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Commission backs mortgage relief for Cardinal Housing Network amid plan to convert property to nonprofit ownership
Summary
Commissioners signaled support for mortgage relief to reduce Cardinal Housing Network's high-interest debt and to aid a planned transfer of the property into nonprofit ownership, while asking staff to condition any payoff on contractual protections and transfer documentation.
The Board of Douglas County Commissioners indicated support on March 18 for mortgage relief for a Cardinal Housing Network property as part of an off-cycle package of Municipalities Fight Addiction Fund allocations.
Applicants said the mortgage balance had climbed to approximately $107,900 and that family investors had advanced funds to acquire and rehabilitate the property. The applicant described plans to transfer the property into a nonprofit and pursue tax-exemption eligibility once the nonprofit ownership is established. The commission asked staff to craft contract language that conditions county payment on successful transfer or other legal safeguards.
Jill Jolicker, assistant county administrator, told the commission that similar arrangements have been structured in the past and that staff can draft contingencies (for example, conditional payoff on transfer into a nonprofit) to ensure proper stewardship of public dollars. "We could just make things contingent upon transfer...come up with how it should be phrased so that it's all done properly," she said.
Commissioners expressed support for one-time debt relief to stabilize a provider that offers supportive housing for women, while reserving judgment on longer-term operational funding. One commissioner noted the sensitivity of paying a mortgage where family ties exist and requested transparency and contractual clarity before execution. The motion to include this project in the approved off-cycle package passed as part of the consolidated vote on MFAF allocations.
Next steps: staff will draft contract language and identify any legal opinions necessary to permit mortgage relief while protecting public interests, then return to the commission with final paperwork to implement the allocation.
