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Commissioners discuss interest, repayments and partner decisions for Portage revolving-loan housing projects
Summary
Staff updated the board on three Portage housing projects funded by a revolving loan fund, reported that most comparable loans have 0% interest due on sale, and said the county expects eventual receipts of $932,506.98 on a $310,000 loan under the current proposal but cannot predict timing.
County staff returned with an update on three revolving-loan-funded housing projects and what neighboring jurisdictions are choosing to do. They said the City of Ravenna is moving forward with an ordinance, Kent is proceeding through council processes, and Ravenna Township will discuss options; township decisions could affect fund management and how interest is handled across borrowers.
A presenter explained that many existing revolving-loan entries were set up as 0% interest due on sale and emphasized the funds are restricted federal/state funds monitored at the state level. On expected financial recovery, staff stated, "by the time we sell the last home, the county will have received, $932,506.98 on a 310,000 loan." The presenter and commissioners emphasized they have recouped principal and interest on many loans but could not predict when the final sales would occur and noted possible write-offs and maintenance-cost increases as homes age.
Commissioners discussed whether forgiving accrued interest going forward would be permissible or advisable; staff clarified this fund is restricted and not the county general fund. The board asked staff to follow up with township responses and return with journal entries or resolutions when ready.
