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Board approves resyndication for Jamboree affordable projects after 3–2 split
Summary
The Orange County Board of Supervisors voted 3–2 to approve sale/assignment and amended regulatory agreements that extend affordability for Jamboree projects and allow a resyndication recapitalization. Vice Chair Chaffee objected, calling the timing and developer fees inappropriate; Jamboree said recapitalization will fund repairs and accessibility upgrades.
The Orange County Board of Supervisors voted 3–2 on Aug. 13 to approve agreements allowing Jamboree Housing to resyndicate and recapitalize multiple affordable‑housing properties, extend regulatory agreements and affordability periods, and subordinate certain debts so the projects can obtain new financing.
Vice Chair Supervisor Chaffee led the opposition, arguing the resyndication comes roughly 22 years into a 55‑year regulatory period and that the timing would allow developers to collect substantial fees and seller‑carryback notes while deferring county loan repayments. "None of that buys a stick or a brick," he said, calling the proposed $3.1 million developer fee and accompanying seller notes an "abuse of taxpayer dollars" if used to repair issues the developer should have maintained. Chaffee also said a needed water‑piping replacement—about $1 million—was not accounted for in the appraisal and that the appraisal relied on "an extraordinary assumption" that deferred maintenance was minimal.
Jamboree executive Michael Massey, introduced at the podium as executive vice president and chief development officer, told the board the projects require recapitalization and that resyndication is a common industry practice under the low‑income housing tax‑credit program. "We are extending the use," Massey said, adding the resyndication will fund substantial capital repairs, including ADA improvements and repiping, and will restart a new enforceable 55‑year regulatory agreement on the sites. He said a significant portion of any developer fee will be deferred and that Jamboree is a nonprofit that reinvests fees into development and services.
Supervisor Katrina Foley, whose district includes the project, supported the item. She emphasized the projects would be made more accessible and remain affordable for decades: "To extend the time by 55 years — that is a benefit to South County," she said.
Supervisor Vicente Sarmiento said he was "torn" but ultimately seconded the motion, urging staff to bring a policy back to the board to guide future resyndications and avoid inconsistent precedent.
The board directed staff to return with a formal policy on resyndication standards. The motion, as presented on the agenda, passed 3–2. The board recorded that its loan repayment terms would remain as originally approved and that the county’s repayment rights were not altered by today's action.
The board’s discussion identified several follow‑up requests (appraisal details, order of payoff of obligations, and procedural standards for future resyndications). The item was listed on the agenda as an action of OC Community Resources acting as the Orange County Housing Authority.
Outcome: Approved 3–2. The board asked staff to draft a policy on resyndications and to provide requested clarifications to the board at a later date.
