AHA-2016/12/20ANAHEIM HOUSING AUTHORITY
REGULAR MEETING OF DECEMBER 20, 2016
The Anaheim Housing Authority regular meeting was called to order at 5:31 P.M. in City Council
Chambers located at 200 S. Anaheim Blvd. for a joint public comment session with the Anaheim
City Council. The meeting notice, agenda and related materials were duly posted on December
16, 2016.
PRESENT: Chairman Tom Tait and Authority Members: James Vanderbilt, Kris Murray, Denise
Barnes, Jose F. Moreno, Lucille Kring, and Stephen Faessel.
STAFF PRESENT: City Manager Paul Emery, Interim City Attorney Arturo Fierro and Secretary
Linda Andal.
ADDITIONS/DELETIONS TO THE AGENDA:
Secretary Linda Andal reported Joint Public Hearing Item No. 5 was withdrawn by staff and no
action was required by the Authority or City Council.
PUBLIC COMMENTS:
Lillian Forry expressed her desire to keep the surface parking lot adjacent to the senior center,
describing potential safety issues with the parking structures for senior drivers, and asked that
the proposed townhouses be built elsewhere.
Gail Strachen, Anaheim Senior Citizens Club president, spoke against the proposed condos
adjacent to the Senior Center, explaining the loss of the parking lot could cause their club to
lose income through loss of membership and lack of attendance at luncheons and dances due
to safety and distance factors related to the parking structures.
CONSENT CALENDAR: At 7:52 P.M., Authority Member Kring moved to approve the consent
calendar as presented, seconded by Authority Member Murray. APPROVED VOTE: 7-0.
Motion carried.
AHA177 1. Receive and file the Housing Successor Annual Report for FY 2015-16, authorize the
Anaheim Housing Authority's Executive Director, or his designee, to submit the report as
part of the City's annual report on the General Plan submitted to the State Department of
Housing and Community Development pursuant to Government Code Section 65400
and post the report on the City's website.
AHA177 2. Approve the Housing Authority minutes of August 9, 2016 and September 27, 2016.
END OF CONSENT CALENDAR
B137.1 3. RESOLUTION NO. AHA -2016-008 A RESOLUTION OF THE ANAHEIM
HOUSING AUTHORITY authorizing the issuance of its Multifamily Housing Revenue
Note ("Note") in an aggregate principal amount not to exceed $38,000,000 for the
purpose of financing the acquisition, rehabilitation and equipping of the Miracle Terrace
Senior Apartments Multifamily Rental Housing Project; approving and authorizing the
execution and delivery of any and all documents necessary to issue the Note, complete
Anaheim Housing Authority Minutes of December 20, 2016
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the transaction and implement this Resolution, and ratifying and approving any action
heretofore taking in connection with the Note.
John Woodhead, Community and Economic Development Executive Director, reported in
September 2016 the Anaheim Housing Authority (AHA) received a request from Miracle Terrace
Senior Community Partners to issue tax-exempt bonds to facilitate the acquisition, rehabilitation,
and equipping of a 179 -unit apartment complex at 225 S. Western Ave., known as Miracle
Terrace Senior Apartments. On October 25, 2016, AHA approved a resolution regarding its
intention to issue tax-exempt bonds in an amount not to exceed $38 million for the project. On
November 22, 2016, the Anaheim City Council conducted a TEFRA hearing approving the
issuance of the bonds by the AHA for the project. The item for consideration would authorize
the AHA to proceed and issue up to $38 million in a tax-exempt multi -family housing revenue
note and loan the proceeds of the note to the developer to finance the acquisition and
improvements for the project. Mr. Woodhead concluded the note would be privately placed with
a commitment by Citibank to purchase the note, and the note was to be repaid solely from
project revenues, accordingly there was no default risk to either AHA or City should the
developer fail to meet its repayment obligations.
DISCUSSION: Authority Member Faessel questioned if the $38 million note changed the City's
overall debt, with Mr. Woodhead explaining the City's only role was to conduct the TEFRA
hearing and the note was to be repaid only from revenues from the project.
