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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 19, 2011 <br />Action Agenda <br />Item No. ~ -1 <br />SUBJECT: HOME Investment Partnership Program -Deed of Trust Modification - <br />Substitution of Collateral <br />DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (Y/N) No <br />Community Development <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Annette Moore, 245-2317 <br />Tara L. Fikes, 245-2490 <br />PURPOSE: To approve the execution of three (3) Deed of Trust Modification -Substitution of <br />Collateral documents to secure funding provided to a homeownership project sponsored by <br />Habitat for Humanity. <br />BACKGROUND: Habitat for Humanity of Orange County, NC, Inc. is currently developing low <br />and moderate income housing opportunities in the Phoenix Place subdivision in Chapel Hill. <br />Many federal, state and local funding programs are being utilized to provide the capital <br />necessary to complete this project. Specifically, Orange County has awarded Affordable <br />Housing Bond funds to this project for infrastructure construction and the Orange County HOME <br />Consortium has provided funding for second mortgages for homebuyers in an effort to reduce <br />the cost of their first mortgage. <br />Inadvertently, during a closing for one of the homebuyers, the Deed of Trust was not recorded <br />correctly by the closing attorney. Thus, there is a need to correct that error in order to continue <br />home sales in the subdivision. Deed of Trust Modification -Substitution of Collateral <br />documents have been prepared by Habitat's closing attorney and reviewed and approved by <br />the County Attorney's office. The documents require the signature of the Board Chair since the <br />County Manager is not authorized to sign these materials. <br />FINANCIAL IMPACT: The Deed of Trust Modification documents secure a $15,900 HOME <br />Program investment, a $9,000 Affordable Housing Bond program investment, and a $7,616 <br />County impact fee reimbursement. <br />RECOMMENDATION(S): The Manager recommends that the Board authorize the execution <br />by the Chair of three (3) Deed of Trust Modification -Substitution of Collateral documents to <br />secure funding provided to a homeownership project sponsored by Habitat for Humanity. <br />