AHA-2010-002RESOLUTION NO. AHA-2010 -002
A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY APPROVING A
COOPERATION AGREEMENT (AVON/DAKOTA NEIGHBORHOOD
REVITALIZATION FUNDING) AMONG THE AUTHORITY, CITY OF
ANAHEIM, AND ANAHEIM REDEVELOPMENT AGENCY; APPROVING THE
NEIGHBORHOOD REVITALIZATION AGREEMENT FOR THE
AVON/DAKOTA NEIGHBORHOOD BETWEEN THE AUTHORITY AND
AVON DAKOTA HOUSING PARTNERS, L.P.; AND MAKING CERTAIN
FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Anaheim Housing Authority ( "Authority ") is a public body corporate and
politic and housing authority acting under the California Housing Authorities Law, Part 2 of
Division 24, Section 34200, et seq., of the Health & Safety Code ( "HAL "); and
WHEREAS, the City of Anaheim ( "City ") is a California municipal corporation and charter
city; and
WHEREAS, the Anaheim Redevelopment Agency ( "Agency ") is a public body, corporate
and politic and a California redevelopment agency acting under the California Community
Redevelopment Law, Part 1 of Division 24, Section 33000, et seq., of the Health and Safety Code
( "CRL "); and
WHEREAS, Avon Dakota Housing Partners, L.P. is a California limited partnership
( "Developer "); and
WHEREAS, City is a participating jurisdiction with the United States Department of
Housing and Urban Development ( "HUD ") and a recipient of HOME Investment Partnerships Act
and HOME Investment Partnerships Program funds (42 U.S.C. Section 12701, et seq. and 24 CFR
§ 92.1, et seq. together, "HOME Program "), which monies are for strengthening public - private
partnerships and providing affordable housing, in particular decent, safe, sanitary, and affordable
housing with primary focus on housing for very low income and lower income households in
accordance with the HOME Program; and
WHEREAS, HOME Program funds are used by the City, as a participating jurisdiction, to
carry out multi -year housing strategies through acquisition, rehabilitation, and new construction of
housing in target areas for the benefit of low income and very low income persons, households, and
families; and
WHEREAS, City is an entitlement recipient and grantee of HUD Community Development
Block Grant Program funds pursuant to Title 24, Part 570 of Code of Federal Regulations 24 CFR
570.000, et seq. ( " CDBG Program ") for expenditure in target neighborhoods pursuant to the CDBG
Program; and
WHEREAS, the City is a recipient of Neighborhood Stabilization Program ( "NSP ") funds
pursuant to the Housing and Economic Recovery Act of 2008 ( "HERA "), which NSP funds were
provided under Title III of Division B of HERA in order to provide for redevelopment of abandoned
and foreclosed residential properties for the benefit of persons and families whose household income
does not exceed 120% of the Orange County median income adjusted for family size and thereby
facilitating stabilization and revitalization of neighborhoods impacted by such properties, and to
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provide long -term affordable housing, and to increase sustainability and attractiveness of housing and
neighborhoods; and
WHEREAS, NSP funds may be expended on eligible uses, including financing mechanisms
for foreclosed residential properties, acquisition and rehabilitation to sell, rent or redevelop
abandoned or foreclosed residential properties, establishment of land banks for foreclosed homes,
demolition of blighted structures, and redevelopment of demolished or vacant properties; and
WHEREAS, the Amended and Restated Redevelopment Plan for the Anaheim Merged
Redevelopment Project ( "Anaheim Merged Project ") was adopted by the City Council of the City by
Ordinance Nos. 5913, 5914, 5915, 5916, 5917, 5918, and 6034 (and, as subsequently amended, is
referred to herein as the "Redevelopment Plan "); and
WHEREAS, Agency receives tax increment revenues pursuant to Section 33670(b) of the
CRL and deposits not less than thirty percent (30 %) of such revenues into Agency's Low and
Moderate - Income Housing Fund ( "Housing Fund ") pursuant to Sections 33333.10, 33333.11,
33334.2 and 33334.6 of the CRL and uses such funds to increase, improve, and preserve the
community's supply of low and moderate - income housing available at an affordable housing cost;
and
WHEREAS, Agency is authorized and empowered under the CRL to provide funding for,
including allocation of funds to the Authority for, the production, improvement, or preservation of
affordable housing including the acquisition and rehabilitation of existing privately owned
apartments and appurtenant improvements with tax increment revenues from the Agency's Housing
Fund; and
WHEREAS, there is a multifamily residential neighborhood in the City commonly called
"Avon /Dakota" that is located in an area bounded on the east by L3 Communications at
602 E. Vennont Avenue and the development site at 700 E. South Street, on the north by
South Street, on the south by Vermont Street, and on the west by Thomas Jefferson Elementary
School and Olive Elementary School and which area is part of the Central Anaheim Policing District
( "Avon /Dakota Neighborhood "); and
WHEREAS, the Avon/Dakota Neighborhood is zoned RM -4 (Residential, Multiple - Family)
