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Board authorizes drafting of long-term extension for Accomack Manor loan tied to affordable-rent terms
Summary
After staff reported DHCD guidance that any repayment would be program income repayable to Richmond, the board authorized staff to draft a 10–15 year extension for the Accomack Manor loan conditioned on enforceable affordable-rent guarantees and DHCD review.
The Accomack County Board of Supervisors authorized county staff to draft a 10–15 year extension of a $630,000 loan made from a 2005 community-improvement grant to a local multifamily property known in the record as Accomack Manor, with terms to be negotiated and reviewed by the Virginia Department of Housing and Community Development (DHCD).
County staff summarized the background: the county loaned $630,000 of a $700,000 DHCD community improvement grant when the three-story multifamily building in Parksley was built in 2005; the loan’s original term ended in November and the board had previously extended repayment to allow further discussions with the developer. Staff said a December 4 letter from DHCD determined that any loan repayment would be treated as program income and, if received, would generally have to be returned to Richmond unless the board adopts an approach that preserves affordable rents.
"DHCD determined that any loan repayment due Accomack Manor, if it's received, it constitutes program income… and we have to return it to Richmond," county staff said in explaining the DHCD letter. Staff said DHCD indicated the department would not require program-income recognition if the board extends the loan in exchange for rent restrictions that keep units below fair-market value for a defined period. Staff requested authority to negotiate an extension and submit draft loan documents to DHCD for review, then return to the board for final action.
A motion to authorize staff to draft the extension, subject to negotiation with the developer and DHCD review, was moved, seconded and approved by voice vote.
The board’s action tonight authorized further drafting and negotiation; any final agreement returned to the board would reflect negotiated provisions and DHCD’s written comments.
