AGENDA #4h

 

MEMORANDUM

 

TO:

Roger L. Stancil, Town Manager

FROM: 

Kenneth C. Pennoyer, Business Management Director

J.B. Culpepper, Planning Director

Loryn Clark, Housing and Neighborhood Services Manager

SUBJECT:

Budget Ordinance Amendment for the Affordable Housing Fund

DATE:

May 19, 2008

 

PURPOSE

 

The purpose of this memorandum is to request that the Council appropriate repayment of acquisition loans made to the Orange Community Housing and Land Trust.  Enactment of the attached budget ordinance would budget $324,192 in 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.

 

The Fund was established with $150,000 from the Housing Loan Trust Fund.  Funds received by the Town for payments in lieu of affordable housing are also directed to the Affordable Housing Fund.  Currently $180,607 is available for eligible activities. 

 

DISCUSSION

 

In October 2007, the Town provided loans totaling $324,192 from the Affordable Housing Fund to the Orange Community Housing and Land Trust to purchase two homes in the Culbreth Park neighborhood.    The Land Trust has sold both homes to qualified lower income households, and repaid the Town’s funds.  Before using the repaid funds for eligible activities, 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 so that funds would be available to purchase properties that may become available for sale. 

 

RECOMMENDATION

 

We recommend that Council enact the attached budget ordinance budgeting $324,192 of revenue received to the revolving fund activity in the Affordable Housing Fund.