and consists mainly of medium- to high - density multifamily apartments and some single- family
housing with approximately 200 housing units; and
WHEREAS, the Avon/Dakota Neighborhood has been designated Level III by the City
because it has experienced and continues to evidence moderate to substantial decline, with many
housing structures evidencing deterioration, deferred maintenance, and code violations, and in
single - family areas many houses having transitioned from owner- occupied to rental, and the area
lacks key public improvements such as adequate streetlights, sidewalks, storm drains, sewers, and
curbs /gutters, and there is evidence of social, physical and economic problems, with an increased
number of calls for service, including police services, despite enforcement efforts; and
WHEREAS, the Avon/Dakota Neighborhood revitalization needs were assessed as a part of
the City of Anaheim's Neighborhood Improvement Program process in which neighborhood
residents, both owners and renters, and landlords completed surveys and attended meetings where
they expressed their concerns about various aspects of the community; and
WHEREAS, the needs for the Avon/Dakota Neighborhood identified in and through the
surveys include: (1) crime prevention and community policing; (2) increased patrols;
(3) neighborhood beautification and housing maintenance; (4) correction of code violations;
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(5) adequate trash pick -up; (6) reduction of vandalism; (7) improvement of landscaping; (8) social
programs; (9) recreational opportunities and additional play areas; (10) youth opportunities;
(11) increasing community involvement; (12) communication with property owners; (13) resident
participation; (14) parking improvements and traffic control; (15) adequate parking spaces;
(16) reduction of speed and amount of traffic; (17) improving transportation linkages; (18) increased
transportation options; (19) increasing economic opportunities; (20) job training for neighborhood
residents; (2 1) attracting businesses to serve the neighborhood; (22) and assisting with neighborhood
micro - enterprises; and
WHEREAS, to address these identified needs, the stakeholders established a neighborhood
strategy for the Avon/Dakota Neighborhood that includes six key objectives: (1) crime prevention
and community policing; (2) neighborhood beautification and housing maintenance that will include
additional code enforcement, coordination of incentive programs that will include adding or
refurbishing trash enclosures in alleys, increasing trash pick up schedule, providing low- interest
rehabilitation loans for property owners to refurbish interiors and to complete exterior building
improvements that create a more attractive neighborhood, along with establishing more uniform
maintenance standards and making available rehabilitation loans for exterior landscape
improvements; (3) social programs that will explore options for recreational, educational, and social
programs at Jefferson and Olive Elementary Schools, market existing City programs to neighborhood
residents through flyers and neighborhood meetings to increase enrollment of neighborhood youth in
recreational programs; (4) increasing community involvement by developing working relationships
with property owners, reactivating or establishing new or amended CCRs and/or property owner
associations, encouraging property owners to participate in the City's Rental Enforcement
Anti -Crime Training (REACT) program, encouraging residents' participation in neighborhood
issues, programs, and activities; (5) parking improvements and traffic control, including developing
neighborhood design concept to include parking and circulation improvements, improving transit
connection for the community to economic, social and recreation areas, and analyzing public
transportation needs of the community; and (6) increasing economic opportunities by promoting
existing job training programs to neighborhood residents, encouraging resident micro - enterprise,
conducting educational programs targeted to neighborhood residents at Jefferson and
Olive Elementary Schools, and encouraging local businesses to hire and train neighborhood residents
through incentives; and
WHEREAS, in order to revitalize the Avon/Dakota Neighborhood, Authority and Developer
desire to enter into a Neighborhood Revitalization Agreement for the Avon/Dakota Neighborhood
( "Revitalization Agreement ") and to prepare jointly and cooperatively a revitalization plan for this
neighborhood ( "Plan ") with input from the community and stakeholders in order to plan for the
implementation of this Plan as more fully set forth the Revitalization Agreement; and
WHEREAS, mutual objectives of the Plan include: (1) voluntary participation in a
revitalization project for the Avon/Dakota Neighborhood that will include owners of all or many of
the Properties, both multi- family and owner- occupied housing, by establishing and implementing for
a majority of the Properties a reciprocally beneficial set of conditions, covenants and restrictions and
formation (or reactivation) of owners' association(s) to provide for common areas, common area
