Lake County commissioners back Prop 1.23 application, delegate signatory authority for Housing at 102 project

The Lake County Board of County Commissioners voted unanimously to support an application for Proposition 1.23 funding for the Housing at 102 project and to delegate signature authority for the application.

The action, taken at a special meeting, authorizes county staff to apply for up to $980,000 in gap financing that would discount 14 units by up to $70,000 each for buyers below a specified area median income (AMI) level; the exact AMI percentage was not specified in the meeting. The board recorded a grant match of $604,520 for the application and delegated signatory authority to county officials for the Prop 1.23 application paperwork.

Why it matters: county staff said the Prop 1.23 award would reduce purchase prices for lower-income buyers and help complete a 24-unit Oakwood Homes development the county has supported with prior site remediation and state/federal grant dollars.

Project history and finances County staff described a multi-year funding and development timeline that began in 2022 with site analysis and grew through subsequent budget cycles. Michael Yerman, county project staff, said the project has already used previous grant funds and closed out a related ARPA-derived award (described in the meeting as IHOY funding administered through DOLA). He told commissioners, "No. We we we used up the entire grant," referring to prior grant closeout and reimbursement timing. Jackie Wallahan, identified in the meeting as the county housing program manager, said the county has prepared a dense application spreadsheet required by the state and believes the county is competitive for Prop 1.23.

Staff outlined remaining on-site work the county must complete before full acceptance by the sanitation district, including an unexpected requirement to replace an existing main at the Third Street site, drainage engineering, surveying of townhome plots, environmental certification tied to final capping and foundation sequencing, permit and third-party inspection fees, and contingency funds. Staff said some work could not be completed before an April 1 grant closeout because of snow, leaving final site tasks to be finished this construction season.

How Prop 1.23 would be used County staff said the Prop 1.23 request is structured as gap financing to reduce sales prices for 14 units by up to $70,000 each so those units can be sold to buyers below the AMI threshold. Staff said 12 eligible buyers are already qualified for that pricing, with at least two additional units to be made available in a second lottery; remaining units would be sold at higher price points for households above the lower-AMI threshold. The county presented a worst-case scenario that, if it failed to secure Prop 1.23 funding and if buyer attrition occurred, the county's all-in exposure could reach $600,000 (staff framed that figure as a contingency that could be recovered by later resale or rental income).

Timeline and next steps Staff said the application for Prop 1.23 had an initial May 1 interest/deadline element and that the full application process requires extensive documentation. The county plans to publish lottery guidelines for the second buyer lottery on May 6, open applications on May 12, set an application deadline around June 20, and hold the lottery in either the week of July 7 or July 14 to allow time for application review and appeals. Oakwood Homes must order modular units by July 1 to lock in factory pricing; staff said Oakwood secured a price guarantee through July from its supplier but that timing remains tight. Staff said they expect to return to the board with an update at the board's second meeting in June before any final contract commitments.

Votes at a glance - Resolution 2025-15: A resolution supporting the application for Proposition 1.23 grant funding for completion of the Housing at 102 project; recorded county match of $604,520. Motion to adopt passed unanimously (recorded as three ayes in the meeting record). - Resolution 2025-18: A resolution conferring and delegating signatory authority for the Proposition 1.23 grant application for completion of the Housing at 102 project. Motion to adopt passed unanimously (recorded as three ayes in the meeting record).

Meeting quotes and attribution Jackie Wallahan, housing program manager, summarized the state process and application complexity: "I think that we're incredibly competitive. It's a very onerous application."

Michael Yerman, county project staff, explained prior grant closeout and reimbursements and described outstanding site work. He said, "We we we used up the entire grant," referring to the prior IHOY/DOLA award and the final reimbursement holdback that will be returned to the county after final reporting.

What remains uncertain Staff flagged several execution risks that could affect the county's exposure: timing for Oakwood to order units, the strength of applicant turnout in the second lottery, the state's final award decision, and the need to complete remaining remediation and infrastructure work before final acceptance by the sanitation district. The exact AMI percentage targeted by the Prop 1.23 financing and several budget-line details were not specified in the meeting record.

Next steps: staff will submit the Prop 1.23 application under the delegated authority, continue marketing and outreach for the second buyer lottery, and return to the board with a project update in June.