Agenda - 09-08-1981 - Laserfiche WebLink

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xGomlakMycRmzmz5a ORANGE COUNTY COMMUNITY DEVELOPMENT DEPARTMENT /06 EAST MARGARET LANE HILLSBOROUGH, N C. 27278 (919) 732.2163 .., MEMORANDUM TO: William Laws, Acting County Manager FROM: Albert Kittrell, CD Director '' L DATE: September 1, 1981 SUBJECT: Contractual Agreement with the Chapel Hill Housing Authority ------------------- --------_----------------------------------------------_ The Orange County Community Development Department requests approval to enter into a contractual agreement with the Chapel Hill Housing Authority in an effort to rehabilitate ten(10) owner/investor dwelling units in the Northern Fairview Target Area. The venture would leverage CD funds with Orange County Section 8 Moderate Rehabilitation loan funds. Specifically, the County's Community Development Housing Rehabilitation Program is presently rehabilitating owner/occupant dwelling units. Each unit receives a 100% rehabilitation grant at an average amount of $8,500' HUD views owner/investor properties differently because investors are not generally low or moderate income individuals. However, HUD is concerned with the low income family occupying the unit. Therefore, the Northern Fairview Task Force and the CD Department have jointly decided to encourage all owner/investors in the CD Target Area to participate in the County's Section 8 Moderate Rehabilitation program administered by the Chapel Hill Housing Authority, This program requires that the owner/investor obtain personal or loan funds to rehabilitate their dwelling unit. In return, HUD and the Chapel Hill Housing Authority enters into a 15 year agreement with the owner/investor' The owner/investor receives fair market rent for the unit plus an additional amount to pay off the loan. The low income tenant pays one fourth of their monthly income for rental charges. Moreover, the owner/investor agrees to keep the unit in standard condition throughout this period. As an incentive to participate in this program,the County's CO Department will contribute $4`000 (approximately one half of the average grant amount provided to owner/occupants) toward rehabilitating the unit. The CD Department will realize at least a $4,500 saving for each unit that is placed under this program.