Agenda - 11-19-1991 - Laserfiche WebLink

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H ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda ACTION AGENDA ITEM ABSTRACT Item No. Meeting Date: November 19, 1991 SUBJECT: Culbreth Park Interim Assistance Grant Program -- ----------------------------------- DEPARTMENT: Housing /Community Dev. PUBLIC HEARING YES: NO: x - - ATTACHMENT(S): INFORMATION CONTACT : - Tara -L. Fikes TELEPHONE NUMBER - Hillsborough - 732 -8181 Chapel Hill - 968 -4501 Mebane - 227 -2031 Durham - 688 -7331 ----------------------------------------- PURPOSE: To consider a request by Culbreth Park Community Development Corporation to forgive the County administrative costs associated with the Culbreth Park Interim Assistance Grant Program. BACKGROUND: Orange County was awarded a Community Development Block Grant (CDBG) Interim Assistance Grant Award of $2.25 million dollars to provide low interest construction loan financing for the Culbreth Park subdivision. Culbreth Park officially began on May 1, 1990 with the scheduled ending of October 31, 1991 at which time the loan must be repaid to the state at two percent interest. The subdivision was designed to have 50 homes: 30 low /moderate income homes; 12 market rate homes and eight houses built by Habitat for Humanity. To date, eighteen homes have been sold. Another three houses are under contract.- As of October 31, 1991, the amount due to the County was $2,294,774.08 which includes interest of $55,415.85 and administrative costs of $12,563.04. Although the original loan included an administration budget of $16,000 to cover the County's administrative costs for grant management, Culbreth Park Community Development Corporation (CPCDC) is now asking the County to forgive the actual administrative costs incurred of $12,563.04. The General Manager of CPCDC cites the following reasons for this request. 1. The audited statements for the first year of operation for their first year of operation show losses; CPCDC forecasts losses of $250,000 at the end of this project.