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2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />46 <br />47 <br />48 <br />49 <br />50 <br />10 <br />BACKGROUND: <br />In 1990, the County, along with Carrboro, Hillsborough, and Chapel Hill, created the Orange <br />Community Housing Corporation (OCHC) to create affordable housing opportunities in Orange <br />County. Since its inception, the Towns and the County have annually provided operating <br />support to the organization. <br />In 1998 the Towns and County recommended that OCHC staff the newly created Community <br />Land Trust later renamed the Community Home Trust. The Community Home Trust has <br />requested that the elected boards consider entering into an interlocal agreement to: <br />1. Clarify the responsibilities of the Towns, Orange County, and the Community Home <br />Trust; and <br />2. Provide a formula for allocating operating funds for the organization. <br />At the November 2014 Assembly of Governments meeting, the elected officials were briefed on <br />the progress of developing an interlocal agreement regarding the Community Home Trust. Staff <br />reported that each partner would return to their respective boards with a draft of an agreement. <br />The staffs have worked with the Community Home Trust staff to draft the attached agreement. <br />Key components of the agreement include: <br />1. Reinforcement that the County and the Towns are committed to creating successful <br />affordable housing opportunities Orange County; <br />2. Acknowledgement and agreement that the Community Home Trust's programs serve <br />households earning up to 115 percent of the area median income; <br />3. Annual review of the agreement during the annual budget cycle by the elected boards of all <br />of the partners; <br />4. Continuing to appoint a representative from each jurisdiction to the Community Home <br />Trust board of directors (Section 111.6) <br />5. Identification of responsibilities of the Community Home Trust (Section III.C), and the partner <br />jurisdictions (Section III.D); <br />6. Agreement on an annual funding formula based on the ratio of Community Home <br />Trust homes to the total number of the organization's homes (Section III.D.3); <br />7. Agreement to allow Community Home Trust to provide an unrestricted fee simple deed of <br />trust to lenders of Home Trust homes. In short, if a home is foreclosed upon, the <br />Towns and County agree to cancel all affordability restrictions recorded against the property. <br />This would increase the lending options to buyers. (Section III.D.5a.); <br />8. Agreement that homes subsidized by local funds may be resold to households earning up to <br />115% of the area median income without repaying the funds (Section III.D.5.b); and <br />9. Agreement that homes could be sold out of the Community Home Trust inventory upon <br />approval of the Manager (Section III.D.5.c). <br />Since the agreement would be reviewed annually, the staffs from each jurisdiction would <br />