TITLE: Title
Request-to-set a public hearing on Land Use Ordinance Amendments Relating to Affordable Housing
PURPOSE: The purpose of this item is for the Board of Aldermen to consider setting a public hearing on potential text amendments to the Land Use Ordinance relating to affordable housing. A draft ordinance has been prepared for the Board's consideration. A resolution setting a hearing date for January 27, 2015 has also been prepared. Advisory board review would be needed prior to the public hearing.
body
DEPARTMENT: Planning
CONTACT INFORMATION: Christina Moon - 919-918-7325; Patricia McGuire - 919-918-7327; Mike Brough - 919-929-3905
INFORMATION: Over the last couple of years, the Community Home Trust (CHT) has met with officials and staff of the Town of Carrboro, the Town of Chapel Hill, and Orange County to seek out strategies that would make the home trust model more sustainable. Among the issues identified is expanding the number of lenders who will make loans on CHT homes. As noted in the attached memo from Robert Dowling, the ability to attract other lenders requires that a fee simple interest can be obtained in the event of a foreclosure (Attachment B).
The challenge of finding lenders for the Community Home Trust buyers, however, remains. The main concern on the part of lenders relates to the potential for foreclosed homes to have restrictions that could limit their ability to resell. To address this issue, the Community Home Trust has asked the towns to amend their affordable housing policies to allow homes sold through their program to have a fee simple mortgage. Technically, such a change would create the potential for an affordable home, lost through foreclosure, to be sold at market rate-and thereby removed from the affordable housing stock. To date, however, the Community Home Trust has not lost a home to foreclosure; they have been able to purchase properties at risk prior to foreclosure. The benefits of enlarg...
Click here for full text