robert Dowling <br /> Executive Director <br /> Orange Community Housing and Land Trust <br /> 104 Jones Ferry Road Suite C <br /> Carrboro, NC 27510 <br /> 919-967-1545 ext. 307 <br /> Commissioner Nelson asked about the answer to the first question, if the fee is <br /> increased, then would the reimbursement to nonprofits also increase. Laura Blackmon said <br /> yes, unless the Board says otherwise. <br /> Commissioner Nelson asked about the second question and it was answered that <br /> reimbursement is based on availability of funds. Laura Blackmon said that there could be a <br /> budget adjustment if more funds came in. <br /> Commissioner Jacobs asked staff to provide the Board with the reimbursement policy <br /> and also to provide it to the nonprofit entities that provide affordable housing and to the Towns. <br /> Regarding setting the fee annually, he does not think that this is feasible because of the nature <br /> of the data. He would agree with the staff working on a threshold structure size. <br /> Commissioner Jacobs said that the County should do revaluations every two years <br /> rather than every four years. Also, there have been cases of deconstruction and rebuilding of <br /> houses, and he thinks that these houses should be exempt from impact fees. <br /> Commissioner Gordon said that she is concerned about the affect of this on the <br /> building industry and she would like to think about this and come back to it a little later. <br />