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AHA-2009/05/26 ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF MAY 26, 2009 The Anaheim Housing Authority met in regular session in the City Council Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. A copy of the agenda was posted on May 22, 2009 on the kiosk outside City Hall. PRESENT: Chairman Curt Pringle and Housing Authority Members: Lorri Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu. STAFF PRESENT: City Manager Dave Morgan, City Attorney Cristina Talley, and Secretary Linda Andal. At 5:18 P.M., Chairman Pringle called the meeting to order for a joint public comment session with the City Council and the Redevelopment Agency. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No comments offered during oral communications related to the Housing Authority agenda. JOINT HOUSING AUTHORITY /CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARINGS: 7. This is a joint public hearing among the Agency, Authority and City Council to AGR- 3886.I consider approval of a Cooperation Agreement between the Agency and Authority and an Affordable Housing Agreement between the Authority and UHC 00190 Anaheim, L.P. for transfer of the Cherry Orchard Affordable Housing site, located at 2748 W. Lincoln Avenue. Housing Authority Action: Approve and authorize the Authority Executive Director to execute a Cooperation Agreement (Transfer of the Cherry Orchard Affordable Housing site) with the Redevelopment Agency and an Affordable Housing Agreement, in substantial form, with UHC 00190 Anaheim, L.P. Community Development Director Elisa Stipkovich reported Item No's. 7 and 8 were two separate projects, each requiring actions by the three governing entities, the Anaheim Housing Authority, Anaheim Redevelopment Agency and the Anaheim City Council. Item No. 7 referred to the Cherry Orchard project, formerly the old Lincoln Inn site. The developer, UCH 000190 (a joint venture between several different entities), was proposing an affordable housing development requiring a ground lease on the site to be able to submit application for a tax credit on June 9 Forty -five housing units for 30 -60 percent area median income families was proposed with a 55 -year ground lease and the developer required to pay 85 percent of any residual receipts to the Housing Authority. Ms. Stipkovich added staff had estimated the value of the tax credit and should there be any deviation, recommended that up to six Section 8 project -based housing vouchers be provided as well. Housing Authority Minutes of May 26, 2009 Page 2 of 3 She added that would be determined once a full understanding of the cost of the project was established. Ms. Stipkovich indicated staff recommended approval of the conveyance of the property from the Agency to the Housing Authority through a cooperative agreement and to also approve an agreement between the Housing Authority and the developer which would allow the developer to submit for a tax credit application. Chairman Pringle opened the public hearing for comments. Jimmy Gaston, Anaheim Supportive Housing for Senior Adults (ASHSA), thanked the Housing Authority and staff for their patience and efforts over the last 10 years in working with ASHSA to successfully pursue using the old Lincoln Inn site for low income family housing. Mr. Fraser, ASHA, also commended the Housing Authority for their continued commitment to the Affordable Housing Strategic Plan. Chairman Pringle emphasized the City had purchased the Lincoln Inn to be able to provide the land for development of 45 affordable housing units. Ms. Stipkovich confirmed the City's cost for acquisition, demolition and relocation for the project was $6.8 million with the potential for additional funding to subsidize six Section 8 -based housing vouchers. Authority Member Kring moved to approve Item No. 7, seconded by Authority Member Sidhu. Roll Call vote: Ayes 5: Chairman Pringle, Authority Members: Galloway, Hernandez, Kring and Sidhu. Noes 0. Motion Carried. 8. This is a joint public hearing among the Agency, Authority and City Council to AGR -5726 consider approval of certain agreements transferring ownership of property located at 2125 South Manchester Avenue for utilization in the implementation of an affordable housing project. Housing Authority Action: Approve and authorize the Authority Executive Director to execute a Cooperation Agreement (Transfer of Manchester Affordable Housing Site Agency -owned Parcel) with the Anaheim Redevelopment Agency and an Affordable Housing Agreement, in substantial form, with Manchester Park and Orangewood Vista. Elisa Stipkovich, Community Development Director, remarked this item was also a joint public hearing to consider approval of certain agreements transferring ownership of property on Manchester Avenue to provide 119 units of affordable housing. Each governing entity, she explained, would approve the transfer of the property from the Agency to the Housing Authority as well as an affordable housing agreement between the Housing Authority and SADI, Inc., the developer. This project, she stated, was similar to the Cherry Orchard project with a long -term ground lease with 85 percent of the residual receipts coming back to the Housing Authority. She added in this case, staff was recommending provision of up to 78 project -based vouchers, if necessary, to close the financing gap pending the final cost and the final value of the tax credits the developer eventually received. In answer to Chairman Pringle's question, Ms. Stipkovich indicated the City's subsidy so far was $4.6 million for land Housing Authority Minutes of May 26, 2009 Page 3 of 3 acquisition and demolition. She noted another item on this agenda, Item No. 24, was for vacation of the old Manchester road and if approved, the City would be dedicating that land to this project as well. With the 78 project based units included, the additional subsidy could be $5 to $6 million more. Chairman Pringle opened the public hearing for comments and receiving none, closed the hearing. He inquired if there was a requirement to use prevailing wages on these projects with Ms. Stipkovich indicating when federal monies were involved, that would trigger the Davis Bacon act for paying workers on site no less than locally prevailing wages and benefits paid on similar projects Authority Member Kring moved to approve Item No. 8, seconded by Authority Member Hernandez. Roll Call vote: Ayes 5: Chairman Pringle, Authority Members: Galloway, Hernandez, Kring and Sidhu. Noes 0. Motion Carried. ADJOURNMENT: At 6:21 P.M., with the consent of the Housing Authority members, Chairman Pringle adjourned the May 26, 2009 meeting. Res.- tfully submitted, 4 Linda N. Andal, CMC Secretary