A RESOLUTION AUTHORIZING AN AMENDMENT TO THE TERMS OF A PERFORMANCE AGREEMENT BETWEEN THE TOWN AND HABITAT FOR HUMANITY FOR A LOAN FOR THE ACQUISITION OF PROPERTY ON SUNRISE ROAD (2007-02-12/R-8)

 

WHEREAS, the Town of Chapel Hill has an ongoing interest in the development of affordable housing in Chapel Hill; and

 

WHEREAS, a goal in the Town’s Comprehensive Plan is to increase the availability of well-designed, affordable, safe, and sanitary housing for all citizens of Chapel Hill; and

 

WHEREAS, the Town entered into a Performance Agreement with Habitat for Humanity on February 12, 2003, to provide $50,000 from the Town’s Housing Loan Trust Fund to Habitat for the acquisition of a 16-acre parcel of property off of Sunrise Road and this Agreement expired on February 28, 2005; and

 

WHEREAS, on February 14, 2005, the Council authorized extending the term of this repayment from February 28, 2005, to February 28, 2006; and

 

WHEREAS, on February 27, 2006, the Council authorized extending the term of this repayment from February 28, 2006, to February 28, 2007; and

 

WHEREAS, the Agreement stipulates that the loan may be extended in whole or in part for additional periods upon written request to and agreement by the Town Manager.  The Town Manager may approve the request if it conforms to Habitat’s plans for developing this property, or the Town Manager may refer the request to the Town Council, at his discretion;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to execute an amendment to the Performance Agreement to read:

 

 “Habitat may have use of this loan for a period of up to three years from the date of this Performance Agreement.  On February 28, 2009, the loan will be repaid in full to the Town of Chapel Hill. 

 

The loan may be extended in whole or in part for additional periods upon written request to and agreement by the Town Manager.  The Town Manager may approve the request if it conforms to Habitat’s plans for developing this property, or the Town Manager may refer the request to the Council, at his discretion.  

 

There will be no interest charged on the loan. 

 

The Town’s loan is for the purpose of acquisition of property.  Subordination of this loan is subject to approval by the Town Manager.”

 

This the 12th day of February, 2007.