Agenda 04-02-2019 8-a - Minutes - Laserfiche WebLink

Browse Search

12 1 has come back to the Board for that reason. He thanked staff for its ongoing support. He said 2 they will lose money this year, but he hopes to stabilize in 2020. He said the reserves will not 3 be at the levels needed to support 58 units, hence the need for the injection of capital. He said 4 Carrboro has approved $30,000 and he is asking the County for$60,000. He said he will ask 5 Carrboro for an additional $20,000 next week. He said he is also trying to raise money from 6 the private sector. 7 Commissioner McKee said the worst thing would be for this property to operate on a 8 razor's edge, and if things go badly, the reserves will be burned through quickly. He said a 9 lack of investment will lead to further deterioration of this project, which is counter to the 10 County's desires for affordable housing. He said he heartily endorses this request. 11 Commissioner Dorosin said he was the County's representative on the CHT board 12 when taking on this project was being debated, and he said it was a real challenge and 13 represented a change in the way things had previously been done. He said the decision was 14 not made lightheartedly, but with gravitas, as it reflected the priorities set by the BOCC for 15 affordable rental housing in the community. 16 Commissioner Dorosin said he would endorse approving the $60,000 plus more, and 17 asked if the shortfall could be identified. 18 Robert Dowling said his board has directed him to raise $138,000, so he has a $48,000 19 shortfall after funds from the County and Carrboro. 20 Commissioner Dorosin said he is feeling magnanimous, and the importance of the 21 project outweighs the relatively small amount of money that is being requested. He 22 appreciates the presentation, but feels it soft-pedaled the danger this community was in, and 23 the real dangers left by the former owners and managers. 24 Commissioner Dorosin said he would like to see the County put in another$20,000, for 25 a total of$80,000. He said if CHT is able to raise the funds privately, then CHT can return 26 funds to the County. He said this project represents exactly what the Board has been calling 27 on providers to do. 28 Commissioner Price thanked CHT for taking this project on, asked if CHT knows how 29 much more funding it will request next year. 30 Robert Dowling said he does not yet know, and CHT is trying to do valid 20-year 31 projections but it is not yet completed. 32 Commissioner Price asked if the $60,000 being requested now will ensure some 33 security. 34 Robert Dowling said the $60,000 from the County and $30,000 from Carrboro puts 35 them in good shape for the next year. 36 Commissioner Price asked if all the units will be habitable by next year. 37 Robert Dowling said all units are habitable now, and they still have $50,000 in 38 operating reserves and $78,000 in capital replacement reserves. He said the latter replaces 39 HVAC systems, refrigerators, hot water heaters, roof, etc. He said $78,000 will not go very far 40 for four buildings with 58 units. 41 Commissioner Price said the units are currently safe, but asked if there will be 42 replacements needed next year. 43 Robert Dowling said it is a nine-year old property, and replacements will be on an 44 ongoing basis, as the buildings have not been well maintained. He said the replacements will 45 accelerate in the next 5-10 years as the major items will need replacing. He said his board 46 directed him to get the reserves to $138,000, but he is trying to get this right so that his 47 successor does not get left with a problem next January. 48 Commissioner Price said she does not want to see people have to move out due to a 49 lack of funds. 50 Robert Dowling said that will not happen. 51 Commissioner Price said he should be asking for more money.