RES-2019-092 RESOLUTION NO. 201 9-092
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
APPROVING: I.) A COOPERATION AGREEMENT WITH THE ANAHEIM
HOUSING AUTHORITY SUBSTANTIALLY IN THE FORM SUBMITTED
HEREWITH, AUTHORIZING THE TRANSFER OF HOME FUNDS IN
CONNECTION THEREWITH; II.) GRANTING CONSENT TO THE ORANGE
COUNTY HOUSING AUTHORITY TO ADMINISTER TWENTY VETERANS
AFFAIRS SUPPORTIVE HOUSING VOUCHERS IN THE CITY OF ANAHEIM;
III.) AND AUTHORIZING THE DIRECTOR OF COMMUNITY AND
ECONOMIC DEVELOPMENT, OR HIS DESIGNEE, TO EXECUTE,
ADMINISTER AND IMPLEMENT THE AGREEMENTS ON BEHALF OF THE
CITY
WHEREAS,the Anaheim Housing Authority("Authority")is a California housing authority
duly organized and existing under the California Housing Authorities Law, Part 2 of Division 24,
Section 34200, et seq., of the Health and Safety Code ("HAL"), and has been authorized to transact
business and exercise the power of a California housing authority pursuant to action of the City
Council("City Council")of the City of Anaheim;and
WHEREAS,the City of Anaheim ("City") is a California municipal corporation and charter
city;and
WHEREAS, the City is a participating jurisdiction with the United States Department of
Housing and Urban Development ("HUD") that has received funds ("HOME Funds") from HUD
pursuant to Title II of the Cranston Gonzalez National Affordable Housing Act (42 U.S.C. 12701
12839) and the HOME Program regulations codified at 24 CFR Part 92, as amended by the "2013
HOME Final Rule" at 24 CFR Part 92 (Complete Rule) http://www.ecfr.gov/cgi-bin/text-
idx?tp1=/ecfrbrowse/Title24/24cfr92 main 02.tpl(together,"HOME Program");and
WHEREAS, HOME Program has, among its purposes, the strengthening of public-private
partnerships to provide more affordable housing, and particularly to provide decent, safe, sanitary,
and affordable housing, with primary attention to housing for very low income and lower income
households in accordance with the HOME Program; and
WHEREAS, the HOME Program funds are used by the Authority, as a participating
jurisdiction, to carry out multi-year housing strategies through acquisition, rehabilitation, and new
construction of housing for target income persons and families; and
WHEREAS, Jamboree Housing Corporation ("JHC") and its wholly-owned subsidiary,
JHC-Acquisitions LLC, a California limited liability company, ("Developer") have informed
Authority and City that JHC and the Developer have entered into a "Site Purchase Agreement" to
acquire that certain 1.001-acre parcel of real property located at 2691 West La Palma Avenue,
Anaheim, California (the "Site") for a permanent supportive housing project; the Site is currently
improved with and operated by Operator as a 70-room motel that is commonly referred to as the
"Econo Lodge Motel"or the"Econolodge Motel";and
WHEREAS, JHC and Developer have further informed Authority and City that it is the
intention of JHC and Developer that upon acquiring the Site, JHC and Developer will convert and
rehabilitate the existing improvements at the Site for use as an affordable rental housing project
subject to long term affordability covenants(as referred to herein,the"Project");and
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WHEREAS, Authority has requested that City enter into the agreement with Authority as
submitted herewith entitled "Cooperation Agreement (Econolodge Apartments)" (the "Cooperation
Agreement"). By the Cooperation Agreement, City would transfer certain moneys as set forth
therein to be applied by Authority as provided under the Cooperation Agreement. City
acknowledges that various aspects of a transaction between Authority on the one hand and JHC and
the Developer on the other hand have not been finalized. Nevertheless, City desires to enter into the
Cooperation Agreement and provide for the transfer of moneys at this time;and
WHEREAS, City and Authority will execute a Cooperation Agreement pursuant to which
City agreed to contribute HOME Funds to the Project; such Cooperation Agreement remains in full
force and effect and shall apply to the Project as described herein;and
WHEREAS, California Health and Safety Code Section 34209 allows the Orange County
Housing Authority to allocate and administer Veterans Affairs Supportive Housing (VASH)
Vouchers in the City of Anaheim with the consent of the City Council of Anaheim; and
WHEREAS,the Project is vital to and in the best interest of City and the health, safety and
welfare of its residents, and is in accordance with the public purposes of applicable state and local
laws
WHEREAS, City Council has duly considered all terms and conditions of the proposed
Cooperation Agreement and believes that the execution of the Cooperation Agreement and transfer
of moneys to Authority as provided thereunder is in the best interests of City and the health, safety,
and welfare of its residents,and in accord with the public purposes and provisions of applicable state
and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ANAHEIM:
Section 1. The City Council finds and determines that the foregoing recitals are true and
correct and are a substantive part of this Resolution.
