Forsyth County outlines HOME and NCHFA funding awards; county attorney flags legal questions on local-match use
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
County staff presented interlocal and state funding agreements: $221,000 in HOME Entitlement funds with Winston-Salem and a $182,000 NCHFA award for single-family rehab; the county attorney said using local dollars as federal match raises legal questions and suggested a referendum as the clearest path to explicit authority.
Forsyth County staff briefed commissioners on two housing funding agreements and a legal question about using local funds for federal matching requirements.
Ashley Pendley of the county’s Community Economic Development staff described a continuing three-year participation in the HUD Home Investment Partnerships (HOME) consortium with Winston-Salem. "The resolution before you authorizes the execution of the annual interlocal agreement with the city of Winston in the amount of $221,000 for project activities," Pendley said, adding the funds will support down-payment assistance (soft second mortgages) and 0% forgivable rehabilitation loans through March 2028.
Pendley also briefed an award by the North Carolina Housing Finance Agency for the Essential Single Family Rehabilitation Loan Pool (ESFRLP): the county was allocated $182,000 to provide up to $70,000 per unit in forgivable loans and up to $14,000 per unit to offset administrative and staff costs.
Several commissioners asked how much local matching money is required. County staff and Pendley said the HOME allocation requires local match dollars and that participating municipalities contribute a small annual amount; Pendley estimated Forsyth County’s required match in the "30,000 area" and another commissioner’s quick math produced roughly $40,000 as Forsyth’s share after municipal contributions.
The county attorney (unnamed) cautioned that using local funds as match is legally complex. "It is questionable as to whether that's allowable," the attorney said, noting staff had been operating under an interpretation that the program is authorized by the state and therefore the county could treat matching dollars as part of a state-authorized program. The attorney added that a referendum would provide the clearest statutory authority to expand local funding flexibility.
Why it matters: HUD and state funds support down-payment and rehabilitation assistance that can affect homeownership and housing rehabilitation options for county residents. The legal interpretation of matching rules could limit how the county leverages local dollars with federal and state programs.
Ending: Staff said the funding was appropriated in the 2026 housing grants ordinance and that additional NCHFA loan-pool funds could be reserved on a case-by-case basis; the board did not vote on a change in match policy during the briefing.