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HomeMy WebLinkAboutTeanaway Amendment 4 Staff ReportPage 1 of 2 Public Health Office “Study Session Staff Report”, 12/23/2024 KITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS STAFF REPORT FOR STUDY SESSION Public Health Office STUDY SESSION DATE: 4/21/2026 TOPIC: Teanaway Amendment #4 ACTION REQUESTED: Approval LEAD STAFF: Chelsey Loeffers RECOMMENDATION: Kittitas County Public Health Department recommends approval of the documents created by Pacific Law Group to move forward with an amendment for the Teanaway Project via Hopesource. BRIEFING SUMMARY: • New agreement amendment includes changes to the total amount of units and the area median income (AMI) used for the project and extends the term of the agreement. • Additional documents were included by Pacific Law Group to the amendment and they include the following: o Covenant, which governs the use of the property to specific units, AMI, and timeframe of the covenant. o Deed of Trust and Promissory Note including reloan language, which enforces repayment along with evidence to pay a monetary obligation to the county. Reloan terminology allows Hopesource to forward funding to Teanaway Court Associates LLLP. o Priority and Subordination Agreement, which manages the repayment order of multiple potential liens on the property. BACKGROUND: In 2021, Kittitas County executed an agreement for services with Hopesource. This is the fourth amendment to that agreement as the project as changed with funding sources Hopesource used to finalize the project. Project initially had more units and lower AMI requirements, but due to funding and the need for sustainability with a changing affordable housing market, Hopesource requested changes to the total number of units and an increase to AMI. Page 2 of 2 Public Health Office “Study Session Staff Report”, 12/23/2024 DISCUSSION: Pacifica Law Office is known for working with governments for Affordable Housing projects and they have recommended all of the changes and additional documents. The agreement and documents are intended to protect the intent of the funds regarding homelessness and affordable housing funds. FISCAL IMPACTS: The financial terms of the agreement have not changes. ATTACHMENTS: Kittitas County Teanaway Court Amendment 4, Kittitas County Note, Kittitas County Covenant, Final Collateral Assignment of Deed of Trust and Note, Final Sponsor Loan Deed of Trust, Final Sponsor Load Promissor Note Legal consultation? Yes: Legal Request #12127 Finance consulted? Yes