County To Take on $3.6 Million Debt For Housing Authority

Gardner here:

Here’s a draft of the story we’ll have in tomorrow’s paper and online soon:

Kitsap County commissioners are scheduled Monday to consider approval of a $3.6 million loan for properties owned by the Kitsap County Consolidated Housing Authority.

Steve Bauer, county commissioner, said Wednesday this is the last likely debt the county is obligated to for the housing authority.

Earlier this year the county took out a loan of about $40.5 million, mostly related to the Harborside Condominiums on Bremerton’s waterfront.

The county does have obligations related to the Norm Dicks Government Center, as does KCCHA, the Bremerton Housing Authority and the city of Bremerton. To date the county has not been notified of any problems with payments on the bonds for that building.

The county’s decision to take on the $3.6 million loan stems from a 2006 guarantee the county made on $3 million of a larger line of credit the housing authority established for low-income housing work.

That loan became due earlier this year with about $5.2 million owing, said Nancy Buonanno Grennan, county administrator. The housing authority is taking out a new loan on the difference, about $2.2 million, between the overall amount and the county’s guarantee.

The amount above the $3 million guarantee comes from the county’s decision to relieve the housing authority of a balloon payment of $622,975.24 due at the end of the year for the housing authority’s building on Bayshore Drive in Silverdale.

The total monthly obligation for the county will be about $8,400 for the new loan, said Buonanno Grennan. The bulk of that, $6,200, will be paid by the housing authority. That’s the amount it had been making in interest to Key Bank, but will now make to the county until the Bayshore property sells.

That site is listed for $2.1 million. Another property, a former water district headquarters, is listed for $1 million.

Four other properties, including two fourplexes in Port Orchard, and two unimproved parcels in Poulsbo will also be put on the market to help pay off the current debt.

Steve Bauer, county commissioner and chair of the housing authority’s board, said the county gets paid first for any property sales.

During the time that nothing has sold, though, the $2,200 a month the county would be paying out of its own budget would result in cuts somewhere else, Buonanno Grennan said.

To date the county has closed on five of the remaining 45 condos to sell and another five are in process. One more has had an offer made, according to Buonanno Grennan.

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