AGENDA #4g
MEMORANDUM
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J.B. Culpepper, Planning Director Loryn Clark, Housing and Neighborhood Services Coordinator |
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SUBJECT: |
Proposed Modification to the 2006-2007 Community Development Program |
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DATE: |
February 11, 2008 |
PURPOSE
The purpose of this memorandum is to review with the Council a request from EmPOWERment, Inc. to allow its 2006-2007 Community Development allocation to be used for acquisition, homeownership assistance, and renovation of properties in the Northside neighborhood (see Attachment 1).
The attached resolution would allow EmPOWERment to use its 2006-2007 Community Development allocation for acquisition of property, homeownership assistance, and renovation of properties in the Northside neighborhood.
BACKGROUND
On April 24, 2006, the Council approved a 2006-2007 Community Development plan (see Attachment 2). The plan included an allocation of $75,809 to EmPOWERment to purchase property in the Northside or Pine Knolls neighborhood for sale to a first time homebuyer earning less than 80% of the area median income. It was contemplated that EmPOWERment would either demolish an existing structure on a property and rebuild one new home, or rehabilitate one existing house on a property.
THE REQUEST
EmPOWERment requests that it be allowed the flexibility to use these funds for acquisition of property, homeownership assistance, or rehabilitation or minor repairs to properties. EmPOWERment is currently in the process of selling 229 and 231 North Graham Street and could use additional funds to help reduce the sales prices of these properties. EmPOWERment also anticipates the need for additional repairs to these properties since they have not been occupied for over one year. EmPOWERment is also considering whether to purchase a vacant lot in the Northside neighborhood for development of a new house.
DISCUSSION
EmPOWERment has had difficulty selling two homes located on North Graham Street. If funds were available to reduce the sales price of these homes, EmPOWERment believes that they could be more appealing to qualified buyers. It would also be beneficial for EmPOWERment to be able to use additional funds to renovate properties as necessary. We believe that it would be reasonable to allow EmPOWERment to have some flexibility to use funds for these additional activities. If the Council approved this modification, funds would be provided to EmPOWERment (or the Land Trust) as a grant. In addition, Performance Agreements between the Town and EmPOWERment would be executed prior to issuing funds.
In our April 24, 2006 memorandum, we stated that prior to entering into a Performance Agreement and distributing funds, we would work with EmPOWERment to develop a long term affordability policy. EmPOWERment intends to place both North Graham Street properties into the Land Trust. Prior to accessing funds for properties that would not be in the Land Trust, EmPOWERment would have to submit a long term affordability policy for the Town’s approval.
RECOMMENDATION
We recommend that the Council adopt the attached resolution to allow EmPOWERment to use its 2006-2007 Community Development allocation for acquisition of property, homeownership assistance, and renovation of properties in the Northside neighborhood
ATTACHMENTS