News Summary
The Huntington Beach City Council will hold a special meeting to address the loan request by Jamboree Housing Corp. for Pelican Harbor Apartments. These apartments, aimed at formerly homeless seniors, face a tight deadline for financing. City officials express concern over potential revenue losses if the construction bonds are not converted to permanent financing by the end of the month. Opinions among council members differ regarding the urgency of the situation, as the community awaits a resolution on this crucial housing initiative.
Huntington Beach City Council to Discuss Need for Loan for Pelican Harbor Apartments
In Huntington Beach, a special meeting of the City Council is set to take place on Tuesday, October 28. This meeting comes after the council previously could not reach an agreement on a procedural loan request from Jamboree Housing Corp., which is looking to secure necessary financing for the Pelican Harbor Apartments.
Pelican Harbor Apartments, located on Beach Boulevard near the Five Points area, were completed in December 2024. The development features 43 one-bedroom apartments specifically designed for formerly homeless seniors. This project is bolstered by a mix of federal and state funding sources, making it an important step toward providing affordable housing in the community.
The focus of the special meeting revolves around a public hearing that was held on the Tax Equity and Fiscal Responsibility Act (TEFRA). The purpose of this hearing is for Jamboree to switch part of the $20 million in tax-exempt construction bonds into permanent financing. During a prior meeting, the council voted 4-3 to continue the public hearing instead of taking immediate action, which leaves many wondering what will happen next.
Time is Running Out
Jamboree is under a tight deadline, as a favorable vote is essential to meet an October 31 deadline for their construction loan. Failing to meet this could have serious financial implications, including potentially losing tax-exempt status and facing higher interest rates, leading to a likelihood of loan default due to tight cash flow.
City housing manager Charles Kovac has highlighted the serious repercussions if the bonds are not converted in time, indicating that the city could face a loss of revenue in the process. Meanwhile, Jamboree’s executive vice president has mentioned that they may need to adjust their equity input to keep the project afloat, noting the company’s history of never defaulting on a loan.
Community and Council Reactions
Mayor Pat Burns, along with Councilmembers Don Kennedy, Andrew Gruel, and Chad Williams, has supported the continuance of the public hearing, while others, including Mayor Pro Tem Casey McKeon, have voiced their opposition. There are differing viewpoints on the council concerning the urgency of the matter, with some expressing frustration over the timing of the current request, particularly since the previous TEFRA approval expired last December.
In a new agreement, the city managed to negotiate an extension of project affordability, which would now last from 60 to 99 years. Additionally, Jamboree has committed to pay the city $5,000 annually as part of this arrangement. However, it is worth noting that there is an increase in interest rates on existing loans from the city, climbing from 3% to 5% starting in year 20, which could add nearly $5 million to future repayments.
Challenges Along the Way
The Pelican Harbor project has not been without its hurdles. COVID-related delays have had a significant impact on the project timeline, with new negotiations for TEFRA approval starting back in February. Council members have raised concerns regarding the long-term implications for the city, specifically pointing out potential revenue losses in property taxes due to the lengthy project subsidy.
The special meeting is scheduled to kick off at 4 p.m. at Huntington Beach City Hall, located at 2000 Main St. Many eyes will be on this meeting, as council members and the community alike watch to see how the city will address this impactful housing initiative.
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Additional Resources
- Los Angeles Times: Huntington Beach City Council to Discuss Need for Loan for Pelican Harbor Apartments
- OC Register: Real Estate News – Affordable Apartments for Seniors Debut in Surf City
- Los Angeles Times: New Huntington Beach Complex Offers Comfort for Formerly Homeless Seniors
- OC Business Journal: Affordable Housing Units Receives $5.2 Million Loan
- Patch: Long Beach Breaks Ground on New Homes
- Wikipedia: Affordable Housing
- Google Search: Affordable Housing
- Encyclopedia Britannica: Affordable Housing
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
