Orange County NC Website
Browse       Search
John Link said that the Board asked that the staff give an analysis of this request which is <br />included in the agenda abstract. EmPOWERment, Inc. would like for the Board to consider a final <br />funding commitment to this project on August 15tH <br />Housing and Community Development Director Tara Fikes made reference to a tax map with <br />the 13 lots outlined in red. EmPOWERment, Inc. anticipates selling two of the homes on the open <br />market and the other 11 to first-time homebuyers who have incomes of 80°~ or less of the median <br />income. EmPOWERment, Inc. has proposed two scenarios: 1} a request for $247,500 for property <br />acquisition that will facilitate a closing by October 1, 2000; and 2) a request for installment payments that <br />would total $292,062 that would pay the non-profit far holding this project for approximately six months. <br />She listed the observations by the staff of this request. The project complies with the Commissioners' <br />long-term housing affordability policy by requiring a 99-year affordability period. The project will benefit <br />families at or below 80% of median income. The project also uses existing housing to provide additional <br />home ownership opportunities. There have not been any appraisals or title searches conducted of the <br />properties. All of the properties are rented and occupied at this time. The staff does not support <br />scenario two because the cost would be higher. If housing bond money is used, there are some issues <br />involving fairness since the other bond projects have been put on hold. <br />Mark Chilton, Associate Director of EmPOWERment, Inc. had signed up to speak on this <br />item. He spoke in support of the acquisition of the 13 homes. He said that it was a unique opportunity to <br />purchase 13 homes from one buyer. He apologized that the request has come up so suddenly and that <br />there is a tight timeline. He pointed out that the appraisal, title search, and survey had not been done <br />because it would cost them about $10,000 to do all of these things. He said that they could not spend <br />that much on a project without being sure that the County was seriously interested in funding it. <br />Commissioner Gordon asked if EmPOWERment, Inc. had asked anyone else for money <br />such as the Town of Carrboro. It was answered that EmPOWERment, Inc. had asked Carrboro and the <br />response was that this was not a good time to ask Carrboro for money. <br />Commissioner Gordon asked if EmPOWERment, Inc. could ask BB&T to finance the <br />entire amount. Mark Chilton said that they could get a significant amount of participation from private <br />lenders. He said that, ultimately, the sales price after rehabilitation would work out to something that was <br />out of the range of affordability. He said that without the County's participation in this project, it could not <br />be affordable to potential homeowners. <br />Chair Carey asked if EmPOWERment, Inc. had discussed the Community Reinvestment <br />Act responsibility that banks have related to this project. Myles Presler, Director of EmPOWERment, Inc. <br />said that subsidy from a source was essential because this was the way that the other money was <br />leveraged. A bank only lends 80°~ of the money that is needed far a project. He said that if the County <br />was at all interested in this project, EmPOWERment, Inc. would like to work with at least one <br />representative of the Commission along with County staff, EmPOWERment, Inc. staff, and the tenants. <br />Commissioner Halkiotis said that he was supportive of this type of rehabilitation proposal <br />because there were no significant infrastructure upgrades. <br />Commissioner Jacobs said that he was supportive of this project in principal. He is <br />concerned about the fairness issue because the Commissioners have already told the affordable housing <br />agencies that they need to wait until the Board decides on the affordable housing criteria related to the <br />bond money before asking the County for money. His concerns have to do with incorporating some of <br />this property into the land trust and maintaining same of the units in the rental housing pool permanently. <br />He could feel somewhat comfortable if there was an understanding that once the Board gets their "ducks <br />in a row" that Orange Community Housing should move to the head of the line because <br />EmPOWERment, Inc. has had two projects and Habitat for Humanity has had one project ahead of it. <br />He would agree to this project in principle, understanding that the fairness issue has to be addressed. <br />Myles Presler said that the County would not have to give the entire $247,500. If a <br />smaller amount was given by the County, then EmPOWERment, Inc. would just give a smaller subsidy to <br />the buyers. <br />Commissioner Gordon said that she had a problem with fairness since EmPOWERment, <br />Inc. has already received funding far a project while the other agencies were waiting. <br />14 <br />