maintenance, management, reciprocal access, housing quality standards, tenant screening and
selection criteria, and other beneficial terms; (2) planning for the commencement of, but not
necessarily initiating or completing negotiations for, voluntary acquisition of some Properties in the
Avon /Dakota Neighborhood with possession to be vested in Developer for substantial rehabilitation
and first -class maintenance and property management; and (3) methods to implement and a projected
schedule for implementation of the Plan; and
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WHEREAS, City, Agency and Authority desire to enter into that certain Cooperation
Agreement (Avon/Dakota Neighborhood Revitalization Funding) for the City and Agency to transfer
monies to Authority for implementation of the Revitalization Agreement, including allocation of
HOME Program, NSP, and CDBG Program federal funds from the City to Authority and allocation
of Housing Fund monies from Agency to Authority; and
WHEREAS, the Plan and the acquisition/rehabilitation affordable housing project(s),
including each phase thereof, contemplated by the Cooperation Agreement (Avon/Dakota
Neighborhood Revitalization Funding) and the Revitalization Agreement for the Avon/Dakota
Neighborhood are categorically exempt pursuant to the California Environmental Quality Act, Public
Resources Code 21000, et seq. and the implementing regulations thereto in Title 14, California Code
of Regulations, Sections 15000, et seq. (together, "CEQA "), in particular Section 15301 of the
CEQA Guidelines; and
WHEREAS, by this Resolution Authority desires to approve the Cooperation Agreement
(Avon /Dakota Neighborhood Revitalization Funding) and the Revitalization Agreement, to make
certain findings in connection therewith, and to authorize the Executive Director to carry out both
contracts.
NOW, THEREFORE, BE IT RESOLVED BY THE ANAHEIM HOUSING AUTHORITY:
Section 1. Recitals. Authority finds and determines the foregoing recitals are true and
correct and are a substantive part of this Resolution.
Section 2. CEQA Exemption. The Plan and the acquisition/rehabilitation affordable
housing project(s), including each phase thereof contemplated by the Cooperation Agreement
(Avon /Dakota Neighborhood Revitalization Funding) and the Revitalization Agreement for the
Avon /Dakota Neighborhood are categorically exempt under CEQA, in particular Section 15301 of
the CEQA Guidelines. The Executive Director, or her designee, is authorized and directed to prepare
and file a Notice of Exemption therefor.
Section 3. Benefit to Anaheim Merged Project. The allocation to and expenditure of
monies by the Authority from the Agency's Housing Fund pursuant to the Cooperation Agreement
(Avon /Dakota Neighborhood Revitalization Funding) and to implement the Revitalization
Agreement will be of benefit to Anaheim Merged Project in particular the Commercial/Industrial
South Anaheim Boulevard component area based on the following:
a. Since 2000 a substantial number of new jobs have been generated City -wide
and within the Anaheim Merged Project, including the Commercial/Industrial South Anaheim
Boulevard subarea, and many jobs are held by employees qualifying as Low to Moderate Income
households; and
b. Notwithstanding the Agency's ongoing efforts improving, increasing, and
preserving the community's supply of affordable housing available at an affordable housing cost, the
job growth within the City and the Anaheim Merged Project including the CommerciaVIndustrial
South Anaheim Boulevard subarea has caused continuing need for affordable housing in the
community to alleviate an adverse jobs/housing ratio; and
C. The Southern California Association of Governments ( "SCAG ") has provided
documentation on future housing needs in the City of Anaheim; and, based on five -year SCAG
figures 9,498 new housing units will be needed in Anaheim and of this total 5,463 will be needed to
house persons and families of low income at or below 80% of the Orange County median income,
which, along with a current waiting list of over 14,000 Very Low Income persons and households on
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the Authority's Section 8 rental assistance program, shows a need for continued and additional
affordable housing in the community; and
d. In the Anaheim Merged Project including the Commercial/Industrial South
Anaheim Boulevard subarea there are minimal available sites for development of new affordable
housing projects and the high land values in the City generally necessitate public subsidy of projects
in order cause development of affordable housing projects thereon; and
e. The Avon/Dakota Neighborhood is located adjacent to the
Commercial /Industrial South Anaheim Boulevard subarea and presents an opportunity area for
redevelopment and revitalization that benefits the community and the Anaheim Merged Project; and
f. Upon revitalization pursuant to the Revitalization Agreement, the
Avon /Dakota Neighborhood will be a valuable source of housing affordable to the community,
including low to moderate income persons, households, and families who now live and work in the
subarea.
