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County updates housing project; staff flags deed-restriction limits on Prop 1 2 3 funding
Summary
County housing staff reported progress on a two-site affordable housing project while warning deed-restriction language in recently awarded state funding limits protections to two units.
Lake County housing staff updated commissioners on construction progress for a local affordable housing project and raised statutory limits tied to state funding.
Housing Program Manager Jackie Wellen Wheelahan told the Board of County Commissioners that foundations are in place on Sixth Street and that the first manufactured-home modules are expected beginning Nov. 7, but work on a separate Third Street site will likely be delayed until spring because of a city moratorium on street cuts and complications getting gas service from Excel Energy.
"We've run into a couple of delays with Excel trying to accommodate Third Street with gas," Wellen Wheelahan said. She said the county has been pivoting to build Sixth Street first so those units can close and provide cash flow to the developer.
Wellen Wheelahan also reported the county successfully secured $980,000 through a funding source she referred to in the meeting as "prop 1 2 3." She said the award covers 14 units but that deed-restriction language will apply to only two of the 24 units in the overall project footprint. "There are some things that are concerning in terms of limitations in the deed restriction that will only be applied to 2 out of the 24 units," she said, and staff are working with outside counsel and advocates to seek statutory changes if needed.
Budget and contingency: The project has faced additional site costs — including an unexpected fire hydrant location, retaining-wall work and drainage changes — that are drawing on contingency funding. In response to a commissioner question about contingency use, Wellen Wheelahan said, "I think we're probably a $100,000. We did a $150,000 contingency." She noted the board previously committed to buy two units as part of the project and that seller concessions are in place to help buyers.
Next steps: Commissioners urged staff to pursue a moratorium exception or extension with the city so gas taps can be made before winter and to provide more detailed contingency and cash-flow information in future briefings. Wellen Wheelahan said staff continue to coordinate with Excel Energy and the city and will focus on getting Sixth Street occupied first so payments to the developer will enable continued work on Third Street.
The IGA and deed-restriction application were discussed in executive session with county legal counsel; staff later announced no formal decisions were made on the record.
