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i <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 18, 2001 <br /> Action Agenda <br /> Item No. _ <br /> SUBJECT: HOME/Housing Bond Programs — Meadowmont Condominiums <br /> DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Project Proposal Summary Tara L. Fikes, ext. 2490 <br /> Grant Agreement <br /> Development Agreement <br /> Capital Project Ordinance TELEPHONE NUMBERS: <br /> Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Durham 688-7331 <br /> Mebane 336-227-2031 <br /> PURPOSE: <br /> 1. To approve the allocation of $180,000 in HOME Investment Partnership funds to the <br /> Orange Community Housing and Land Trust in the form of a grant and authorize the <br /> County Manager in consultation with the County Attorney to execute a Grant Agreement <br /> on behalf of the County. <br /> 2. To approve the Capital Project Ordinance authorizing the expenditure of$350,000 in <br /> housing bond funding and $50,000 in Housing Trust funds; and authorize the County <br /> Manager upon the County Attorney's review and approval, to execute a Development <br /> Agreement with Orange Community Housing and Land Trust on behalf of the County. <br /> BACKGROUND: The Orange Community Housing and Land Trust (OCHLT) propose to <br /> develop 32 condominiums in the Meadowmont development in Chapel Hill. The condos will be <br /> available for purchase by families earning less than 80% of the area median income. Like the <br /> Legion Road Townhomes completed earlier this year, the Meadowmont Condominiums will be <br /> developed utilizing a land trust model. By retaining ownership in the land and the use of a <br /> resale formula, the land trust model is able to keep units permanently affordable. <br /> Currently, HOME Program investments are provided as a deferred loan divided equally by the <br /> number of housing units to be produced and structured as a deferred second mortgage to the <br /> qualified homebuyer that purchased the housing units. A Deed of Trust and Promissory Note <br /> secure the investment from the homebuyer for the amount of the second mortgage. The funds <br /> would be due and payable to the County if the property were sold within the ninety-nine (99) <br /> year affordability period. Any funds returned to the County are then used for future housing and <br /> community development activities. However, as with the Legion Road Townhomes, OCHLT <br /> has asked that the HOME funds be provided as a grant rather than a deferred loan. <br />