Commissioners briefed on $50,000 earnest-money plan to buy 5.2 acres for supportive housing using Section 108 loan

County community-development staff asked the commission to approve putting earnest money toward acquisition of a 5.2-acre site intended for supportive or transitional housing, to be financed with Section 108 loan proceeds under the Community Development Block Grant (CDBG) program.

"It's under the community development block grant," Ryan Samuel said, describing the Section 108 mechanism and noting it allows borrowing of up to five times the county's annual CDBG allocation. Samuel said staff has prepared a roughly $4.7 million application and that land acquisition for this use is an eligible expense under Section 108. He said the county would use CDBG allocations to service any debt so there would be no general-fund obligation for repayment.

Samuel told commissioners the seller (Tandem Clinic) was not in a hurry to close and that staff expects the county’s Section 108 loan approval by mid‑October and anticipates closing around mid‑November. He said the immediate ask was for earnest money (commission discussion referenced $50,000) required to preserve the deal while loan and developer steps move forward.

Samuel and other staff said the county would acquire the land and then release an RFP to select a third‑party developer to build and operate the housing; if no developer is found the county might hold land with restrictions on sale and repayment obligations to be managed through CDBG/Section 108 processes. Staff flagged that risk but said they have already discussed interest with developers.

No final action was taken during the work session; staff will present the item in a work session and place a public hearing on the commission calendar so the matter can move toward formal approval.

Next steps: public hearing to be scheduled; staff will return with financing details and the formal Section 108 application.