LAKE COUNTY – In the wake of the arrest of one of its board members on charges that include embezzlement, a nonprofit group won't go to the Board of Supervisors to seek an increased county loan. At the same time, the county is asking for an accounting of how a previous loan was used.

Ukiah-based Rural Communities Housing Development Corp. was scheduled to appear at the Board of Supervisors on Tuesday to request an amendment to its agreement with the county to build a 50-unit affordable housing project at 6853 Collier Ave. in Nice, as Lake County News has reported.

The group, which according to county documents has received $250,000 in loans from the county over the last three years for the project, also was seeking to have its loan from the county redevelopment agency increased by $750,000.

However, a report to the board from county Chief Deputy Administrative Officer Matt Perry explained that staff was requesting the items be pulled from the agenda for several reasons, among them the arrest last week of Rowland Mosser, a board member for the nonprofit, as well as the former executive director of the Lucerne Senior Center.

Mosser, 63, and his wife Jayne, 60, are charged in connection with a felony embezzlement. The District Attorney's Office alleges in its complaint against the couple that they took funds from the center between January and April of 2005.

Center officials have stated they believe more than $200,000 disappeared, although the District Attorney's Office has not stipulated a precise amount in its complaint against Mosser, who served as the center's executive director from 2002 to 2005.

Beginning in 2004, Rowland Mosser was listed as a Rural Communities Housing Development Corp. board member, according to the nonprofit's Form 990 tax documents. Board members receive no compensation.

According to the group's 2005 tax records, which were the most recent Lake County News could obtain Monday, it had total net assets and liabilities totaling $21.3 million.

A call to the nonprofit's office placed last week to inquire about Mosser's status on the board was not returned, but Perry's report stated that Mosser had recently resigned from the board.

Other Lake County members include board chair Andy Peterson, former Lake County Redevelopment deputy director, and Catherine Elias-Jermany.

The nonprofit housing group, according to its Web site, manages several projects in Lake County, including Sunshine Manor and Lakeview Apartments in Lakeport, Highlands Village in Clearlake and North Shore Villas in Lucerne, all of which are senior housing and amount to 138 units. It also offers a homeownership education and self-help housing programs. It also built a farmworker housing project in Kelseyville.

Perry reported to the board four reasons for the item being withdrawn from the Tuesday agenda, including Rural Communities Housing Development Corp.'s recent conclusion that they would not be able to apply this year for state grant funds to help finance the housing project.

Another reason cited by Perry was that the group's executive director is retiring this month and a delay will provide an opportunity for county staff and officials to be become acquainted with his successor.

Rural Communities Housing Development Corp. has reported earlier this month that longtime executive director, Duane Hill, had announced on April 2 his intention to retire after 32 years as the group's executive director. Bruce Alfano is succeeding him.

However, the remaining two reasons cited in requesting the delay had to do with Mosser, whom Perry did not specifically name.

“Although we have been advised that RCHDC has financial controls in place to prevent a single board member from financial mismanagement, there may be concerns about RCHDC's financial management given the recent legal action against a former RCHDC board member,” Perry wrote.

Although Mosser has reportedly resigned, he is still listed on the Rural Communities Housing Development Corp. Web site, where he was reported to be the nonprofit's board treasurer.

Another reason for requesting the delay, said Perry, was to give the staff time to receive and review an accounting from Rural Communities Housing Development Corp. relating to the $250,000 which the county loaned it over the past three years.

Perry said county staff doesn't suspect any wrongdoing or mismanagement of these funds, but still wants to see how the previously loaned money has been used.

His report stated that he asked the nonprofit for the information last week.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it..

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