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3 <br /> Orange County Housing Bond Policy <br /> Established September 1998 <br /> This document outlines the policies governing the expenditure of 1997 Affordable <br /> Housing Bond funds. Only non-profit entities will be eligible to apply for funding under <br /> the County's bond program. Non-profits may partner with for-profit entities to develop <br /> projects, however, in those cases, the non-profit must have the controlling majority in <br /> the project (more than 50% interest). <br /> A. Loan Program Types <br /> Developers and projects would be selected on a Request for Proposal basis subject to <br /> established evaluation criteria and targeting goals. The following programs would be <br /> implemented using funds from the voter-approved housing bonds and other available <br /> resources. Examples of other available resources include: the Community <br /> Development Block Grant (CDBG) Program, HOME Investment Partnerships Program, <br /> NC Housing Finance Agency Programs, as well as local general fund contributions. <br /> 1. Existing Housing Programs — Target Funding: 33% or$594,000 <br /> All Existing Housing Program activities should be completed within three years of <br /> funding award. Bond fund recipients will be required to submit a status report to the <br /> County each year during project implementation. Any requests for time extensions will <br /> be granted at the discretion of the Board of County Commissioners and must be <br /> submitted at least six months prior to the deadline date. <br /> a. Affordable Housing Loan Program <br /> The focus of this homeownership program would be direct assistance to <br /> eligible borrowers. An eligible homeowner is one that has not owned a <br /> home in the past three (3) years. Income-eligible borrowers would be pre- <br /> qualified for first and second mortgages by a local housing non-profit <br /> agency with the cooperation of local lenders. All prospective homebuyers <br /> would have to complete a county-approved homebuyer education program <br /> prior to receiving approval to participate in the program. The County would <br /> provide a "pre-commitment" letter to the borrower, who could then <br /> purchase a standard home available on the market that they could afford <br /> and that sold for less than the FHA maximum sales price for this area. The <br /> eligible borrower must provide a minimum of$750 cash contribution to this <br /> transaction. <br /> b. Rehabilitation of Substandard Housing — Second Mortgage <br /> This program would provide direct assistance to eligible homeowners and <br /> 501(c)(3) non-profit organizations which own rental property for <br /> rehabilitation of units with code violations. <br /> 12/01/98 <br />