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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. Vim-S <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 18, 1993 <br /> SUBJECT: Request from Orange Community Housing Corporation (OCHC) <br /> DEPARTMENT: Commissioner's Office PUBLIC HEARING YES: NO: x <br /> ATTACHMENT(S) : Letter from OCHC INFORMATION CONTACT: Moses Carey, Jr. <br /> Erwin Village Pre-Development <br /> Expenditures TELEPHONE NUMBER- <br /> Hillsborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To consider a request from the Orange Community Housing <br /> Corporation asking the County to contribute to the pre- <br /> development losses incurred for the proposed Erwin Village <br /> affordable housing project. <br /> BACKGROUND: The Orange Community Housing Corporation (OCHC) had planned <br /> to build a twenty (20) unit single family subdivision known <br /> as Erwin Village on Erwin Road in Chapel Hill. The project <br /> was designed to provide homeownership opportunities to <br /> first time homebuyers with incomes at 80% and below of <br /> median income. Financing for this project were to be <br /> derived from various state, local and private sources. An <br /> important source of funding was scheduled to be received <br /> from the Town of Chapel Hill. <br /> The Town pledged funding to the project last fall, however, <br /> in the interim, anticipated development costs increased, <br /> thus, OCHC increased their funding request in an effort to <br /> keep the project affordable. In February 1993, the Town <br /> Council decided not to commit funds to the Erwin Village <br /> development citing their desire to participate in <br /> homeownership opportunities for families at 60% and below <br /> of median income. The loss of this funding source caused <br /> the project to be infeasible. <br /> At that time, OCHC had incurred pre-development expenses of <br /> approximately $45,000. (See Erwin Village Pre-Development <br /> Expenditures. ) OCHC requested reimbursement of these costs <br /> from the Town of Chapel Hill and in March the Town Council <br /> granted the agency $35,000 for incurred losses. OCHC is now <br /> asking the County to contribute to the pre-development <br /> losses as well —including but not limited to reimbursement <br /> of the $696.00 application fee paid to the County for the <br /> required sedimentation and erosion control permit <br /> application. (See letter from OCHC Board Chair. ) <br /> RECOMMENDATION(S) : As the Board decides. <br /> io- <br />