Huntington Beach delays vote on Pelican Harbor bond conversion after council questions taxpayer risk

The Huntington Beach City Council voted 4–3 on Oct. 21 to continue a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing on the long‑term conversion of tax‑exempt bonds for Pelican Harbor, a 43‑unit supportive housing project for formerly homeless seniors.

City Housing Manager Charles Kovac told the council the project was completed in December 2024 and occupied in January 2025 and that a December 2024 expiration of the original TEFRA required the council to reconvene a hearing so a portion of the previously issued bonds could be converted from construction to permanent financing. “If not completed, the bondholder could lose the ability to keep the bonds tax exempt which would create financing instability for the project and increase the risk of foreclosure,” Kovac said.

The council and members of the public pressed developers and staff for details about where the city’s roughly $3 million in loan funds originated, how tenant rents and subsidies work, and what would…