Committee reviews financing stack for Cedar Falls mobile home park, sends item to full council

A special meeting of the Bangor City Business Economic Development Committee on Monday reviewed the financing sources for the proposed purchase of Cedar Falls Mobile Home Park and voted to forward the matter to the full City Council.

Anne Craig, Business Economic Development Director, told the committee that the community development officer assembled the buyer's financing stack, which includes a primary loan from Bangor Savings Bank, funds from the Main Housing Preservation Fund, financing from the Genesis Fund, a proposed loan from the City of Bangor limited to acquisition, and a second Genesis Fund source. Craig said the purchase price for the property is $8,000,000 and that remaining funds in the financing package are earmarked for site work from a different source because city funds can be used only for acquisition. "The funds from the city can only be acquisition," Craig said.

Committee members pressed for details about the project scope and city staff time. Councilor Trumbull asked whether the site work would fund development of additional pads; Robin, the community development officer, said there are 41 additional pads that could be built out and that some items in the financing stack are a lender-required capital reserve for repairs. "There are 41 additional pads that could be built out," Robin said.

Councilor Mallon asked who would cover the cost of city staff time spent reviewing applicant eligibility. Craig explained that administrative tasks tied to federal entitlement funds are typically covered in part by those grants. "When we receive entitlement funds, those funds are in part to administrate the grant," Craig said, describing income-eligibility review and paperwork as part of the community development division's duties. She added that the work can be funded from HUD entitlement funds and Community Development Block Grant (CDBG) administrative allocations.

Councilor Beck noted the potential housing yield from the site: "Number 41, it was the number of plots. So that's empty plots that eventually would have more units of housing." Beck called the per-unit cost outlook favorable given the acquisition price.

After discussion the committee took a motion to send the information and item to the full council for consideration at the scheduled meeting that evening. A second was recorded as "Lehi." With no objection recorded, the committee chair moved the referral to the council. The committee did not record a roll-call vote.

The committee also clarified the CDBG income verification approach for the project. Craig said households will complete self-certification forms to demonstrate whether their income falls above or below program guidelines; staff will review submissions and accept or reject information if it appears false. "So we have to do what's called a self certification of income," Craig said. The committee did not take final action on financing terms; it referred the matter to the full City Council for decision.

The referral means the council will consider the financing package and any conditions, including the city loan limited to acquisition, the capital reserve requirement, and the administrative tasks tied to CDBG/HUD funding.

Looking ahead, committee members asked staff to provide a clearer estimate of the city's administrative cost for eligibility reviews and to identify which site work funding sources will cover build-out of the 41 additional pads.