I am writing to clarify misconceptions in your editorial regarding the HUD 108 application authorized by Forsyth County affecting my company’s senior housing development:
Why HUD? Private lending institutions are willing to invest in this project; however, these private lenders are not allowed to loan money for commercial development unless developers put in 60 percent to 75 percent equity. Despite the federal government saying it wants to create jobs, at the same time it puts unreasonable restraints on free markets that thwart this objective. In contrast, the HUD 108 program provides lower interest rates and reasonable underwriting requirements.
The HUD 108 loan includes no taxpayer dollars: Only private investors will provide money through the purchase of securities guaranteed (not funded) by HUD. This is the same arrangement used in FHA loans and FDIC insured bank accounts.
Yes, 150 permanent jobs: The facility will be staffed around the clock, seven days a week with service employees such as those found in any first class resort hotel — chefs, waiters, kitchen staff, concierges, bartenders, housekeepers, housemen, grounds attendants, maintenance personnel, drivers, valets, social directors, etc. And this job count does not include the large number of construction jobs that will be created in the building of the project.
Full tax revenues to the county: As a rental community, Towne Club Windermere will pay full county real estate taxes, including school tax. Estimated property taxes to the county for the $30 million facility will be approximately $320,000 annually.
No county liability in submitting the application: The county can only benefit by asking the state to review the application. The county can always say no or modify the final agreement if any terms are not agreeable.
As required by the Citizen Participation Program enacted by the Forsyth County Board of Commissioners, we have filed an extensive pre-application document with the county, which has been available for public review for the past month. Details of not only the HUD 108 financing vehicle we have chosen, but more details on Towne Club Windermere are available to all to read. We invite everyone seeking the details to review this public and comprehensive document.
We also invite everyone to visit the website of our community in Peachtree City, www.towneclubpeachtreecity.com. Towne Club Windermere will be a senior community of which all of Forsyth County will be proud.