Memorandum
Date: January 13, 2023
To: The Honorable Lake County Board of Supervisors
From: Todd Metcalf, Behavioral Health Services Director
Subject: 1:00 P.M. - (Continued from January 10, 2023) - (Sitting as the Lake County Housing Commission) - a) Presentation describing the financing and funding sources and relative positions of the lienholders for the Collier Avenue Affording Housing Project; and b) Consideration of the PLHA Loan Agreement, PLHA Deed of Trust, PLHA Promissory Note, PLHA Regulatory Agreement, MHSA/HHAP Loan Agreement, MHSA/HHAP Deed of Trust, MHSA/HHAP Promissory Note, Chase/County Subordination Agreement, County/Sponsor Subordination Agreement, County/DDS Subordination Agreement for the Collier Avenue Housing Project and Termination and Release of Agreement to Develop Affordable Housing
Executive Summary:
The attached documents represent the final step in executing the Collier Avenue Housing project, prior to breaking ground. The Department and project partners will present the project and these documents. Of note, the County Housing Authority’s loan is a non-recourse loan. A non-recourse loan permits the lender to seize only the collateral specified in the loan agreement, even if its value does not cover the entire debt. Here, the collateral is the Collier Avenue property. If there is a balance due after selling the asset collateralized with the loan, the lender must take the loss. It has no claim on the borrower’s other funds, possessions, or income.
Attached to this item is a presentation providing a high-level overview of the project, detailing all funding sources and oversight of the project. This will include a description of how Low Income Housing Tax Credits are being leveraged to finance the project.
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☒ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☐ Infrastructure ☐ County Workforce
☒ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: a) Presentation
b) Approve the PLHA Loan Agreement, PLHA Deed of Trust, PLHA Promissory Note, PLHA Regulatory Agreement, MHSA/HHAP Loan Agreement, MHSA/HHAP Deed of Trust, MHSA/HHAP Promissory Note, Chase/County Subordination Agreement, County/Sponsor Subordination Agreement, County/DDS Subordination Agreement for the Collier Avenue Housing Project and Termination and Release of Agreement to Develop Affordable Housing