Orange County NC Website
Browse       Search
1.~V1I~LI1U1Y111 <br />Il1l VL ~`1 luJJ l <br />_~'~ _~i <br />P O Box 307 <br />Carrboro NC 27510 <br />919.960.0076 tel <br />919.968.4030 fax <br />son iag(aJn indspring. cony <br />BOARD OF <br />DIRECTORS <br />Alison l~emer <br />Chair <br />Josb Guriitz <br />vue-c~a;r <br />Fliclra Bateman <br />Madeline Jeffrtson <br />Susan Levy <br />SLirleyMaisball <br />Myles Preslar <br />STAFF SUPPORT <br />Orange Community <br />Housing Corporation <br />RobertLaowling <br />Executive Duector <br />Sonia C~rrison <br />Land Trust Project <br />~~ <br />September 27, 1999 <br />John Link, County Manager <br />P O Box 8181 <br />Hillsborough NC 27278 <br />Dear Mr. Link <br />The Board of Directors of the Community Land Trust in Orange County <br />respectfully request that the subsidy monies for the Scarlett Drive <br />Townhomes be provided as a grant to the project <br />Our reasons for this request are as follows: <br />1. Because these townhomes will be part of the land feast (through the <br />ground lease agreement), the units will be permanently affordable and <br />will never require additional subsidy. Subsidy monies are traditionally used <br />in homeownership developments as second mortgages in order to secure the <br />Town's investment. However, once these second mortgages are paid off, the <br />homes tend to escalate in price and become unaffordable. As a part of the <br />land trust, homes not onlyremain affordable, theytend to become more <br />affordable overtime. <br />2. By granting the funds to the development, the townhomes can be <br />marketed at the true cost to the buyer (i.e. $85,000), rather than at the <br />developer's cost ($115,000) which includes the development of the land. <br />This will simplifythe marketing of the homes and help make the project a <br />success. The alternative, to sell the homes for $115,000, will require an <br />explanation of the second (and perhaps third) mortgage, in addition to the <br />rather complicated explanation of the ]and trust model The more <br />complicated the sale becomes, the more difficult it will be to sell the homes. <br />3. By granting the subsidies to the development and allowing the sales <br />price to be $85,000, the homebuyers will be able, if necessary, to borrow <br />closing costa from the banks. This maybe impossible if the homes are <br />priced at $115,000, and the appraisal does not exceed that amount. <br />We appreciate the support you have provided to this first land trust development <br />and, like you, we are most interested in assuring its success. We believe that <br />granting the various subsidy monies the County has approved for this <br />development will be extremely beneficial to the ultimate success of the Scarlett <br />Drive Townhomes. <br />Thank you for your consideration of this request. If you have any questions, <br />please contact Robert Dowling at Orange Community Housing Corporation at <br />967-1545. <br />cere~ly,~. <br />"~~ <br />Alison Weiner <br />Chair, Board of Directors <br />Community Land Trust in Orange County <br />