Council tables request to extend affordability covenants at senior complex; members seek longer-term terms or financing options

The Huntington Beach City Council tabled a request from a senior apartment owner to extend affordability covenants for one year, citing unresolved questions about whether a longer extension or a financing arrangement should be pursued to protect residents. The property owner seeks to avoid short‑notice displacement of low‑income senior tenants when affordability covenants expire.

Nut graf: Staff said the owner asked for a one‑year extension to avoid notifying residents and to give the owner time to consider rehabilitation options that could support longer affordability; councilmembers expressed frustration at recurring short-term extension requests and asked staff to negotiate longer, binding terms or financing options to preserve affordability.

Staff said the property has covenants that were originally set to expire in 2026; an earlier amendment extended the covenant to 2026, and the owner now asks to extend to July 2027. City staff said the owner is exploring rehabilitation and asked for extra time; the owner also signaled interest in a longer covenant in exchange for a city loan to fund rehabilitation.

Councilmembers argued for stronger leverage in negotiations. “When a developer comes asking for another short extension, we should push for a longer guarantee for seniors rather than repeatedly granting one‑year extensions,” Councilman Don Kennedy said. Some members recommended requiring the owner to make a formal written offer for a longer extension or to outline financing needs; the council voted to table the item to Sept. 2 so staff can attempt negotiations and return with options.

Ending: The council instructed staff to request a formal offer from the owner (longer covenant term or other commitments) and to evaluate potential city financing or rehabilitation options as part of a return report on Sept. 2.