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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 18, 2001 <br />Action Agenda <br />Item No. <br />SUBJECT: HOME Program - Community Revitalization Loan Fund <br />DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Tara L. Fikes, ext 2490 <br />Development Agreement <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To approve a Development Agreement with EmPOWERment, Inc. for HOME <br />funding available under the Community Revitalization Loan Fund. <br />BACKGROUND: A Community Revitalization Loan Fund was created in the 1997-98 Orange <br />County HOME Consortium program design to provide funds to assist low/moderate income <br />families purchase existing housing. Funds can be used for acquiring property, rehabilitating <br />the ,property, and/or second mortgage assistance. A total of $60,000 was allocated for this <br />program in the 1997-98 year and $210,000 was allocated for this program in the 1998-99 fiscal <br />year. <br />Under this program, local non-profit housing agencies will acquire, rehabilitate, if necessary, <br />and resell houses located in Orange County to eligible first-time homebuyers. In some cases, <br />houses will not need to be repaired, thus, the non-profit organization will serve as an sponsor <br />for prospective homebuyers who need second mortgage assistance. This mortgage assistance <br />enables the first time homebuyer to obtain a first mortgage for a lesser amount, thereby <br />increasing the availability of first-time homeownership opportunities. The non-profit <br />organization would be responsible for certifying the eligibility of the prospective homebuyer, as <br />well as ensuring that the subject property is in standard condition. <br />To date, approximately 17 low-income, first-time homebuyers have benefited from this program. <br />In order to proceed with the FY2000 allocation, a Development Agreement must be executed. <br />FINANCIAL IMPACT: A total of $100,000 has been allocated for this purpose in the 2000-2001 <br />HOME Program budget. The Development Agreement will govern the expenditure of $100,000 <br />in FY 2000 HOME funding. <br />RECOMMENDATION(S): The Manager recommends that the Board recommends approving <br />the Development Agreement with EmPOWERment, Inc. for HOME funding available under the