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

Browse Search

29 1 Robert Dowling said no. He said the property lost $50,000 last year, with the taxes at 2 $43,000. He said there is also an arrearage of an Orange Water and Sewer Authority 3 (OWASA) bill, which requires a $2,000/month surcharge. He said the Carrboro Board of 4 Alderman agreed to pay this off when CHT takes possession, and between these two changes 5 the property should move from the red barely into the black. He said CHT will make a 20 year 6 pro forma, and put the freed up cash flow into the reserves to maintain the property. 7 Commissioner Jacobs said Robert Dowling has intimated a return to the Board in the 8 future to ask for financial assistance, and asked if CHT is starting this project in a position that 9 almost guarantees a return to the Board. 10 Robert Dowling said CHT will be entering into negotiations with the current owner, and 11 he would prefer not to say any more. 12 Commissioner McKee said he liked the model CHT is proposing, but he agreed with 13 Commissioner Jacobs that this project does not address workforce housing. He said he likes 14 the idea, but not the project. He said he owns rental property, and one can either make money 15 or get badly bit, and he fears the latter will occur with this project. He said the maintenance 16 issue must be addressed, and he would like to know more about the project and the financials 17 before buying into this project. He said he anticipates this project having a large financial 18 appetite. 19 Robert Dowling said the County already has money in the deal, and it will either go 20 below the waves or be kept propped up. 21 Commissioner McKee said he is concerned about how much farther in the County will 22 be. 23 Chair Dorosin said 40% of median area income for a family of 4 is $29,325; 50% is 24 $36,656, which is about the starting salary of a teacher; and 60% is $43,988. He said these 25 numbers are all in the range for working class people, and thus this project seems meant for 26 working class people. He said the BOCC has made a priority of affordable rentals at lower 27 median incomes, which requires a greater subsidy. He said these units could be made 28 available to section 8 voucher holders. 29 Robert Dowling said 39 of the 58 units currently house section 8 voucher holders. 30 Chair Dorosin said there have been social justice issues with the current management 31 and the residents of this property. He said he appreciates the questions and concerns, but 32 these are 58 units that could fail and possibly be lost, if not for some form of intervention. 33 Commissioner Burroughs said when the BOCC was awarding the $2.5 million in 34 affordable housing projects; she was struck by how few projects there were. She said the 35 County needs to focus on preserving the existing affordable housing stock, which this project 36 would do. She said she also deals with rental housing, and it is challenging, but it cannot be 37 more expensive to preserve 58 existing units than it is to create 23 from scratch, and as such 38 she supports this project. 39 Commissioner Price agreed with Commissioner Burroughs, and feels strongly about 40 neighborhood preservation. She said it may not make a lot of money, but it provides homes to 41 families. 42 Commissioner Jacobs said he is not opposed to the project, but he is trying to get a 43 more realistic picture of the costs and the vulnerabilities that are not being articulated. He said 44 this project provides more units than were approved through the provision of the $2.5 million, 45 and he wishes this project had come forward during the bond funds discussion. 46 Commissioner McKee said this addresses need and he will not vote against it, but that 47 does not alleviate his concerns that the County will be feeding this project going forward. He 48 asked if CHT would keep the Board of County Commissioners updated, especially pertaining to 49 costs and upgrades. 50