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7 <br />1 <br />Commissioner Dorosin asked if it would still be bound by 80 percent of median income if <br />2 <br />it were sold today in the federal window. <br />3 <br />Robert Dowling said that is correct. <br />4 <br />Commissioner Dorosin askedif the home could be sold to anyone at the end of the <br />5 <br />period if there were no restrictions beyond the HUD requirements. <br />6 <br />Robert Dowling said CHT is not asking for this;but according to HUD, yes. <br />7 <br />Robert Dowling said this is how things used to be done before the CHT was created. <br />8 <br />He said if the Board says no to this proposal, because the HUD income limits are lower today <br />9 <br />than in 2002, the home is not affordable to people at 80 percent of median income. He said <br />10 <br />this means more subsidies haveto be brought in to make that same home affordable to people <br />11 <br />below 80 percent. He said the approval of this item will allow CHT to sell the home to higher <br />12 <br />income people and stretch out the federal subsidy dollars. <br />13 <br />Commissioner Dorosin asked, if this is approved and a new CHT home goes on the <br />14 <br />market tomorrow, whether that home could be marketed to someone up to 115 percent of <br />15 <br />median income. <br />16 <br />Robert Dowling said if there is subsidy in it, it will need to be below 80 percent for the <br />17 <br />affordability period. He said if a home is sold without subsidy, it can be sold up to 115 percent. <br />18 <br />Commissioner McKee asked for clarification onwhat 80 percentand 115 percentequate <br />19 <br />to in dollars. <br />20 <br />Robert Dowling said this number goes by household size and 80percent for one person <br />21 <br />todaywould be $36,800; for two people it would be $42,000; for three people it would be <br />22 <br />$47,000; and for four people it would be $52,550. He said these numbers are all lower than <br />23 <br />they were in 2002. He said this means that the person who qualified 12 years ago and never <br />24 <br />got a raisewill not qualify today. <br />25 <br />Commissioner Gordon referred to the following email questions from herregarding this <br />26 <br />itemand the replies from Robert Dowling: <br />27 <br />28 <br />Questions -Oct. 21, 2014 Agenda <br />29 <br />30 <br />7a-Community Home Trust (CHT) <br />31 <br />32 <br />Would the homes still be required to be affordable for 99 years? <br />33 <br />34 <br />For the CHT program, please describe the funding mechanism for providing one home.What <br />35 <br />does it cost Orange County and/ or the Town of Chapel Hill for each home (average cost and <br />36 <br />range of costs)? <br />37 <br />38 <br />What is the current area median income (AMI)?Please provide a table which shows the AMI <br />39 <br />for households of various sizes, along with 80 % AMI and 115 % AMI. <br />40 <br />41 <br />If the policy changes are made, is it anticipated that most or all of the houses would then be <br />42 <br />sold to buyers at or close to the 115 % AMI level, thereby reducing the number of low income <br />43 <br />families served? <br />44 <br />45 <br />Follow-up from Robert Dowling <br />46 <br />47 <br />1.Yes, CHT will continue to sell homes using a 99 year ground lease and to keep the <br />48 <br />homes affordable for 99 years at either 80% of Area Median Income (AMI) or 115% of <br />49 <br />AMI.According to CHT bylaws and Articles of Incorporation, only 25% of CHT homes <br />50 <br />can be sold to households earning more than 80% of AMI. <br /> <br />