CONDO SETTLEMENT DEAL The City Council approved...

CONDO SETTLEMENT DEAL

The City Council approved a first round of a settlement compromise

between Huntington Beach, five title insurance companies and about 58

residents who filed claims that they had been sold condominiums that

had been converted from apartments without the proper permits. The

deal requires the title insurance companies to pay $10,000 per unit

into an affordable housing fund to clear up the titles. Residents who

don’t have title insurance can agree to put a $10,000 lien on their

property. Mayor Cathy Green and City Councilwoman Connie Boardman

were absent.

WHAT IT MEANS

City Atty. Jennifer McGrath said 35 condo owners agreed to

participate in the first round of the settlement deal, and more are

expected to participate in future sessions. The next settlement

agreement, which would be on similar terms, could go before the

council in January.

AFFORDABLE HOUSING FEE

This is an alternative to the settlement agreement, creating a

process using conditional-use permits to allow residents to clear up

their titles.

Essentially, the alternative requires homeowners to pay a $17,900

affordable housing fee that would be used to finance future

residential projects in the city.

WHAT IT MEANS

Since it’s much more expensive to pay the affordable housing fee

than participate in the settlement agreement, it seems unlikely that

anyone will use this alternative.

It’s also a possible last resort mechanism for condo owner who

refuse to properly convert their condos and must be ordered to do so

by a judge.

-- Compiled by Dave Brooks