Board delays Jamboree affordable-housing financing after questions about fees and internal sale

The Orange County Board of Supervisors on July 23 debated a complex financing package to restore Mendocino-area affordable housing and extend affordability covenants by 55 years, then voted to continue the matter to the board's next meeting.

OC Community Resources staff described the project as a roughly $61,000,000 financing package to renovate 186 affordable units, addressing extensive plumbing failures and bringing the property up to current ADA and code requirements. OC Community Resources project manager Dylan Wright told the board the work was necessary because copper piping had pinholes and water-related damage that exceeded the project's reserves.

Supervisor Foley, who moved the item, said the financing would preserve the units for families and noted that the county is not being asked for additional funding. "By not approving this loan, we would put 186 affordable family units at risk," Foley said.

Vice Chair Chaffee expressed sharp reservations about the transaction's structure, saying the public record suggested a nonprofit might be creating a second related nonprofit and effectively selling the project to itself, generating a developer fee and additional profit on the transfer. "It is creating an additional obligation that competes with the county's ability to be paid," Chaffee said, adding he was not satisfied with the proposed fee waivers and intended to abstain.

County counsel said legal reviewers found no legal impediment, but the board continued the item after Foley withdrew his initial motion and moved to continue the item to allow further review and for a returning member to participate. The board accepted the continuation to the August meeting.

Next steps: staff will return with additional answers on fee treatment, the financing waterfall and any remaining risk to county repayment before the board takes a final vote.