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Consider Adopting a Preliminary Resolution Stating Chapel Hill's Intent to Proceed with a November 2018 Affordable Housing Bond Referendum.
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Staff:
Department:
Kenneth C. Pennoyer, Director
Business Management Department
Loryn Clark, Executive Director
Housing and Community
Overview: In support of the Chapel Hill 2020 theme of creating a place for everyone, staff drafted an affordable housing investment plan. The plan includes projects that are planned for development by the Town and projects shared by our non-profit partners that could be selected through an RFP process. Staff identified General Obligation (G.O.) bonds as the most effective and efficient funding source to support the investment plan. Adopting a Preliminary "Findings" Resolution is a required step in the process of authorizing a general bond referendum. The proposed referendum, for up to $10.0 million of Affordable Housing Bonds, would be scheduled for November 6, 2018. The amount of the proposed referendum is based, in part, on the target number of affordable housing units and the estimated subsidy per unit.
Recommendation(s):
That the Council adopt the Preliminary Resolution stating Chapel Hill's intent to proceed with a referendum for general obligation affordable housing bonds.
Decision Points:
* The creation of more affordable housing is consistent with Council Goals and the Chapel Hill 2020 Plan. Finding reliable funding sources for affordable housing projects that are both flexible and cost-effective is problematic. G.O. bonds can provide sufficient funds to support major affordable housing projects while giving Council the latitude to issue debt only when needed at a cost lower than other types of borrowing.
* Issuing G.O. Bonds requires voter approval through a referendum. A successful referendum would authorize the Town to issue G.O. bonds in the amount of and for the purpose stated in the bond order. Actual issuance of authorized G.O. bonds would be authoriz...
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