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29 1 On March 18, 2019, H&CD staff met with Ms. Brown and had an exploratory 2 conversation to not only share the County's goal of expanding affordable housing 3 opportunities and why it is important for the County to take steps to maintain the 4 affordability of units supported with the federal, as well as local funds but to also express 5 potential interest on purchasing the property pursuant to its Right of First Refusal, 6 contingent upon Board of County Commissioners' approval. 7 Should the Board approve the exercise of the County's Right of First Refusal and 8 acquisition of this property, the County will make a formal Offer to Purchase and 9 Contract, the form of which is provided in Attachment 2. A draft addendum to the NC 10 Bar Form Offer to Purchase and Contract is also provided in Attachment 2 and will be 11 used, if needed. Housing will contract with Attorney Brian Ferrell of Kennon Craver to 12 handle title work and closing on the property and will also contract with a realtor to 13 handle the Offer to Purchase. Housing staff is in the process of selecting the realtor. 14 15 FINANCIAL IMPACT: A financial impact is anticipated. The conditional approval includes an 16 acquisition expense of no more than $171,000 to be paid out of the Affordable Housing Land 17 Banking Fund, plus other associated closing costs, including the amount of ad valorem taxes 18 due on the property for this year following closing. The present balance of the Affordable 19 Housing Land Banking Fund is $1,471,628. The rehabilitation cost will be paid out of County 20 HOME or other applicable housing rehabilitation funds. 21 22 PUBLIC COMMENT: 23 Delores Bailey said she is the Executive Director of EmPOWERment, Inc., who has 24 benefited greatly from the County, and thanked the Board of County Commissioners for its 25 support. She said EmPOWERment has grown its housing program since 1998, and it is a 26 combination of home ownership and affordable rental properties. She said the housing 27 program is a HUD certified program, which means it is available to provide counseling 28 throughout the state of North Carolina. She said her team has counseled over 2000 people 29 toward pre-purchase, away from foreclosure, and towards affordable rentals. She said her 30 team works extensively within the community to provide housing education, and safe, 31 affordable housing is very difficult to find in Orange County. She said if the Board passes the 32 motion this evening, it will keep an existing affordable property as just that. 33 Kathleen Ferguson said she is a resident of this neighborhood, and this home is 34 important for affordable housing and it is a working class neighborhood. She said other houses 35 on this street will be moving from affordable rentals to market value, and keep this property 36 affordable is crucial. She asked if the Board would please support this motion. 37 LaTanya Davis said she works for Empowerment, and they would like to have this 38 house in its inventory. She said all the affordable rental units are currently occupied, with 30 39 people on the waiting list and a yearlong waiting period. 40 Valencia Thompson said she works for Empowerment, and echoed the previous 41 comments. 42 Commissioner Dorosin said he read the abstract and it lays out what would happen if 43 this house were sold at market value, and asked if the Board approves the purchase of the 44 house, would the County still get the $32,000. 45 Sherrill Hampton said staff is negotiating a lower price since the house will need some 46 rehabilitation. She said the owner has agreed to sell the house for$157,000. She said the 47 County would not recapture as it would keep it affordable, and would exercise its right so she 48 would not have to give up half of the net proceeds, but it is at a reduced rate.