ATTACHMENT 1

  Habitat for Humanity

   Orange County, NC, Inc.

 1829 E. Franklin St. #1200B • Chapel Hill, NC 27514 • (919)932.7077, FAX (919)932.7079 • [email protected]

February 9, 2009

Mr. Roger Stancil, Town Manager

Town of Chapel Hill

405 Martin Luther King Jr. Blvd.

Chapel Hill, NC 27515

Dear Mr. Stancil:

            On February 28, 2003, Habitat for Humanity signed a Performance Agreement with the Town of Chapel Hill for $50,000 from the Housing Loan Trust Fund to assist with the purchase of the 17 acre parcel on Sunrise Road.  According to the agreement, the term of the loan was for two years from the date of the agreement, but the loan may be extended for additional periods upon written request to and agreement by the Town Manager.  Since that time, the Town Council has voted twice to extend the loan, most recently, until February 28, 2009.

On behalf of Habitat for Humanity of Orange County (HHOC), I am formally requesting that the loan be extended for another two years, until February 2011.

As you are aware, HHOC partnered with Regions Development LLC, the developer of Bradley Green, to develop Bradley Ridge, a subdivision of 63 single family homes, including 31 Habitat homes, and 31 market rate homes.  The Town Council approved the preliminary plat for the Bradley Ridge Cluster Subdivision on February 25, 2008. 

Since receiving the approval last February, we have been in regular contact with Gary Wallace, who represents Regions LLC as the developer of Bradley Ridge.   Because of the crisis in the financial markets, Mr. Wallace has been unable to secure financing to move ahead with the Zoning Compliance Permit process, and the subsequent infrastructure construction.  Mr. Wallace planned to renew his options on the properties under his control until financing became available. However, when one of the options expired at the end of 2008, the property owner declined to renew his option with Mr. Wallace.  As a result, Mr. Wallace allowed his other options to expire.

            This change in circumstances is beyond our or Mr. Wallace’s control, and is of course extremely disappointing for Habitat. However, our Board feels that it is very important to hold on to our property on Sunrise Road for the future development of affordable homes, especially since land suitable for residential development is so scarce in Chapel Hill, and the need for affordable homes is so great.   We respectfully request that the Town extend the loan for at least another two years, to allow Habitat time to revise our plans and determine the best way to develop the properties we own to provide much needed affordable housing. 

Please do not hesitate to contact me if you require further information.  I look forward to hearing from you on this matter.

Sincerely,

Susan Levy, Executive Director

Habitat for Humanity, Orange County

1829 E. Franklin Street #1200B

Chapel Hill, NC 27514

919-932-7077 x211