Orange County NC Website
Browse       Search
14 <br /> the HOME Consortium are Orange County and the Towns of Carrboro, Chapel Hill, and <br /> Hillsborough. Under the HOME Program Design, funds in the amount of$154,500 were <br /> approved for the Downtown Housing Improvement Corporation, Inc. (DHIC) to support the new <br /> construction of eighty (80) apartment homes known as Greenfield Place for households at less <br /> than sixty percent (60%) area median income (AMI). This is a Low Income Housing Tax Credit <br /> (tax credits) development and will be located on Legion Road in Chapel Hill on land to be <br /> donated by the Town of Chapel Hill. <br /> The County's Long Term Housing Affordability Policy establishes the acceptable strategies for <br /> ensuring long term affordability in affordable housing programs supported by County financial <br /> resources. Housing projects that are funded with Orange County HOME Program funds have <br /> been subject to the County's 99-year long-term affordability period that includes recorded deed <br /> restrictions. <br /> DHIC has requested that the County reduce the 99-year affordability period to 40 years for the <br /> Greenfield Place development. DHIC has expressed that the 99 year requirement makes <br /> financing challenging and creates issues for the tax credit investor in how it models the project <br /> for tax purposes. According to the agency, the 99-year affordability period may cause <br /> challenges in getting the equity closed in as timely a manner as needed. DHIC also stated that <br /> the 99-year affordability period could also create problems in the future when DHIC will need to <br /> get new financing to make capital improvements to the buildings to keep them in high quality <br /> condition for tenants. DHIC noted that the affordability requirement for the federal tax credits <br /> used in this project is 30 years. The Town of Chapel Hill, which is also a partner in this project, <br /> is requiring a 32-year affordability period. <br /> Audrey Spencer Horsley said this item is a request from the DHIC to reduce the 99- <br /> year affordable period to a 40-year affordability period, because of their concern that it would <br /> affect investors, and pose challenges to close the project on time. She said this was part of the <br /> HOME program design in 2015. <br /> Audrey Spencer Horsley said this project is being completed in part by the Town of <br /> Chapel Hill and they donated the land. She said Chapel Hill is requiring a 30-year affordability <br /> period. She said Gregg Warren from DHIC is here to answer any questions. <br /> Gregg Warren, President and Executive Director of DHIC, said the concerns are those <br /> of their lenders and investors with a long-term affordability period, especially if a project <br /> foreclosed. He said having a 40-year period of affordability is consistent with the 40-year loan <br /> period with Orange County. <br /> A motion was made by Commissioner Dorosin, seconded by Commissioner Price for the <br /> Board to approve a 40-year housing affordability period for the DHIC, Inc. Greenfield Place <br /> project. <br /> Commissioner Jacobs said he will vote in favor of this motion, but he does not think it <br /> best to view these ad hoc changes intermittently, and at the last minute. <br /> John Roberts said the motion this evening sets aside the County policy, and he <br /> recommended that the Board either amend the policy in the near future to establish criteria for <br /> project requests like these, or amend the policy as a whole to permanently change the <br /> affordability period. <br /> Commissioner Dorosin amended his motion to: approve the 40-year housing <br /> affordability period for the DHIC in Greenfield Place project, because the project is designed to <br /> serve in part, residents making 30% or less of area median income, and 60% or less of area <br /> median income, which are targeted demographics that this Board has made a commitment to <br />