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Commissioners extend $200,000 revolving-loan fund loan to Brick Capital Community Development Corporation for three years at 6%
Summary
The board voted to extend a $200,000 loan from Lee County's revolving loan fund to Brick Capital Community Development Corporation (loan previously issued in 2021), changing the rate to market at 6% and securing a deed of trust on Jackson Heights property as collateral. The motion passed; the meeting record shows an affirmative vote with one
The Lee County Board of Commissioners voted on Dec. 16 to extend a $200,000 loan from the county's revolving loan fund to Brick Capital Community Development Corporation for an additional three years at a market interest rate of 6%.
Background and purpose: The county established a revolving loan fund in 2019 and amended its policy to allow loans for affordable housing. In 2021 the county issued a $200,000 loan to Brick Capital (appears in the record also as "Bridal Capital" in some places); county staff presented a promissory note and loan agreement for the requested extension and said Brick Capital would provide a deed of trust on property it owns in Jackson Heights as collateral.
Board discussion and clarifications: Commissioner questions focused on whether the homes financed with the loan are built in Lee County and whether buyers must already be Lee County residents. County staff (Kerry Bishan) said all funds would be used to build housing in Lee County (many prior purchasers were Lee County residents), but program rules and certain funding sources (for example, state or federal funding from the North Carolina Housing Finance Agency or HUD) do not allow the county to require that purchasers have been long-time county residents; eligibility is generally income-based (low- or moderate-income buyers). Staff said the county funds are used alongside other public and private financing to leverage the county dollars.
Loan-status details: Staff said current repayments are being made on an automated monthly basis and that the loan documents prepared for the extension were acceptable to Brick Capital. The extension's loan documents include a standard promissory note, loan agreement and a deed of trust to secure the loan against property in Jackson Heights.
Board action: A motion to approve the extension, set a 6% interest rate and authorize the chair to sign documents was made and passed. The public record shows the motion was carried with "ayes" and one recorded opposition (the meeting transcript notes "had 1 of opposition" but does not record the opposing member's name in the hearing transcript). The motion authorized county staff to finalize documents and secure collateral as described.
Next steps: County staff will finalize and execute the promissory note, loan agreement and deed-of-trust documents and monitor the required reporting and repayment terms. The loan remains subject to the county's revolving-loan policy and any performance-based requirements in the agreement.
