Lake County committee approves amendment to Whispering Oaks bond documents to reflect HUD mortgage holder

The Financial & Administrative Committee approved a resolution (8.15) authorizing a first amendment to regulatory agreements and restrictive covenants, a HUD amendment, and a performance security agreement for the Whispering Oaks Apartments project. Staff said the original issuance (2008) was about $26,000,000 and that the owner intends to pay off the existing variable rate demand multifamily housing revenue bonds and refinance with a HUD mortgage; the county’s role is conduit issuer and continued compliance oversight under federal covenants.

Barbara Adams explained that the county acts as issuer to grant tax‑exempt status but does not carry debt liability or make payments; the private borrower makes payments and Freddie Mac is being removed as a financing backer with HUD becoming the mortgage holder. Adams said a performance security deposit would be held in escrow by the county to cover costs if enforcement of affordable housing covenants were required. The motion (mover: Member Clark; second: Member Hewitt) passed by voice vote.

Committee members asked whether there is a county policy on serving as conduit issuer and how projects are reviewed; staff described a historical volume cap process and a review involving county partners to assess borrower status and project suitability. No dissenting vote was recorded in open session.