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PUBLIC CHARGE <br />Chairman Moses Carey, Jr. read the public charge. <br />PUBLIC HEARING <br />1. Interim Assistance Grant ~rlication <br />This item was presented far the receipt of citizen comments. The Housing <br />and Community Development Department along with the Colie Development Company has <br />prepared an Interim Assistance Grant Application for submission to the state nn or <br />about June 30, 1989. This application will request approximately 2.5 million <br />dollars in low interest construction loan financing to be used in the development <br />of housing for low and moderate income homebuyers in a planned subdivision named <br />Culbreth Park. <br />THE PUBLIC HEARING WAS OPEN FOR CITIZEN COMMENTS. <br />Runyan Woods with the Colie Development Company stated that this <br />application depends upon three things: (1) private commitment, (2) fifteen <br />mortgages from the North Carolina Financing Agency, and (3) this interim assistance <br />loan. The Colie Development Company qualifies for this program with these three <br />elements. The target achieved will lower the percentage to 54~ and 59~ median <br />income which is about $22,000 with no down payment. Other items pending includes a <br />grant from the North Carolina Housing Financing Agency for $243,000 which will be <br />ruled on in phases; one in June and one in August. They intend to ask the Tawn of <br />Chapel Hill for another $250,000 worth of second mortgage subsidies. They are also <br />discussing with the Town of Chapel Hill land trust ground leases which is a means <br />for achieving affordability through a series of owners. They have also identified <br />another grant funding source. <br />Chairman Carey pointed out that the application did not show a commitment <br />from the Town of Chapel Hill. He noted that one of the conditions placed on this <br />program was that the County's participation was contingent on the Town of Chapel <br />Hill's participation because they did not believe the cost could be brought down <br />low enough without additional funding. Woods stated that he feels he does have the <br />majority vote on the council for a second mortgage subsidy in. addition to the two <br />other forms of support. The proposal as resubmitted will be to build fifty units <br />with twenty of those for profit. The profit from these twenty units will further <br />defer the cost of the other thirty units thereby keeping sixty percent occupancy <br />for people making less that eighty percent of the median income. That can be <br />accomplished with no commitment from the Town of Chapel Hill. Woods emphasized <br />that they are the first group of people to qualify for this grant in the country. <br />Their private promise is that they will put up 2.25 million dollars to repay this <br />money. NRCD gives the money to the County. The County pays Colie Development <br />Company as the houses are built. Colie Development Company repays it when they <br />sell the houses. At the end of eighteen months, if there is any unpaid portion, <br />their personal finances of 2.25 million dollars will be given to the County to <br />repay the loan. <br />WITH NO FURTHER COMMENTS, THE PUBLIC HEARING WAS CLOSED. <br />Motion was made by Commissioner Marshall, seconded by Commissioner Hartwell to <br />approve the submittal of the application after consideration of citizen comments <br />and authorize the Chair to sign the document on behalf of the Board. The Chair is <br />also authorized to sign the Environmental Review Record on behalf of the Board if <br /> <br />