Minutes 10-21-2014 - Laserfiche WebLink

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much shorter affordability period, and the longest the home funds have is 20 years. He said CHT has homes that they put HOME funds into 12 years ago, and the HUD funds have been met. He said this home now cannot be sold to anyone above 80 percent median income, because of the self imposed 99 year restriction. He said if this proposed change is approved, CHT can widen the window of buyers served. He said no more subsidies can be put in the home, but the funds put in 12 years ago can be left in, and this will allow them to serve people at up to 115 percent of inedian income. Commissioner porosin asked if the 115 percent would kick in after the 20 year required HUD period elapsed. Robert Dowling said that is correct. Commissioner porosin asked if it would still be bound by 80 percent of inedian income if it were sold today in the federal window. Robert Dowling said that is correct. Commissioner porosin asked if the home could be sold to anyone at the end of the period if there were no restrictions beyond the HUD requirements. Robert Dowling said CHT is not asking for this; but according to HUD, yes. Robert Dowling said this is how things used to be done before the CHT was created. He said if the Board says no to this proposal, because the HUD income limits are lower today than in 2002, the home is not affordable to people at 80 percent of inedian income. He said this means more subsidies have to be brought in to make that same home affordable to people below 80 percent. He said the approval of this item will allow CHT to sell the home to higher income people and stretch out the federal subsidy dollars. Commissioner porosin asked, if this is approved and a new CHT home goes on the market tomorrow, whether that home could be marketed to someone up to 115 percent of median income. Robert Dowling said if there is subsidy in it, it will need to be below 80 percent for the affordability period. He said if a home is sold without subsidy, it can be sold up to 115 percent. Commissioner McKee asked for clarification on what 80 percent and 115 percent equate to in dollars. Robert Dowling said this number goes by household size and 80 percent for one person today would be $36,800; for two people it would be $42,000; for three people it would be $47,000; and for four people it would be $52,550. He said these numbers are all lower than they were in 2002. He said this means that the person who qualified 12 years ago and never got a raise will not qualify today. Commissioner Gordon referred to the following email questions from her regarding this item and the replies from Robert Dowling: Questions - Oct. 21, 2014 Agenda 7a - Community Home Trust (CHT) Would the homes still be required to be affordable for 99 years? For the CHT program, please describe the funding mechanism for providing one home. What does it cost Orange County and/ or the Town of Chapel Hill for each home (average cost and range of costs)? What is the current area median income (AMI)? Please provide a table which shows the AMI for households of various sizes, along with 80 % AMI and 115 % AMI.