NORTH CAROLINA
EXECUTIVE SUMMARY
Meeting Date: 11/23/2009
AGENDA #5c
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TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY |
Meeting Date: 11/23/2009 |
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| Title of Agenda Item:
Response to Petition from Affordable Rentals Inc. Regarding Transfer of Properties to EmPOWERment, Inc. (R-3) Council Goal 3: Continue to Focus on Land Use, Transit and Development |
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| Background:
In 2003, the Town provided $72,000 of Community Development Block Grant Funds to Affordable Rentals, Inc. to purchase a condominium in the Ashley Forest development to create a permanently affordable rental opportunity. A Promissory Note and recorded Deed of Trust secures the Town's investment, and Affordable Rentals executed a Performance Agreement detailing the terms of the use of the Town's funds. The Performance Agreement states that the Town must approve the transfer of ownership of this property. In a petition dated October 28, 2009, Affordable Rentals, Inc. informed the Council that the Board of Directors decided to dissolve the organization and transfer ownership of its properties to EmPOWERment, Inc. Affordable Rentals is not able to hire the staff to raise funds to continue to support the operations of the organization. EmPOWERment currently manages Affordable Rental's properties, and has agreed to assume ownership of the fifteen units located in Chapel Hill and Carrboro. EmPOWERment currently manages rental properties throughout Orange County. For the past several years, the Town, Carrboro and Orange County have provided administrative funds to EmPOWERment to support its property manager position. |
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| Fiscal Note: Transfer of these properties to EmPOWERment, Inc. will provide continued security of $72,000 of Community Development Block Grant funds by an organization with a similar interest in creating and maintaining affordable rental opportunities. | |||
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| Recommendations: That the Council approve the transfer of this unit owned by Affordable Rentals, Inc. to EmPOWERment, Inc. and authorize the Town Manager and Town Attorney to review and execute the necessary documentation required for this transfer. | |||
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| ATTACHMENTS: Viewing attachments may require Adobe Acrobat. |
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| Resolution | |||
| Petition from Affordable Rentals Inc. | |||
| Proposal for Dissolution of Affordable Rentals | |||