Section 2. The City Council hereby grants consent to the Orange County Housing
Authority to administer Veterans Affairs Supportive Housing Vouchers in the City of Anaheim.
Section 3. The City Council hereby approves the Cooperation Agreement and authorizes
the Director of Community and Economic Development to execute, administer, and implement the
Cooperation Agreement substantially in the form submitted herewith on behalf of City.
Section 3. The City Clerk shall certify to the adoption of this Resolution.
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THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS THIRTIETH (30"') DAY OF
JULY,2019,BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Sidhu and Council Members Kring, Barnes,
Brandman, Moreno, Faessel, and O'Neil
NOES: None
ABSTAIN: None
ABSENT: None
CITY OF •1 EIM
By: AAli. AI
1 ' ' a or
ATTES • V
City Clerk
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ATTACHMENT TO RESOLUTION
ATTACH COPY OF AGREEMENT
ATTACHMENT TO RESOLUTION
Page I of I
COOPERATION AGREEMENT
(Econo Lodge Apartments)
This COOPERATION AGREEMENT (Econo Lodge Apartments Project) (this
"Agreement"), dated for identification purposes only as of July 1, 2019 (the "Date of this
Agreement"), is entered into by and between the CITY OF ANAHEIM, a municipal corporation
and charter city (the "City"), and the ANAHEIM HOUSING AUTHORITY, a public body,
corporate and politic and legal entity(the"Authority").
RECITALS
A. As of the Date of this Agreement, JHC-Acquisitions, LLC, (the "Developer") has
entered into a purchase and sale agreement for several parcels of real property commonly known as
2691 West La Palma Avenue in the City and consisting of several commercial,residential and vacant
properties (the "Site). The Site is depicted on the Map which is attached hereto as Exhibit A and
incorporated herein by reference.
B. The Developer is endeavoring to convert and rehabilitate a 70-unit motel to a 69-unit,
plus one manager's unit permanent supportive housing project providing affordable housing to
extremely low income households(the"Project"). To this end,Developer will be submitting funding
applications for Low Income Housing Tax Credit funding from the California Tax Credit Allocation
Committee(TCAC) and State Mental Health Services Act Program funds (MHSA) from the County
of Orange (administered by the California Housing Finance Agency). Developer will also seek
funding for the Project from other private lenders and investors.
C. Pursuant to contract with HUD, the City has received and administers certain funds
pursuant to the HOME Investments Partnership Act and Home Investment Partnership Program
("HOME Funds")pursuant to Title II of the Cranston Gonzalez National Affordable Housing Act(42
U.S.C. 12701 12839) and the HOME Program regulations codified at 24 CFR Part 92, as amended
by the "2013 HOME Final Rule" at 24 CFR Part 92 (Complete Rule) http://www.ecfr.gov/cgi-
bin/text-idx?tp1=/ecfrbrowse/Title24/24cfr92 main 02.tpl (together, the "HOME Program").
Among the purposes of the HOME Program is to expand the supply of decent, safe, sanitary and
affordable housing, with primary attention to rental housing for very low income and low income
persons and families.
D. The Authority administers project-based rental assistance subsidies pursuant to the
Project Based Voucher Law, 42 U.S.C. 1437f(o)(13), and the federal regulations promulgated
thereunder set forth at 24 CFR Part 983 (collectively,the"Section 8 Program").
E. The Developer has requested assistance in the form of a loan of$1,600,000 from the
City's HOME Funds ("HOME Loan") and 49 project-based Section 8 vouchers ("PBV Assistance")
to be provided by the Authority pursuant to the Section 8 Program.
