Agenda - 01-22-2015 - 6a - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 7 Including an allocation of $11,000 of operational support from the FY 2014 -15 HOME Partnership Program, the total of local financial support is about $397,500. In March 2014, Robert Dowling with CHT presented a draft Charter to the four local governments for input and feedback. The stated purpose of the Charter is to "establish a shared set of expectations as to what affordable housing functions CHT will provide to County and Towns ". The Charter further includes renewal contract terms with regard to the governments' continued funding and CHT's responsibility to its beneficiaries. The Town of Carrboro Board of Aldermen discussed the draft Charter (Attachment 2 —A) on June 3, 2014 and issued a resolution providing the following comments: 1. CHT should explore increasing the financial role of UNC and UNC Healthcare System. 2. The Town should explore the possibility of guaranteeing a line of credit for the Community Home Trust. 3. CHT should provide budget requests to the Town of Carrboro early in the budget preparation cycle. After multiple discussions with the County and Towns' leadership, it was determined that a "charter" was not the appropriate reference to the proposed agreement, and it was thereafter referenced as an Inter -local Agreement (Agreement). The Agreement would reconfirm support for the countywide affordable goals for homeownership and establish a formula to determine funding of CHT's operational budget. According to Mr. Dowling's forecasted budget, CHT will experience a net operating loss of about $209,000 if the proposed funding is not received by the local governments. The funding formula for the governments' respective financial contribution would be adjusted annually on a pro -rata basis in accordance with the number of CHT homes located within each respective municipality. Commissioner Rich said, in 2014, there are 230 homes in the $40 million portfolio. She said 83 percent of these homes are in Chapel Hill, and 17 percent are in Carrboro. She said 17 percent are single family homes; 38 percent are condominiums; and 45 percent are townhomes. Commissioner Rich said this was discussed at the Orange County retreat last year, and this proposed charter has been through a thorough review process by staff and attorneys. She said the goal is to take this new funding method back to their respective boards to discuss and approve. She said this has been a year in the making, and if nothing is done, the CHT will find itself in debt for $209,000. She said it is important to take action on this, and she encouraged conversations to happen soon so this can be included in the respective budgets. Alderman Johnson said this is part of the sustainability model, and the work of the CHT supports the goals of affordable housing. She said the sooner the better for moving this forward. Council Member Ward said the Town of Chapel Hill has not kept up with a funding model that is sustainable, and he feels confident that the CHT is wisely spending their money and is completing the task set before them. He said there have been years where development comes through the town's approval process, and CHT is asked to take care of these homes; however, as homes have been added, funding has not been added equally. He said this charter will formalize a fair share to be put into the CHT. Town Commissioner Ferguson said the work that is being done by the CHT could not be matched. She said the CHT is leading the way in affordable housing, and it has been provided mandates by government, but not the funding to carry it through. She encouraged the government bodies to support this new funding model.