Minutes 06-20-2017 - Laserfiche WebLink

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29 Annette Moore said in this particular development there is 99-year affordability documentation, so CHT cannot rent these properties to anyone that earns more than 60% of area median income. Commissioner Jacobs said he does not see this information in the abstract. Annette Moore said that information is in the declarations, which the Commissioners do not have before them this evening. She said there are the documents that are part of the affordability legal documents; there is a deed of trust; a declaration of restrictive covenants, which has the 99-year affordability period; a development agreement, which is from where this language comes; and there is a promissory note. She said all of these documents secure the loan, as well as the terms that the Department of Housing and Urban Development requires. Chair Dorosin said the property has the 60% restriction, and the other documents that Ms. Moore is describing would prohibit any entity, that serves anybody above 60%, from being involved in the project. He said the 60% will stay on the project, but the agreement is being changed to say that even though CHT goes up to 80% to 110%, it cannot rent the properties to those above 60%. Commissioner Jacobs asked if the percentage of the area median income made by schoolteachers, firefighter, police officer, etc. could be identified. Annette Moore said she in not exactly sure of the numbers, but would say it is between 80% and 110%, and it depends on how many people are in one's family. Robert Dowling, CHT Executive Director, said this is a rental project and CHT will not rent to anyone above 60%, and he said CHT would adhere to those restrictions. PUBLIC COMMENT: Robert Dowling said CHT is in the home ownership business, but this is a rental project and CHT is not in the rental business yet. He said this is a development that he has been involved in, and this property is struggling and the owner is out of town and wants to convey the property to CHT, subject just to the loans. He said CHT has done a lot of due diligence, and it seems that this property needs CHT to own it in order for it to succeed. He said CHT is local, up to the challenge, and understands the restrictions. He said he is not seeking additional funds or changes to the interlocal agreement, but knows he can and will come to the BOCC if he needs help in the future. Commissioner Rich asked if the property manager has to be certified. Robert Dowling said the North Carolina Housing Finance Agency (NCHFA) controls most of the funding for this project, and as a result this agency gets to call the shots. He said NCHFA is fine with CHT being the owner but is not willing for CHT to be the manager, due to its lack of experience with tax credit projects; and, as a result, CHT must use a Management Company approved by NCHFA. He said he has asked NCHFA if there is an Orange County based Management Company that is approved, and has yet to receive an answer. He said he has spoken to three Management Companies, that are not based in Orange County, about managing this property, and it is currently being managed by an out of town Management Company. Annette Moore said to become a NCHFA certified property Management Company, one must take a three-day test. She said it would be possible to have a local company become certified, but this has not yet happened. Commissioner Rich said she would like to keep the property manager local, if possible. Annette Moore said 80% of median area income for a family of 4 is $58,650. Commissioner Jacobs asked Robert Dowling if there is a plan for unit maintenance.