MOTION: Authority Member Kring moved to approve Item No. 3, seconded by Authority
Member Murray. APPROVED VOTE: 7-0. Motion carried.
B137.1 4. RESOLUTION NO. AHA -2016-009 A RESOLUTION OF THE ANAHEIM HOUSING
AUTHORITY authorizing the issuance of its Multifamily Housing Revenue Note ("Note")
in an aggregate principal amount not to exceed $43,000,000 for the purpose of
financing the acquisition, rehabilitation and equipping of the Hermosa Village
Apartments Phase I Multifamily Rental Housing Project; approving and authorizing the
execution and delivery of any and all documents necessary to issue the Note, complete
the transaction and implement this Resolution, and ratifying and approving any action
heretofore taken in connection with the Note.
John Woodhead, Community and Economic Development Executive Director, reported this item
was on the rehabilitation of the first phase of the Jeffrey -Lynne neighborhood, first completed 15
years ago. As background, Mr. Woodhead explained on June 15, 1999, AHA approved the
Jeffrey -Lynne Neighborhood Revitalization Plan for the revitalization of the Jeffrey -Lynne
neighborhood, generally located at 1515 S. Calle del Mar. AHA subsequently entered into
phased affordable housing agreements with Related Companies of California to implement the
plan for the Jeffrey -Lynne neighborhood, now known as Hermosa Village, for the acquisition,
ground leasing, and substantial rehabilitation of properties within the neighborhood. Mr.
Woodhead continued that the Hermosa Village project consisted of Phases I, II, III, and IV with
a total of 517 affordable housing units, with Hermosa Village Apartments Phase I consisting of a
279 -unit multi -family rental development for which Hermosa Village Phase I Housing Partners
has requested the AHA issue tax-exempt bonds to finance the developer's acquisition and
rehabilitation of the project. On June 14, 2016, AHA approved a resolution of intent to issue tax-
exempt bonds not to exceed $43 million, followed by a TEFRA hearing by City Council on
August 9, 2016 approving the issuance of the bonds by AHA. Mr. Woodhead concluded his
presentation that this item would authorize the AHA to proceed and issue up to $43 million in a
tax-exempt multi -family revenue note, loan the proceeds of the note to the developer to finance
Anaheim Housing Authority Minutes of December 20, 2016
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the acquisition and improvements, said note would be privately placed with Citibank, and would
be repaid solely from project revenues, accordingly there was no default risk to either AHA or
the City should the developer fail to meet its repayment obligations.
DISCUSSION: Chairman Tait confirmed this action, as in the previous, the Authority was acting
as a financing conduit and would not create any City obligation or debt.
In response to Authority Member Moreno's question of who was obligated to pay upon any
default, Mr. Woodhead explained the project itself was responsible so if revenues were not
sufficient to meet obligations, project management staff could look to attempt to refinance their
way out of the debt obligations, but taxpayers were not responsible on any level.
MOTION: Authority Member Faessel moved to approve Item No. 4, seconded by Authority
Member Murray. APPROVED VOTE: 7-0. Motion carried.
At 8:00 P.M., the City Council was reconvened in joint session with the Anaheim Housing
Authority.
JOINT PUBLIC HEARING:
At the request of staff, the joint public hearing, Item No. 5, was withdrawn from the agenda. No
further action was taken by the Authority or Council.
4123 5. Joint public hearing of the Housing Authority and City Council to approve a Disposition
and Development Agreement, in substantial form, between the Authority and Brookfield
Anaheim Community Square, LLC for the sale and development of a housing project
(located to the east of the City Hall parking structure and the Community Center, and
bounded by Broadway to the south, Center Street to the north and Olive Street and the
alley to the east) and a Cooperation Agreement between the Housing Authority and the
City for the relocation of the current Broadway skate park with a new skate park located
adjacent to the Anaheim Cultural Arts Center, located on Lincoln Avenue (continued
from November 1, 2016, Item No. 02).
ADJOURNMENT:
There being no further business, Chairman Tait adjourned the meeting of the Anaheim Housing
Authority at 8:01 P.M.
Respectfully submitted,
A I
Linda N. Andal, CMC
Secretary, Anaheim Housing Authority