Oxnard council and housing authority approve loan agreement to fund Las Cortes settlement

Oxnard — The City Council and the Oxnard Housing Authority voted this meeting to approve a loan agreement and associated appropriations to partially fund a proposed settlement related to the Las Cortes housing project in the La Colonia neighborhood.

What the council approved: On April 15 the City Council adopted a resolution authorizing a loan agreement with the Oxnard Housing Authority for $800,000 from the city general fund (account 101, available fund balance) to help fund a tentative settlement between the housing authority and UHC (the limited‑partnership entity named in the matter). The council vote was 7–0. The Housing Authority Board of Commissioners separately adopted a resolution authorizing the housing director to accept the city loan and approved a housing authority appropriation of $1.2 million from the housing authority’s central fund and a write‑off of bad debt associated with a promissory note tied to prior demolition costs. The housing authority vote was 8–0.

Why it matters: Housing authority staff told the council the loan would allow a negotiated settlement to proceed without protracted arbitration or litigation. Staff said the housing authority currently holds about $1.2 million and that the combined funding sources in the proposed settlement package would resolve outstanding claims related to the Las Cortes project. Housing counsel and staff recommended acceptance as the most cost‑effective and timely resolution; staff said litigation or arbitration could increase costs and delay any return of the property to productive housing use.

Key financial and legal points: The agreement is structured as a loan between the city and the housing authority, with terms that the housing authority described as consistent with prior city‑housing authority practices for development support; housing staff said the loan would be forgivable under conditions tied to project redevelopment and that recording and accounting action will reflect repayment or forgiveness per the agreement’s terms. The staff report lists an original promissory note dated June 1, 2020, amended and restated on Jan. 1, 2021, related to demolition costs; the housing authority resolution authorizes write‑off of the related bad debt as part of the settlement package.

Council discussion and vote: Council members asked what would happen if the council declined to fund the loan; staff replied that a refusal would likely result in arbitration or litigation and could increase total city and housing authority costs and delay reuse of the Las Cortes site. After questions and a short public‑comment period, the council adopted the city resolution and budget appropriation, and the housing authority approved its corresponding resolution and fund appropriation.

What comes next: City and housing authority staff will finalize and execute the loan agreement in consultation with city and authority counsel and proceed with the settlement transaction under the terms approved by each governing body. The housing director and city manager will manage any reporting and budget adjustments required to implement the transaction.

Vote summary: City Council — approval and $800,000 appropriation (7–0). Housing Authority Board — approval of loan acceptance, $1.2 million appropriation from housing authority central fund and bad‑debt write‑off (8–0).