RESOLUTION

A RESOLUTION TO AUTHORIZE A CONDITIONAL DONATION

TO FAUQUIER HOUSING CORPORATION

            WHEREAS, Fauquier County has donated certain real property to Fauquier Housing Corporation to permit the construction of affordable housing, said property being located in Lee District and commonly referred to as the Botha Project; and

            WHEREAS, Fauquier Housing Corporation has requested that the Board of Supervisors provide it with a conditional donation in order to construct the residences to be located on the aforesaid property in a manner in which Certificate of Occupancy permits for the house will be received on or before November 1, 2003, so as to permit Fauquier Housing Corporation to receive a grant from the Federal Home Loan Bank in the amount of $5,000 per house; and

            WHEREAS, pursuant to Virginia Code 15.2-953, the Board of Supervisors is authorized to donate monies to charities, institutions and non-profit organizations existing for the purpose of providing affordable housing; and

            WHEREAS, the Board of Supervisors wishes to insure the successful completion of the Botha Project through this conditional donation; now, therefore, be it

RESOLVED by the Fauquier County Board of Supervisors this 19th of May 2003, That the Board of Supervisors does hereby donate the sum of up to $400,000 to Fauquier Housing Corporation, provided that such donation shall be conditioned on the following:

  1. Fauquier Housing Corporation shall not draw on the donated funds until the appropriate State agency has approved the mortgage loan to Fauquier Housing Corporation and Fauquier Housing Corporation has submitted a copy of the loan approval to the County.
  2. Fauquier Housing Corporation shall only be able to draw up to the approved loan amount per house.
  3. Fauquier Housing Corporation shall not draw on the donative funds until it has submitted signed construction contracts to the County.
  4. Fauquier Housing Corporation shall not draw on the donative funds until construction for the amount drawn shall have been completed and approved by Fauquier Housing Corporation.  With each draw of donative funds, Fauquier Housing Corporation shall submit a statement that the construction work has been completed and has been approved as being in conformance with the contract.
  5. Prior to its first draw, Fauquier Housing Corporation shall execute an assignment of the sales proceeds received by it at the closing on the sale of the house constructed with the County's donative funds, assigning to the County as a donation of funds to the County of an equivalent amount of funds as drawn from the County's donative funds.
  6. Fauquier Housing Corporation shall require any subcontractor on the Project to provide a performance bond insuring completion of the houses.
  7. Fauquier Housing Corporation shall provide a performance bond to the County, insuring that it shall complete construction of the houses.  Such performance bond shall be in an amount as specified by the County Administrator and by such surety as approved by the County Attorney .

and, be it

            RESOLVED FURTHER that funding for this Project is authorized to be transferred from the Utility Fund Catlett/Calverton Sewer System Site Improvements, to the Fauquier Housing Corporation contribution account.