TITLE: Title
Consideration of an Affordable Housing Funding Request from Community Home Trust
PURPOSE: The purpose of this item is for the Board to consider a request for funding out of the Affordable Housing Special Revenue Fund from Community Home Trust.
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DEPARTMENT: Manager's Office
CONTACT INFORMATION: Nate Broman-Fulks, nbroman-fulks@townofcarrboro.org, 919-918-7314
INFORMATION: The Community Home Trust (CHT) has filed an application to the Town for funding from the Affordable Housing Special Revenue Fund. CHT's application is a grant request for up to $20,000 to help offset acquisition costs to bring an additional home into the permanently affordable housing inventory.
The house CHT is planning to acquire is located in the Whispering Hills neighborhood of Carrboro, at 114 Lantern Way. It is a 3 bedroom, 2.5 bath duplex with 1,319 square feet of living area. In 2001, the home was sold to the current owner through EmPOWERment, Inc. The house contains $17,500 of HOME funds and also has deed restrictions attached to it. Due to the deed restrictions, if the seller chooses to sell on the private market, half of the equity accrued would need to be repaid. Therefore, it is to the seller's advantage to sell it to a qualified affordable housing buyer, which CHT is. If CHT does purchase the home, it will be incorporated into the permanently affordable inventory and will not be able to be sold on the private market any longer, unless the Town approves it.
Carrboro's Affordable Housing Special Revenue Funds would be used to offset the acquisition costs, which includes purchase and rehab of the property. The house will then be sold to a buyer between 65-80% of Area Median Income. The Home Trust anticipates the buyer will be a household of three or more. Appropriate income documentation will be given to the Town for verification.
The request is for an amount up to $20,000. The Home Trust does not currently have a...
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