2018-130-b Housing - CASA until transfer

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20 RB6517 193 11/12 Commissioner Price and Commissioner Burroughs agreed to this amended language. A motion was made by Commissioner Price, seconded by Commissioner Burroughs to approve the Special Use Permit and the Board of County Commissioners imposes recommended conditions as detailed within Attachment 4 of the abstract package (pages 225- 226). VOTE: UNANIMOUS 6. Regular Agenda a. Approval of Transfer of Rental Property from CASA to the Town of Chapel Hill for Continued Affordable Housing Use The Board considered approving CASA's transfer of four (4) scattered site condos in Chapel Hill to the Town of Chapel Hill for continued affordable housing use. The request is being made based on CASA's current Agreement with the County and its requirement for having the Board of County Commissioners' (BOCC) approval when transfers to entities other than a non - profit occur. Sherrill Hampton reviewed the background information below: BACKGROUND: In 2009, CASA assumed ownership of 20 units of scattered -site housing in Orange County when a local non - profit dissolved. CASA collaborated with Orange County to ensure that the units remained in use as affordable housing. CASA undertook extensive interior rehab work on all the units. At the present time, CASA feels that individual condos are not a sustainable model for affordable rentals. In the condo model, the owner does not control the costs of the HOA dues and special assessments or the schedule of preventive maintenance and capital replacements. The current status of the 20 -unit portfolio is as follows: 1 unit, a single- family home in Hillsborough at 2308 Redbird Lane, was sold to EmPowerment in 2017. As the transfer was to another non - profit, per CASA's current Agreement with Orange County, the Board of County Commissioners did not need to approve the transaction. • 1 additional scattered site condo was also transferred to EmPowerment in 2016. * 3 scattered site condos in Carrboro are proposed to be sold in 2018. • 4 additional scattered site condos in Chapel Hill are to be sold in 2018. EmPowerment is considering the acquisition of these units. • 4 scattered site condos in Chapel Hill are proposed for transfer to the Town of Chapel Hill and are the subject of this Abstract. 7 units will continue to be held by CASA, including: o 2 duplexes in Chapel Hill (4 units) c 2 homes on one lot in Carrboro (3 units) All properties that are being considered for disposition are small, aging and/or scattered site and are not consistent with CASA's current business model. The proposed disposition allows CASA to capture the value in the properties and reinvest in other rental properties that are more cost - efficient to manage. The disposition also allows for other entities with the correct business model and capacity to take ownership and maintain the units as affordable housing.