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7 <br />M <br />the portfolio, resales of homes already in the portfolio, ground lease fees and <br />fundraising efforts. <br />2. Following submission of CHT's proposed budget, County and Towns will <br />agree to fully fund the budget, less the portion provided by CHT. <br />3. The sharing of the County and Towns portion of the annual funding will be <br />determined by a two tier formula. First, the County will provide 33% of the <br />total and the Towns will provide 67% of the total. Second, the Towns will <br />share their 67% portion based on the ratio of CHT homes within each town <br />to the total number of CHT homes. The number of homes will be <br />determined as of January 1 prior to each fiscal year. <br />4. For example, if CHT's budget is $800,000 and the number of homes in the <br />CHT portfolio on the prior January 1st is 250, with 200 of those homes in <br />Chapel Hill, 50 of those homes in Carrboro and none of those homes in <br />Hillsborough, and CHT budgets providing $200,000 of revenue itself, <br />Orange County will be required to pay 33% of $600,000 ($800,000 less <br />$200,000), or $198,000, Chapel Hill will be required to pay 67% of <br />$600,000 multiplied by 200/250, or $321,600; Carrboro will be required to <br />pay 67% of $600,000 multiplied by 50/250, or $80,400 and Hillsborough <br />will be required to pay 67% of $600,000 multiplied by 0/250, or $0. <br />Funding payments from County and Towns to CHT will be made quarter - <br />annually in equal amounts on or about July 1, October 1, January 1 and April 1. <br />E. Portfolio Management — <br />1. CHT can be most effective if allowed flexibility to manage its portfolio of <br />affordable homes without constantly seeking permission from County and <br />Towns. Therefore, operating guidelines will be developed for the following <br />circumstances; <br />a. Selling homes to households above 80% of AMI <br />b. Selling homes out of the affordable housing inventory <br />c. Selling homes to households that do not meet locally imposed <br />requirements, such as first -time homebuyer requirements, <br />live /work requirements, etc. <br />d. Repaying subsidies embedded into homes that are sold out of <br />the affordable housing inventory or sold to moderate income <br />households. <br />2. When new development applications are expected to include affordable <br />housing units that could become part of CHT's portfolio, the applicable <br />local government will seek input from CHT as to how and whether the <br />proposed homes are best incorporated into the affordable housing stock. <br />CHT staff will also provide input on any affordable housing proposals or <br />options if requested by County or Towns. <br />Approved draft March 8, 2014 <br />