Policy - DEFERRED - Long-Term Affordability Policy Exception Request

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 20, 2011 Action Agenda Item No. 7-0 SUBJECT: Long -Term Affordability Policy Exception Request DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y /N) No Community Development ATTACHMENT(S): Long -Term Affordability Policy INFORMATION CONTACT: Letter from Community Home Trust Tara L. Fikes, 245 -2490 PURPOSE: To consider a request from the Community Home Trust (CHT) to allow a change in the period of affordability for a low- income housing tax credit project known as The Landings at Winmore. BACKGROUND: In 2000, the Orange County Board of Commissioners approved a Long -Term Affordability Policy that requires all housing projects receiving County funding to execute a Declaration of Restrictive Covenants that requires the property to remain affordable for 99 years after receiving public funding. Since that time all housing projects have been subjected to this requirement with the exception of projects utilizing the land trust model which utilizes a 99 year ground lease model to ensure long -term affordability. The Community Home Trust (CHT) received $300,000 in local HOME Investment Partnership Program funds in 2007 to assist with the development of a 58 unit low income housing tax credit project in Carrboro known as The Landings at Winmore. Crosland LLC is the project developer and has entered into a partnership agreement with CHT that provides a right of first refusal to Community Home Trust to purchase the property in 15 years and maintain the units as affordable rental property. The NC Low Income Housing Tax Credit ( LIHTC) Program has a 30 year period of affordability requirement and both CHT and Crosland are petitioning to have the County's Declaration of Restrictive Covenants also require a 30 year period of affordability instead of 99 years. This request is primarily being made because of the NC LITHC Program requirement of a 30 year affordability period and because CHT contends that this arrangement "meets the spirit of the County's desire for 99 year affordability ". County staff have reviewed this request, spoken with officials from the NC Housing Finance Agency about the requirements of the State's LITHC Program, and have determined that the County's 99 year requirement does not cause any undue hardship to this project. Thus, staff cannot identify a reason to allow this exception to policy. Additionally, there have been no exceptions to the 99 year affordability period since policy implementation.