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Cowlitz County comptroller notifies board of CDBG lien payoff request; reconveyance to be placed on agenda
Summary
Cowlitz County Comptroller Kaylee McKay told commissioners a homeowner has requested payoff of a Community Development Block Grant (CDBG) lien with roughly $10,200 remaining; McKay said she will place a reconveyance on the next agenda for the chair to sign so funds can be returned to eligible CDBG programs.
Kaylee McKay, comptroller in the Cowlitz County Auditor's Office, told the board that a homeowner has requested a payoff statement for a Community Development Block Grant lien tied to home-repair assistance provided under 2016–2017 CDBG awards. McKay said about $10,200 remains on the lien after depreciation and that she will place a reconveyance on the board agenda for the chair to sign.
McKay said the original CDBG program allowed eligible low-income county residents to receive up to $25,000 for home repairs such as septic and roof replacement. "When we did this grant, it allowed for low income people within Cowlitz County to, apply for $25,000 in assistance to help repair, like, any home improvements that were needed," she said. The county filed a lien on properties that received funds; the lien depreciates evenly over 10 years, McKay said.
Under the county's described process, the mortgage lender is first in priority, Cowlitz County holds a second position, and homeowners are third. McKay said roughly "4 or 5" homeowners have sold or refinanced properties subject to those liens in the past, and she estimated none of those events have occurred in about three years. She described the payoff sequence: the homeowner requests a payoff amount, the county approves the reconveyance, the chair signs the reconveyance, and the title company pays the county at closing.
McKay said returned CDBG funds must be reused for programs that qualify under the federal CDBG rules. She said the county has worked with the health department on eligible uses and that she typically coordinates with Gina James after title companies remit funds so the money "rolls into their grant programs that they have already in process." McKay said the original intake and project monitoring were handled by CAP during the grant period.
McKay told the board she would present the reconveyance on the next agenda so the chair can sign before she leaves on vacation. No formal vote or motion was recorded in the transcript; McKay described this as the board's established past practice for reconveyances.
Next steps: McKay will place the reconveyance on the board agenda for the chair's signature and processing by the title company so funds can be returned to eligible CDBG grant programs.
