Minutes 06-20-2017 - Laserfiche WebLink

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28 less of area median income. However, a portion of the development agreement that describes the agency that could purchase the property would need to be modified. The current language describes the qualifying agency as an agency that exclusively serves families with incomes not exceeding 80% of area median household income: "If Owner no longer uses the Property as rental property or is unable to continue ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an agency with similar interest in affordable housing and serve families with incomes not exceeding 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of transfer. The non-profit fund, foundation, or corporation of like purpose must have established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code." Since the Community Home Trust serves families who are purchasing properties with incomes up to 110% of area median income, the language would need to be broadened to allow the purchasing agency to serve other individuals and families up to 110% of area median income. Community Home Trust currently serves families with incomes under 80% of area median income but not exclusively. The language could be modified as follows to broaden the population served by the purchasing agency: "If Owner no longer uses the Property as rental property or is unable to continue ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an agency with similar interest in affordable housing that serves families with incomes under 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of transfer. The non-profit fund, foundation, or corporation of like purpose must have established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code." The Community Home Trust has done due diligence on the property and has reported the following: 1. The property has been losing money for the past several years; 2. The Owners have drawn down their operating reserves by more than 50%; 3. An inspection revealed the need for several immediate repairs —with an estimated cost of about $50,000; 4. Community Home Trust is commissioning a phase I environmental assessment; 5. Community Home Trust has met with representatives of the management company who provided them with their perspective on the tensions at the Property; 6. Community Home Trust has met with a tenant to hear her perspective on what is working and what is not working; and 7. Community Home Trust has also met with Justice United. Community Home Trust will contract with a property management company certified by the North Carolina Housing Finance Agency to manage the property. Commissioner Jacobs asked if the agreement will be changed to indicate that residents could buy housing based on the allowances of the CHT, which would be up to 110%; or if they would have to adjust their policy to only allow up to 80%.