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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS 049 <br /> Action Ag nda <br /> Item No. <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: MAY 2 , 1988 <br /> SUBJECT: SECTION' 202 HOUSING FOR THE ELDERLY APPLICATION <br /> DEPARTMENT: HOUSING/COMMUNITY DEV. PUBLIC HEARING YES: NO: X <br /> ATTACHMENT(S) : INFORMATION CONTACT: Tara L. Fikes <br /> 1 -HUD 202 Fact Sheet <br /> 2-Letter from Community Housing Alternatives <br /> 3-Pre-Development Cost Sheet <br /> 4-Housing Consultant Contract <br /> 5-Location Map <br /> TELEPHONE NUMBER- <br /> Hillsborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To authorize financial commitment to InterFaith Council as a <br /> Sponsor of a HUD 202 Housing for the Elderly and Handicapped Application. <br /> BACKGROUND: The Greensboro Office of the Department of Housing and Urban <br /> Development has announced the acceptance of applications from nonprofit <br /> organizations for rental housing under the Section 202 Direct Loan Program <br /> for Housing for the Elderly and/or Handicapped. The InterFaith Council , a <br /> nonprofit corporation, has decided to sponsor an application for these <br /> funds with the cooperation and support of Orange County and the Town of <br /> Carrboro. InterFaith through its borrower corporation, Community Housing <br /> Alternatives, was successful in the construction of the Adelaide Walters <br /> Apartments in Chapel Hill under the 202 Program, which opened in the Fall <br /> of 1985. <br /> In order to develop an application for HUD 202 funds, InterFaith is <br /> requesting an initial $5 , 000 from Orange County as pre-development seed <br /> money. The services of Lane Sarver, a Housing Consultant from Chapel Hill <br /> with extensive experience with the HUD 202 Program, has been secured by <br /> InterFaith. (See the attached Contract for Consultant Services. ) In <br /> addition to the Consultant Fee, other pre-development costs may be paid <br /> with the initial seed money. Attached is an itemized budget for these <br /> costs. Applications are due on June 15, 1988. <br /> Additionally, a Minimum Capital Investment escrow of one-half percent of <br /> the total mortgage amount must be provided by the Borrower for a three <br /> year period. For this project , this would equal approximately $7, 500 . This <br /> money must be committed at the time of closing (approx. 18 months) and is <br /> retained by the Borrower in an interest bearing account for a period of <br /> three years. If these funds are not needed during the three year operating <br /> period for major repair items, the escrow is returned with interest . <br /> InterFaith is asking that the County also display their support of this <br /> project by pledging to provide the Minumum Capital Investment in 18 <br /> months if the project is funded. Fund Reservations will be announced <br /> at the end of September. <br /> This financial commitment by Orange County will display the County ' s <br /> support for this project which greatly improves chances for funding. This <br /> commitment will also be a method of implementation of the Low and Moderate <br /> Income Housing Task Force Recommendation by supporting the housing <br /> efforts of local social service agencies. <br />