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27 <br /> b. Approval to Acquire Property at 509 Central Avenue, Hillsborough <br /> The Board considered voting to approve the exercise of the County's Right of First <br /> Refusal and the acquisition of property at 509 Central Avenue, Hillsborough, NC 27278 at a <br /> purchase price to be negotiated but not to exceed $171,000 plus other associated closing costs, <br /> including the cost of any ad valorem taxes due on the property following closing for the year, in <br /> order to maintain the said property for affordable housing purposes. If the acquisition is <br /> approved, the funds for purchase will be paid out of the Affordable Housing Land Banking Fund. <br /> Sherrill Hampton presented the information below: <br /> BACKGROUND: <br /> On February 20, Delores Bailey, Executive Director of EmPOWERment, Inc., contacted Orange <br /> County's Housing and Community Development Department (H&CD) about the proposed sale <br /> of 509 Central Avenue, Hillsborough, NC and the required pay-off of a $5,000 second mortgage <br /> and satisfaction of the associated Deed of Trust for Shannon Brown, the owner of the property. <br /> H&CD staff notified the County Attorney's Office and began the process of review. <br /> The unit at the 509 Central Avenue property is a 1,077 square foot, 3-bedroom and 2-bath <br /> Ranch-style home. The total acreage of the property is .29 acres. The home was built in 1994. <br /> Adam M. Hooks of Tate-Mosher Appraisal Group, Inc. conducted the private appraisal, and the <br /> home was appraised for$175,000. Attachment 1 provides pictures of the unit and the Property <br /> Map from the Orange County GIS Records. <br /> See below for additional background information: <br /> • In FY 2000, Orange County designated $30,250 and $69,750 in FY 2001 HOME funds <br /> to EmPOWERment, Inc., for the purpose of providing second mortgage assistance for <br /> up to eight (8) low and moderate income families who were assisted in their housing <br /> search by EmPOWERment. <br /> • On June 27, 2003, EmPOWERment provided second mortgage assistance utilizing <br /> HOME funds identified in the preceding Bullet and implemented a Promissory Note, <br /> Deed of Trust and Declaration of Restrictive Covenant with Shannon J. Brown for the <br /> property at 509 Central Avenue, Hillsborough, NC. <br /> • The loan to Ms. Brown did not require any monthly principal or interest payments. <br /> However, if the property was sold or transferred by the Borrower, whether voluntarily or <br /> involuntarily or by operation of law, other than to a qualified buyer or assumer, and also <br /> given any date within 99 years after the date of recording, then all unpaid principal <br /> amount of the loan shall be due and payable. <br /> • Section 4 of the Declaration of Restrictive Covenant sets out the procedure for <br /> enforcement of the affordable housing requirements. See below for the procedure: <br /> o Orange County and EmPOWERment, Inc. are each granted a right of first refusal <br /> to purchase the property. <br /> o No sale assignment, sale, transfer, conveyance or other disposition of the <br /> property or any part there of whether voluntarily or involuntarily or by operation of <br /> law shall be effective unless and until the prescribed procedure has been <br /> followed. <br /> o Notice of Intent to Sell, not less than 90 days prior to the contemplated closing of <br /> transfer, shall be provided to Orange County and EmPOWERment, Inc. Note that <br /> the County did not receive notice until February 20, 2019 and the Closing was <br /> scheduled for February 22, 2019. The County received notice from <br /> EmPOWERment, Inc., and not the seller. <br /> o If the County elects to exercise its right of first refusal then it must notify the seller <br /> within 30 days and purchase the property within 90 days of receiving the Notice <br />