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2 <br /> APPLICATION SUMMARY <br /> Orange County proposes to provide funds to Magnolia Place subdivision to create <br /> opportunities for first-time homebuyers. Magnolia Place is located on Oakdale Drive in the <br /> southern part of Hillsborough, off Old N.C. 86 between Interstates 85 and 40. Homes will <br /> be sold to families with incomes below 80% of the area median family income, with a <br /> special emphasis on families at and below 60% of the area median. The preliminary <br /> budget estimates homes priced at approximately $80,000, with first mortgages <br /> approximately $63,250. These homes would be affordable to families with incomes of <br /> approximately$23,000, approximately 50%of the area median income for a family of four. <br /> Families with incomes as low as $20,000 may qualify for mortgages in Magnolia Place. <br /> The proposed site is owned by Magnolia Place General Partnership, a partnership <br /> between Orange Community Housing Corporation (OCHC), a local non-profit housing <br /> development corporation,and Development Research Corporation (DRC),a Wake County <br /> developer. The site is zoned for single family development, and has received subdivision <br /> approval from the Town of Hillsborough for 42 single family homes. <br /> The 42 units in Magnolia Place will have 3 bedrooms and 2 bathrooms, and will <br /> range in price from $78,000 to $85,000, with an average second mortgage of <br /> approximately $16,000 for at least 20 buyers, consisting of$10,000 in HOME funds* and <br /> $5,882 in CDBG funds. Those 20 units will have a first mortgage payment of <br /> approximately $575, including property taxes, insurance, and a small homeowners <br /> association fee to cover costs of maintaining the common area. <br /> CDBG funds are requested in the amount of $247,050 to allow Orange County to <br /> construct public water and sewer service, storm drainage, and streets on the site. The <br /> County will enter into agreements with both the owner/developer and applicable <br /> contractors to complete the work as needed. Additionally, $2,950 will be requested for <br /> grant administration for a total grant request of $250,000. <br /> *HOME funds in the amount of $200,000 have been awarded to the Orange HOME <br /> Consortium for use at Magnolia Place, to partially finance the development and <br /> construction phase, to purchase the property and prepare the lots for development, <br /> including soft costs as allowed by HOME. These funds would then remain as second <br /> mortgages to the homebuyers to promote long-term affordability. <br />