AHA-2019/07/30ANAHEIM HOUSING AUTHORITY
REGULAR MEETING OF JULY 30, 2019
The Anaheim Housing Authority regular meeting was called to order at 5:23 P.M. in the City
Council Chamber 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
July 5, 2019.
PRESENT: Chairman Harry Sidhu and Authority Members Lucille Kring, Denise
Barnes, Jordan Brandman, Jose F. Moreno, Stephen Faessel, and Trevor
O'Neil.
STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and Secretary
Theresa Bass
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS:
Paul Hyek expressed his support for Item No. 02 and recommended letting the homeless help
renovate the hotel. He expressed his concern regarding receiving Section 8 vouchers because
the homeless do not have permanent addresses.
Mark Richard Daniels expressed support for Item Nos. 01, 02, 03, and 24, encouraged City
Council to support the items, and noted this would only be the start of addressing
homelessness.
Jodie Mosley supported Item No. 32 for West Anaheim and District 1 and encouraged the City
to start quickly. She expressed her concern regarding Item No. 02 and encouraged the City
Council to review the item as West Anaheim had previously experienced problems with hotel
conversions.
Jeanine Robbins expressed her support for Item No. 02 and encouraged City Council to pass
the item to create permanent supportive housing. She addressed the need for rent control and
encouraged Council to review their votes.
David Klawe expressed his support for Items No. 02, 03, 24 and Item No. 30 and encouraged
City Council to pass the items. He expressed his support for Item No. 06 but expressed
concerns about the delays on Beach Blvd. He also supported Item No. 32 to get things moving
in West Anaheim. He offered condolences to Mayor Sidhu and Council Member Barnes and
wished Council Member Faessel a happy birthday.
Prior to addressing the agenda, Chairman Sidhu clarified his role as chair of the meeting, the
informal practice of limiting discussion on each item to two rounds of five minutes each, and
requested colleagues wait until the second round of discussion to request more time if needed
for specific items.
Authority Member Moreno requested a point of clarification regarding the adopted procedures
and rules regarding limiting or extending limits of debate.
Anaheim Housing Authority Minutes of July 30, 2019
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City Attorney Robert Fabela addressed the written procedures and rules, as well as inherent
powers granted to the chair of the meeting, and interpreted the referenced motion to limit or
extend limits of debate as specific to agenda item discussions; with further follow-up in memo
form.
CONSENT CALENDAR: At 6:13 P.M., the consent calendar was considered with Authority
Member Moreno pulling Item No. 01 for separate discussion.
MOTION: Authority Member Kring moved to approve the remaining item on the consent
calendar as presented, seconded by Authority Member Brandman. ROLLCALL VOTE: AYES —
7 (Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel, and
O'Neil). NOES — 0. Motion carried.
2. RESOLUTION NO. AHA -2019-004 A RESOLUTION OF THE GOVERNING
BOARD OF THE ANAHEIM HOUSING AUTHORITY approving 1.) a Cooperation
Agreement for the Econo Lodge Apartments, by and between the City of Anaheim and
AGR- 11641 the Anaheim Housing Authority, substantially in the form attached herewith; 11.) a
AGR- 11641.1 Preliminary Funding Award Letter, substantially in the form attached herewith between
the Anaheim Housing Authority and Jamboree Housing Corporation; II1.) authorizing the
Executive Director of the Anaheim Housing Authority, or his designee, to negotiate the
terms of and finalize an Affordable Housing Agreement; IV.) authorizing the Executive
Director of the Anaheim Housing Authority, or his designee, to execute and administer
the Cooperation Agreement and Preliminary Funding Award Letter on behalf of the
Anaheim Housing Authority with the City; V.) authorizing the Executive Director of the
Anaheim Housing Authority, to enter into subsequent agreements necessary to
implement the project, provided that such agreements do not materially increase or
extend the assistance provided by the Anaheim Housing Authority under the
Cooperation Agreement or Preliminary Funding Award Letter (rehabilitation and
conversion of the Econo Lodge Motel located at 2691 W. La Palma Avenue to a
Permanent Supportive Housing apartment community; related to Council Item No. 24).
END OF CONSENT:
1. RESOLUTION NO. AHA -2019-003 A RESOLUTION OF THE ANAHEIM
HOUSING AUTHORITY approving the delayed exchange of certain real property with
AGR- 11640 the City of Anaheim; authorizing the Executive Director to execute and administer any
necessary documents to implement the exchange; and making certain other findings in
connection therewith (1213 and 1227 South Claudina Street; related to Council Item No.
23).
Community & Economic Development Director John Woodhead presented the item advising
that on June 18, 2019, the Governing Board of the Housing Authority approved the acquisition
of 1213 and 1227 South Claudina Street, totaling 2.48 acres for $7.25 million -plus associated
relocation costs. He advised the site was strategically located adjacent to an 8.8 -acre site
previously assembled by the former Redevelopment Agency and now owned by the City
following the dissolution of redevelopment agencies.
