Federal Funds Help to Buy Hotel for Seniors’ Housing

Helped by a last-minute release of federal funds, Mayor Maureen O’Connor’s twin sister, Mavourneen, announced Friday that she had collected the $3 million necessary to buy a downtown hotel so it can be rehabilitated and used for senior-citizen housing.

Mavourneen O’Connor, president of the San Diego Kind Corp., said her organization has raised $2.5 million in private donations in more than a month, but still lacked the remaining $500,000 necessary to close escrow by Sunday on the 144-room Sandford Hotel at 1323 5th Ave.

But that amount was provided late Friday by the U.S. Department of Housing and Urban Development, when it ruled that the organization could take $500,000 out of a $1-million reserve fund for the San Diego Square Senior Center, another of the organization’s housing projects, and use it to buy the Sandford.

Aided by Sen. Wilson

HUD approved use of the reserve funds for the Sandford purchase after U.S. Sen. Pete Wilson (R-Calif.) contacted the agency on O’Connor’s behalf, said Bob Hudson, a Wilson aide.

“In effect, HUD is giving permission for them to use their own money,” Hudson said.

O’Connor said she was happy about HUD’s decision, although it came at the last minute. She said she was leaving a hastily called outdoor press conference on Friday to close escrow on the Sandford.

“You don’t know how I’ve been sweating today,” O’Connor said.

For months, O’Connor has been trying to raise money so her organization can buy the Sandford for $3 million and rehabilitate it for $2 million.

She took her pitch to the San Diego City Council, hoping to get $870,000 in community development block grant funds to help renovate the structure--bring it up to earthquake standards, repair the fire sprinkler system, fix the elevators--after it is purchased. The final decision has yet to be made on that request, but the city manager’s office has recommended giving O’Connor’s group nothing.

Fund-Raising Program

On Sept. 30, O’Connor also kicked off a private fund-raising program to raise the $3 million to purchase the Sandford. Since then, she said, San Diego Kind Corp. has collected $2.5 million in donations.

O’Connor said Friday that slightly over $1 million of the amount came from out-of-town donors, and another $1 million came from a San Diego man, whom she declined to identify except to say he is 95 years old.

O’Connor also said Friday she expects to finance the $2-million renovation of the Sandford through a loan from a private lender. She said her organization will begin making plans next week to relocate the hotel’s current tenants, who will have first choice to move into the hotel when it is rehabilitated.

O’Connor said the mayor did not help her raise any of the money for the purchase of the Sandford.

“We have a self-imposed separation on this because of her position and mine,” she said.