Agenda 8-a - Minutes - Laserfiche WebLink

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17 1 The Board considered approving CASA's transfer of four (4) scattered site condos in 2 Chapel Hill to the Town of Chapel Hill for continued affordable housing use. The request is 3 being made based on CASA's current Agreement with the County and its requirement for 4 having the Board of County Commissioners' (BOCC) approval when transfers to entities other 5 than a non - profit occur. 6 Sherrill Hampton reviewed the background information below: 7 8 BACKGROUND: 9 In 2009, CASA assumed ownership of 20 units of scattered -site housing in Orange County 10 when a local non - profit dissolved. CASA collaborated with Orange County to ensure that the 11 units remained in use as affordable housing. CASA undertook extensive interior rehab work on 12 all the units. At the present time, CASA feels that individual condos are not a sustainable model 13 for affordable rentals. In the condo model, the owner does not control the costs of the HOA 14 dues and special assessments or the schedule of preventive maintenance and capital 15 replacements. 16 17 The current status of the 20 -unit portfolio is as follows: 18 • 1 unit, a single - family home in Hillsborough at 2308 Redbird Lane, was sold to 19 EmPowerment in 2017. As the transfer was to another non - profit, per CASA's current 20 Agreement with Orange County, the Board of County Commissioners did not need to 21 approve the transaction. 22 • 1additional scattered site condo was also transferred to EmPowerment in 2016. 23 • 3 scattered site condos in Carrboro are proposed to be sold in 2018. 24 • 4 additional scattered site condos in Chapel Hill are to be sold in 2018. EmPowerment is 25 considering the acquisition of these units. 26 • 4 scattered site condos in Chapel Hill are proposed for transfer to the Town of Chapel 27 Hill and are the subject of this Abstract. 28 • 7 units will continue to be held by CASA, including: 29 o 2 duplexes in Chapel Hill (4 units) 30 o 2 homes on one lot in Carrboro (3 units) 31 32 All properties that are being considered for disposition are small, aging and /or scattered site 33 and are not consistent with CASA's current business model. The proposed disposition allows 34 CASA to capture the value in the properties and reinvest in other rental properties that are more 35 cost - efficient to manage. The disposition also allows for other entities with the correct business 36 model and capacity to take ownership and maintain the units as affordable housing. 37 38 The proposed disposition of the four (4) scattered site condos to the Town of Chapel Hill is only 39 a transfer in ownership - no sale proceeds will be generated. If the proposed transfer is 40 approved, restrictions regarding "affordability" under the current Agreement will be assumed by 41 the new owner. The units are occupied and the Town intends to keep all current tenants in 42 place. However, when vacancies occur, the Town will utilize the units as transitional housing for 43 families preparing to move out of Public Housing as their economic situation improves. The 44 maximum allowable income for an individual or family occupying the units would be 50% of the 45 area median income (AMI). The Town of Chapel Hill will manage the units, perform annual 46 tenant certifications and conduct routine maintenance. 47 48 The Town had the units inspected by a licensed home inspection company. All units are in need 49 of some level of rehabilitation, ranging from light /moderate to substantial. The Chapel Hill Town 50 Council has adopted a resolution accepting the transfer of the four (4) units, and authorizing up