Homeward Bound payment deferred

Leader news staff
news@ptleader.com
Posted 6/25/20

The nonprofit that is building an eight-unit affordable housing apartment building in Port Townsend has been given a three-month extension on making its first loan payment.

The Port Townsend City …

This item is available in full to subscribers.

Please log in to continue

E-mail
Password
Log in

Homeward Bound payment deferred

Posted

The nonprofit that is building an eight-unit affordable housing apartment building in Port Townsend has been given a three-month extension on making its first loan payment.

The Port Townsend City Council unanimously approved a 90-day deferral for Homeward Bound’s first loan payment at its June 15 meeting.

Homeward Bound, the community land trust, was loaned $834,000 by the city for the acquisition and construction of an eight-unit apartment building on Cherry Street, called the “Carmel Building.” Per their agreement, the first payment of 40 equal payments of $23,131 would have been due July 1.

The deferral did not come as a surprise to the city. During a regular update on the project’s progress to the city council in November, Homeward Bound board member Paul Rice noted that construction cost estimates had dramatically increased and since the land trust would not be anticipating occupancy until fall 2020 at the earliest, it would be requesting a deferral of the loan payment in summer 2020.

Nora Mitchell, director of finance and administrative services for the city, said when the July 1, 2020 date was agreed upon in 2018, it was assumed that occupancy of the building would be well underway and tenant rent revenue could facilitate the beginning of the loan repayment.

“When we entered into this loan agreement in 2018 we had every reason to expect, as did Homeward Bound, that the project could be completed in a timely fashion,” she said at the June 15 meeting. “As you know that has not occurred.”

There has been recent movement with the project in terms of permitting and design review, Mitchell said, but construction has yet to start. The COVID-19 pandemic will most likely push the project timeline into 2021, if not beyond.

Mitchell recommended that the council defer the payment for 90 days to give time for a new plan to be developed on how to move forward, which may include another longer-term deferral.

Comments

1 comment on this story | Please log in to comment by clicking here
Please log in or register to add your comment
Mike Galmukoff

They could have purchased 15 new energy efficient park models from Parkmodelsdirect.com, (like other communities have done) most likely receive a bulk discount on the purchase, and had another million dollars to set them up on city land for the current price of that boondoggle. About 25 years now, pretty much the same group in town promising every four years that they can deliver affordable housing. 25 years, pretty much nothing. Elect them onto office again, see what you get.

Wednesday, July 1