The Santa Rosa Housing Authority on Nov. 24 conditionally approved the transfer of a 10-unit affordable property at 623 (the transcript spells the street name variously as Aston/Assin/Ashton) Avenue from Sonoma Community Action Network to Colin Hooper, doing business as Crosscourt Properties. Staff said the site is income-restricted at 50%, 60% and 80% of area median income and that the housing authority holds loans on the property with maturity dates of Dec. 31, 2032.

During staff’s presentation, Stewart and Kelly Kuykendahl summarized the proposed transaction: Crosscourt Properties is preliminarily proposing a cash payment of $975,000 plus assumption of housing authority loans (staff reported total principal and interest of those loans at about $924,000, with roughly $558,000 of that shown as principal on staff slides), producing an approximate purchase price of $1.9 million. Staff recommended the authority by resolution conditionally approve (1) the ownership transfer and (2) the assumption of the housing authority’s regulatory agreement, density agreement and loans (principal amount cited in materials at roughly $558,000) and (3) extension of the housing authority loan maturity to June 2, 2061 to align with the regulatory agreement term.

Commissioners asked several due-diligence questions: the buyer said he intends to self-manage the property and to hire a local maintenance technician; staff said the buyer will complete a property condition report during post-contract due diligence and that staff had performed an initial site inspection and found the property in generally good condition. Staff also said the existing projects have operated "in the negative" on annual financial statements when accounting for depreciation and that residual receipt payments to the housing authority have been limited.

A public commenter, Fred Allabaugh, asked whether the change from nonprofit to for-profit ownership would affect tenants. General Counsel responded that the new owner "steps into the shoes" of the old owner; the existing regulatory agreement remains in place and is not rewritten, so affordability and regulatory requirements continue to apply to the property after the sale.

Commissioner Smith moved the resolution and Commissioner Capio seconded. The clerk recorded a vote of five ayes, one absence (Commissioner Conte), and the motion passed. The resolution includes the conditional approval to assume loans and extend the loan term; staff will finalize due diligence and the purchase agreement.