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Affordable housing nonprofit asks San Clemente to forgive two legacy city loans
Summary
Mary Erickson Community Housing asked the San Clemente City Council to forgive two decades-old city loans on two small apartment properties, saying forgiveness would allow reinvestment in needed rehabilitation and preserve affordable units for roughly 48 residents; council asked staff for a report back.
Susan McDevitt, executive director of Mary Erickson Community Housing, told the San Clemente City Council on Feb. 17 that her nonprofit seeks forgiveness of two legacy city loans on small local rental properties to preserve long-standing affordability and fund repairs.
"These loans were made by the city over 30 years ago and to support affordable housing. That public purpose has been fulfilled," McDevitt said, identifying the properties as 133 and 135 West Canada (8 units) and 143 West Marquita (4 units). She said the Kenyatta property’s affordability covenant had expired and that the original loan terms call for repayment of about $100,000 on one property and $145,000 on the other.
The request was supported by Douglas Bistri, a longtime board member of the nonprofit, who described Mary Erickson as an almost all-volunteer organization that has operated small-scale workforce housing in San Clemente for more than 30 years. Program director Sandra Kuneepo told the council that residents include working families and seniors on fixed incomes and that a typical three-bedroom rent cited by staff is $1,900.
Nut graf: The group asked the council to forgive the outstanding principal so the nonprofit can reinvest in building rehabilitation and keep units affordable. No formal loan-forgiveness decision was made at the meeting; council members requested additional information from staff and asked that the item be agendized for a future report.
City staff did not approve or deny the request at the meeting. During the "future agenda items" discussion, a council member asked staff to prepare a memo or formal agenda report detailing the legal and financial status of the loans, including whether principal remains and what options exist for forgiveness or modification.
What happens next: The council directed staff to prepare a report with loan details and options for consideration at a future meeting. That report will determine whether a formal forgiveness action will be placed on a future agenda.
Ending: McDevitt thanked the council for considering the request and said the nonprofit hopes to preserve and reinvest in the units to continue serving local residents.
