ORD-2000-002 Affordable Housing Program Capital Project Ordinance

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e. Housina Bond Proararn Award Commitments C;, The Board considered approval of a capital project ordinance authorizing expenditure of $550,000 in housing bond funds with $90,000 to go to Empowerment, Inc. and $460,000 to Habitat for Humanity. John Link said that the staff is also asking that the Board authorize the Manager, upon the Attorney's review and approval, to execute a Development Agreement with EmPOWERment, Inc. and Habitat for Humanity of Orange County. Commissioner Gordon asked that "the area" be spelled out to say that it is the Raleigh/Durham/Chapel Hill MSA. Commissioner Gordon made reference to page three, number two, and asked if the period of affordability would still be secure after the Deed of Trust and Promissory Note are forgiven and Tara Fikes said yes. In answer to a question from Commissioner Gordon, County Attorney Geoffrey Gledhill said that if there is a sale of the property within the first forty years and it is to a non-eligible homeowner, then the money has to be repaid. Also, during the period of affordability, which is 99 years, the County and the contracting agency will get a right of first refusal whenever the property is going to be put on the market. He said that this would only work if there is funding for that kind of buyback. In the event that the properties cannot be bought back and kept in the affordable housing stock, then the equity on the sale is split 50/50 between the homeowner and the County. A motion was made by Commissioner Brown, seconded by Commissioner Halkiotis to approve the capital project ordinance authorizing the expenditure of$550,000 in housing bond funding - $90,000 to EmPOWERment, Incorporated and $460,000 to Habitat for Humanity of Orange County, N. C., Incorporated; and to authorize the County Manager, upon the County Attorney's review and approval, to execute a Development Agreement with EmPOWERment, Inc. and Habitat for Humanity of Orange County, N. C., Incorporated on behalf of the County. VOTE: UNANIMOUS Sam Brooks, a local realtor, thanked the County Commissioners for passing this proposal. She appreciates Orange County moving ahead in providing affordable housing. However, she said that the proposal that requires a payback of the second mortgage plus 50% of any equity earned puts the Commissioners and the citizens that are represented in the role of being loan sharks, profiting from those who are least likely to have other financing options. She asked about the justice in a 50% return for only a 21% contribution on the part of the County. Miles Presley, Director of EmPOWERment, Inc., said that they do appreciate the County Commissioners passing this tonight. He is concerned about the details in this Housing Bond program. He said that on the Pine Hill Drive project, the County would be contributing 21.6% of the cost for each unit. The proposal in the bond application was that if the family sells, they would pay back the entire$22,500 of the second mortgage, and 21.6% of the appreciation. He hopes that there will be a way that those in the affordable housing community have a way to hash this proposal out. He asked that the Board include EmPOWERment, Inc. in future discussions about the work plan. f. Scarlette Drive Townhorne Project The Board considered: 1) approving the allocation of$131,000 in HOME Investment Partnership funds to Orange Community Housing Corporation in the form of a grant and authorizing the County Manager in consultation with the County Attorney to execute a Grant Agreement on behalf of the County. 2)approving the allocation of$140,000 in Housing Bond funds to the Scarlette Drive Townhome Development; the Capital Project Ordinance authorizing the expenditure of$140,000 in housing bond funding; and authorizing the County Manager upon the County Attorney's review and approval, to execute a Development Agreement with Orange Community Housing Corporation on behalf of the County. Commissioner Gordon noted an error under the Housing Bond Project Summary. The wrong project and amount was listed and Tara Fikes said that she would correct it.