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I;l <br />been completed and were received by the Planning Department <br />on April 29, 1991. <br />Lastly, with the application for final plat approval, <br />the County requires a financial guarantee for 1104 of the <br />cost of completion of all necessary improvements in the <br />subdivision which includes the cost of completion of the road <br />and the water and sewer service systems. The cost for these <br />improvements in Phase 2 of Chestnut Oaks has been estimated <br />to be $80,000. Habitat submitted a Letter of Credit for <br />$55,000 which it proposes be added to the County's $25,000 <br />challenge grant for the required security. The County <br />Attorney is drafting an instrument to facilitate the use of <br />these funds in this manner. Additionally, Habitat has asked <br />that the $55,000 Letter of Credit be released once final <br />grant award has been received from the N.C. Department of <br />Economic and Community Development for the $175,000 which <br />will be used to pave the roads serving Chestnut -Oaks. This <br />request will be presented to the Planning Board for <br />recommendation on May 20, 1991. <br />In summary, sufficient progress is taking place to allow <br />final plat approval on the new amended Phase 2 of Chestnut <br />Oaks by the deadline of ,Tune 4, 1991. <br />THE CDBG HOUSING DEVELOPMENT GRANT PROCESS <br />As mentioned earlier, the County received preliminary <br />award of a $175,000 grant from the N.C. Department of <br />Economic and Community Development for road <br />paving /construction in the Chestnut Oaks subdivision. The <br />County was informed that certain conditions must be fulfilled <br />in order to execute a grant agreement and make the award <br />final. These conditions are as follows. <br />1. A legally enforceable agreement between the County and <br />Habitat for Humanity of Orange County that Habitat will <br />carry out the activities proposed for it in Orange <br />County's approved application. <br />2. An assurance that all CDBG funds and program income <br />generated will be expended outside the corporate city <br />limits of Chapel Hill. <br />3. Documentation that the non -CDBG funds necessary to <br />complete the project are committed. <br />The County was originally given 90 days to resolve these <br />conditions. However, due to Habitat's inability to provide an <br />acceptable financial guarantee that the non -CDBG funds <br />necessary to construct eleven homes during the grant period, <br />we requested an extension of 60 additional days to ,Tune 2, <br />1991 to resolve these conditions. This request was granted by <br />*1* <br />