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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Meeting Date: November 5, 2003 <br />Action Agenda <br />Item No. A_ <br />SUBJECT: Approval of Subordination Agreement Related to Hurricane Floyd Mitigation <br />Program <br />DEPARTMENT: County Attorney /Manager PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />10/30/03 County Attorney Letter <br />Geof Gledhill, 732 -2196 <br />w /Attachments <br />Rod Visser, ext 2300 <br />9/15/03 Letter to State Employees' Credit <br />Union w /Attachments <br />TELEPHONE NUMBERS: <br />Subordination Agreement <br />Hillsborough 732 -8181 <br />Chapel Hill 968 -4501 <br />Durham 688 -7331 <br />Mebane 336 - 227 -2031 <br />PURPOSE: To approve an agreement related to a refinancing of property acquired by <br />homeowners who participated in the federal Hazard Mitigation Grant Program (HMGP) following <br />damage to their property during Hurricane Floyd in 1999. <br />BACKGROUND: Orange County acquired property at 611 Yorktown Drive in the Heritage Hills <br />subdivision south of Chapel Hill through the Federal Emergency Management Agency's Hazard <br />Mitigation Program following Hurricane Floyd. The homeowners (Alex and Frances Hess) <br />participated in the "buyout" aspect of that program and received fair market value for their <br />property, title of which passed to Orange County under the provisions of the HMGP. The <br />homeowners also received $17,070 in a deferred loan from the State Acquisition and <br />Relocation Fund (SARF) to assist them in finding a comparably situated replacement home <br />when they vacated 611 Yorktown in 2001. (Incidentally, the Yorktown home was thoroughly <br />repaired following the flood damage and has since been moved to Little River Park, where it will <br />serve as the caretaker residence for that new County park). <br />The terms of the SARF program loan are described in the letter from the County Attorney. <br />Because Orange County was the designated "grantee" for these funds and passed them along <br />to the homeowners, the County has a security interest in the property for 10 years after the <br />Hesses' new home purchase. The homeowners recently refinanced the purchase of the <br />replacement home, thereby necessitating the preparation and approval of a subordination <br />agreement. This subordination agreement will keep the County's deed of trust in a "second" <br />lien position behind the Hesses' first mortgage. The County Attorney and the attorney for the <br />homeowners have collaborated to prepare and compile the accompanying documents for the <br />Board's review and approval. <br />