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07� <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action A a <br /> Item No <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: Aprual, 1987 <br /> SUBJECT: Home Improvement Loan Program <br /> DEPARTMENT: Housing/Community Development PUBLIC HEARING: Yes X No <br /> ATTACHMENT(S) : INFORMATION CONTACT: Tara Pikes <br /> Commitment Form TELEPHONE NUMBER: <br /> Program Guidelines Hillsborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To authorize submission of an Executed Commitment Form to the N.C. <br /> Housing Finance Agency for participation in the Home Improvement <br /> Loan Program. <br /> BACKGROUND: On April 3, 1987, the North Carolina Housing Finance Agency announced <br /> a new streamlined Home Improvement Loan Program (HILP). The pur- <br /> pose of this program is to provide low interest loans to assist low <br /> and moderate income homeowners with the rehabilitation of their sub- <br /> standard homes. There is approximately 1 million dollars available <br /> statewide for this program. Counties are eligible to receive $50,000 <br /> for this program. The majority of the HILP funds will be available <br /> to the borrower at a rate of 7.7%. The NCHFA will also provide a <br /> limited amount of subsidized funds to make loans at 3% interest to <br /> those making below $20,000. Localities entering the program must <br /> contribute a commitment fee of 3% of the funds requested. The <br /> fee will be refunded if all of the allocated loan funds are originated. <br /> The commitment fee for Orange County would be $1,500. Funds will be <br /> allocated across the state based on a Priority Selection which gives <br /> priority to those localities who have participated in prior year <br /> programs and/or those who agree to commit non-restrictive local funds <br /> to subsidize HILP loans. Tentative program guidelines are attached. <br /> The Housing and Community Development Staff proposes participation <br /> in this program which will assist in meeting the housing needs of <br /> County residents not presently served by other housing program. <br /> Participation will also expand the County's role in the provision <br /> of housing services. <br /> Source of funds will be the CD budget. There will be a follow-up <br /> contract for Board approval at a later date if Orange County is selected .- I <br /> to participate. <br /> RECOMMENDATION(S) : <br /> Approve submission of an Executed Commitment Form to N.C. Housing <br /> Finance Agency for the Home Improvement Loan Program and authorize <br /> the Chair to sign. <br />