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to: |
Roger L. Stancil, Town Manager |
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from: |
J.B. Culpepper,
Planning Director |
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subject: |
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date: |
November 10, 2008 |
The purpose of this report is to update the Council about the Culbreth Park Maintenance Assistance Program.
The attached resolution would fund the entire Culbreth Park Maintenance Program from the Affordable Housing fund at a budget not to exceed the Land Trust estimate of $292,405, and would grant approval for renovation expenditures within the program that exceed $40,000. Such approval is required by the guidelines of the Affordable Housing Fund.
In 1990, the Town and the Culbreth Park Development Corporation entered into an agreement for the development of the Culbreth Park subdivision. Eligible households had to earn less than 80% of the area median income to qualify for homeownership in this development. Twenty-seven of thirty houses constructed by the Corporation were sold to qualified buyers.
There are currently eight original homebuyers living in Culbreth Park with second mortgages from the Town. Three of the original homebuyers currently earn less than 80% of the area median income.
On May 19, 2008, the Council established a home maintenance repair program for the remaining Culbreth Park Program homeowners that could address roof replacement, replacement of Masonite siding, exterior painting, replacement of gutters and downspouts, replacement of windows and sills, exterior woodwork, replacement of HVAC and water heaters and landscaping improvements (please see Attachment 1).
The Council agreed that the Orange Community Housing and Land Trust would manage the program and receive a fee of $3,000 per house for its services. Funding for the program would be provided as a grant to each of the participating homeowners.
To fund the program, the Council authorized the staff to submit an application for the Orange County Affordable Housing Bond funds to assist the three income-eligible Culbreth Park homeowners. For the remaining homeowners, the Council authorized an exception to the guidelines of the Affordable Housing Fund to assist the Culbreth Park households with incomes that exceed 80% of the area median income.
On May 21, 2008, the Land Trust provided a project estimate for the Culbreth Park Maintenance Program of $292,405 (please see Attachment 2).
On June 23, 2008, we submitted a letter of request for a pre-application meeting with the Orange County Affordable Housing Bond Review Committee. On August 4, 2008, we were informed by the Orange County staff that there are no uncommitted housing bond funds available for this project.
Since the bond funds are unavailable, we recommend funding the entire Culbreth Park Maintenance Program with the Affordable Housing Fund. Renovation is an eligible activity under the Affordable Housing Fund guidelines. The current balance of this fund is $482,900.
The Affordable Housing Fund requires Council approval for renovation or homeownership assistance expenditures that exceed $40,000. According to the Land Trust estimate of $292,405 for the program, the cost per household will exceed this amount. In addition, there are some elements of the renovation that the Land Trust plans to do for all of the houses at once, such as siding, where the total cost will exceed $40,000.
We recommend the Council adopt the attached resolution to fund the entire Culbreth Park Maintenance Program from the Affordable Housing fund at a budget not to exceed the Land Trust estimate of $292,405, and to grant approval for renovation expenditures within this program that exceed $40,000. Such approval is required by the guidelines of the Affordable Housing Fund.