Letter to Chair dated 3/8/1995 from OCHC re Manager's recommended Capital Improvements Program for FY 1995-96

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Orange Community Housing Corporation Post Office Box 307 • 116B West Main Street • Carrboro, NC 27510-0307 Donna L. Dyer Telephone: 919/947-1545 Executive Director FAX: 919/968.4030 March 8, 1995 Mr. Moses Carey, Jr., Chairman Orange County Board of Commissioners Post Office Box 8181 Hillsborough, NC 27278 Dear Chairman Carey: Tonight the Commissioners will receive the Manager's recommended Capital Improvements Program for FY 1995-96. Orange Community Housing Corporation requests that the CIP be amended to include funds up to $50,000 to be set aside to purchase property for affordable housing. Last fall, OCHC was offered the opportunity to purchase 10 lots in rural Orange County for a reasonable price. While County staff was supportive of this project, no local funds were available to be used to purchase these lots from the current year's budget. Staff agreed to pursue a Community Development Block Grant for purchase of the property and installation of public improvements; however, the seller was not willing to wait until July to close the sale, and we were unable to purchase the lots. These lots may still be available after July 1 and we will still pursue them, but if not, others can be found. Providing affordable homeownership opportunities in this high cost area is difficult even in the rural parts of the county. If we have funds that can be readily accessible for purchase of land for affordable housing, we can take advantage of opportunities when they are presented to us. This funding can be structured as a short-term revolving fund or as a long-term second mortgage financing program. Either way, we would have more flexibility to respond to a seller within the usual 3 or 4-month period needed to find financing for individual lots. While the full $50,000 would allow us the opportunity to purchase 6 to 10 lots, even a lesser amount would help in our efforts to provide affordable homeownership opportunities. We hope the Commissioners would make this affordable housing fund an ongoing part of the Capital Improvements Program. Habitat for Humanity is another organization that is always looking for low-cost building lots, and other groups also have need for a land purchase fund.