Agenda - 08-05-1996 - VIII-R - Laserfiche WebLink

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a k 1 Orange County Board of County Commissioners Action Agenda Item No. V22Z-R Action Agenda Item Abstract Meeting Date: August 5, 1996 Subject: HOME Program/Development Agreement Amendment Department: Housing/Community Development Public Hearing Yes No Budget Amendment Needed Yes No Aftachment(s) Information Contact: Tara L. Fikes, ext. 2490 Amendment Telephone and Extension Number Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 Purpose: To approve an Amendment to the Development Agreement under the HOME Program with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision. Background: The Board of County Commissioners approved a Development Agreement with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision. Magnolia Place, located in Hillsborough, is a planned 42 unit subdivision for first time homebuyers. HOME funds are being utilized for the construction of public improvements and will remain in the project as a second mortgage for prospective homebuyers, thereby, reducing the amount of the buyer's first mortgage. Eleven homes have been completed and sold with approximately 14 lots presold, under construction, and/or under contract to qualified buyers. In addition, the Rural Housing and Community Development Service (formerly known as Farmers Home Administration) is providing mortgages to some buyers, thereby, eliminating the need for second mortgage assistance through the HOME Program. Therefore, OCHC has asked to increase the amount of second mortgage assistance available from $10,000 per homebuyer to a maximum of $20,000 in order to make more persons eligible for first mortgages. OCHC states that each increment of$5,000 will lower the income needed to qualify for a loan approximately$1,000. Further, the original completion date for Magnolia Place was specified as December 31, 1995. The project has not been completed, however, development seems to be progressing well and the OCHC and the Orange County HOME Council agrees that a new completion date of June 30, 1997 is reasonable. In order to incorporate the above changes, the original Agreement must be amended. An amendment has been prepared for the Board's approval. Recommendation: The Manager recommends approval of an Amendment to the Development Agreement under the HOME Program with the Orange Community Housing Corporation (OCHC) for the Magnolia Place subdivision and authorizes the Chair to sign the amendment on behalf of the Board after the review and approval of the County Attorney.