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Board delays decision on Marigold Villas HOME-program request, seeks more detail
Summary
Rural Communities Housing Development Corporation presented Marigold Villas, a 32‑unit affordable project facing a funding gap after lower-than-expected tax‑credit pricing; staff said $303,000 in HOME program income may be eligible but recommended further research and risk analysis before allocation, and the board directed staff to return with options.
Rural Communities Housing Development Corporation (RCHDC) asked the Mendocino County Board of Supervisors to consider allocating approximately $303,000 of HOME program income to help close a financing gap for Marigold Villas, a 32‑unit affordable housing development slated to begin construction in March 2026.
RCHDC CEO Ryan LaRue and project manager Angela Fiot described the project as 25 one‑bedroom units, six two‑bed units and one manager’s unit, with on-site services and partnerships with Brentwood Community Services and Redwood Coast Regional Center for supportive services. The sponsor said changes in tax-credit pricing left an approximate $1 million shortfall and that all other funding sources remain committed.
Executive office staff said the county holds roughly $303,000 in HOME program income that HCD staff indicated could be eligible for such projects, but cautioned the amount is small by HCD standards and that preparing the application and administering the funds carries costs and compliance obligations. Staff estimated an outside consultant cost of about $10,000 to prepare a HOME application and noted administrative capacity and prevailing‑wage, reporting and monitoring obligations would need to be assessed.
Several supervisors — and Sheriff Matt Kendall — urged caution and requested additional information. Sheriff Kendall said law‑enforcement calls are already concentrated in the area near existing nearby affordable complexes and warned of operational impacts: “This very small concentrated area is taking up 100% of the time of one deputy sheriff every single day,” he said, noting substantial follow‑up time on many incidents. Supervisor Mulharen (district representative) asked for more detail on developer budgets, partnerships and implications for county services.
Given unanswered questions and the district supervisor’s request for more information, the board did not approve the allocation and directed staff to work with the district supervisor and the developer to return at a future meeting with additional analysis of other possible uses of the HOME program income, compliance costs, and any potential county liabilities should the project experience delays or changes.
