Minutes 12-12-2017 - Laserfiche WebLink

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12 In 2008, Community Home Trust (CHT) submitted an application for assistance to provide second mortgages for low to moderate-income persons participating in its homeownership program. The Board of Orange County Commissioners approved an award of $200,000 to CHT to undertake this activity. The funds provided were a part of the remaining balance of the 2001 Affordable Housing Bond Program. In 2016, the Board of County Commissioners approved an amendment to the original Bond Development Agreement with Community Home Trust (CHT) to allow for $75,000 of the original award to be used for replacing HVAC units at Greenbridge Condominiums as well as other HVAC systems in other properties. Of the $75,000 allocated under the amended agreement, $15,000 has been spent to replace three (3) HVAC systems. A balance of $60,000 remains. As the cost of the Greenbridge HVAC replacements has decreased, Community Home Trust is requesting to broaden the use of the available $60,000 balance. Community Home Trust is requesting to use the remaining $60,000 for two projects. The first is to replace HVAC units at East 54 Condominiums as well as other properties in the CHT portfolio that require HVAC replacements. This assistance is needed to help defray expenses that exceed the amount set-aside under CHT’s Stewardship Account for HVAC systems. The second proposed project is to help rehabilitate housing units that CHT will acquire in the Northside neighborhood Initiative. To date, CHT has purchased one (1) single-family home (306 Brooks 1 Street) and will be purchasing additional homes in the neighborhood. The cost to rehabilitate these units has increased requiring the need for additional outside funding. FINANCIAL IMPACT: No negative financial impact is associated with the approval of the amendment. Broadening the eligible uses of the remaining $60,000 would allow for additional homeowners to be assisted and the timely expenditure of funds. Any funds not expended by June 30, 2019 will revert to the County for other eligible affordable housing activities. PUBLIC COMMENT: Robert Dowling, CHT Executive Director, said he apologizes for asking the Board to revise this funding again, having already done so in 2013. He said the funds can be spent more quickly if the requested changes are made. He said the money is currently just assigned to Greenbridge, and expanding its uses would allow faster repair of these failing systems, and coverage for Northside costs. Commissioner McKee asked if the remaining projected amount for the Greenbridge project is known, because he does not believe this will be the last system that will be needed. Robert Dowling said at Greenbridge, there is a transfer fee that the market rate owners pay to augment the cost of the affordable units. He said that transfer fee fund is almost $300,000, which can take care of the HVAC systems at Greenbridge. He said there is not a similar pot of money at East 54, and thus the request to move the funds. Commissioner McKee said asked if there is a reason that the original request in 2013 was not paid out of the transfer fee fund. Robert Dowling said in 2013 he did not know how many units would need replacing; the transfer fee fund was much lower; and the cost of replacements of these units went down from $11,000 to $7,000. Commissioner McKee said he is not criticizing CHT, but for him, it comes down to a lack of a chain of custody. He said if funds are allocated to a project, he likes them to be used for that project. He said the shuffling of funds makes him uneasy. He said he would prefer to see these funds returned to the account from whence they came, and a new request for funding made.