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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 1, 2008 <br />Action Agenda <br />Item No. _~~ <br />SUBJECT: Housing Bond Program -Habitat for Humanity <br />DEPARTMENT: Housing/Community Dev.. PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Location Map <br />INFORMATION CONTACT: <br />Tara L. Fikes, 919-245-2490 <br />PURPOSE: To consider awarding housing bond funds in the amount of $362,000 to Habitat for <br />Humanity to purchase land in the Northern Fairview community in Hillsborough and to provide <br />nine deferred second mortgages to first-time homebuyers in this community. <br />BACKGROUND: An application for Land Banking funds was received on March 13, 2008 from <br />Habitat for Humanity requesting $182,000 to purchase fifteen (15) parcels of land in the <br />Northern Fairview community of Hillsborough. The total acquisition cost is $223,600. Attached <br />to this abstract is a map highlighting the location, of the property. Habitat has plans to construct <br />a total of 15 single-family dwellings on this property for families earning up to 60% of area <br />median income by December 31, 2008. <br />Ten (10) of these parcels are in the Town of Hillsborough and have access to the Town's water <br />and sewer system.. The remaining five (5) parcels are currently outside of the Hillsborough <br />Town limits, but Habitat plans to request voluntary annexation by the Town of Hillsborough. The <br />Town of Hillsborough, after annexation; has committed to extending the sanitary water and <br />sewer to these lots using a combination of HOME Program funds and its own funds. In recent <br />years, Habitat has been very active in this community with the development of the Highland <br />Woods subdivision and this application to purchase additional lots in that community is an <br />extension of its current development activities. <br />On April 9, 2008, the County received a second application from Habitat for Humanity for <br />$180,000 in deferred second mortgage funding for nine (9) single family homes that will be built <br />on nine (9) of these parcels to' be purchased in the Northern Fairview community. These homes <br />will be sold to families earning less than 60% of the area median income. It should be noted <br />that Habitat for Humanity originally applied for HOME funds to provide these second mortgages. <br />However, due to the volume of applications, the HOME Program was not able to provide funding <br />for second mortgages for all of these properties, but did provide $120,000 for six dwellings. <br />Thus, the addition of this bond funding will provide all funding necessary ($300,000) to provide <br />second mortgage assistance for the fifteen (15) homes built on lots in the Fairview Community. <br />As required by the Orange County Housing Bond Policy, the Project Review and Selection <br />(PRS) Committee held apre-application conference with staff from Habitat to discuss the <br />