The Rancho Santa Fe Association, the nonprofit homeowners group that runs a historic golf course and other amenities in the exclusive covenant near Del Mar, has acknowledged it applied for and collected $1.5 million in federal COVID-19 relief funds it was not eligible to receive.
Association officials struck a deal with federal prosecutors that calls for repaying money from the government’s Paycheck Protection Program — and nearly $500,000 in fees and penalties.
No criminal violations were alleged, although charges could be filed still.
The settlement agreement, announced in a letter distributed to property owners in what’s called the Covenant late last month, closes a civil investigation that was opened by the U.S. Department of Justice earlier this year.
“The investigation has concluded and the DOJ has determined that the association was not eligible for the PPP loan,” the two-page notice says.
Board President Courtney LeBeau said the association initially opposed the government’s finding and insisted the tax-exempt entity was eligible for the relief money. But she said that after consulting lawyers and sizing up the cost of litigation, the board agreed to the settlement.
“The association’s decision to apply for the PPP loan was made in good faith and based on the professional advice and federal guidance available at the time,” LeBeau said. “More importantly, every dollar of the money can be accounted for.”
The loan application was submitted April 7, 2020, in the early...
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