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Mr. Woodhead reported a retail center was originally envisioned for the city site; however, given
the changing landscape of retail market conditions, the City has determined a traditional
commercial center was no longer economically viable at this location.
Mr. Woodhead stated that the Anaheim Transportation Network (ATN) identified a need for an
enhanced and modernized facility for its new electric bus fleet. He advised that ATN currently
operated adjacent to 1345 S. Anaheim Blvd; however, the property does not meet its future size
and operational needs. He noted that to maximize the development potential of the Anaheim
Boulevard property, it was proposed that ATN relocate its operations to the Claudina properties
which necessitated the proposed property exchange between the City and the Authority.
Mr. Woodhead advised that under the terms of the proposed Exchange Agreement, the City will
take ownership of the Claudina Properties and will be obligated to provide an equivalently
valued property within the City, and/or cash, to the Housing Authority, the exact location of
which will be determined once more specific development plans were identified. The
conveyance of the Claudina Properties to ATN will be addressed in a separate agreement for
City Council consideration.
Mr. Woodhead, in an abundance of caution and in accordance with Government Code
§1091.5(a)(7), disclosed that while elected by the ATN membership in his capacity as president
of the Downtown Anaheim Association as a non -salaried member of the ATN Board on
November 2018, he never attended any meetings nor served in any capacity on the board, and
was likely removed in accordance with the ATN by-laws.
DISCUSSION: Authority Member Moreno asked City Manager Chris Zapata to review policies
that allow entities that receive resources, grants, or funds from the City and also allow a
member from the City of Anaheim to be on their board or committee.
In response to Council Member Moreno's inquiry, Mr. Woodhead advised that a particular site
was not identified because a site survey was not completed for the entire site. He advised that
a site would be identified, along with an appraisal, and would be presented to City Council for
review.
MOTION: Authority Member Kring moved to approve RESOLUTION NO. AHA -2019-003 A
RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving the delayed exchange of
certain real property with the City of Anaheim; authorizing the Executive Director to execute and
administer any necessary documents to implement the exchange; and making certain other
findings in connection therewith, seconded by Authority Member O'Neil. ROLL CALL VOTE:
AYES — 7 (Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel,
and O'Neil). NOES — 0. Motion carried.
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3. RESOLUTION NO. AHA -2019-005 A RESOLUTION OF THE ANAHEIM HOUSING
AUTHORITY regarding its intention to issue tax-exempt obligations for Econo Lodge
B130 Apartments (2691 West La Palma Avenue; bond issuance will be in an amount not to
exceed $15,000,000).
Community & Economic Development Director John Woodhead presented the item advising
that the Anaheim Housing Authority received a request by JHC-Acquisitions LLC, a California
limited liability company, to issue housing bonds on behalf of the developer to finance the
acquisition, rehabilitation, and conversion of a 70 -unit motel to a Permanent Supportive Housing
(PSH) apartment community generally known as Econo Lodge Apartments, located at 2691 W.
La Palma Avenue.
Mr. Woodhead stated the proposed bond issuance would be in an amount not to exceed
$15,000,000. He advised the bonds were to be repaid from project revenues. Accordingly,
there was no risk of default to the City or Housing Authority and, subject to the Authority's
approval, staff would work with the developer to issue bonds within the next 18 months. The
final bond documents will be brought before the Housing Authority for consideration, prior to
issuance.
Mr. Woodhead advised the developer was also requesting a HOME and/or Housing Asset fund
loan from the City/Housing Authority in the amount of $1,600,000 and an allocation of 49
Section 8 Project -Based Vouchers (PBV) for the project as part of the overall funding for this
development. He advised that staff supported the project and was recommending the
Governing Board of the Housing Authority approve and authorize a Preliminary Funding Award
Letter, outlining the terms and conditions of the Housing Authority's provision of assistance to
the developer related to the project.
Mr. Woodhead reported the developer would also be applying for County of Orange Mental
Health Services Act capital funding and Veterans Affairs Supportive Housing Vouchers from the
Orange County Housing Authority. The developer was also pursuing private foundation funding
from the Orange County Housing Trust fund and 4% tax credits financing from the Tax Credit
Allocation.
DISCUSSION: In response to Council Member Moreno's inquiry, Mr. Woodhead advised there
was no recourse against the City or the Housing Authority if the developer were to default on
bonds.
MOTION: Authority Member Kring moved to approve RESOLUTION NO. AHA -2019-005 A
RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-
exempt obligations for Econo Lodge Apartments, seconded by Authority Member Faessel.
ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Kring, Barnes,
Brandman, Moreno, Faessel, and O'Neil). NOES — 0. Motion carried.
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ADJOURNMENT:
With no further business to conduct, Chairman Sidhu adjourned the meeting of the Anaheim
Housing Authority at 6:36 P.M.
Resbmitted,
eresa Ba s, CMC
Secretary, Anaheim Housing Authority