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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: |
Response to Request from Habitat for Humanity Regarding Extension of Loan Terms |
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DATE: |
March 9, 2009 |
The purpose of this memorandum is to respond to a request from Habitat for Humanity to extend the terms of a loan between the Town and Habitat for the acquisition of property on Sunrise Road (see Attachment 1).
Adoption of the attached Resolution would authorize an amendment to the terms of a Performance Agreement between the Town and Habitat for Humanity to extend the repayment deadline of a loan for the acquisition of property on Sunrise Road from February 28, 2009 to February 28, 2011.
On November 25, 2002, the Council adopted a Resolution to provide up to $50,000 from the Housing Loan Trust Fund to Habitat for Humanity for either an extended option or to assist with the acquisition of the Sunrise Road property. The Town entered into a Performance Agreement with Habitat for these funds on February 12, 2003. The terms of this loan required repayment by February 28, 2005. These funds were provided for the acquisition of the property. Habitat executed a Deed of Trust and Promissory Note to the Town for these funds. Orange County provided the balance of funds, $250,000, to purchase this property. Habitat purchased the 16-acre site on February 27, 2003.
On February 14, 2005, the Council adopted a resolution to extend the repayment date of a loan for the acquisition of property on Sunrise Road from February 28, 2005, to February 28, 2006.
On February 27, 2006, the Council adopted a resolution to modify the terms of a Performance Agreement between the Town and Habitat to extend the repayment date of this loan from February 28, 2006, to February 28, 2007.
On February 12, 2007, the Council adopted a resolution to modify the terms of the Performance Agreement from February 28, 2007 to February 28, 2009 (see Attachment 2).
In a letter dated February 9, 2009, Susan Levy, Executive Director of Habitat for Humanity, requested that the Town extend the contract time period for two years until February 28, 2011 (see Attachment 1).
The resolution approved by the Council on February 12, 2007, extended the loan until February 28, 2009. A memorandum to Council of November 25, 2002, stated that the Council could authorize contract extensions, and the resolution authorized the Town Manager to execute the contract based on the information in the memorandum.
Habitat entered into a partnership with Regions Development LLC, the developer of the Bradley Green Subdivision to develop Bradley Ridge. It was envisioned that Bradley Ridge would include sixty-three single-family homes, including a combination of Habitat homes for households earning less than 80% of the area median income and market rate homes. The Council approved a preliminary plat for the subdivision on February 25, 2008. Though plans for the development of the Bradley Green Subdivision are unknown at this time, the Board of Habitat intends to hold onto this property for affordable housing purposes. Extension of this agreement would allow Habitat to determine its plans for the development of this property.
We recommend that the Council adopt the attached resolution authorizing an amendment to the terms of the Performance Agreement to extend the repayment deadline for an additional two years to February 28, 2011. This extension would allow Habitat time to determine its plans for the development of this property.
1. February 9, 2009 letter from Habitat for Humanity to the Town Manager (p. 5).
2. February 12, 2007 Memorandum to the Mayor and Town Council (p. 7).