Port Hueneme housing authority resigns from Hueneme Housing Inc.; council names two commissioners to new nonprofit board

The Port Hueneme Housing Authority voted unanimously Tuesday to remove the entire housing authority board from the Hueneme Housing Inc. nonprofit board and to appoint two housing authority members as directors of the restructured nonprofit.

The move, recommended by city staff and Housing Director Basu, is intended to separate the nonprofit from the city and reduce potential “vicarious liability,” Basu told the joint meeting. The city and housing authority have been working with legal counsel and other local housing entities to mirror nonprofit structures used by neighboring communities, she said.

The council’s action begins with a formal resignation of the authority as directors of the nonprofit and a subsequent appointment of two commissioners to the Hueneme Housing Inc. board. Council and staff said the nonprofit is preparing to accept asset transfers and pursue financing; keeping both boards identical could expose the city to liability if the nonprofit borrows or leases property.

Why this matters: Hueneme Housing Inc. is being positioned to take on mortgage financing and property management that the housing authority’s federal funding cannot support directly. Separating governance, buying independent insurance and hiring outside counsel are steps staff recommended to protect the city while enabling the nonprofit to pursue rehabilitation or redevelopment of public housing.

What the council decided: After discussion about timing and whether a short gap in board membership could present problems, the authority approved a resolution to restructure Hueneme Housing Inc. and later appointed Council Member Perez and Mayor Pro Tem Lopez as the two city representatives to the nonprofit board. The council’s vote on the restructuring resolution passed unanimously. The appointment of Perez and Lopez also passed unanimously; members Hernandez, Blackwell and Brown were absent for the votes.

What comes next: Director Basu said staff will post an open call for the remaining nonprofit director positions with preference for candidates who bring real estate, property management or lending expertise. She said the nonprofit will have a separate attorney and will pursue independent insurance and other standard nonprofit controls. The housing authority will continue to serve as manager under a written contract if the nonprofit chooses that structure.

City staff emphasized the action does not transfer management of current Section 8 files or routine housing authority operations; those remain governed by HUD rules and separate administrative controls. The council advised staff to return with updates on recruitment, insurance and the draft nonprofit management contract as the process advances.

Ending: Council members said they supported the structural separation to enable fundraising and borrowings that federal housing dollars do not permit, while shielding the city from possible future liabilities.