Stanton : Developer Gets Fourth Extension

A troubled Stanton housing project for low-income, elderly residents won yet another reprieve from the county in a ruling that gives a developer nearly two months to begin construction.

The extension, approved by the County Board of Supervisors Tuesday, is the fourth granted for the project, placing the 330-unit Park Stanton Place more than two years behind its original construction schedule.

The project has been a particular point of concern for county officials since July, 1990, when the Orange County Housing Authority lent the Beverly Hills developer, Jan Development Co., $1 million. The county funds were to help build 33 affordable units for the elderly as part of the $25-million project.

Bob Pusavat, the county’s director of housing and redevelopment, said he remains concerned about the county’s investment since the developer has indicated that the project is still $4.5 million short of complete funding.

Jan Development Co. officials could not be reached for comment Tuesday.

Although terms of the loan do not require repayment to begin until 1995, Pusavat said the repeated extensions have prompted some fear that the project may never be built and that the county would lose its investment.

Pusavat has said the housing authority’s money has already been spent, adding that development company executives have repeatedly asked for additional funding.

“Our answer to them has always been no on more money,” Pusavat said.

For months, Pusavat said, the developer has complained that the project has fallen victim to poor economic times, making it difficult to secure additional financing for the complex to be located in the 7700 block of Katella Avenue.

The county is one of two government entities in partnership with the developer. The city of Stanton has agreed to commit about $17.7 million in funding from the sale of revenue bonds. But that money cannot be drawn from the construction fund until all financing requirements are met.

Another $500,000 is to be contributed by the city’s Redevelopment Agency but is protected under the same financing conditions.

The county funds were drawn from the housing authority’s operating reserve account. Money in that account originally was supposed to be used for local staff expansions of the housing authority.