The Santa Paula City Council on July 2 authorized a $600,000 loan from the city’s affordable housing trust fund to People Self Help Housing (PSHH) to help close financing for the People’s Place affordable-housing project on West Harvard Boulevard.

The loan was approved 5–0 after months of review by a city-appointed affordable-housing trust fund oversight committee and a council ad hoc committee. The funds will be lent at 4% interest with a 30-year term; staff also approved a budget allocation to book the amount as loans payable.

Why it matters: The trust fund is financed by developer fees collected as part of the Limoneira/Lennar Harvest development; roughly $2.2 million remained available for projects and more contributions are expected as the Harvest build‑out continues. PSHH had requested up to $1.0 million to cover a shortfall; the oversight committee recommended $700,000 and the council ultimately approved $600,000 after discussion about preserving funds for future projects.

Developer and city explanations: Ken Trucchio, CEO of People Self Help Housing, told the council the project is complete and occupied under temporary certificates but still carries construction financing costs. "We owe you for our development impact fees, a million 3," Trucchio said, explaining that the loan would help the developer begin to satisfy those obligations while permanent financing is finalized.

Conditions and repayment: Staff said the loan will be subordinated to the project’s hard loans but will participate pro rata in residual receipts alongside county and state soft loans; the agreement requires recorded security (deed of trust and promissory note) and additional conditions precedent from HCD and Ventura County to preserve priority and repayment mechanics. Staff also noted a 30‑year balloon requirement if not repaid through residual receipts before maturity.

Council action and context: The council voted unanimously to adopt Resolution No. 7572 authorizing the loan and a related budget allocation. Council members said they wanted to balance supporting an affordable project with preserving trust-fund capacity for upcoming proposals.