Eureka’s Ward 2 (left) is currently represented by Kati Moulton. Kenny Carswell (right) aims to unseat her. | Images via City of Eureka/Carswell.
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Campaign finance disclosure forms recently reviewed by the Outpost reveal that Eureka City Council candidate Kenny Carswell obtained a loan from his employer, real estate servicing firm Security National Properties Holding Company, to buy his house in Ward 2.
According to a Statement of Economic Interests (Form 700) on file with the City of Eureka, Security National issued Carswell a short-term loan at a five percent interest rate. The form does not specify how much the loan was for, only that it was “over $100,000.”
Screenshot of the “loans received” section of Form 700.
If that interest rate seems low, that’s because it is. While rates vary from lender to lender, short-term (15-year) loans typically have lower interest rates and higher monthly payments compared to long-term (30-year) loans, according to the Consumer Financial Protection Bureau. When Carswell closed escrow on his house at the end of July, the average 30-year fixed mortgage rate was 6.85 percent.
Reached for comment, Carswell confirmed that the loan was for a 12-month term, though he did not specify how much the loan was for.
“I am grateful to have an employer who supports its employees,” Carswell wrote in an emailed response to the Outpost’s inquiry. “This is a short-term secured loan to bridge the time between purchasing my current residence and selling my previous home. I am also grateful to have built a solid financial record to support this loan.”
Carswell’s critics have expressed concern over his close ties to his employer, Security National Founder and President Rob Arkley, and whether that relationship would influence his decision-making if elected to the city council.
Security National has dumped upwards of $1.5 million into the “Yes on F” campaign, a ballot measure that, if approved, would block the City of Eureka’s plans to convert downtown parking lots into low- and moderate-income apartments.
In a sit-down interview with the Outpost earlier this week, Carswell expressed his support for Measure F but said he has had nothing to do with the “Yes on F” campaign. He also disputed the assertion that he would use a position on the city council to further Security National’s interests.
“[I]t would be a conflict of interest for me to do so,” Carswell said. “Anything that’s going to be voted on that has anything to do with SN I would have to recuse myself from and would do so willingly. … That’s my employer. I definitely have learned a skillset working there that will help me in this role and dealing with problem-solving, but I don’t feel any obligation beyond that.”
To read more on Measure F, including the official arguments for and against as well as the Eureka city attorney’s impartial analysis, click here. Keep scrolling for previous reporting on Carswell’s campaign.
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