Council preview: bridge loan proposed to let social housing developer begin work before new tax revenue starts
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Summary
Council briefing included an outline of a proposed bridge loan that would advance funds to the social housing developer created by Initiative 137; the city would collect the new tax revenue and use it to repay the loan once collections begin.
Councilmember who oversees finance committees told colleagues June 30 that the city, the mayor's office and the social housing developer have agreed on a proposed bridge loan to let the developer start operations before voter-approved tax revenue begins flowing.
"To ensure they're able to hit the ground running, the mayor's office and social housing developer and ourselves have been working together on this bridge loan," the councilmember said, noting the loan would be repaid once collections from the new tax begin.
The councilmember said the city collects the revenue on behalf of the social housing developer, which is the reason the city is assured of repayment when collections begin. The bridge loan was described as a temporary financing step to accelerate project start-up; councilmembers were told the item will be discussed in the Finance, Native Communities and Tribal Governments Committee.
No formal vote or authorization occurred at the briefing; committee deliberation and potential ordinance language are next steps.