AGENDA #4h

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Loris Colclough, Interim Finance Director J.B. Culpepper, Planning Director Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT:	Budget Ordinance Amendment for the Affordable Housing Fund
DATE:	January 14, 2008

PURPOSE

The purpose of this memorandum is to appropriate payments received in lieu of affordable housing.  Enactment of the attached budget ordinance would budget $190,607 to the revolving loan activity of the Affordable Housing Fund.

BACKGROUND

On March 26, 2007, the Council adopted a resolution to:  (1) change the name of the fund to the Affordable Housing Fund; (2) allow the Fund to be used for the acquisition of properties, renovation of properties, and to reduce the cost of housing to create affordable homeownership opportunities; and (3) require Council approval prior to providing grants of over $40,000 for renovation or homeownership assistance expenses.

In November, we received repayment of a loan made to Orange Community Housing and Land Trust to purchase a home in the Culbreth Park neighborhood.  The Land Trust renovated the home and sold it to a qualified buyer.  When the home was resold, the Town’s funds used for acquisition were repaid. 

DISCUSSION

Before using the funds received for payment of this loan, the funds must be appropriated in the Annual Budget by the Council.  We recommend allocating the funds to the revolving fund line item in the Affordable Housing Fund.  Allocating funds to this activity would assist with the purchase of homes for affordable homeownership opportunities. 

RECOMMENDATION

We recommend that the Council enact the attached budget ordinance budgeting $190,607 of funds received for repayment of a loan to the revolving fund activity in the Affordable Housing Fund.