Fayette County PDR board sets June 11 deadline for small‑farm mortgage subordination

The Fayette County PDR Board voted to require applicants in the small‑farm PDR round to submit lender letters of willingness to subordinate mortgage liens by June 11, 2025, or be deferred to a subsequent ranking cycle.

Beth (staff member) told the board that the program originally reported 35 applications, discovered another two that brought the total to 37, and that many of those small farms have mortgages held by national lenders unfamiliar with PDR subordination procedures. “We actually had a 36. And then when I was visiting some farms last week, a landowner said, well, we put also put this adjacent tract in, and we don't have that one. So I'm gonna double check…so that would be 37 applications,” Beth said.

Why it matters: Board staff and the board said the subordination or a lender’s written willingness to coordinate is an explicit application requirement in the PDR ordinance and is needed before rankings can be finalized, letters sent, and appraisals authorized. Without a fixed deadline, the board said, rolling additions would make it impractical to produce a single, ranked pool for approval and to spend public funds on appraisals in the correct sequence.

Staff and counsel described the practical problem: of the roughly 37 applicants, about 17 have mortgages and have not yet provided the lender subordination documentation; roughly 10 applicants have no mortgages and could be processed now if the ordinance procedure were followed. Board counsel told the group the ordinance requires the board to present all rankings for approval, allow an appeal period and then present final rankings before authorizing appraisals, and advised setting a firm deadline so staff can return with a discrete ranked list.

Tracy (staff member) recommended setting a firm deadline after the May 8 memo and template letter sent to lenders. Phil Hager (treasurer) moved the deadline motion, offering the exact language used at the meeting: “I'll move that we have a deadline of, 06/11/2025 to receive, authorization of mortgage subordination on the existing applications.” The motion was seconded by Margaret (board member) and passed by a show of hands.

Board direction and next steps: Staff will take the applications that meet all ordinance criteria by the June 11 deadline, prepare the proposed rankings for board review, allow appeals under the ordinance, and then return to authorize appraisals for the approved pool. Applicants who do not deliver the required lender subordination by the deadline will be rolled into a later cycle and will not be part of the June ranking.

Budget and timing concerns raised during discussion included the board’s capacity to complete closings within any stated time limits and the cost and scheduling of appraisals if a large number of properties become eligible at once; staff noted the process in the ordinance and said the board can set subsequent deadlines and advertising dates for new rounds.