Agenda - 11-05-2009 - 41 - Laserfiche WebLink

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3 6 • Expansion of a needed community service at a time when many people are losing their homes and/or experiencing a drop in employment income • With an enlarged service capacity, EmPOWERment's voice in the community and local governments will be amplified. • Three years of collaboration have shown that both non-profits share the same goals and vision and EmPOWERment welcomes the opportunity to increase its service to the community in the area of affordable rental housing. Advantages to Orange County and Chapel Hill: • The investments the local governments have made in ARI will be enhanced by reducing the operating costs associated with properties • The need for affordable rental housing continues to grow, especially during this time of widespread financial difficulty. The EmPOWERment property manager maintains a waiting list for potential vacancies. A successful but static organization (ARI) is less useful to the community than is an organization that is able to grow (EmPOWERment). • Annual reporting to the Town and County, as fenders, will be consolidated. • Local governments have shown foresight in allocating funds for both rental and affordable home ownership. It makes sense to have one efficient organization applying for funding in the future. • EmPOWERment staff will be receiving technical assistance around property management and procedures to better satisfy HUD requirements. ARI, as it is currently structured, would have no ability to make use of such assistance; indeed, it may be difficult for ARI to comply in a timely fashion with changes in regulations and reporting requirements. • The dissolution of ARI and transfer of properties may be a model for other nonprofits whose missions may overlap, but which, once joined could provide a larger, more efficient and sustainable service to the community. Advantages to the families and individuals in need of affordable rental housing: • The development of a dedicated property manager's position has worked to the benefit of tenants and potential tenants. • By obtaining operating efficiencies and increased net rental income as a result of accepting the ARI properties, EmPOWERment will be in a position to do one or more of the following: o Develop a reserve fund for future improvements in properties o Reduce mortgage debt o Add to its portfolio of properties. o Sustain and enhance services to tenants. o Create aone-stop resource for local social agencies that also work with the population being served by affordable rental housing.