AGENDA #4g
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director |
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Loryn Clark, Housing and Neighborhood Services Coordinator |
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SUBJECT: |
Response to Request from Habitat for Humanity Regarding Extension of Loan Terms |
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DATE: |
February 12, 2007 |
The purpose of this memorandum is to respond to a request from Habitat for Humanity to extend the terms of a loan between the Town and Habitat for the acquisition of property on Sunrise Road (please see Attachment 1).
Adoption of the attached resolution would authorize an amendment to the terms of a Performance Agreement between the Town and Habitat for Humanity to extend the repayment deadline of a loan for the acquisition of property on Sunrise Road from February 28, 2007, to February 28, 2009.
On November 25, 2002, the Council adopted a resolution to provide up to $50,000 from the Housing Loan Trust Fund to Habitat for Humanity for either an extended option or to assist with the acquisition of the Sunrise Road property. The Town entered into a Performance Agreement with Habitat for these funds on February 12, 2003. The terms of this loan required repayment by February 28, 2005. These funds were provided for the acquisition of the property. Habitat executed a Deed of Trust and Promissory Note to the Town for these funds. Orange County provided the balance of funds, $250,000, to purchase this property. Habitat purchased the 16-acre site on February 27, 2003.
On February 14, 2005, the Council adopted a resolution to extend the repayment date of a loan for the acquisition of property on Sunrise Road from February 28, 2005, to February 28, 2006.
On February 27, 2006, the Council adopted a resolution to modify the terms of a Performance Agreement between the Town and Habitat to extend the repayment date of this loan from February 28, 2006, to February 28, 2007 (see Attachment 3).
In a letter dated January 24, 2007, Susan Levy, Executive Director of Habitat for Humanity, requested that the Town extend the contract time period for two years.
The resolution approved by the Council on February 27, 2006, extended the loan until February 28, 2007. The memorandum to Council of November 25, 2002, stated that the Council could authorize contract extensions, and the resolution authorized the Town Manager to execute the contract based on the information in the memorandum.
Habitat has entered into a partnership with Regions Development LLC, the developer of the Bradley Green Subdivision. A concept plan for the development of 60 homes for the entire site, including the property Habitat purchased with the Town’s funds, has been submitted to the Town for review. Habitat intends to develop 31 homes on the property for households earning less than 80 percent of the area median income.
The Sunrise Coalition submitted an email to the Town stating its support for a one-year extension to this loan (see Attachment 3).
We recommend that the Council adopt the attached resolution authorizing an amendment to the term of the Performance Agreement to extend the repayment deadline for an additional two years to February 28, 2009. This extension would allow Habitat and Regions Development to continue the development process and construct the homes.