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Developer Oakwood outlines timeline and budget for 102 housing project; seeks state Prop 123 funds and county support
Summary
Oakwood Homes representatives told commissioners they can self-fund and deliver the West Third/West Sixth housing project using modular construction, outlined a tight timeline to begin foundations this summer, and requested county resolution of support for a state Prop 123 request; presenters noted a large state-required contingency in the grant.
Oakwood Homes representatives presented a timeline, team and budget assumptions for the 102 housing project site to the Lake County Board of County Commissioners during the work session. County and housing-authority staff and the developer discussed next steps for permitting, scheduling and a pending state grant application.
What Oakwood said: Oakwood said it has assembled an experienced team (design, manufacturing and construction leadership) and is prepared to deliver modular homes sourced from Bonneville panels. Oakwood representatives said they can self-fund the vertical construction phase rather than rely on a construction loan, which Oakwood said shortens schedules and reduces lending-related risk. Oakwood also described a homebuyer-support program (homebuyer coaching and an affiliated lender) and work with state programs to buy down rates for eligible purchasers.
State grant request and contingency: Oakwood and county staff said they plan to apply for Prop 123 state funds to subsidize 14 lower-income units (Oakwood and county staff indicated a $700,000 request tied to 14 units). Presenters and county staff explained a state requirement: grant submissions must show a large contingency amount (presenters described it as the equivalent of roughly two to three homes) held in the budget. Presenters said the contingency requirement inflates the budget figures on paper even though the developer does not plan to spend the contingency unless needed.
Timeline and contract steps: The developer proposed the following near-term steps: - April: professional services agreement before county commissioners to finalize foundation design and pricing; county resolution of support for the Prop 123 submission. - May: finalize pricing; submit Prop 123 application and building permit documents; draft and negotiate a not-to-exceed contract for construction deliverables and initial buyer contracts. - June/July: go/no-go decision on ordering modular units and begin foundation/site work; target to set modular units before winter weather limits right-of-way work.
Lottery, deed restrictions and buyer eligibility: Oakwood, county staff and the regional housing authority discussed deed restrictions and resale rules for deed-restricted homes. Presenters explained the county’s deed-restriction enforcement model: resale of deed-restricted units must follow lottery or resale procedures set by the housing authority so units remain affordable and aren’t resold at market price. The developer and county staff said the deed restriction will cap appreciation (the presenters cited a 2% annual cap mentioned in discussion) and that the housing authority will manage buyer eligibility and lotteries.
Budget breakdown: Presenters reviewed the existing infrastructure grant and remaining balances, listed expected horizontal-construction costs (earthwork, sanitation tie-ins, drainage, permitting and environmental testing), and said additional funds had been obtained since the project began (including an appraisal acceptance that freed up previously committed matching dollars). They stressed that the Prop 123 funds would be used to lower purchase prices for qualifying buyers and preserve long-run affordability under the deed restrictions.
County involvement and risk: Oakwood staff emphasized that the firm prefers not to be a long-term landlord and that county or housing-authority backstops (for example, buying two units if buyers cannot be found) were included in the project plan to reduce development risk. County commissioners and staff discussed whether the regional housing authority would run the second-lottery process and how purchases, contingencies and deed restrictions would be administered.
Next steps: Commissioners were told to expect a professional services agreement with Oakwood on the next BOCC agenda (April 1) that would allow Oakwood to finalize foundation engineering and pricing; presenters planned to return with a draft contract and a completed Prop 123 application in May. No county financing vote occurred during the work session.
The presentation included detailed budget figures and permitting steps; county staff asked clarifying questions about the contingency, permit timing, local subcontractor engagement and deed-restriction administration.
