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3 <br />Orange County Housing Bond Policv <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 />Existing Housing Programs - Target Funding: 33% or $594,000 <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 acounty-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 />c. Community Revitalization Loan Program <br />This program would provide assistance with the purchase and <br />rehabilitation of existing property by first-time homebuyers. The guidelines <br />governing this program will be in accordance with the existing County and <br />Town of Chapel Hill Programs with the same name. <br />3 <br />09/24/98 <br />