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11 <br /> I Information Points <br /> 2 • On May 4, 2011, Orange County made a $300,000 loan to the Landings at Winmore <br /> 3 for the development of the 58-unit apartment complex. The loan came from the federal <br /> 4 HOME Program funds and the interest rate is 2% per year. The loan matures in May <br /> 5 2041. <br /> 6 • Community Home Trust (CHT) bought the apartment complex on December 29, 2017 <br /> 7 and assumed the loan from the County. <br /> 8 • The balance of the capital structure for the Landings is as follows: <br /> 9 ■ An AHP $1,440,000 First Loan originated by Bank of America with a 2% interest rate <br /> 10 and matures in December 2030. <br /> 11 ■ An AHP $550,000 Second Loan originated by Bank of America with a 7% interest rate <br /> 12 and matures in December 2030. <br /> 13 ■ An NC Housing Finance Agency (NCHFA) $4,995,112 loan, provided in lieu of tax <br /> 14 credits with no interest and no payments required. The note matures in December <br /> 15 2025. If the property remains in compliance until that time, the note will be forgiven. <br /> 16 ■ An NCHFA $332,997 Loan that matures in February 2040. The note bears no interest. <br /> 17 ■ A United Housing Associates $250,000 Loan that is now assigned to Bank of America. <br /> 18 This loan matures in December 2030 and the note bears no interest. <br /> 19 • Community Home Trust (CHT) hired Partnership Property Management (PPM) as the <br /> 20 property management company in January 2018. <br /> 21 • When CHT acquired the property in 2017, the Operating Reserve was $81,938 and the <br /> 22 Replacement Reserve was $85,352. <br /> 23 • The expenses incurred that were paid from the reserves since CHT's ownership <br /> 24 include the following: <br /> 25 ■ $22,896.90 of operating reserves for property insurance in October 2018 <br /> 26 ■ $9,743.66 of operating reserves to pay for a variety of normal maintenance activities, <br /> 27 i.e. pressure washing and apartment turnover costs. <br /> 28 ■ $17,794.69 of replacement reserves for miscellaneous replacements, i.e. appliances <br /> 29 and sprinkler heads. <br /> 30 ■ All transfers from both reserves were approved by the NC Housing Finance Agency <br /> 31 (NCHFA). <br /> 32 • CHT cites three (3) factors that caused the challenges being confronted. Those factors <br /> 33 are: <br /> 34 ■ The property lost money in 2015, 2016, 2017 and 2018. <br /> 35 ■ Six (6) apartments were vacant when they acquired the property and vacancies <br /> 36 remained high for most of 2018. However, by December 2018, there were only three <br /> 37 (3) vacancies. <br /> 38 ■ Some apartments, especially two (2), were very expensive to turnover and rent. <br /> 39 • Based on an application from CHT, the Orange County Housing and Community <br /> 40 Development Department provided $3,500 in Risk Mitigation funds in late <br /> 41 January/early February 2019 for one of the aforementioned units. <br /> 42 • The Town of Carrboro recently provided $30,000 of a $50,000 request. CHT will submit <br /> 43 another request this spring for the remaining $20,000 needed. <br /> 44 • The property management company, PPM, has worked hard to address the causes of <br /> 45 the losses, i.e. reducing the vacancies and holding tenants accountable to their leases. <br /> 46 The financial performance of the property was turning around at the end of 2018. As of <br /> 47 today, there are only two (2) vacancies and the rental income is more stable. <br /> 48 <br /> 49 Robert Dowling, Executive Director of CHT, said he came to the Board in the fall of <br /> 50 2017, and did not think he would have to come back, but CHT does need more help, and he <br />