Press Releases

CARMEL VALLEY, Calif.- The Housing Authority of the County of Monterey's general liability carrier conducted its 3-year inspection of the Housing Authority's real estate portfolio. Yesterday, on July 26, they inspected Rippling River and have since informed the Housing Authority that cancellation of the general liability coverage for this site is imminent due to the presence of increased hazards. The insurance carrier will allow enough time for the Housing Authority to develop a relocation plan for the residents that could include rental subsidy vouchers. Concurrent with this action, the Housing Authority will seek replacement insurance from other carriers in an attempt to defer the relocation of residents. If they are unable to acquire the replacement insurance, there is a potential that residents may have to relocate between 90 - 120 days.

The insurance company has furthermore stated that the potential decision to rehab structurally faltering buildings at Rippling River may jeopardize additional limits on the policy. Over the last 3 years, the Housing Authority has continually voiced their concern over the potential to lose liability coverage and has encouraged both the Department of Housing and Urban Development (HUD) and local area jurisdictions to "fast-track" a solution to the failing facility but have been unsuccessful in getting support from these agencies.

HUD has recently decided to ask the Corp of Engineers to provide another assessment to validate the Housing Authority's assessment. Although HUD has agreed to pay for the study, they are currently negotiating the cost and scope of the study with the Corp of Engineers.

The Housing Authority cannot legally operate Rippling River without general liability coverage. The Board of Directors for the Housing Authority of the County of Monterey has therefore made a resolution to attempt to find replacement insurance for Rippling River. The Housing Authority has contacted a broker for insurance coverage and will be seeking additional vouchers from HUD for the current residents. Jim Nakashima, Executive Director of the Housing Authority of the County of Monterey stated, "If relocation is required, the leadership of the Housing Authority is committed to finding all assistance and all alternatives available for the Rippling River residents through existing programs available in our organization, as well as resources through other housing advocacy agencies."