Dec. 21 – Lee County commissioners recently voted to make a $200,000 loan to Brick Capital Development Corp. to continue its affordable housing program.
It was not a unanimous decision, as Commissioner Samantha Martin voted against the measure.
Brick Capital is a nonprofit organization that provides affordable, low-income housing in Lee County. It receives money from local, state and federal agencies and through grant programs.
The $200,000 loan comes from the province’s Revolving Loan Fund, which was established in 2019. In 2021, the funding policy was changed to include low-income and affordable housing, explained Whitney Parris, the county’s attorney.
“The county loaned $200,000 to Brick Capital at 3% interest for three years,” Parrish said. “They have requested an extension of the loan. This time it is at a market interest rate of 6 percent,” Parrish said.
Brick Capital has purchased land in Jackson Heights near Horton Park with plans to develop affordable housing. Parrish said the property will be the collateral for the loan.
A public hearing on the request was held two weeks ago, leading Martin to ask that the money be available only to Lee County residents.
She asked the question again on Monday, before the vote took place. Martin asked again if the program would be for Lee residents only.
Brick Capital executive director Kerry Bashaw told Martin he did some research after the Dec. 2 meeting.
“I went back and looked specifically at the homeowners we’ve created over the last five years, and I think I told the commissioners that the percentage of Lee County residents who became homeowners was 90 percent,” he said. “So I went back and looked, and it was actually 100 percent. That being said, I didn’t see in the future where we could control where the money could be used only for Lee County residents.”
Bashaw said Brick Capital receives funding from the U.S. Department of Housing and Urban Development and the North Carolina Housing Finance Agency.
“All the money will be used here in Lee County to build and develop housing. That said, we have nothing that states that they have to be residents of Lee County to be able to purchase a home from us,” Bashaw said .
The loan will be used to develop affordable housing and can be used as leverage to obtain grant financing.
Martin explained her vote on her Facebook page.
“As we grapple with ongoing housing issues, we must ask and answer tough questions,” she said.
Martin recalled a story she heard about a representative who objected to the way the funds were being allocated.
“The bottom line is that the representative said he respects the work of an organization and sympathizes with those who received services, but we do not have the power to appropriate the money as an act of charity,” Martin said. “We as individuals can give as much as we want, but we do not have the right to appropriate one public dollar. This is the principle by which I view public financing.”
She continued, saying, “I asked that the housing be limited to Lee County residents and asked for a definition of a resident,” she said. “I was told we wouldn’t limit it to Lee County residents. Do we want to encourage low- and moderate-income households to move to Lee County?
“For these reasons, I voted no,” Martin said.
“I am grateful that nonprofits like Brick Capital exist and I wish them continued success,” Martin wrote.
