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ti <br /> <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 11, 2000 <br />Action Agenda <br />Item No. ~~ <br />SUBJECT: Local Housing Trust Fund Creation <br />DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Senate Bill 708 Tara L. Fikes, ext. 2490 <br />Brochure <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 96$-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider the creation of a local housing trust fund that would be funded <br />annually in an amount equal to the proceeds from one-cent on the current property tax rate. <br />BACKGROUND: For the past several months, members of ABODE, the housing coalition in <br />Orange County, have suggested to local elected bodies the establishment of a local Housing <br />Trust Fund as a dedicated source of revenue for affordable housing. Further, the passage of <br />Senate Bill 708 provides the clear authority for counties to appropriate and expend funds for <br />residential construction purposes. A copy of the Bill is attached to this abstract. The source of <br />revenue for this trust fund would be one penny of the property tax rate. Thus, the campaign is <br />known as "A Penny for Housing". A copy of ABODE's promotional brochure is included with <br />this abstract. <br />Specifically, potential uses for the trust funds could be: <br />1. Revolving Loan Fund: Acquisition; Project Financing; etc. <br />2. Housing Rehabilitation/Urgent Repair <br />3. New Construction <br />4. Land Acquisition <br />5. Second Mortgage Assistance <br />6. Predevelopment Costs <br />7. Financing <br />ABODE suggests that trust fund dollars could be allocated to local non-profit organizations that <br />have extensive experience in providing affordable housing. <br />