Supervisors approve resyndication to extend affordability at Mendocino projects after 3–2 split

The Orange County Board of Supervisors voted 3–2 on Aug. 13 to approve a package of sale, assignment, subordination and amended regulatory agreements enabling Jamboree Housing’s resyndication of several Mendocino/Talaigle affordable‑housing developments and extending county affordability agreements for 55 years.

Vice Chair Doug Chaffee led a pointed critique of the deal, saying the timing and financial structure were inappropriate. “This to me is an abuse of taxpayer dollars,” Chaffee said, arguing the appraisal omitted at least $1 million of known piping repairs and did not account for ADA improvements now required, and warning the board’s outstanding loan could be subordinated to new seller notes and developer fees.

Supporters, including Supervisor Katrina Foley and the developer, said resyndication is a common industry practice to recapitalize aging tax‑credit projects and to fund accessibility and safety upgrades. Michael Massey, Jamboree’s executive vice president and chief development officer, told the board the project needs recapitalization to address piping replacement, ADA upgrades and other lifecycle needs, and said the developer fee largely supports deferred compensation and mission‑related services. “A large portion of that developer fee will be deferred,” Massey said, and the fee supports Jamboree’s nonprofit development and resident‑service work.

County staff and OC Community Resources said the state and federal funding structures (low‑income housing tax credits and bonded financing) were reviewed and that the county would not be asked to provide new operating subsidies. Dylan Wright, OC Community Resources, said staff’s checklist confirmed the county was not being asked for additional funding and that state approvals are in place.

Opponents focused on precedent and timing. Chaffee noted the original development agreement required maintenance obligations for 55 years and said resyndication roughly two decades in is early, creating a shorter remaining term of enforceable affordability than if the county waited closer to the 55‑year mark. He urged requiring stronger protections so county loans and accrued interest remain prioritized ahead of seller notes and fees.

Supervisor Vicente Sarmiento acknowledged Jamboree’s track record but said he was torn and asked staff to return with a policy for future resyndications to protect county interests and provide consistent criteria. Supervisor Katrina Foley said the item would extend the enforceable affordability period for the community and would improve unit access, calling the changes a net benefit to her district.

Chairman Wagner confirmed the motion on the floor — approval as recommended by staff — and recorded the outcome as 3 votes in favor and 2 against. The transcript records Vice Chair Chaffee as an explicit opposing vote; the other negative vote is recorded in the board tally but not attributed by name in the spoken roll call.

The approvals include authorizations for county staff to execute documents that subordinate certain debts and to support additional senior debt under stated conditions. Staff said county loan repayment terms remain unchanged in terms of schedule and that the county’s residual‑receipt repayment mechanism for its existing loan continues to apply.

The board directed staff to return with a policy on resyndications that would include standards for protecting county investments and handling seller notes, developer fees and deferred maintenance issues.

The item is recorded as part of agenda item 19 and will be processed through the County’s document execution steps; specific contract numbers and deed records were not detailed during the public discussion.

The board moved on to other agenda items after the vote.