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~. <br />SUBJECT: HOME Program -Community Revitalization Loan Fund <br />Action Agenda <br />Item No. ~_ <br />DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/1~ <br />BUDGET AMENDMENT: (Y/l~ <br />ATTACHMENT(S): <br />Development Agreements <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 20, 1998 <br />INFORMATION CONTACT: <br />Tara L. Fikes <br />TELEPHONE NUMBERS: - -eat. 2490 <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 227-2031 <br />PURPOSE: <br />To approve a Development Agreement with two local non-profit housing agencies, <br />EmPOWERment, Inc. and Orange Community Housing Corporation, for HOME funding available <br />under the Community Revitalization Loan Fund. <br />BACKGROUND: <br />A Community Revitalization Loan Fund was created in the 1998-99 Orange County HOME <br />Consortium program design to provide funds to assist low/moderate income families purchase <br />existing housing. Funds can be requested by EmPOWERment, Inc. and Orange Community <br />Housing Corporation for acquiring property, rehabilitating the property, and/or second mortgage <br />assistance. A total of $210,000 has been allocated for this program in the 1998-99 fiscal year with <br />priority funding granted for activities in the Northside community in Chapel Hill. Operational <br />guidelines for this program were approved on August 20, 1997. <br />Under this program, local non-profit housing agencies will acquire, rehabilitate, if necessary, and <br />resell houses located in Orange County to eligible first-time homebuyers. In some cases, houses <br />will not need to be repaired, thus, the non-profit organization will serve as an sponsor for <br />prospective homebuyers who need second mortgage assistance. This mortgage assistance enables <br />the first time homebuyer to obtain a first mortgage for a lesser amount, thereby increasing the <br />availability of first-time homeownership opportunities. The non-profit organization would be <br />responsible for certifying the eligibility of the prospective homebuyer, as well as ensuring that the <br />subject property is in standard condition. An estimated ten (10) low/moderate income families will <br />benefit from this program. <br />In the first year of this program, 1997-98, approximately six (6) low/moderate income families <br />benefited from this program. <br />