Council considers HUD Section 108 loan to support Enterprise redevelopments; members question density, school and environmental impacts

Howard County officials and representatives from Enterprise discussed CB3, a proposed use of HUD Section 108 financing to support redevelopment of two existing affordable housing communities (noted in the meeting as Randle/Ramley and Waverly Winds) and other Enterprise projects. The plan discussed would have HUD lend to the county under Section 108; Howard County would sub‑loan proceeds to Enterprise, and the county would use a portion of its annual Community Development Block Grant (CDBG) entitlement to cover a $350,000 per‑year commitment for 20 years. Enterprise representatives said the nonprofit developer will repay the remaining required payments from project cash flow.

How the financing works: staff described Section 108 as a loan mechanism that allows an entitlement community to borrow up to five times its annual CDBG allocation for eligible projects; the county would be obligated to make an annual payment (the county committed to pay $350,000 per year from CDBG entitlement administrative funds in the presentation), while Enterprise would be required to cover other amortization amounts as projects reach cash‑flow maturity. Participants said similar financing had been used…