www.montereycountynow.com MAY 8-14, 2025 MONTEREY COUNTY WEEKLY 15 The Housing Authority of the County of Monterey is topping the number of units in its portfolio to over 2,000, after becoming the general partner in a 200-unit low-income senior apartment complex near Carmel and the $1 sale to HACM of a 44-unit hotel in King City originally slated to become a Homekey project. HACM, as the Housing Authority Limited Liability Company, was scheduled to take over general partnership in Pacific Meadows Senior Housing from the HumanGood Corporation on May 1. HumanGood had a 90-year ground lease with HACM worth $16.9 million on the apartment complex off of Carmel Valley Road, with about 76 years remaining on the lease, according to a HACM report. In 2010, HumanGood took advantage of low-income housing tax credits to finance rehabilitation of the property. According to the report by HACM staff, most tax credit deals lead to companies restructuring partnerships after around 15 years “because the tax credits have been maxed out by the investors. This is one of the reasons that prompted the current transaction.” In March, the Monterey County Board of Supervisors approved the agreement for HACM to take over as general partner. The board vote was required due to a $645,000 loan HumanGood received from the county in 2007 using a federal grant; HACM is assuming that loan. HumanGood had other existing loans on the property from the original developer, American Baptist Homes of the West, but per the agreement, those will be forgiven. For residents of Pacific Meadows, HACM taking over as property manager brings hopes of better services and programming. Residents complained that when HumanGood took over in 2019, activities were canceled and regular cleaning and maintenance of common areas were deferred. In King City, HACM now owns the 44-unit hotel, which was originally supposed to be a state Homekey project. It was first purchased by ShangriLa Construction for rehabilitation into a permanent supportive housing facility for people who are homeless or on the verge of homelessness. (Shangri-La foreclosed on its loans on that hotel and others around the state in early 2024, including three in Salinas.) King City’s leaders were determined to save the project. Using funds from a state encampment grant and help from several agencies, including the County of Monterey, Central California Alliance for Health and HACM, the City Council signed a deal on April 22. That deal included purchasing the hotel for $4.4 million, then immediately selling it to HACM for $1. HACM will be responsible for turning the hotel rooms into deed-restricted apartments—the estimated cost is $16.7 million, with money coming from local and state sources. HACM will contract with nonprofit Step Up on Second Street to provide supportive services. King City Mayor Mike LeBarre announced it was the first public agency to rescue a Homekey project previously owned by Shangri-La: “This is a big deal, so I am very, very proud to get to this point today.” Friendly Takeover The Housing Authority acquires a senior housing project and a former Homekey project. By Pam Marino King City Mayor Mike LeBarre in front of the former Days Inn on Broadway Street, which is now back on track to become a Homekey-style project after a former developer foreclosed. NEWS “This is a big deal, so I am very, very proud.” DANIEL DREIFUSS
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