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 approving a request for funding of up to $16,000 to offset costs related to affordable housing acquisition.
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DEPARTMENT: Town Manager's Office
CONTACT INFORMATION: Nate Broman-Fulks, Assistant to the Town Manager, nbroman-fulks@townofcarrboro.org, 919-918-7314
INFORMATION: The Community Home Trust has submitted an affordable housing funding application to the Town for a grant of up to $16,000 for costs related to housing acquisition. The full application can be found in Attachment A.
Request Summary
The Landings at Winmore is a 58-unit multifamily low-income housing tax credit development in Carrboro. The current property owner, Crosland LLC, is looking to divest their tax credit properties. Crosland approached The Community Home Trust to gauge their interest in taking over ownership of the property.
The Home Trust has been conducting due diligence over the last several months to analyze the possibility of taking over ownership of the property. After review of the project's finances, the Home Trust has determined two actions would be necessary to make this a viable project financially for them. The first is to receive a property tax exemption as a nonprofit, saving them $45,000 annually in expenses. The Home Trust plans to file for the tax exemption with the County upon transfer of ownership.
The second action is to pay off a balance due to OWASA. In 2015, it was discovered that OWASA was not billing the property correctly for water usage. An agreement was made between the property and OWASA to pay OWASA $75,000 over a 36 month period. It is estimated that when transfer of property takes place, assuming it does, there would be no more than $16,000 left on the OWASA bill. The Community Home Trust is asking the Town for a grant of up to $16,000 to pay off ...
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