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Other remedies include delaying payment of Corporation obligations and/or restructuring <br />or laying off staff. If the lien situation with the Partnership is resolved prior to the end of <br />April, the $30,000 to $40,000 mentioned above could be used to remedy this cash <br />shortage. The current feeling is that resolution of the situation will not be timely enough <br />to provide any relief in the current fiscal year. However, once the lien situation is <br />resolved, the funds that become available to the Corporation can be used to finance future <br />predevelopment costs. <br />Future Considerations <br />Should all builders and contractors be required to post performance bonds? <br />The Executive Director of Orange Community Housing Corporation has contacted <br />other similar non -profit housing organizations in the state regarding the use of <br />performance bonds when developing new housing. He has also spoken with a <br />local bonding agency regarding costs. These discussions have revealed the <br />following: <br />a. Performance and payment bonds can cost as much as three percent <br />of the contract price, thereby increasing construction costs. <br />b. Some contractors are unable to qualify for bonds because of the <br />lack of financial strength. Bonds are only available to large, well - <br />capitalized companies, whose financial strength is not a risk. <br />C. The issuance of performance and payment bonds is extremely rare <br />in single - family developments; Bonds are typically used for large, <br />commercial projects, or multi - family projects only. <br />The impact of this requirement should be considered before adopting this as a rule. <br />2. The Budgetary and accounting formats should be changed to account for project <br />revenues and expenditures separate and apart from operations. <br />3. Funding for predevelopment, architects and engineers should be budgeted within a <br />project budget with funding sources identified. <br />4. Potential projects should be presented to the governing bodies for review. <br />Information provided for review should include proposed project budgets and an <br />identification of any additional funds required. Representatives from each <br />governing body and OCHC could structure this review process to insure all <br />concerns are addressed. <br />Quarterly reports, to include financial status and project updates should be <br />provided to the County and the Towns. <br />