Board of Supervisors
Person Making Request:
Harry F. Atherton, Chairman,
Staff Person & Department:
Anthony I. Hooper,
A Resolution to Authorize a Conditional Donation to Fauquier Housing
The development of the Botha subdivision has taken a longer time than
originally planned. A number
of special grants associated with helping families purchase a home are
nearing the grant deadlines and there is a concern that if the houses are
not ready for occupancy by November that funding from the Federal Home
Loan Bank in the amount of $5,000 per unit may be lost.
In order to retain this funding, the housing needs to be constructed by
November. In order to meet this schedule, it is necessary to accelerate
plans to build the nine units in question.
The contractor to be used by Fauquier Housing Corporation has the
capability; however, Fauquier Housing does not have sufficient funds to
support construction progress payments for the number of units that will
be constructed under an accelerated schedule.
To support the new construction schedule it is proposed that the County
advance funds to Fauquier Housing to be used as construction funding.
These funds will be repaid to the County as construction is
completed and mortgages closed. The
donated funds will be secured by an agreement that will assign funds to
the County upon completion of construction and receipt of the proceeds
from the permanent financing. Other
safeguards include the requirement for an approved mortgage loan and
construction advances only upon completion of a portion of the
construction contract. Further,
performance bonds will be required, as a means of assuring that the homes
will be completed.
Requested Action of the Board of Supervisors:
adoption of attached resolution.
Financial Impacts Analysis:
of funds will be repaid in full to the County once the nine homes are
built and the mortgage loans closed. The
financial impact to the County is only the loss of interest earnings that
will be provided for a short period estimated to be less than six months.
It is proposed that funds be transferred within the Utility Fund from the
Catlett-Calverton sewer allocation to the Botha project.
Identify Any Other Departments, Organizations or Individuals That Would be Affected by This Request: