AGENDA #4i
MEMORANDUM
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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: |
Requested Modifications to the Affordable Housing Fund Guidelines |
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DATE: |
June 27, 2007 |
PURPOSE
Tonight we return to the Council to respond to a request from Orange Community Housing and Land Trust to modify the guidelines of the Affordable Housing Fund established by the Town Council on March 26, 2007 (please see Attachment 1).
The attached resolution would amend the guidelines of the Affordable Housing Fund to modify a requirement that applicants must live or work in the Town or Orange County for one year prior to using this fund to purchase a home.
BACKGROUND
On March 26, 2007, the Council adopted a resolution that modified the guidelines of the Revolving Acquisition Fund (please see Attachment 2). The resolution: (1) changed the name of the fund to the Affordable Housing Fund; and (2) allowed the Fund to be used for the renovation of properties and subsidies to reduce the cost of housing to create affordable homeownership opportunities.
THE REQUEST
In a letter dated May 16, 2007, Robert Dowling, executive director of Orange Community Housing and Land Trust requested that the Council consider modifying the guidelines of the Affordable Housing Fund. The current guidelines require a buyer to live or work in Orange County for one year prior to using the Fund to purchase a home. The letter explains that the employment or residence requirement sometimes, “serves as a barrier to selling Land Trust homes.” The Land Trust requests that the Council amend the Affordable Housing Fund guidelines to waive the employment or residency requirement if a home is not sold after being marketed for 90 days.
DISCUSSION
The intent of the requirement to live or work in Orange County for one year prior to receiving assistance through the Town was to respond to a concern that there were not sufficient affordable housing opportunities for people currently living or working in the community. In response, this regulation has been used for all of the Town’s affordable housing programs. This is also a requirement for projects funded through the County-wide HOME Program and Affordable Housing Bond Program.
We understand the Land Trust’s challenge with selling homes and its desire to expedite the process for Land Trust owners who may have difficulty selling their homes. However, we continue to believe that funds appropriated to the Affordable Housing Fund that are generated from payments made to the Town by developers in lieu of providing affordable housing should continue to be used to assist Town and Orange County residents or those employed in Orange County. Therefore, we recommend that if a home is not sold after it has been actively marketed for 90 days, the home could be sold to a household that has lived or worked in Orange County for six months. We believe that this would broaden the pool of potential applicants who could purchase these homes. In addition, we believe that if the Land Trust is having difficulty selling a home, additional subsidy from the Town or Orange County is available to reduce the sale price of homes so they could be more affordable to those living or working in the Town or Orange County.
RECOMMENDATION
That the Council adopt the attached resolution to modify the guidelines of the Affordable Housing Fund to include that if a home is not sold after it has been actively marketed for 90 days, the home could be sold to a household that has lived or worked in the Town or Orange County for six months.
ATTACHMENTS