Agenda - 06-19-2001-8r - Laserfiche WebLink

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' ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2001 Action Agenda Item No. $,.r SUBJECT: HOME Program -Second Mortgage Assistance ._.._.__ DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Tara L. Fikes, ext 2490 Development Agreement Amendment TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To authorize the execution of a Development Agreement Amendment with Habitat for Humanity of Orange County, Inc. on behalf of the Orange County HOME Consortium to provide second mortgage assistance for one (1)low-income family 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 County approved a Development Agreement with Habitat on March fi, 2001 to govern the expenditure of these funds. As a result, second mortgages in the amount of $12,500 were provided to four (4) homebuyers at Chestnut Oaks in the Bingham Township and one (1) in the Efland Estates subdivision in Efland. First-time homebuyers with incomes at or below 50% of the area median income purchased these homes. Due to an amendment in the FY1999-2000 HOME Program design that was approved by the Board on May 1, 2001, an additional $12,500 is available to Habitat for one additional second mortgage. Habitat has identified slow-income homebuyer in Efland Estates to utilize this additional funding. As the lead entity for the Orange County HOME Consortium, the County must enter into a Development Agreement Amendment with Habitat for Humanity for the expenditure of HOME funds for this property acquisition. FINANCIAL IMPACT: This action will represent an expenditure of $12,500 from the 1999 HOME Program allocation. A Declaration of Deed Restriction, Promissory Note and Deed of Trust will secure the second mortgage in the amount of $12,500 on the property.