Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 5, 2009 <br />1 <br />Action Agenda <br />Item No. <br />SUBJECT: Transfer of Affordable Rentals, Inc. Properties <br />DEPARTMENT: Housing/Community Dev <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Letter from Affordable Rentals <br />Proposal for Dissolution <br />Inventory of Properties <br />2009 ARI Budget <br />INFORMATION CONTACT: <br />Tara L. Fikes, 245-2490 <br />PURPOSE: <br />1) To approve the transfer of 13 properties currently owned by the Affordable Rentals, Inc. <br />(ARI) to EmPOWERment, Incorporated; and <br />2) To authorize the County Attorney's Office to prepare the necessary documents to <br />complete the transfer and authorize the Chair of the Board of the County Commissioners <br />and the County Manager to execute the necessary documentation. <br />BACKGROUND: In late September the County received notice from the Board of Directors of <br />Affordable Rentals, Inc. of its decision, after a strategic planning session, to dissolve Affordable <br />Rentals, Incorporated. This decision is based primarily on the fact that ARI is not able to hire an <br />Executive Director to help with fundraising for the organization. Currently, ARI is a totally <br />volunteer organization with limited time to pursue funding opportunities. <br />The 13 properties currently owned by ARI are being managed by EmPOWERment, Inc. with <br />whom ARI has along-standing history. One of the programs of EmPOWERment is an <br />Affordable Rental Program that enables it to not only own and lease its own property to low <br />income tenants, but that has also allowed it to serve as property manager for other local non- <br />profit organizations including ARI.. Thus, given its mission and expertise in property <br />management, EmPOWERment is the organization that ARI proposes to take ownership of the <br />current property holdings. <br />Nine (9) of the 13 properties were partially financed with HOME Investment Partnership funds <br />totaling $258,000 and four (4) properties were financed with Orange County Affordable Housing <br />Bond funds totaling $273,642. All properties have recorded Declarations of Restrictive <br />Covenants requiring a 99-year affordability provision and all have a recorded Deed of Trust <br />securing the investment. <br />