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Deschutes County directs staff to amend Rooted Homes MOU to allow homeowner HELOCs and use 99-year covenant pending legal review
Summary
Rooted Homes asked Deschutes County to permit homeowner HELOCs on seven Antler Homes in Redmond and to accept its 99-year renewable affordability covenant in place of the county's 20-year deed restriction; commissioners directed staff to draft MOU amendments and return the final documents outside the consent agenda.
Deschutes County commissioners on May 11 heard a request from Rooted Homes to amend the county's memorandum of understanding with Neighbor Impact to allow homeowners to take home-equity lines of credit and to substitute Rooted Homes' 99-year renewable affordability covenants for the county's standard 20-year deed restriction.
The request was presented to the board by county finance staff and representatives of Rooted Homes. "For the record, Robert Tintle, chief financial officer," an official said when introducing the item; Rooted Homes identified Griffin Gilbert as its real estate director and Eliza Wilson as executive director. Rooted Homes said the amendment would apply to seven Antler Homes under construction in Redmond intended for households earning roughly 80% to 120% of area median income.
Rooted Homes representatives told the board their proposal would allow homeowners who accumulate equity to take a HELOC for home improvements and asked that the county accept the organization's existing 99-year affordability covenant in place of the county's 20-year restriction, while protecting county interests through appropriate legal language. "We would work with our legal counsel and yours to ensure that your interests and ours are...protected," a Rooted Homes representative said. The organization also said that, if it ceased operations, ownership of the homes would transfer to Housing Works, the local public housing authority.
County staff and commissioners pressed on enforceability and scope. Staff described two discrete policy questions for the board: whether to allow HELOCs under the home fund rules, and whether the county would be comfortable substituting Rooted Homes' 99-year covenant for the county's 20-year deed restriction or structuring the instrument so the county retained enforceability for an initial period. Rooted Homes and staff agreed to involve specialized counsel to draft or review the instruments so county protections would be preserved when appropriate.
Commissioners supported the concept at the meeting and directed staff to add language about HELOCs and the affordability covenant to the MOU amendment, subject to legal review on both sides. The board asked that the final amended MOU be returned to the board for approval and specifically instructed staff not to place the item back on the consent agenda.
The homes involved are under construction and Rooted Homes said they expect them to be completed in July; Rooted Homes reported that the cottages are under 1,500 square feet. No final adoption of the MOU amendment occurred at the May 11 meeting; commissioners instead provided direction to staff for drafting and legal review and scheduled the formal approval decision for a future meeting.
What happens next: county counsel and Rooted Homes' counsel are expected to negotiate the specific enforceability language and draft the amended MOU; the board will review the final documents at a later meeting rather than via the consent agenda.
