Martin explains vote against Brick Capital loan extension

Dec. 21—The Lee County commissioners recently voted to extend a $200,000 loan to Brick Capital Development Corp. to continue its program to provide affordable housing.

It wasn’t a unanimous decision as Commissioner Samantha Martin voted against the measure.

Brick Capital is a nonprofit that provides affordable and low-income housing in Lee County. It receives money from local, state and federal agencies as well as through grant programs.

The $200,000 loan is from the county’s Revolving Loan Fund, which was established in 2019. In 2021, the funding policy was amended to include low income and affordable housing, Whitney Parris, the county attorney, explained.

“The county loaned $200,000 to Brick Capital with a 3% interest rate for three years,” Parrish said. “They’ve requested an extension for the loan. This time it is with a market 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, which led Martin to ask if the money would be available to only Lee County residents.

She raised the question again Monday before the vote was taken. Martin asked again if the program would only be for Lee residents.

Brick Capital Executive Director Kerry Bashaw told Martin he did some research after the Dec. 2 meeting.

“I did go back and looked specifically at the homeowners that we created over the past five years, and I think I mentioned to the commissioners that the rate of Lee County residents who became homeowners was 90 percent,” he said. “So, I went back and looked, and it was actually 100 percent. With that said, going forward, I did not see where we could stipulate where the funds could be used only for Lee County residents.”

Bashaw said Brick Capital receives funding from the U.S. Department Housing and Urban Development and the North Carolina Housing Finance Agency.

“All the funds will be used here in Lee County to build and develop housing. With that said, we have nothing that states that they have to be residents of Lee County in order 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 funding.

Martin explained her vote on her Facebook page.

“As we wrestle with continued 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 funds were being allocated.

“The gist is that the representative said he respects the work of an organization and sympathizes with those who received services, but we have no power to appropriate the money as an act of charity,” Martin said. “We as individuals can give as much as we please, but we have no right to appropriate one public dollar. This is the principle from which I view government funding.”

She elaborated further saying: “I asked if the housing would be limited to Lee County residents and requested a definition of a resident,” she said. “I was told we would not limit it to Lee County residents. Do we want to encourage low- or moderate-income households to move into Lee County?

“For these reasons, I voted no,” Martin said.

“I’m grateful nonprofits like Brick Capital exist and I wish them every success,” Martin wrote.

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