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Board backs limited county support for Land Bank Authority gap financing for housing rehabs
Summary
Commissioners approved a resolution supporting Calhoun County Land Bank Authority gap financing (up to $3'3.5 million over three years) to bridge reimbursement timing on state grant-funded rehabilitation and new-build projects; county support is a backstop and not an immediate cash appropriation.
The Calhoun County Board of Commissioners voted Nov. 20 to approve a resolution supporting gap financing for the county's Land Bank Authority to accelerate contractor payments on state grant-funded housing rehabs and new builds.
Krista Trout Edwards, the Land Bank's executive director, told the board the Land Bank has seven additional rehab projects, four new builds and downtown stabilizations that currently cannot be incrementally reimbursed under MSHDA rules; the Land Bank must often wait until projects are complete before receiving reimbursement. The proposed mechanism would allow the Land Bank to secure short-term financing from local banks on more favorable terms with the county providing a full-faith-and-credit support resolution as a backstop. County staff said bond counsel and financial advisors reviewed the concept and that the approach is modeled on similar arrangements in other Michigan counties.
Administrator/Controller Kelly Scott said the resolution does not constitute a county debt obligation but must be disclosed to creditors; the county will not provide direct funding if the Land Bank performs on its obligations. The board approved the resolution unanimously (7-0).
