AHA-2016/06/14ANAHEIM HOUSING AUTHORITY
REGULAR MEETING OF JUNE 14, 2016
TELECONFERENCE NOTICE
Pursuant to Government Code Section 54953, Subdivision (b), the 5:00 P.M. regular meeting of
the City Council and Housing Authority, and thereafter, will include teleconference participation
by Council Member Vanderbilt from: 238 California Avenue, Fort Hunter Liggett, CA 93928.
This Notice and Agenda will be posted at the teleconference location. Public comment on the
agenda from this address shall be allowed pursuant to Government Code Section 54954.3.The
Anaheim Housing Authority regular meeting was called to order at 5:24 P.M. for a joint public
session with the Anaheim City Council. The meeting notice, agenda and related materials were
duly posted on June 10, 2016, including posting at the teleconference location.
PRESENT: Vice Chair Lucille Kring and Authority Members: Jordan Brandman, Kris Murray
and James Vanderbilt (joining via teleconference).
ABSENT: Mayor Tait.
STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier and
Secretary Linda Andal.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No public comments made during the joint City Council/Housing
Authority meeting related to the Housing Authority agenda.
CONSENT CALENDAR: At 6:33 P.M., the consent calendar was approved as presented with
Authority Member Murray moving to approve, seconded by Authority Member Brandman.
VOICE ROLL CALL VOTE: AYES — 4: (Vice Chair Kring and Authority Members: Brandman,
Murray and Vanderbilt). ABSENT — 1: (Chairman Tait). Motion Carried.
AHA177 1. Approve minutes of Housing Authority meeting of April 12, 2016
END OF CONSENT CALENDAR:
2. RESOLUTION NO. AHA 2016-002 A RESOLUTION OF THE ANAHEIM
B130 HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for
Cobblestone Apartments (64 -unit multifamily rental housing development; 870 South
Beach Boulevard).
MOTION: Authority Member Murray moved to approve RESOLUTION NO. AHA 2016-002, of
the Anaheim Housing Authority regarding its intention to issue tax-exempt obligations for
Cobblestone Apartments (64 -unit multifamily rental housing development; 870 South Beach
Boulevard), seconded by Vice Chair Kring.
VOICE ROLL CALL VOTE: AYES — 4: (Vice Chair Kring and Authority Members: Brandman,
Murray and Vanderbilt). ABSENT — 1: (Chairman Tait). Motion Carried.
Anaheim Housing Authority Minutes of June 14, 2016
Page 2
3. RESOLUTION NO. AHA 2016-003 A RESOLUTION OF THE ANAHEIM
B130 HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for Sea
Wind Apartments (91 -unit multifamily rental housing development; 1925 West Greenleaf
Avenue).
MOTION: Authority Member Brandman moved to approve RESOLUTION NO. AHA 2016-003
of the Anaheim Housing Authority regarding its intention to issue tax-exempt obligations for Sea
Wind Apartments (91 -unit multifamily rental housing development; 1925 West Greenleaf
Avenue), seconded by Authority Member Murray.
VOICE ROLL CALL VOTE: AYES — 4: (Vice Chair Kring and Authority Members: Brandman,
Murray and Vanderbilt). ABSENT —1: (Chairman Tait). Motion Carried
4. RESOLUTION NO. AHA 2016-004 A RESOLUTION OF THE ANAHEIM
8130 HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for
Hermosa Village Apartments Phase I (297 -unit multifamily rental development; 1515 S.
Calle Del Mar).
MOTION: Authority Member Brandman moved to approve RESOLUTION NO. AHA 2016-004
of the Anaheim Housing Authority regarding its intention to issue tax-exempt obligations for
Hermosa Village Apartments Phase 1(297 -unit multifamily rental development; 1515 S. Calle
Del Mar), seconded by Authority Member Murray.
VOICE ROLL CALL VOTE: AYES — 4: (Vice Chair Kring and Authority Members: Brandman,
Murray and Vanderbilt). ABSENT — 1: (Chairman Tait). Motion Carried
PUBLIC HEARING 6:35 P.M.
5. This is a public hearing to consider a resolution related to property located at 1515 S.
Calle Del Mar proposed to be conveyed by a long term ground lease by the Anaheim
Housing Authority to Hermosa Village Phase I Housing Partners, L.P., under an
amended and restated ground lease on terms and conditions to be specified in a
Commitment Letter.
RESOLUTION NO. AHA 2016-005 A RESOLUTION OF THE ANAHEIM
HOUSING AUTHORITY approving that certain Commitment Letter from the Authority to
Hermosa Village Phase I Housing Partners, L.P., in the form attached to this resolution
AHA177 for that certain 297 -unit Hermosa Village Phase I new project; authorizing the Executive
Director to sign the Commitment Letter; authorizing the Executive Director to negotiate
and enter into the new project documents described in the Commitment Letter that
implement such Commitment Letter; authorizing the Executive Director to implement the
Commitment Letter and the new project documents; finding and determining the new
project is categorically exempt under CEQA; and, making certain other findings in
connection therewith.
