Title
Approval of 2016 CHDO Predevelopment Loan
Staff Summary
• Lake County Community Development has approved the Housing Opportunity Development Corporation (HODC) as a Community Housing Development Organization (CHDO) under the HOME Program. Applications for CHDO status are received year-round on a rolling basis.
• HODC has requested financial support for the predevelopment stage of a new multi-family affordable rental building in one of Lake County’s high opportunity areas. The building is proposed to contain 50% supportive housing.
• One of the benefits of designation as a CHDO is the opportunity to receive a Predevelopment Loan with HOME Program funds. Predevelopment Loans allow CHDOs to explore a project’s feasibility by providing access to funds up-front. HODC plans to utilize the Predevelopment Loan to cover architectural fees, an updated market study, an updated traffic study, and a fiscal impact report. The total cost of these predevelopment expenses is $58,000.
• The Affordable Housing Advisory & Recommendation Committee (ARC) has reviewed this request and recommends allocation of available $31,871 in HOME program income. HODC has identified other funding sources to cover the remaining $58,000 in anticipated costs.