Huntington Beach Council approves Jamboree senior housing request on split vote
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Did a majority of the Huntington Beach City Council renege on campaign promises Tuesday night when they approved a request from nonprofit Jamboree Housing Corp. to convert construction bonds to permanent financing?
Mayor Pro Tem Casey McKeon said no. Councilmember Chad Williams suggested that, after running in opposition to government subsidized housing, the answer was yes.
Jamboree is the developer of Pelican Harbor, a 43-apartment community on Beach Boulevard for low-income and previously homeless seniors. In 2019 it borrowed about $3 million from the city for the project, which was completed in December 2024 and opened soon after.
This week’s special Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing on the request was forced after the council continued the time-critical item at last week’s meeting. Jamboree stated it had to meet an Oct. 31 deadline on its construction loan to avoid consequences that could ultimately have included defaulting on the loan.
The all-conservative council carried on a spirited discussion before ultimately approving the conversion of $20 million in tax-exempt construction bonds for Pelican Harbor Apartments on a tight, 4-3 vote.
McKeon, a commercial real estate developer, said the project was already built and occupied, so nothing would be accomplished by voting no on the TEFRA request.
Williams focused on the net worth of Jamboree, noting that two top executives had a combined salary of more than $1.1 million in 2023.
“It doesn’t really feel like this is one of those nonprofits where everyone is suffering and struggling and trying to help out the needy,” he said. “It seems as though we’re taking people that are in poverty, we’ve found a way to sort of hide behind them or use them as shields on the executive side of things.”
“I reject wholeheartedly Councilmember Williams’ assertion that a ‘yes’ vote [means] that we’re doing this to line the pockets of these developers,” McKeon said. “It’s quite the contrary ... A ‘yes’ vote insures that these seniors will remain in this facility. I would not do this project. We can debate the merits ... [but] I don’t want to take the risk that they may default [on the loan].”
Jamboree consultant Pete Mitchell responded that the company has a good reputation statewide and is sticking by a project that is not profitable.
Kelsey Brewer, Jamboree’s vice president of business development, told the council the nonprofit has about 3,000 units in senior housing out of 11,000 units statewide.
“This is a good company that’s a nonprofit, and it’s doing exactly what it’s supposed to do,” Mitchell said, later adding to Williams, “It’s a good thing you’re not paying those [salaries]. This project is at a loss, and they’re stepping up ... I would ask your kind indulgence to support the original deal ... [the previous] council [approved] this project. Maybe you wouldn’t have, but it’s here.”
Mayor Pat Burns asked how a “yes” vote would benefit the city financially, saying he didn’t think the city should be responsible for getting Jamboree out of its bind. Brewer responded that the people currently at the facility were previously on the streets of Huntington Beach, which is saving tens of thousands of dollars each year in calls for service and in emergency medical technicians’ and public safety officials’ time.
“Those folks are now housed,” Brewer said. “That’s an ongoing savings that will happen every year, that we keep that person housed and off of the street. I understand that’s not the same as property taxes, but that is a value to the city in terms of savings.”
Twining produced a black-and-white picture of the intersection of Beach Boulevard and Main Street from 70 years ago. He noted the intersection looks the same today, except for the addition of a tire shop and a restaurant.
“If somebody was going to develop that [Pelican Harbor lot] with market-rate units, it would have happened sometime in the last 70 years,” he said. “It wasn’t going to happen.”
McKeon was joined by Twining, Andrew Gruel and Gracey Van Der Mark in voting to approve Jamboree’s request to convert a portion of $20 million in tax-exempt construction bonds for Pelican Harbor Apartments into permanent financing. Burns, Don Kennedy and Williams dissented.
In exchange for hosting the TEFRA hearing, Jamboree will make a $5,000 annual payment to the city. An offer to extend the affordability of the project from 60 to 99 years, keeping it property tax exempt, was also on the table, but the final vote called for a 60-year window.
The interest rates on both city loans — a federal HOME loan and a smaller inclusionary housing loan — will increase from 3% to 5% beginning in year 20.
