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ALONZO B. COLEMAN, JR. <br />GEOFFREY E. GLEDHILL <br />DOUGLAS HARGRAVE <br />KIM K. STEFFAN <br />JANET B. DUTTON <br />JOSEPH I. COLEMAN <br />PN 7 E I V E 0 <br />JAN 2 91992 <br />Ans'd............ <br />ATTACHMENT 2 <br />LAW OFFICES <br />COLEMAN, GLEDBnL & HARGRAVE <br />January 28, 1992 <br />Ms. Tara L. Fikes <br />Director <br />Orange County Housing & Community Development <br />Post Office Sox 8181 <br />Hillsborough, North Carolina 27278 <br />RE: Pine Knolls Property <br />Dear Tara: <br />Page 7 <br />129 E. TRYON STREET <br />P.O. DRAWER 1529 <br />HILLSBOROUGH, NC 27278 <br />TEL: (919) 732 -2196 <br />(919) 942 -8000 <br />FAX: (919) 732 -7997 <br />This letter confirms our conversations of late and my <br />research concerning a method by which Orange County can transfer <br />property acquired by it through tax foreclosures for use by <br />Habitat for Humanity for affordable housing in Orange County. <br />Generally speaking, a county must dispose of its surplus <br />property (property not used by the county for some governmental <br />purpose) by selling it through a public sale process. However, <br />the law authorizes a county to convey, by private sale at any <br />price established as appropriate by the county, its land to <br />certain public or private entities which carry out a public <br />purpose. There are two limitations to this authority: (1) the <br />public or private entity must be one to which the county is <br />authorized to appropriate funds and, (2) the property must be <br />property not acquired by condemnation. See generally North <br />Carolina General Statutes S160A -279. <br />On its face, this authorization would appear to permit <br />Orange County to convey the Pine Knolls property (not acquired by <br />the County via condemnation) directly to Habitat for Humanity. <br />This is so because Orange County has made appropriations of money <br />to Habitat for Humanity. However, there is no express statutory <br />authority for counties to appropriate funds to Habitat for <br />Humanity. This is so even though Habitat's purpose is to develop <br />affordable housing. There has been no question about the <br />appropriations to Habitat and there is not likely to be one. <br />However, should such an appropriation be successfully challenged, <br />the result would be that Orange County would cease the <br />appropriation. On the other hand, if the "appropriation" were <br />the sale to Habitat of a tract of land for $1 or $10 and that <br />