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<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 17, 2000 <br />Action Agenda <br />Item No. ~_ <br />SUBJECT: HOME Pro ram -Pro ert Ac uisition <br />DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y!N) No <br />ATTACHMENT(S): <br />Letter from Habitat for Humanity <br />Development Agreement <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 execution of a Development Agreement with Habitat for Humanity <br />of Orange County, Inc. on behalf of the Orange County HOME Consortium for the acquisition of <br />real property in Orange County and authorize the Manager to execute the document upon the <br />approval of the County Attorney. ~ -- <br />BACKGROUND: The Orange County HOME Consortium, in May 1999 approved the FY 1999 <br />HOME Program that included an allocation of $50,000 for property acquisition by the non-profit <br />agency, Habitat for Humanity of Orange County, Incorporated. <br />The agency intends to purchase a 2.5 acre tract on Rusch Road in the Chapel Hill Planning <br />area, near New Homestead Place, Habitat's most recently completed subdivision, and develop <br />five single family houses with the necessary infrastructure. The five, new dwelling units will be <br />sold to first-time homebuyers at or below 50% of area median income. The total land <br />acquisition cost is $67,000 and the current tax value of the property is $68,062. Total project <br />costs are estimated- at $772,500. Habitat intends to finance the rest of the project with funds <br />from other funding sources. <br />As the lead entity for the Orange County HOME Consortium, the County must enter into a <br />Development Agreement with Habitat for Humanity for the expenditure of HOME funds for this <br />property acquisition. <br />FINANCIAL IMPACT: This action will represent an expenditure of $50,000 from the 1999 <br />HOME Program allocation. The $50,000 will be used by Habitat to acquire the property and will <br />be secured by a note and deed of trust on the property. After the five lots are developed for <br />first-time homebuyers, the initial assistance ($50,Q00) will be converted to second mortgages in <br />the amount of $10,000 for each of the five homebuyers. <br />