Severn Grove Improvement Association Seeks Council Approval To Use Assessments as Loan Security

The Severn Grove Improvement Association is asking the Anne Arundel County Council to approve a request allowing the community’s Special Community Benefit District to place a multiyear obligation on the district so Sandy Spring Bank can use the district assessments as security for a $140,000, 15-year loan to renovate the association’s clubhouse.

“We intend for the association’s annual assessments for the property owners will not change and that the loan will be repaid with the annual SCBD assessments,” Ethan Hunt, an administration representative, told the council during a Jan. 14 presentation. Janae Molden from the Budget Office joined the administration at the table and answered detailed questions about the financing requests.

The administration said council approval is required because the loan would be secured by assessments collected under the Severn Grove Special Community Benefit District; the association requested the county’s authorization. Council members asked where Severn Grove is located and had no substantive objections during the work session presentation. The transcript does not record a final council vote on Bill 9924; the item was presented for council consideration and public questioning.

The request described the lender’s desire to utilize homeowner assessments as security, the loan amount ($140,000) and a 15-year term. The association and administration said the intent is that the annual assessment level for homeowners would remain unchanged and the assessments — not a county general fund pledge — would repay the loan.