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Politics Oct 05, 2023
A rendering shows the planned Placita Dolores Huerta in Coachella. | Photo courtesy of the Interactive Design Corporation
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The Board of Supervisors on Tuesday approved allocating $3.5 million in federal taxpayer funds to support an affordable housing project underway in Coachella, which several Riverside County residents questioned, stemming mainly from concerns over proper use of public money.
The unanimous vote in favor of appropriating 2021 American Rescue Plan Act dollars for the Placita Dolores Huerta Housing Project was preceded by a brief discussion based on the reservations expressed by two board speakers — Roy Bleckert of Moreno Valley and Brad Anderson of Rancho Mirage.
“We should have the best of everything, but we’re not getting it here,” Bleckert complained, pointing to what he viewed as a general lack of sound financial stewardship on the part of the board. “Which side of history do you want to be on? These votes are going to show that.”
Placita Dolores Huerta is slated for completion before the end of the year and will feature a 55-unit apartment complex oriented to low-income county residents.
The project is under construction on 2.3 acres in the 84900 block of Bagdad Avenue. The developer, Fairfield-based CVDH which formed in 2021, received over $20 million in loan guarantees.
However, documents posted to the board’s agenda indicated that the principal thrift backing the project was Silicon Valley Bank, which collapsed in March after a series of defaults that culminated in the Federal Deposit Insurance Corp. taking over the failed institution.
SVB’s portfolio was ultimately transferred to San Francisco-based First-Citizens Bank & Trust Co., which is now the primary lender in interest. The county’s $3.5 million allocation will stand as a “subordinate loan” for the project, according to Housing & Workforce Solutions documents.
It is backed by rents and fees, with a 3% per annum interest rate until retired in full.
“I don’t believe ARPA money should be used as a bank,” Anderson told the board. “We should be concerned about this as a county. In the city of Coachella, the mayor (Steve Hernandez) is the chief of staff for Mr. Perez.”
Supervisor Manuel Perez represents the 4th District, where the project is located.
“These funds are going to be very helpful for that community,” the Coachella native said. “They will help us reach our housing element goals (set by the state).”
Supervisor Karen Spiegel said she had no doubt the county’s ARPA provision was for a good cause.
“These are things that will better the county as a whole,” she said.
The county received nearly $500 million in ARPA distributions, ostensibly tied to relief from COVID-related disruptions.
In October 2022, the board approved equally dividing $165 million in ARPA “Local Fiscal Recovery Funds” for the benefit of each of the five supervisorial districts, resulting in each one receiving $33 million.
The Placita Dolores Huerta loan from the county is a draw on the $33 million placed at the disposal of the 4th District.
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