The Auburn City Council voted July 22 to restructure a long-standing deferred housing rehabilitation loan tied to a property at 1137 Wrights Mill Road, extending the loan's deferred status for 10 additional years while the homeowner's family indicated a willingness to make voluntary payments.

Council members removed the item from the Consent Agenda for discussion. The loan was originally a 20-year, zero-interest deferred mortgage funded with Community Development Block Grant (CDBG) dollars; staff said the borrower has not been required to make principal payments while living in the rehabilitated property.

Councilman Griswold asked for assurances the federal funds would be repaid and available to recycle into further housing programs. City staff and the Community Development representative said the loan is secured by a mortgage against the property; staff noted the property's valuation exceeds the $52,000 loan amount and that, if ownership transfers, repayment normally occurs when heirs or new owners convey title.

Staff told the council the homeowner's family had sent a written statement the same day expressing intent to begin small monthly payments even though the promissory note does not require them. Ms. Crouch, the city manager, and community development staff emphasized the program's goal: preserve housing for low-income, elderly or disabled residents while recycling funds when feasible.

Council members debated tradeoffs: some expressed reluctance to extend another 10 years without a firm repayment plan; others said the mortgage secures the funds and the program has kept many residents housed. Ms. Holmes (Ward 6) and a few council members supported the extension, citing the homeowner's age and the family's stated willingness to help retire the loan.

After discussion, the council voted to approve restructuring and extending the deferred loan for 10 years, with staff noting they will pursue voluntary repayment arrangements and continue program oversight.