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~. <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 21, 2001 <br />Action Agenda <br />Item No. ~-d , <br />SUBJECT: Re lacement of Deed ofi Trust -- Pine Hill Drive Bond Project <br />DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Replacement Document <br />Property Map <br />INFORMATION CONTACT: <br />Tara L. Fikes, ext 2490 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To authorize the Chair of the Board to execute documents necessary to release <br />the Deed of Trust for the Pine Hill Drive Bond Project. <br />BACKGROUND: Funds provided to non-profit organizations for affordable housing projects <br />approved under the CDBG, HOME, and Housing Bond Programs are provided as a deferred <br />second mortgage that is transferable to the individual families at the time of sale to them. The <br />investment is secured by a Deed of Trust and Promissory Note that constitutes a lien on the <br />property, and is forgivable at the end of the term. <br />At the time of closing of the sale of a dwelling unit to a homebuyer, the homebuyer is required to <br />"assume"'the deferred loan received initially by the non-profit organization. The homebuyer <br />obligation is documented by a Promissory Note from the homebuyer to the County and the note <br />is secured by a Deed of Trust on the Property. Once the Note and Deed of Trust is executed <br />and recorded by the homebuyer, the Master Deed of Trust signed by the non-profit organization <br />can be released since the homebuyer has executed a new Deed of Trust which constitutes a <br />lien on the property. <br />The County Attorney advises that upon confirmation of the recordation of the new Deed of <br />Trust, this release process is fairly routine. A Release Deed document is executed by the <br />authorized County official and sent to the closing attorney for recordation. <br />In February 2000, the County provided $90,000 in bond funds to EmPOWERment, Inc. to <br />acquire praperty on Pine Hill Drive in Carrboro in order to build four condominiums for <br />low/moderate income first-time homebuyers. EmPOWERment has completed that project and <br />has sold the condominiums to four first-time homebuyers. At the closing for each unit, a new <br />Deed of Trust was executed for $22,500 (1/4t" of $90,000) in order to secure the County's bond <br />contribution. These new Deeds of Trust secure the total Bond commitment with the new <br />owners, therefore, the original Deed of Trust executed by EmPOWERment, Inc at the beginning <br />