Council OKs Housing Funds For Habitat

The money either will be used to extend the closing date on the property to allow further discussion of the development plans or go directly toward the land's purchase.

Habitat requested a $300,000 grant to help purchase the lot, located on Sunrise Road. Habitat's original proposal included 95 units, a number both camps say might change.

The council could not fund the entire $300,000 because the loan's source, the Housing Trust Fund, only holds $50,000.

One possible use for the funds -- extending the closing date from Feb. 28 -- would allow for a more specific plan to be developed and presented to the council, Town Manager Cal Horton said Monday.

Habitat does not see moving the closing date as a realistic option, said Susan Levy, executive director of the local chapter. She said the landowner has not shown flexibility in regards to the closing date and most likely will be unwilling to change it.

But if the closing date cannot be extended, the $50,000 no-interest loan -- not a grant -- will be used directly toward the purchase. Chapel Hill established the fund more than 20 years ago to support affordable housing efforts.

A near-capacity crowd turned out for Monday night's meeting. Most of the residents who were present live near the tract and were against the allocation of funds. Environmental impact and density issues were the main concerns of those who spoke.

Steve Herman, who lives near the proposed development, said residents have no problem with affordable housing being located in their area. "If you love your environment, you have to protect it," he said. "Our concern is with adverse environmental impact."

But council members and Habitat officials all emphasized that the approval of funding is not an approval of a specific plan. "This is a request for funds, not a request for rezoning," Mayor Kevin Foy reminded the assembly.

A Habitat representative said there are a lot of unknowns with regard to the development plan. He said Habitat officials hope to talk with local residents and to take their interests into account as the final plan is developed.

Levy said she is pleased with the recommendation even though it is not for the full amount originally requested.

"We're hoping that the balance will come from the county," she said, adding that Habitat already has submitted a proposal and hopes to go before the Orange County Board of Commissioners in December.

The organization already had planned on raising $100,000 in private donations to help it meet the final purchase price of $400,000, and now it will continue to pursue other sources of funding. Levy said she believes the loan only will need to be repaid if Habitat's plan does not meet expectations. "The town has to protect the funds it does put out to affordable housing."

The City Editor can be reached at citydesk@unc.edu.