Agenda - 01-24-2017 - 6-a - Minutes

Browse Search

30 1 Audrey Spencer-Horsley, Director of Housing, Human Rights and Community 2 Development, reviewed the following background: 3 4 BACKGROUND: Housing projects that are funded with Orange County HOME Program funds 5 are subject to the County's 99-year long-term affordability policy. Community Home Trust 6 (CHT), formerly known as Orange County Housing and Land Trust (OCHLT), is requesting to 7 sell one of the affordable homes out the housing portfolio. The home, located at 305 Pleasant 8 Drive, Carrboro, NC was purchased by OCHLT in June 2000 and renovated in 2002 using 9 $30,000 of HOME funds. The property was then sold to a low-income homebuyer. 10 CHT re-purchased the home from the owner in 2014 and has determined that it is not in a 11 suitable condition to convey to a new buyer without extensive renovations. CHT estimates that 12 it will take more than $100,000 to remodel the home. The declaration of restrictive covenants 13 will need to be cancelled in order for CHT to provide clear title. The property will be sold on the 14 private market. There is a memorandum in the abstract from CHT Executive Director Robert 15 Dowling that provides additional background information. 16 17 Robert Dowling, Executive Director CHT, said this is not something the CHT does easily 18 or naturally, but when the cost to upfit this home is considered, selling is the best route. He 19 said CHT may take a loss, which CHT would ask the County to split with CHT. 20 Commissioner Pelissier said she assumed that there are mechanisms in place in order 21 to avoid this happening again. 22 Robert Dowling said yes, there are now years of experience, from which to learn. 23 Commissioner Jacobs said this is the fourth instance that the County has bailed out 24 CHT. He said there were good reasons each time, but he may not be in favor of splitting the 25 loss with CHT. He said the County will soon be pouring millions more dollars into these 26 programs, and must stick to policies, protect costs, and make sure decisions are thoroughly 27 thought through. He said the people involved will come and go, and there must be systems in 28 place to keep things functioning when exceptions are made to standards. 29 Commissioner Rich said she is in favor of selling the house, and suggested amending 30 the current policy and adding detail on how to sell a house out of the stock. She said there are 31 decisions being made ad hoc, and some guidelines needs to be added. She said staff and 32 legal should work on the language together. She said she is not sure if the loss has been 33 worked into the CHT budget. She asked Robert Dowling if he could explain the financials of 34 this property. 35 Robert Dowling said a contract was signed in October for$180,000, and $175,000 is 36 needed to break even. He said the contract was terminated on a Friday and a new offer was 37 made the next day for$160,000. He said he asked for a deferment until the BOCC met, and 38 the CHT Board meets tomorrow, to which the buyer agreed. He said the price of $160,000 39 would net about a $10,000 loss. 40 Commissioner Dorosin asked if input should be gathered from housing agencies before 41 changing the policy. He said the BOCC cannot make policy decisions without consulting those 42 who are most affected by policy changes. 43 Commissioner Dorosin said he is comfortable making fluid changes as needed. He said 44 there cannot be one-size-fits-all policies with affordable housing, especially in Orange County, 45 where property values can vary greatly. 46 Commissioner Rich agreed with Commissioner Dorosin. 47 Commissioner Jacobs said it would be the same as inviting the homebuilders for input 48 on impact fees. He said input is welcomed, but ultimately the BOCC has to make the decisions. 49 He said when the BOCC is waiving standards there must be some guidelines. 50