Agenda - 03-06-2001-8h - Laserfiche WebLink

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 6, 2001 Action Age Item No. ~~ SUBJECT: HOME Program -- Second MortgacLe Assistance DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Development Agreement INFORMATION CONTACT: Tara L. Fikes, ext 2490 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 9fi8-4501 Durham fi88-7331 Mebane 336-227-2031 PURPOSE: - - To authorize the execution of a Development Agreement with Habitat for Humanity of Orange County, Inc. on behalf of the Orange County HOME Consortium to provide second mortgage assistance for five (5) low-income families and authorize the Manager to execute the document upon the approval of the County Attorney. BACKGROUND The Orange County HOME Consortium, in May 2000 approved the FY 2000 HOME Program that included an. allocation of $62,500 to provide second mortgage assistance for five (5) low- income families purchasing homes constructed by the non-profit agency, Habitat for Humanity of Orange County, Incorporated. The agency intends to complete construction of four (4) homes in the Chestnut Oaks in the Bingham Township in the next few months and one (1) in the Efland Estates subdivision in Efland. First-time homebuyers with incomes at or below 50% of the area median income will purchase these homes. HOME funds will be used to provide second mortgage assistance in the amount of $12,500 per family in order to lower the amount of the first mortgage held by the family. As the lead entity for the Orange County HOME Consortium, the County must enter into a Development Agreement with Habitat for Humanity for the expenditure of HOME funds for this property acquisition. FINANCIAL IMPACT: This action will represent an expenditure of $62,500 from the 2000 HOME Program allocation. A Declaration of Deed Restriction, Promissory Note and Deed of Trust will secure each second mortgage in the amount of $12,500 on the property.