F. The Authority and the City (each, a "Party" and together, the "Parties") desire to
assist with the Project. To this end, the City desires to make up to $1,600,000 of HOME Funds
available to the Authority to enable the Authority to enter into an Affordable Housing Agreement and
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DOCSOC/1668689v3/022620-0042
HOME Investment Partnership Agreement with the Developer(the"AHA"). The AHA will set forth
the specific terms and conditions under which the Authority will make the HOME Loan and provide
the PBV Assistance to the Developer for the Project.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS CONTAINED HEREIN, THE PARTIES
AGREE AS FOLLOWS:
SECTION 1. TRANSFER OF FUNDS BY CITY TO AUTHORITY.
City agrees to transfer to Authority up to One Million Six Hundred Thousand Dollars
($1,600,000)of HOME Funds("Project Funds")held by the City to enable the Authority to make the
HOME Loan to the Developer for the Project. Subject to approval by the Authority's governing
board of the terms of the AHA and execution thereof by the Authority and Developer,City will make
the Project Funds available to the Authority for the Project. Authority shall not disburse the Project
Funds to the Developer until the Authority has confirmed that the Developer has satisfied all of the
conditions precedent to the disbursement of the HOME Loan pursuant to AHA; provided that the
Authority Executive Director may waive, defer or modify such conditions precedent in accordance
with the authority granted by the Authority's governing board.
The Authority covenants and agrees to use the Project Funds (i)in strict conformance with
Title II of the Cranston-Gonzalez National Affordable Housing Act(42 U.S.C. 12701-12839)and the
HOME Program Regulations codified at 24 CFR Part 92, as amended by the 2013 HOME Final
Rule, and (ii)to implement the AHA in order to expand the supply of decent, safe, sanitary and
affordable housing for very low income and low income persons and families.
This Agreement does not constitute a"commitment"of HOME Funds,as the term
"commitment"is defined in 24 CFR 92.2.
SECTION 2. LIABILITY AND INDEMNIFICATION.
In contemplation of the provision of Section 895.2 of the California Government Code
imposing certain tort liability jointly upon public entities solely by reason of such entities being
parties to an agreement as defined by Section 895.4 and 895.6 of such Code, each of the Parties, as
between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of such
Code,will each assume the full liability imposed on it,or any of its officers, agents, or employees by
law for injury caused by negligent or wrongful act or omission occurring in the performance of this
Agreement to the same extent that such liability would be imposed in the absence of Section 895.2 of
such Code.
To achieve the above-stated purposes, each Party indemnifies and holds harmless the other
Party for any loss, costs or expense that may be imposed upon such other Party solely by virtue of
such Section 895.2. The provisions of Section 2778 of the California Civil Code are made part
hereof as if fully set forth herein.
SECTION 3. EFFECTIVE DATE
This Agreement shall take effect from and after the date of approval hereof by the Authority
Board and the City Council.
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DOCSOC/1668689v3/022620-0042
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT
AS OF THE RESPECTIVE DATES SET FORTH BELOW.
"CITY"
CITY OF ANAHEIM
a municipal corporation and charter city
Dated: ,2014 By:
John E.Woodhead N
Community Development Director
ATTEST:
THERESA BASS,CITY CLERK
City Clerk
APPROVED AS TO FORM:
ROBERT FABELA,CITY ATTORNEY
Leonie Mulvihill
Deputy City Attorney IV
'Signature block for Cooperation Agreement continued on next page]
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DOCSOC/1668689v3/022620-0042
[Signature block for Cooperation Agreement continued from previous page]
AUTHORITY:
HOUSING AUTHORITY SECRETARY,
a public body, corporate and politic
Dated: , 2014 By:
John E. Woodhead IV
Executive Director
ATTEST:
THERESA BASS, HOUSING AUTHORITY SECRETARY
Authority Secretary
APPROVED AS TO FORM:
ROBERT FABELA,CITY ATTORNEY
Leonie Mulvihill
Deputy City Attorney IV
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DOCSOC/1668689v3/022620-0042
EXIT A
MAP OF PROJECT SITE
[To be inserted]
A-1
DOCSOC/1668689v3/022620-0042
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CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM
I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Resolution No. 2019-092 adopted at a regular meeting provided by law, of the Anaheim
City Council held on the 30th day of July, 2019 by the following vote of the members thereof:
AYES: Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel,
and O'Neil
NOES: None
ABSTAIN: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of July, 2019.
CITY CLERK 0 THE CITY OF ANAHEIM
(SEAL)