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6 <br />December 20, 2010 <br />Dr. Tara Fikes <br />Housing and Community Development <br />Orange County <br />PO Box 8181 <br />Hillsborough, NC 27278 <br />Dear Tara: <br />This letter is in response to your email asking about the need for HOME funds at the <br />affordable rental project in the Winmore development known as The Landings at <br />Winmore. As you know Community Home Trust is not the developer ofThe Landings. When <br />we applied for the HOME funds in 2007, I did not fully understand what the Home Trust's role <br />would be in this development. However, I was convinced that notwithstanding our role, the <br />Landings was a much needed rental project for the Chapel Hili /Carrboro area. 1 also believed <br />BOARD OF the development proposal enabled our community to leverage a modest amount of HOME <br />TRUSTEES funds per unit to create fifty-eight affordable apartments in an upscale neighborhood. !n short, <br />Mary Bratsch I viewed this as a unique opportunity that hopefully would warrant an allocation of HOME <br />Presidnst funds. <br />Michael Hansen <br />l/ice Presidart The develo er of The Landin s Dean Edwards, has told me there were ro ect costs incurred <br />p g' p j <br /> that were loaned to the project by Crosland LLC as the Managing Member of the The Landings <br />Mary Jean Seyda during construction. Mr. Edwards informs me that these costs, some of which are outlined <br />Trcns:rrcr below, were not funded by the Bank of America construction loan. As you can see, the costs <br />Lisa Inman well exceed the $300,000 of. HOME funds that were approved for this development. <br />SccrcAtry <br />John Cooper It is my understanding that the $300,000 of NOME funds are needed to repay funds advanced by <br /> Crosland far this development. The costs provided to the Landings by Crosland include: <br />Jacquelyn Gist <br /> <br />Eric Hallman Land Option Costs $20,000.00 <br /> Bank of America Closing Costs $66,300.00 <br />Pam Hemminger pre-development Costs $1,526.49 <br /> Architect Fees $238,939.97 <br />Alan Lee Survey & Engineering Fees $147,711J0 <br />Gene Pease Appraisal $3,000.00 <br /> Solis Investigation $3,625.00 <br />Bruce Runberg <br />Jim Tucker As you can see, these costs totalabout $480,000. <br />Jonathan Weiler A second question has been the length of the affordability period, which is typically 99 years for <br />L-xecuti~~e Director <br />any projects that include funding from Orange County. The developer has raised questions <br />Roircrt Dowlnig about the practicality of a 99-year affordability period in the event that Community Home Trust <br /> is unable to purchase the property. As you know, Community Home Trust has a Right of First <br /> Refusal for The Landings. Although our intention is to exercise this right and maintain these <br /> units as affordable rentals in perpetuity, market conditions and our own financial strength will <br /> determine if we are able to exercise this right and purchase the buildings. However, in any <br /> case, the developer informs me that the senior financing for the project provided by the NC <br />pG. Box 347", Carrboro, NC 27510 ~ 919-967-1545 ~ _,°i ~,r~,~;=;~, ~,~~~;i}aa , ,;;a ri,~ ,_~:;_;_j <br />