Agenda - 02-21-2017 - 7-b - Review and Amend the Orange County Housing Affordability Policy

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4 II. Land Trust Model The Land Trust model utilizes a non-profit, community based organization known as a Community Land Home Trust (CH-LT) whose purpose is to acquire land and make it available to individual families and others, such as cooperatives, through a long-term lease for a term up to 99 years. The leaseholders or homebuyers do not hold title to the land -the title is retained by the CLT. The ChHT conveys a leasehold interest in the land and improvements to the homebuyers (lessees) they own the improvements or housing units/structures on the land. The benefits of this model include the ability of the CLT to retain the affordability of the home over successive generations of home buyers. - . _- •-- _ --_ .. - - - ---- - - - -- . - _ _ protection of affordability for future residents in the sale of buildings and other improvements „n the land! _The land lease gives the CLT the first option to purchase the home, when and if it is sold, at an affordable price set by a resale formula. The resale formula gives homeowners a fair return for their investment, while keeping the price of the housing_ units/structures affordable for future residents. III. New and Existing First-Time Homebuyer Programs A Period of Affordability All properties supported by County financial resources for the purpose of facilitating homeownership must be sold to households remain affordable to families at or below 80% of area median income for a minimum of ninety-nine (99) years from the date of initial assistance-subsequent resales are allowable to households earning up to 115%of area median income. B. Right of First Refusal A right of first refusal or right to purchase is accomplished by means of a Declaration of Restrictive Covenants on the property purchased by the first-time homebuyer. Any assignment, sale, transfer, conveyance, or other disposition of the Property or any part thereof whether voluntarily or involuntarily or by operation of law ('Transfer") shall not be effective unless and until the below-described procedure is followed. If the original homebuyer or any subsequent qualified homebuyer ('Buyer") contemplates a Transfer to a unqualified household as defined herein, Buyer shall send to Orange County and/or the sponsoring non-profit organization, not less than 90 days prior to the contemplated closing date of the Transfer, a 'Notice of Intent to Sell." This Notice of Intent to Sell shall be accompanied by a copy of a completed, fully executed bona fide offer to purchase the Property on the then current North Carolina Bar Association "Offer to Purchase and Contract" form. If Orange County and/or the sponsoring non-profit organizations elects to exercise its said right of refusal, it shall notify the Buyer of its election to purchase within 30 days of its receipt of the Notice and shall purchase the Property or portion thereof within 90 days of the receipt of the'Notice of Intent to Sell."As between the County and the sponsoring non-profit organization, if both wish to and have the means to exercise the right of first refusal, the sponsoring non-profit organization shall have priority.