Anaheim Housing Authority Minutes of June 14, 2016
Page 3
The public hearing was considered at 6:35 P.M., with John Woodhead, Community
Development Director, presenting the item explaining as it addressed the disposition of city
property, a public hearing was required.
BACKGROUND: On June 15, 1999, the Housing Authority approved the Jeffrey -Lynne
neighborhood revitalization plan for this Level IV Priority Neighborhood due to overcrowding,
code violations, deferred maintenance, deteriorating buildings and gang violence. The Authority
then entered into phased affordable housing agreements with The Related Companies of
California to implement the plan for the Jeffrey Lynne neighborhood that was also known as the
Hermosa Village apartments, for the acquisition, ground leasing and substantial rehabilitation of
properties within that community and also approved funding in the amount of $12,400,000 to
help implement the revitalization efforts including 98 Section 8 Project Based Vouchers. That
funding was identified in the loan to be repaid from residual receipts from each phase of the
project. Mr. Woodhead pointed out Hermosa Village Phase I consisted of 295 low and very low
income units, and that the Authority then entered into Phases 2, 3 and 4 with the developer
increasing the total number of affordable units in the complex to 517 units.
He indicated that in March of this year, the Authority received a request from the developer to
assist with the refinancing and re -syndication of the Hermosa Village Phase I project, with
proceeds from the refinancing to be used for the following: conducting acquisitions, extension
of existing ground leases, substantially rehabbing aging units, enhancing operations and
supportive services, ensuring long term maintenance and management of the project and to pay
off, in part, the Authority loan. In return, the Authority would commit to extending the
affordability reflected in the ground leases to December 31 of 2072, amend and extend the term
of the Authority loan to that same date, and extend the project based contract for 15 years after
reducing the number of project -based vouchers from 98 to 50. He pointed out the developer
would be applying for four percent tax credits through the California Tax Credit Allocation
Committee in the approximate amount of $19.6 million and a multifamily revenue bonds
allocation thru the California Debt Limit Allocation committee, in an amount not to exceed $43
million. In addition, the developer requested the Authority loan be replaced with a new loan in
the amount of $9.7 million.
In the original Hermosa Village Phase I project, Mr. Woodhead indicated the Authority had
entered into ground leases, loans and option agreements with existing third party property
owners within the plan area for seven apartment complexes and as part of the new project, the
developer would enter into agreements with these property owners to extend the maturity date
of those leases, loans and agreements. He pointed out that by approving Agenda Item 4
earlier, the Authority adopted an inducement resolution establishing its intention to consider the
issuance of bonds for the new projects and that the required public hearing for the bond
issuance would then be placed on City Council's August 9'h meeting. He added if the developer
received a tax credit award and bond allocation, the Authority would enter into various
implementing documents with the developer consistent with the attached commitment letter and
any material changes in the terms and conditions as outlined in the commitment letter would
require subsequent review and approval by the Governing Board.
Vice Chair Kring opened the public hearing for comments.
William Fitzgerald opposed the item, alleging it was a method of funding low cost housing for
Disney workers and directly benefitted the Disney Corporation and a billionaire developer who
received taxpayer subsidies for this project.
Anaheim Housing Authority Minutes of June 14, 2016
Page 4
No public comments were offered from the Teleconference site.
MOTION: Authority Member Brandman moved to approve RESOLUTION NO. AHA 2016-005,
of the Anaheim Housing Authority approving that certain Commitment Letter from the Authority
to Hermosa Village Phase I Housing Partners, L.P., in the form attached to this resolution for
that certain 297 -unit Hermosa Village Phase I new project; authorizing the Executive Director to
sign the Commitment Letter; authorizing the Executive Director to negotiate and enter into the
new project documents described in the Commitment Letter that implement such Commitment
Letter; authorizing the Executive Director to implement the Commitment Letter and the new
project documents; finding and determining the new project is categorically exempt under
CEQA; and, making certain other findings in connection therewith, seconded by Authority
Member Murray.
VOICE ROLL CALL VOTE: AYES — 4: (Vice Chair Kring and Authority Members: Brandman,
Murray and Vanderbilt). NOES — 0. ABSENCE — 1: (Chairman Tait). Motion Carried.
ADJOURNMENT:
There being no further business, Vice Chair Kring adjourned the meeting of the Anaheim
Housing Authority at 6:45 P.M.
P:a�o
Linda N. Andal, CMC
Secretary, Anaheim Housing Authority