Agenda - 06-03-2008-6b - Laserfiche WebLink

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2008 Action Age~a Item No. SUBJECT: Housing Bond Program DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Location Map Tara L. Fikes, 245-2490 PURPOSE: To consider awarding housing bond funds in the amount of $1,000,000 to the TBLF Eno Haven LLC to assist in the construction of Eno Haven, a 76-unit multi-family rental complex in Hillsborough and authorize the Manager in consultation with the County Attorney to enter into a Development Agreement detailing the conditions of award. BACKGROUND: An application for Housing Bond funds was received from The Banks Law Firm (the Firm) requesting $1,000,000 in housing bond funds to facilitate the construction of a 90 unit multi-family rental complex in Hillsborough to be known as Eno Haven. The site for this project is an 11 acre tract on U.S. Hwy 70A near the site for the Central Orange Senior Center as denoted on the attached Location Map. The developer, herein after referred to as The Firm, is also applying to the N.C. Housing Finance Agency for Low Income Housing Tax Credits to assist with funding this project with estimated costs of $8.9 million dollars. Once built, .the apartments will be available for lease to low-income elderly and/or disabled individuals only After application submission, the Firm received the results of a marketing study indicating that the local market could not absorb 90 rental units for elderly/disabled persons. Thus, after further analysis, the Firm revised the project to reduce the total number of units to 76. (This did not result in a decrease. in the original funding request because many costs including acquisition costs remain the same.) There will be 44 one bedroom units and 32 two bedroom units. All units will be available for persons earning no more than 60% or the area median income. It is important to note that this housing bond application is the County's first application from a for-profit entity since amending the Affordable Housing Bond Policy to allow applications from private, for-profit companies. The Banks Law Firm is a minority-owned business located in Research Triangle Park that has completed seven (7) projects of comparable scope in North Carolina with the eighth one now underway.. Eno Haven will. be their first project in Orange County. For accounting purposes, the Firm has created a Limited Liability Corporation (LLC) as the sponsor/owner for each apartment complex. For this project, the corporation is named TBLF Eno Haven LLC.