Section 4. Approval of Cooperation Agreement. Authority hereby approves the
Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding).
Section 5. Approval of Revitalization Agreement. The Revitalization Agreement
substantially in the form of the copy on file with the Authority Secretary is hereby approved.
Section 6. Authorization to Execute and Administer the Agreements. Authority's
approval of the Revitalization Agreement and the Cooperation Agreement (Avon/Dakota
Neighborhood Revitalization Funding) pursuant to Sections 4 and 5 above includes authority to the
Executive Director (and her designee(s)), the City Attorney, the City Manager (as to the Cooperation
Agreement (Avon/Dakota Neighborhood Revitalization Funding)), and Developer (as to the
Revitalization Agreement) to make such changes to the form thereof as are minor and in substantial
conformance with the form of the Cooperation Agreement (Avon/Dakota Neighborhood
Revitalization Funding) and Revitalization Agreement, as applicable, submitted with this matter.
The Authority Executive Director and the Authority Secretary/City Clerk are hereby authorized to
execute and attest the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding)
and Revitalization Agreement, including any related attachments, on behalf of Authority. In such
regard, the Executive Director (and her designee(s)) is authorized to sign the final version of the
Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization
Agreement after completion of any such non - substantive, minor revisions. Copies of the final form
of the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and
Revitalization Agreement, when duly executed and attested, shall be placed on file in the office of
the Authority Secretary/City Clerk. Further, the Executive Director (and her designee(s)) is
authorized to implement the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization
Funding) and Revitalization Agreement, as applicable, and take all further actions and execute all
documents referenced therein and/or necessary and appropriate to carry out the Project, including all
Phase(s), contemplated thereby as provided in the Revitalization Agreement, including any and all
implementing contract(s) contemplated thereunder. The Executive Director (and her designee(s)) is
hereby authorized to the extent necessary during the implementation of the Cooperation Agreement
(Avon /Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable,
and each and all implementing contract(s) to make technical or minor changes and interpretations
thereto after execution, as necessary to properly implement and carry out such Cooperation
Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as
applicable, provided changes shall not in any manner materially affect the rights and obligations of
Authority or the maximum funding provided thereunder and approved hereby.
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Section 7. Authorization to Implement Agreements. In addition to the authorization
of Section 6 above, the Executive Director is hereby authorized, on behalf of the Authority, to sign
all other documents necessary or appropriate to carry out and implement the Cooperation Agreement
(Avon /Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable,
including causing the issuance of warrants in implementation thereto, and to administer the
Authority's obligations, responsibilities and duties to be performed thereunder.
Section 8. Attestation and Certification. The Authority Secretary shall attest to and
certify the passage and adoption of this Resolution, which shall take full force and effect upon its
adoption.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
GOVERNING BODY OF THE ANAHEIM HOUSING AUTHORITY THIS TWENTY- SECOND
(22 DAY OF JUNE 2010, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Chairman Pringle, Authority Members Sidhu, Hernandez, Galloway
NOES: NONE
ABSTAIN: NONE
ABSENT: Authority Member Kring
ANAH :OU;G AUT TY
Chairman
ATTEST:
LIND A DAL, AThTHORIT CRETARY
Linda N. Andal
APPROVED-AS TO FORM:
CRISTINA TAL�_EY, CITY ATTORNEY
John E.i Woodhead IV
Assistatt City Attorney
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