COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Crozet Crossings Housing Trust Fund

 

 

SUBJECT/PROPOSAL/REQUEST:

Crozet Crossings Housing Trust Fund Annual Report

 

 

STAFF CONTACT(S):

Messrs. Tucker, Elliott, Davis, Herrick, and White

 

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

October 7, 2009

 

ACTION:                INFORMATION:   

 

CONSENT AGENDA:

  ACTION:              INFORMATION:  X

 

 

ATTACHMENTS:   No

 

REVIEWED BY:

 

 

BACKGROUND:

The Crozet Crossings Housing Trust Fund was established in 1994 by an agreement between the County of Albemarle, the Charlottesville Housing Foundation (CHF), and the Albemarle Housing Improvement Program (AHIP) to hold notes and deeds of trust on houses in Crozet Crossings and to collect and distribute funds upon the resale of houses. The Trust Fund is responsible for using repaid funds for housing projects that benefit low- and moderate-income households and meet the requirements set forth by the Virginia Department of Housing and Community Development under the provisions of the Community Development Block Grant (CDBG) Program. The Fund is managed by five trustees, two representing the County, and staffed by the County’s Chief of Housing.  The Trustees are to submit an annual report to the Board on the Trust Fund activities and finances.

 

STRATEGIC PLAN:

Objective 1.2:  By June 30, 2010, working in partnership with others, increase affordable housing opportunities for those who work and/or live in Albemarle County.

 

DISCUSSION:

The Trustees of the Crozet Crossings Housing Trust Fund met on September 10, 2009 to review the financial status of the Fund and to approve a funding request from Piedmont Housing Alliance (PHA) and Jordan Development Corporation (JDC) for the Crozet Meadows Expansion Project.  The Fund is in good financial condition with cash on hand of $440,332.84 of which $430,800 is committed to two loans not yet disbursed.  The first commitment of $134,400 was approved for the Crozet Meadows Expansion (JDC) in January 2008.  A second commitment of $252,000 was made to AHIP at that time for the Treesdale Park development.  The Trustees approved a revision to the commitment to AHIP in February 2009, reducing the second commitment to $246,400.  These two developments are moving forward after receiving federal low-income housing tax credits.  Land clearing and installation of infrastructure have begun at Crozet Meadows.

 

The Trustees received a request from PHA and JDC on August 31, 2009 for an additional $50,000 commitment to Crozet Meadows.  The Trustees approved the request on September 10, 2009 with the funds specifically earmarked for energy-efficiency improvements in the development.  The funds are also matched by a $50,000 private foundation grant for the same purpose.

 

In addition, the County has potential receivables of $453,393, representing the original subsidy amount and the current estimated equity share for outstanding loans (not including one loan in bankruptcy).  These loans may be partially or totally forgiven if the homeowner(s)/borrower(s) continue in their homes for a sufficient time without either selling or refinancing.  The actual amount of shared equity is based on the sales price or assessed value at the time that either a sale or refinancing triggers repayment.

 

BUDGET IMPACT:

There is no budget impact as these funds come from a restricted account.

 

RECOMMENDATIONS:

This report is for the Board’s information.  No action is required.

 

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