Agenda - 09-05-2017 - 8-a - Minutes

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28 1 which has the 99-year affordability period; a development agreement, which is from where this 2 language comes; and there is a promissory note. She said all of these documents secure the 3 loan, as well as the terms that the Department of Housing and Urban Development requires. 4 Chair Dorosin said the property has the 60% restriction, and the other documents that 5 Ms. Moore is describing would prohibit any entity, that serves anybody above 60%, from being 6 involved in the project. He said the 60% will stay on the project, but the agreement is being 7 changed to say that even though CHT goes up to 80% to 110%, it cannot rent the properties to 8 those above 60%. 9 Commissioner Jacobs asked if the percentage of the area median income made by 10 schoolteachers, firefighter, police officer, etc. could be identified. 11 12 Annette Moore said she in not exactly sure of the numbers, but would say it is between 13 80% and 110%, and it depends on how many people are in one's family. 14 Robert Dowling, CHT Executive Director, said this is a rental project and CHT will not 15 rent to anyone above 60%, and he said CHT would adhere to those restrictions. 16 17 PUBLIC COMMENT: 18 Robert Dowling said CHT is in the home ownership business, but this is a rental project 19 and CHT is not in the rental business yet. He said this is a development that he has been 20 involved in, and this property is struggling and the owner is out of town and wants to convey the 21 property to CHT, subject just to the loans. He said CHT has done a lot of due diligence, and it 22 seems that this property needs CHT to own it in order for it to succeed. He said CHT is local, 23 up to the challenge, and understands the restrictions. He said he is not seeking additional 24 funds or changes to the interlocal agreement, but knows he can and will come to the BOCC if 25 he needs help in the future. 26 Commissioner Rich asked if the property manager has to be certified. 27 Robert Dowling said the North Carolina Housing Finance Agency (NCHFA) controls 28 most of the funding for this project, and as a result this agency gets to call the shots. He said 29 NCHFA is fine with CHT being the owner but is not willing for CHT to be the manager, due to its 30 lack of experience with tax credit projects; and, as a result, CHT must use a Management 31 Company approved by NCHFA. He said he has asked NCHFA if there is an Orange County 32 based Management Company that is approved, and has yet to receive an answer. He said he 33 has spoken to three Management Companies, that are not based in Orange County, about 34 managing this property, and it is currently being managed by an out of town Management 35 Company. 36 Annette Moore said to become a NCHFA certified property Management Company, one 37 must take a three-day test. She said it would be possible to have a local company become 38 certified, but this has not yet happened. 39 Commissioner Rich said she would like to keep the property manager local, if possible. 40 Annette Moore said 80% of median area income for a family of 4 is $58,650. 41 Commissioner Jacobs asked Robert Dowling if there is a plan for unit maintenance. 42 Robert Dowling said CHT is asking the Orange County tax collector for tax exemption, 43 and CHT is eligible by the State statute for property tax exemption, which the current owner is 44 not. He said the property is losing money, and the difference between losing money and 45 breaking even is the property taxes. 46 Commissioner Jacobs asked if the amount of the property taxes is known. 47 Robert Dowling said they were around $43,000 in 2016, which declined to $27,000 in 48 2017, due to revaluation. 49 Commissioner Jacobs asked if Robert Dowling is confident that $27,000 is sufficient to 50 maintain 58 units.