Agenda - 09-15-1998 - 8b - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. g-b ACTION AGENDA ITEM ABSTRACT Meeting Date: September 15, 1998 SUBJECT: HOME Program -Community Revitalization Loan Fund DEPARTMENT: Housing and Community Development PUBLIC HEARING: (Y/N) `~~`` BUDGET AMENDMENT: (Y/N) ATTACHMENT(S): INFORMATION CONTACT: Development Agreements Tara L. Fikes TELEPHONE NUMBERS: - -eat. 2490 Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To approve a Development Agreement with two local non-profit housing agencies, EmPOWERment, Inc. and Orange Community Housing Corporation, for HOME funding available under the Community Revitalization Loan Fund. BACKGROUND: A Community Revitalization Loan Fund was created in the 1997-98 Orange County HOME Consortium program design to provide funds to assist low/moderate income families purchase existing housing. Funds can be used for acquiring property, rehabilitating the property, and/or second mortgage assistance. A total of $60,000 has been allocated for this program in the 1997-98 fiscal year. Operational guidelines for this program were approved on August 20, 1997. Under this program, local non-profit housing agencies will acquire, rehabilitate, if necessary, and resell houses located in Orange County to eligible first-time homebuyers. Approximately $42,000 will be made available for this purpose. In some cases, houses will not need to be repaired, thus, the non-profit organization will serve as an sponsor for prospective homebuyers who need second mortgage assistance. This mortgage assistance enables the first time homebuyer to obtain a first mortgage for a lesser amount, thereby increasing the availability of first-time homeownership opportunities. The non-profit organization would be responsible for certifying the eligibility of the prospective homebuyer, as well as ensuring that the subject property is in standard condition. Approximately $18,000 is available for this purpose. An estimated six (6) low/moderate income families will benefit from this program. In the last five years, approximately forty-five (45) dwelling units have been repaired by the County's housing rehabilitation programs.