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Council approves JPA financing structure for Marisol senior housing; city says no liability
Summary
The council approved joining a joint powers authority arrangement to facilitate tax‑exempt revenue bonds for a senior housing project across from City Hall, and accepted a payment‑in‑lieu‑of‑tax agreement; the city recorded no direct liability and the vote was 7‑0.
The Huntington Beach City Council voted 7‑0 to join a limited joint powers agreement and to authorize staff to proceed with a financing structure that facilitates California Public Finance Authority (CalPFA) revenue bonds for a senior housing project called Marisol HB, proposed across the street from City Hall.
The council approved adding the city to a narrowly scoped joint powers agreement to allow issuance of tax‑exempt revenue bonds by CalPFA on behalf of Marisol HB LLC and approved related agreements, including a payment‑in‑lieu‑of‑taxes (PILOT) arrangement that will provide the city with tax‑equivalent revenue while the property is owned by a nonprofit entity.
Why it matters: The resolution allows the project developer to access tax‑exempt bond financing that can lower long‑term interest costs for the developer and help preserve affordability for a proposed senior housing community. City staff and the developer emphasized the council’s action imposes no city liability for the bonds.
Key points: Staff told the council the authority may issue revenue bonds for the project in an amount not to exceed the figure included in the staff materials. The city will not be a borrower and reported 0 direct liability for the bonds. The developer offered the city priority for the PILOT payments over bondholders instead of a private personal guarantee, which staff described as added protection for the city.
Council members discussed timeline and construction sequencing. The developer’s representatives said they expect to start construction once remaining oil‑well remediation and final building permits clear, with a target construction start in May. Estimated construction timeline presented by the applicant was roughly 24 months.
Outcome and next steps: Council approved the resolution to proceed with the JPA, bond issuance facilitation and the PILOT structure, 7‑0. Staff will finalize the JPA and related documents and return as needed for ministerial confirmations. The developer, Marisol HB LLC, is expected to move forward with permitting and to begin construction after outstanding regulatory approvals.
Ending: Councilmembers said the financing structure is intended to enable development of senior housing while protecting the city from bond obligations; staff will report back on the administrative steps needed to complete the financing.
