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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 4, 2013 <br /> Action Agenda <br /> Item No. 5-e <br /> SUBJECT: Community Home Trust Request — Housing Bond Program <br /> DEPARTMENT: Housing, Human Rights & PUBLIC HEARING: (Y/N) No <br /> Community Development <br /> ATTACHMENT(S): <br /> Letter from Robert Dowling, Executive INFORMATION CONTACT: <br /> Director Tara L. Fikes, 245-2490 <br /> PURPOSE: To consider a request from the Community Home Trust to utilize $75,000 of bond <br /> funds allocated to the Community Home Trust for second mortgage assistance for repairs to the <br /> heating, ventilation and air conditioning (HVAC) systems at the Greenbridge Condominiums. <br /> BACKGROUND: The Board of County Commissioners received the attached letter from <br /> Robert Dowling, Executive Director of Orange Community Home Trust (CHT), describing the <br /> dilemma with some HVAC systems at the newly constructed Greenbridge Condominiums in <br /> Chapel Hill. As detailed in the letter, some of these systems have experienced problems that <br /> have needed repair and CHT anticipates that, in the future, expensive replacements <br /> (approximately $11,000) may be necessary which would be unaffordable to the low income <br /> homeowners in that development. CHT has therefore requested to use bond funding to assist <br /> with the replacement of the existing systems when necessary in the 15 units occupied by low <br /> income homebuyers. <br /> This request has been discussed by the Affordable Housing Advisory Board. During that <br /> discussion questions arose regarding the responsibilities of the Greenbridge developer and <br /> original system warranties. The attached letter from David Rooks, an attorney at Northen Blue, <br /> LLP, indicates that given the financial position of the developer, any warranty claims against it <br /> would be unsuccessful. Thus, AHAB recommends that the requested $75,000 in bond funds <br /> be reallocated for the purpose of replacing HVAC systems in Greenbridge when the need <br /> arises. <br /> FINANCIAL IMPACT: The subject Affordable Housing Bond Funds ($200,000) have already <br /> been committed to CHT, thus no additional financial impact is anticipated. <br /> RECOMMENDATION(S): The Manager recommends the Board approve the request of <br /> Community Home Trust to reallocate $75,000 of Affordable Housing Bond Funds for anticipated <br /> repairs to the HVAC systems at Greenbridge Condominiums. <br />