News Summary
Huntington Beach will hold a special meeting to discuss the Pelican Harbor Apartments project, proposing 43 units for seniors. As the City Council faces a financing deadline, developers seek approval to convert $20 million in tax-exempt bonds. Jamboree Housing Corporation aims to secure a deal but faces council disagreements over financial terms. The urgency grows as delays due to the pandemic have complicated timelines, while the council aims to navigate the best options for the city’s future housing needs.
Huntington Beach will hold a special meeting on Tuesday, Oct. 28, to address the proposed Pelican Harbor Apartments project, which aims to provide 43 units for seniors. This decision occurs as the City Council faces a pressing deadline, set for Oct. 29, for the project’s financing. The development, spearheaded by Jamboree Housing Corporation, is situated at 18341 Beach Blvd.
During previous meetings, the developers and the City Council engaged in extensive debates but failed to reach an agreement regarding the financial benefits of the project to the city. Jamboree’s representatives indicated that the project operates on “low margins” and expressed that they had submitted their most competitive proposal to the council.
The urgency of the upcoming meeting stems from Jamboree’s need to convert $20 million in tax-exempt construction bonds into permanent financing. A public hearing was conducted under the Tax and Equity Fiscal Responsibility Act (TEFRA) to facilitate this process. A decisive vote on the conversion of the bonds is critical, as failing to achieve this could result in the forfeiture of tax-exempt status, subjecting the project to higher interest rates.
Charles Kovac, the city’s housing manager, underscored the importance of this conversion, warning that neglecting to do so could lead to increased debt service rates, subsequently jeopardizing the project’s overall cash flow. Should Jamboree be unable to secure the necessary financing, they may need to infuse additional equity or risk defaulting on loans, placing the project in a precarious position.
Council’s Response to Developer Proposals
In past discussions, Mayor Pat Burns and four other council members favored extending the hearing to further deliberate the proposal. Contrarily, three members raised objections due to concerns regarding the financial terms stipulated by Jamboree.
In an effort to reinforce the project’s viability, Jamboree has offered to extend the affordability aspect of the apartments from 60 years to 99 years. Additionally, they proposed making annual payments of $5,000 to the city to demonstrate their commitment. However, starting from year 20 of the project, interest rates on city loans would rise from 3% to 5%, which could lead to an increase of nearly $5 million in repayment obligations over time.
Timeline and Historical Context
Another point of contention among council members is the timeline, as the previous TEFRA approval had expired in December. Developer Michael Massie attributed these delays to complications arising from the COVID-19 pandemic, particularly regarding supply chain disruptions that affected construction plans.
According to projections provided by Jamboree, the repayment on city loans may not commence until year 16, further complicating the financial discussion among the council members. This timeline has added pressure as the council aims to secure the best deal for the city while operating under the constraints of a tight deadline.
As the special meeting approaches, it will convene in the Council Chambers located at 2000 Main St. at 4 p.m. on Oct. 28, where council members are expected to take action regarding this significant housing initiative for seniors in Huntington Beach.
Deeper Dive: News & Info About This Topic
HERE Resources
Costa Mesa Addresses Homelessness at Town Hall Meeting
Santa Ana Approves Major Development Project
Santa Ana City Council Approves The Village Redevelopment Project
American Lending Center Appoints New Chief Compliance Officer
Costa Mesa Begins Redevelopment of Avon River Apartments
Costa Mesa Celebrates Groundbreaking of Avon River Apartments
Orange County Supervisors Delay Vote on Airport Bond Proposal
Final Week of the Orange County Fair Offers Fun Activities
Santa Ana’s Urban Transformation with The Village Project
Costa Mesa Approves 142 Residential Units Development
Additional Resources
- LA Times: Huntington Beach City Council Special Meeting
- Wikipedia: Senior Housing
- Orange County Tribune: Another Try at Senior Housing
- Google Search: Huntington Beach housing news
- LA Times: New Huntington Beach Complex for Seniors
- Google Scholar: Affordable Housing for Seniors
- OC Register: Affordable Apartments for Seniors
- Encyclopedia Britannica: Housing
- LA Times: Latest News in Orange County
- Google News: Huntington Beach Senior Housing
Author: STAFF HERE COSTA MESA WRITER
The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
