AGENDA #4h

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Initiation of Process to Donate Property to the Town of Carrboro

 

DATE:             March 24, 2003

 

 

The attached resolution would authorize the Manager to submit an application for disposal of property to the U.S. Department of Housing and Urban Development and, upon approval, to convey about a half-acre of the Oakwood public housing development land to the Town of Carrboro (please see Attachment 1).

 

BACKGROUND

 

On June 25, 2001, the Town Council authorized the Manager to initiate procedures to convey at no cost property on Crest Street in Carrboro to the Town of Carrboro (please see Attachment 2). The property is currently part of the Oakwood public housing development located in Carrboro and administered by the Town of Chapel Hill.  The half-acre portion of the property to be disposed is vacant land (please see Attachment 3).

 

The Council made conveyance of the land contingent on entering into a Performance Agreement, and upon the following conditions:

 

·        The conveyance would not adversely impact the terms of the Town’s Conditional Use Permit for the Oakwood public housing;

·        The Town of Carrboro would prepare a modification to the Town’s Conditional Use Permit to subdivide the property;

·        The property would be donated for affordable housing purposes;

·        The Town of Carrboro would strongly consider placing the property in the Land Trust;

·        The U.S. Department of Housing and Urban Development would approve the changes in the land area of the property owned by the Town of Chapel Hill; and

·        The Town of Carrboro would assume all closing costs for the conveyance of the property.

 

The Council’s resolution also recommended that Carrboro consider conveying the property to Habitat for Humanity.

 

 

 

STATUS

 

The Towns entered into a Performance Agreement dated September 26, 2002, for the project.  On August 20, 2002, the Carrboro Board of Aldermen approved a modification of the Conditional Use Permit that to allow the subdivision of about one-half acre from the main parcel of about 6.6 acres (see map in Attachment 3).  Carrboro staff determined that the Town of Chapel Hill’s Oakwood public housing project will continue to meet the terms of the Conditional Use Permit for the property after the subdivision of the land.  The Town of Carrboro intends to pursue affordable housing on the site (please see the letter contained in Attachment 4).

 

The next step in the process is to obtain approval from the U.S. Department of Housing and Urban Development of the change in land area of the property used for public housing.  Upon approval, the Town of Chapel Hill would then convey the property to the Town of Carrboro for affordable housing purposes at no cost.

 

The federal disposition process required that an appraisal of the property be obtained.  The appraisal obtained by the Town of Carrboro indicates that the value of the property is estimated to be $47,530 (copy on file in the Planning Department).  In addition, the process included consultation with the Resident’s Council and the Housing and Community Development Advisory Board.  The Resident’s Council supported the proposal and recommended that the Town of Carrboro give priority to public housing residents in the occupancy of the future affordable housing to be developed on the site.

 

In accordance with the regulations of the U.S. Department of Housing and Urban Development, in the deed conveying the property, we would add a “reverter clause” concerning the future use of the property.  This clause would allow the property to be returned to the Town of Chapel Hill in the event the Town of Carrboro does not use the property for affordable housing purposes in ten years.

 

RECOMMENDATION

 

We recommend the Council adopt the attached resolution authorizing submittal of the disposition application as contained in Attachment 1 to the U.S. Department of Housing and Urban Development seeking the Department’s approval of the use of about a half-acre of the Oakwood public housing site for conveyance to the Town of Carrboro for affordable housing purposes, and authorizing the conveyance of the property upon receipt of that approval.

 

ATTACHMENTS

 

1. Disposition Application (note:  attachments on file in the Planning Department) (p. 4).

2. Memorandum to Council of June 25, 2001 (p. 10).

3. Map of Land to be Donated to the Town of Carrboro (p. 15).

4. Letter from Town of Carrboro, March 17, 2003 concerning affordable housing (p. 16).

 

A RESOLUTION AUTHORIZING SUBMISSION OF A DISPOSITION FORM TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (2003-03-24/R-6)

 

WHEREAS, the Town of Carrboro requested that the Town of Chapel Hill consider conveying a portion of the Oakwood public housing site not currently needed to meet the development regulations of the Town of Carrboro, for future use as affordable housing; and

 

WHEREAS, the Council of the Town of Chapel Hill on June 25, 2001, authorized the initiation of conveyance procedures, contingent upon the satisfaction of several conditions;

 

WHEREAS, the Towns seek approval of the U.S. Department of Housing and Urban Development of the change in the land area of the Oakwood property, and the disposition of the property to the Town of Carrboro;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to submit the disposition application as contained in Attachment 1, including all certifications therein, to the U.S. Department of Housing and Urban Development for its approval, and upon approval, to convey the property to the Town of Carrboro.

 

BE IT FURTHER RESOLVED that the deed conveying the property include a reverter clause that in the event the Town of Carrboro does not develop the property for affordable housing purposes within ten years, the property would revert to the Town of Chapel Hill.

 

This the 24th day of March, 2003.