DeKalb committee backs initial $25M step for $155M housing investment bond, asks for written reporting safeguards

The DeKalb County Finance, Audit & Budget Committee voted to forward two companion items to the Board of Commissioners that would authorize an initial $25 million issuance under a proposed $155 million Housing Investment Bond (HIB) drawdown and launch a suite of affordable-housing programs.

Dr. Ferguson, who presented the proposal, said the HIB is structured as a drawdown bond that could produce up to $155 million over time and that the committee is being asked to approve the initial $25 million tranche to begin program work and reduce interim carrying costs. "Ultimately, what we're going to achieve is a $155,000,000 generated in bond proceeds," he said, adding the initial issuance is $25,000,000 and later drawdowns would be tied to pipeline activity.

Committee members pressed for specifics about term, debt service and oversight. The bond documents set guardrails, including a stated cap on initial principal for the first issuance ($25,000,000), an interest-rate parameter (the resolution language limits interest on the bonds to not exceed 10 percent) and a high-year ceiling (the text allows for a maximum principal-plus-interest payment figure in a calendar year up to the $27,500,000 ceiling noted in the draft). Dr. Ferguson and staff said those numbers are program parameters to protect the county and that projected steady-state annual debt service at full ramp-up is roughly $10,000,000 based on their current financial modeling.

Commissioner Michelle Long Spears expressed concern about committing programs and contractual relationships across multiple future administrations, noting the resolution’s maximum maturity dates extend into 2056. She asked that the committee explicitly require periodic monitoring and reporting so the board can assess performance and pause further drawdowns if warranted. Dr. Ferguson and county counsel said monitoring and program-reporting requirements are set out in the intergovernmental agreement (IGA) included as an exhibit to the companion programming item; staff also agreed to add a clearer annual/quarterly reporting reference to the materials. County Attorney Terry Phillips cautioned that final language for bond resolutions will need review by bond counsel to ensure it is appropriate for bond documents.

The programming item (agenda 10-44) lists initial programs to be funded or supported by the HIB proceeds and related affordable-housing funds, including a multifamily acquisition fund, a DeKalb HomeStart down-payment assistance program (with a DeKalb employee incentive), an owner-occupied rehabilitation program, multifamily blight redevelopment, transitional housing and a housing capacity seed fund. Commissioners discussed income tiers and whether to create a meaningful carve-out for households at or below 30 percent of area median income (AMI); staff said they will model options and present proposed tiering and allocation scenarios.

The committee also discussed operational details: staff will work to build program guidelines that allow for inflation adjustments (for example, to the $5,000 county-employee down-payment incentive) and quarterly operational reporting. Dr. Ferguson said he expects some programs could launch by the end of the third quarter of 2026 if procurement and vendor selection proceed on schedule, but missed procurement windows could push some activity into 2027.

During the session the committee asked staff to consider including energy-efficiency and weatherization within eligible repairs and to coordinate eviction-prevention and legal-assistance options using the affordable housing fund (Dr. Ferguson said bond proceeds are for capital costs; programmatic legal supports would be an allocation from the affordable housing fund). Commissioners also flagged a vacant seat on the housing authority and asked staff to pursue filling it to increase oversight and alignment between the county and the housing authority acting as program administrator.

Commissioner Shakira Johnson moved to approve agenda items 10-43 and 10-44 "with forthcoming revisions as discussed;" the motion was seconded and the chair recorded his aye. The committee voted in favor and the motion carried. Staff committed to submit revised resolution language (clarifying reporting frequency and inflation-adjustment language to be captured in program guidelines where appropriate) ahead of the full Board vote.

The committee also accepted staff requests to correct two scrivener errors in the recently adopted millage-rate resolution (component millage-rate transpositions affecting Stonecrest and a Pine Lake component) and flagged several CIP priorities for staff follow-up. The committee adjourned and will reconvene as part of the Board meeting when the two HIB items come up for final action.