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27 <br /> 1 "If Owner no longer uses the Property as rental property or is unable to continue <br /> 2 ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the <br /> 3 Property only to an agency with similar interest in affordable housing and serve families <br /> 4 with incomes not exceeding 80% of the area median household income by family size, <br /> 5 as determined by the U.S. Department of Housing and Urban Development at the time <br /> 6 of transfer. The non-profit fund, foundation, or corporation of like purpose must have <br /> 7 established its tax-exempt status under Section 501(c)(3) of the Internal Revenue <br /> 8 Code." <br /> 9 <br /> 10 Since the Community Home Trust serves families who are purchasing properties with incomes <br /> 11 up to 110% of area median income, the language would need to be broadened to allow the <br /> 12 purchasing agency to serve other individuals and families up to 110% of area median income. <br /> 13 Community Home Trust currently serves families with incomes under 80% of area median <br /> 14 income but not exclusively. The language could be modified as follows to broaden the <br /> 15 population served by the purchasing agency: <br /> 16 <br /> 17 "If Owner no longer uses the Property as rental property or is unable to continue <br /> 18 ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the <br /> 19 Property only to an agency with similar interest in affordable housing that serves families <br /> 20 with incomes under 80% of the area median household income by family size, as <br /> 21 determined by the U.S. Department of Housing and Urban Development at the time of <br /> 22 transfer. The non-profit fund, foundation, or corporation of like purpose must have <br /> 23 established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code." <br /> 24 <br /> 25 The Community Home Trust has done due diligence on the property and has reported the <br /> 26 following: <br /> 27 1. The property has been losing money for the past several years; <br /> 28 2. The Owners have drawn down their operating reserves by more than 50%; <br /> 29 3. An inspection revealed the need for several immediate repairs —with an estimated <br /> 30 cost of about $50,000; <br /> 31 4. Community Home Trust is commissioning a phase I environmental assessment; <br /> 32 5. Community Home Trust has met with representatives of the management company <br /> 33 who provided them with their perspective on the tensions at the Property; <br /> 34 6. Community Home Trust has met with a tenant to hear her perspective on what is <br /> 35 working and what is not working; and <br /> 36 7. Community Home Trust has also met with Justice United. <br /> 37 <br /> 38 Community Home Trust will contract with a property management company certified by the <br /> 39 North Carolina Housing Finance Agency to manage the property. <br /> 40 <br /> 41 Commissioner Jacobs asked if the agreement will be changed to indicate that residents <br /> 42 could buy housing based on the allowances of the CHT, which would be up to 110%; or if they <br /> 43 would have to adjust their policy to only allow up to 80%. <br /> 44 Annette Moore said in this particular development there is 99-year affordability <br /> 45 documentation, so CHT cannot rent these properties to anyone that earns more than 60% of <br /> 46 area median income. <br /> 47 Commissioner Jacobs said he does not see this information in the abstract. <br /> 48 Annette Moore said that information is in the declarations, which the Commissioners do <br /> 49 not have before them this evening. She said there are the documents that are part of the <br /> 50 affordability legal documents; there is a deed of trust; a declaration of restrictive covenants, <br />