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ORANGE COUNTY <br />BOARD of CC~MM15514NER5 <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 7, 2009 <br />Action Agenda <br />Item No. <br />SUBJECT: Development A reement Amendment -- 4CHLTIEmPUwFRmenfi <br />DEPARTMENT: HousinglCamm. Development PUBIC HEARING: €YIN~ No <br />ATTACHMENT(S): <br />Letter from OCHLT <br />Agreement Amendment <br />INFORMATION CaNTACT: <br />Tara L. Fikes, 245-2490 <br />PURPOSE: To consider approval of an amendment fio fihe Development Agreemenfi between <br />orange County and orange Community Housing and Land Trusfi ~oCHLT} and <br />EmP4wERment, inc. dated October 25, 2004 for homes built in the Northside neighborhood in <br />fihe Town of Chapel Hill and authorize the Manager fio execute the amendment upon approval of <br />fihe County Attorney. . <br />BACKGROUND: on May 9, 2002, fihe Board of County Commissioners approved the allocation <br />of $90,000 fio orange Community Housing and Land Trust ~aCHLT} and E.mPOWFRment, Inc. <br />to assist in the construction of three homes in the Northside neighborhood of Chapel Hill fihafi <br />would be held in fihe Gommunifiy Land Trusfi ~CLT} fio ensure long term afl:ordabilifiy. These <br />homes have been constructed, placed in fihe CL,T and sold fio Iow income firsfi~fiime homebuyers <br />earning 60°/~ or less of area median income as required by the Development Agreemenfi. <br />Afi this time, as OCHLT prepares to resale these homes, ifi is asking that the income limit for <br />prospective buyers be increased to 8Q°/~ or less of HUD Area Median Income AMI}because fihe <br />homes are no~ longer affordable for families at 60% AMI. See attached letter.} This housing <br />afl+ordability issue has been raised by OCHLT in fihe past and was one of the subjects of <br />discussion by the 2008 Land Trusfi Affordability Housing Maintenance Task Force fihafi issued its <br />final report in September 2008. Afi that time, fihe Task Force agreed fihe current and projected <br />stagnant rate of increase in fihe AMI would cause many homes iti the inventory fio become <br />unaffordable fio many families earning less than 80% AMl and thus recognized fihe potential <br />need in the future for additional subsidies to reduce the purchase price. At this time, oGHLT <br />is not asking for additional subsidies, but is asking that fihe target population be broadened for <br />fihe resale of these homes. <br />FINANCIAL IMPACT: None. <br />