Minutes 03-19-2019 Regular Meeting

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