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Board postpones vote on Jamboree affordable-housing financing after debate over developer fees
Summary
A contentious discussion over a financing and assignment package for three Mendocino properties (about 186 units) ended with the board continuing the item to Aug. 13. Supervisors raised concerns about developer fees, intra-affiliate sales and the financing waterfall; staff said no new county funds were requested.
A planned vote on a series of loan assignments and extended affordability covenants for three Mendocino properties was continued to Aug. 13 after heated debate at the Orange County Board of Supervisors' July 23 meeting.
OC Community Resources staff described the proposal as an assignment and assumption of HOME and successor loans and an amendment to regulatory agreements to extend affordability covenants by 55 years for approximately 186 units. OC Community Resources principal Dylan Wright told the board the work addresses plumbing failures and ADA repairs and that the county was not being asked for additional funding today.
"The approval today is... there's no additional county funding required or being requested," Wright said, describing a requested small fee waivers and the document changes needed to re-sanction county approval.
Several board members pressed for more detail on the financing structure. One supervisor said he was troubled by what he described as a nonprofit creating a distinct entity that would receive a sizable developer fee, calling it "left hand selling to the right hand" and raising concerns the structure produced a profit-like transfer in addition to developer fees. That supervisor said he would abstain on the item.
County counsel and staff said they had reviewed the documents and found them legally sufficient. The chair allowed a motion to continue the item to the Aug. 13 meeting to allow further review; that motion passed. No final financing action was taken July 23.
Next steps: the item will return on Aug. 13 for further review and possible action. The board directed staff to provide additional detail on fee waivers and the proposed cash waterfall before the next hearing.
