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28 <br /> of Intent to Sell. If both EmPOWERment and the County wish to purchase and <br /> elects to exercise the right of first refusal, EmPOWERment, Inc., shall have <br /> priority. <br /> o If neither Orange County nor EmPOWERment advises the seller in a timely <br /> fashion of its intent to purchase the property, then the seller shall be free to <br /> transfer the property. <br /> • If the County does not exercise its right of first refusal, and the sale of the property <br /> during the affordability period is to a "nonqualified" buyer, the rule regarding the <br /> recapture of fifty percent (50%) of the net proceeds will apply. The rule calculation for <br /> determining the amount of net proceeds owed the County is as follows: Sales price less <br /> (1) selling cost, (2) unpaid principal of original first mortgage (USDA lien), and (3) the <br /> unpaid principal of the County and any other government lien secured by deferred Deed <br /> of Trust and Note. <br /> • Using the formula above, the calculation for this matter is $171,000 - $105,569.64 (this is <br /> the total selling costs taken from the ALTA and is inclusive of the estimated USDA lien <br /> pay-off and County second mortgage balance). <br /> • The net sales proceeds are $65,430.36 and of this amount, $32,715.18 is owed to <br /> Orange County. <br /> • On March 5, 2019, H&CD staff inspected the property at 509 Central Avenue, <br /> Hillsborough, NC and found that approximately $14,000 in repairs is needed. <br /> • On March 18, 2019, H&CD staff met with Ms. Brown and had an exploratory <br /> conversation to not only share the County's goal of expanding affordable housing <br /> opportunities and why it is important for the County to take steps to maintain the <br /> affordability of units supported with the federal, as well as local funds but to also express <br /> potential interest on purchasing the property pursuant to its Right of First Refusal, <br /> contingent upon Board of County Commissioners' approval. <br /> • Should the Board approve the exercise of the County's Right of First Refusal and <br /> acquisition of this property, the County will make a formal Offer to Purchase and <br /> Contract, the form of which is provided in Attachment 2. A draft addendum to the NC Bar <br /> Form Offer to Purchase and Contract is also provided in Attachment 2 and will be used, <br /> if needed. Housing will contract with Attorney Brian Ferrell of Kennon Craver to handle <br /> title work and closing on the property and will also contract with a realtor to handle the <br /> Offer to Purchase. Housing staff is in the process of selecting the realtor. <br /> FINANCIAL IMPACT: A financial impact is anticipated. The conditional approval includes an <br /> acquisition expense of no more than $171,000 to be paid out of the Affordable Housing Land <br /> Banking Fund, plus other associated closing costs, including the amount of ad valorem taxes <br /> due on the property for this year following closing. The present balance of the Affordable <br /> Housing Land Banking Fund is $1,471,628. The rehabilitation cost will be paid out of County <br /> HOME or other applicable housing rehabilitation funds. <br /> PUBLIC COMMENT: <br /> Delores Bailey said she is the Executive Director of EmPOWERment, Inc., who has <br /> benefited greatly from the County, and thanked the Board of County Commissioners for its <br /> support. She said EmPOWERment has grown its housing program since 1998, and it is a <br /> combination of home ownership and affordable rental properties. She said the housing program <br /> is a HUD certified program, which means it is available to provide counseling throughout the <br /> state of North Carolina. She said her team has counseled over 2000 people toward pre- <br /> purchase, away from foreclosure, and towards affordable rentals. She said her team works <br />