Authority conditionally approves subordination of loans for Aston Avenue sale, commissioners note affordability risk

At item 12.3 the housing authority considered a staff request to subordinate its loans on Aston Avenue Apartments (623 Aston Avenue) to a proposed first mortgage to enable an ownership transfer.

Kelly Kuykendall, housing and community services manager, said Aston Avenue is a 10‑unit complex with affordability requirements secured by two regulatory agreements that extend through June 2061. Staff reported the housing authority’s combined principal and accrued interest balance on the loans was $935,828 as of July 31, 2026. The recommended action was to conditionally subordinate the housing authority loans in the principal amount of approximately $558,071 to a first mortgage of roughly $600,000 to facilitate acquisition by Crosscourt Properties (represented as Colin Hooper, DBA Cross Corp Properties or an affiliate). Staff said approval will be conditioned on review of the first mortgage loan documents and the subordination agreement and approval as to form by the city attorney.

Kuykendall said the purchase price had been negotiated to $1,600,000 and the scheduled close moved from Aug. 1 to Aug. 15; staff described prior due diligence including review of buyer references and pro forma financials. Commissioners discussed a trend of nonprofit owners divesting properties, the historic role of federal funds and the authority’s interest in preserving affordability and program services.

Public commenters (David Harris and Dwayne DeWitt) questioned deferred interest on authority loans and urged firm obligations on buyers to maintain long‑term affordability. Vice Chair Capio moved to subordinate the loans; Commissioner Conte seconded. Roll call recorded unanimous approval with the condition that staff and the city attorney finalize documents in form.