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4 <br />Land Acquisition Program . <br />100 Pine Hill Drive <br />EmPOWERment, Inc. is requesting an allocation of $90,000 of Bond funds th purchase a tract of land on <br />,Pine Fi'iU Drive in Carrboro. The lot is appro~dmately 17,000 square feet, but due to an existing non- <br />conformity we can build four new condomnium units th replace the existing dilapidated mobile homes. We <br />propose tD construct four, 1188 square foot units affordable to families earning between 5296 - 58% of <br />median income, Bond funds will leverage an additional $330,424 in construdtion and permanenrt financing, <br />and will comprise just 21 % of the to#al project <br />These units will replace four condemned properties that have been linked th repeated drug problems over <br />the last several years: The pol'~ce have an extensive file on this property and the inspections department is <br />pursuing condemnation because these units have not been maintained th any minimum standards, and <br />presenk a safety threat b the entire comrwnity. The surrounding neighborhood is of moderate income with <br />a ma of housing styles, including one story ranch-style hones and two story modulars. These four <br />condominium units win most dosdy match the newer two story modular units. <br />Afio . <br />The condominium units will be marketed tp families earning 52-58% of area median. income. Det~led <br />financial information is attached on the Development Budget Our projections are based on a sales price of <br />$83,ti0fi, with an interest rate of 7.7596 and $50 in homeowner's dues. The minimum household income <br />required to afford this home is 530,9fi0, or 52% of median for a family of four and 58% of median for, a <br />family of three. These three bedroom units will be primarily marketed t4 families with tour or more <br />members. The minimum downpaymentwill be 51,000. <br />Bond funds will be used to purchase the propergr and will serve as a $22,500, 0% inberest second <br />mortgage on each condominium unit This ropes 2196 of the tofial cost of each home. These funds will <br />be secured by a 40-year Deed of Trust If a fami~ sells their home within the 40-year period of affordability <br />they must repay both the entire principal balance of the second mortgage, plus 21 % of the appreciation nn <br />their home. We fed that this approach to resale wtll enable low-wealth famtlies th butld equity on their <br />investimentwhile protiecting the.pubiic investmentforfuturre use. <br />Leveraginq~nanano <br />Bond funds of $90,000 will leverage an additional $330,424 in construction and permanent financing and <br />will comprise just 21.4% of the~total project cost. The actual leverage is significantly higher as the builder is <br />discounting his construction costs to help provide affordable housing in Orange Courwty. His costs of $62Isf <br />are at least $81sf below market average. The value of his contribution is approximately $38,016, which <br />would decease the Count}~s imrestment to 19.6% of the project cost. BB~T wifi provide construction <br />financing, They typically offer PmPOWERment, Inc. construction loans of up to 85% LTV with only a $100 <br />loan fee, <br />