Agenda 04-02-2019 6-b - Approval to Acquire Property at 509 Central Avenue, Hillsborough

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3 ■ Using the formula above, the calculation for this matter is $171,000 - $105,569.64 (this is the total selling costs taken from the ALTA and is inclusive of the estimated USDA lien pay-off and County second mortgage balance). ■ The net sales proceeds are $65,430.36 and of this amount, $32,715.18 is owed to Orange County. ■ On March 5, 2019, H&CD staff inspected the property at 509 Central Avenue, Hillsborough, NC and found that approximately $14,000 in repairs is needed. ■ On March 18, 2019, H&CD staff met with Ms. Brown and had an exploratory conversation to not only share the County's goal of expanding affordable housing opportunities and why it is important for the County to take steps to maintain the affordability of units supported with the federal, as well as local funds but to also express potential interest on purchasing the property pursuant to its Right of First Refusal, contingent upon Board of County Commissioners' approval. ■ Should the Board approve the exercise of the County's Right of First Refusal and acquisition of this property, the County will make a formal Offer to Purchase and Contract, the form of which is provided in Attachment 2. A draft addendum to the NC Bar Form Offer to Purchase and Contract is also provided in Attachment 2 and will be used, if needed. Housing will contract with Attorney Brian Ferrell of Kennon Craver to handle title work and closing on the property and will also contract with a realtor to handle the Offer to Purchase. Housing staff is in the process of selecting the realtor. FINANCIAL IMPACT: A financial impact is anticipated. The conditional approval includes an acquisition expense of no more than $171,000 to be paid out of the Affordable Housing Land Banking Fund, plus other associated closing costs, including the amount of ad valorem taxes due on the property for this year following closing. The present balance of the Affordable Housing Land Banking Fund is $1,471,628. The rehabilitation cost will be paid out of County HOME or other applicable housing rehabilitation funds. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. RECOMMENDATION(S): The Manager recommends that the Board adopt a resolution: 1) Approving the exercise of the County's Right of First Refusal and the acquisition of property at 509 Central Avenue, Hillsborough, NC 27278 at a purchase price to be negotiated but not to exceed $171,000 plus other associated closing costs, including the cost of any ad valorem taxes due on the property following closing for the year, in order to maintain the said property for affordable housing purposes. If the acquisition