Agenda - 06-26-1996 - IX-B - Laserfiche WebLink

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r 4 As an affordable housing developer, we are caught in the middle, wanting to win an allocation of State tax credits for affordable housing in Carrboro and wanting to comply with Town, County, and OWASA "off-site" requirements, but knowing that these requirements collectively create an "off-site" cost burden which makes this and any future application for affordable housing in Orange County only marginally feasible, and at a competitive disadvantage relative to other tax credit applications from other communities in North Carolina. LINKAGE OF AFFORDABLE SENIORS APARTMENTS TO THE SCHOOL IMPACT FEE First Centrum Corporation is not questioning the authority of Orange County, OWASA, or the Town of Carrboro to require new development to help pay for the cost of additional services required by such new development. But, as a developer of affordable housing, we are asking each entity to consider that a requirement on an "across the board" basis, or the levying of a flat fee, regardless of the affordability of the housing being proposed and regardless of the actual impact of the proposed development on a particular service, while unquestionably intended to be a rational and efficient method of funding particular services, may have the unintended effect of being exclusionary to certain types of development, like affordable rental housing for seniors, that will benefit Orange County. We are asking that you take into account that one unit of affordable housing, whether owner-occupied or renter-occupied, simply cannot afford the same "off-site"cost burden that a much more expensive unit of middle-income or upper-income housing can afford. Also, please consider "for rent" affordable housing as well as "for sale" affordable housing for exemption from the school impact fee; rental housing is the most critical housing need for senior citizens. The prospective residents for affordable senior housing are usually in their 70's through 90's and are not interested in, or able to purchase, a "for sale" residence. We have explained previously that a developer of tax credit rental housing, unlike developers of market rent apartments, is generally not able to sell these apartments at a profit, so any exemption of the school impact fee stays with the property to the benefit of the low-income residents. As to a rational nexus between the proposed development and the school impact fee, it is very important to understand that, FOR AT LEAST 30 YEARS (and probably longer) the proposed Carolina Spring apartments can be legally occupied ONLY by senior citizens of age 62 and over, and will add NO CHILDREN to Orange County schools. Carolina Spring WILL annually provide fair share support to Orange County schools through payment of property taxes. It seems inappropriate, however, to First Centrum Corporation, to the Town of Carrboro, and most likely to the NCHFA, for a "senior citizens only" affordable apartment community to pay an up-front fee of $186,000 for somehow impacting schools.