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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 16, 2004 <br />Action Agenda <br />Item No. <br />SUBJECT: Housing Bond/HOME Programs-Transitional Housing Program <br />DEPARTMENT: Housing/Comm. Development PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Development Agreement Tara L. Fikes, ext. 2490 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane <br />PURPOSE: To authorize the execution of a Development Agreement by the County Manager <br />with the Town of Chapel Hill for the acquisition of rental property. <br />BACKGROUND: The Chapel Hill Department of Housing has recently initiated a Transitional <br />Housing Program designed to help public housing families make the transition from public <br />housing to the private housing market. In this program, the Department of Housing will <br />purchase an existing single family dwelling in Chapel Hill and lease that unit to a family while it <br />work towards homeownership through budget counseling, homeownership and debt <br />management services. The family is given five (5) years to complete the program and, at the <br />end of the five-year period, the participant would have saved funds for a down payment on a <br />house. The Town purchased its first home using $100,000 in HOME Program funds in August <br />2002. The family leasing this property has a goal of becoming homeowners at the end of the <br />five-year period or sooner. It is presently involved in financial counseling as well as <br />homeownership education and is making exceptional progress toward achieving self- <br />sufficiency. The Affordable Housing Advisory Board recently received an update on the <br />program and considers the program to be an important component of our local affordable <br />housing initiatives. <br />In May 2001, the Town of Chapel Hill requested $100,000 in housing bond funding to assist <br />with the acquisition of another single family dwelling for this program. In June 2001, the <br />BOCC awarded $75,000 in bond funds to the project. Additionally, in 2002 and 2003, <br />approximately $28,117 and $32,000 in HOME Program funds were approved for this <br />Transitional Housing Program as well.. The Chapel Hill Department of Housing intends to <br />combine the HOME funds and Bond funds for a total budget of $135,117 for the purchase of <br />one dwelling unit. <br />A Development Agreement must be executed between the County and the Town of Chapel <br />Hill that secures and governs the bond funds and the HOME Program funding. A