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AHA-2021/06/22ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF JUNE 22, 2021 The Anaheim Housing Authority regular meeting of June 22, 2021 was called to order at 5:12 P.M. in joint session with the Anaheim City Council. The meeting notice, agenda, and related materials were duly posted on June 17, 2021. MEMBERS PRESENT: Chairman Harry Sidhu and Authority Members Stephen Faessel, Jose Diaz, Jordan Brandman, Jose F. Moreno, Avelino Valencia, and Trevor O'Neil (all members present in-person) STAFF PRESENT City Manager Jim Vanderpool, City Attorney Robert Fabela, and Secretary Theresa Bass ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS (all agenda items, except public hearing): None CITY MANAGER'S UPDATE: City Manager Jim Vanderpool announced the Anaheim Public Library's Summer Reading Program "Reading Colors Your World," running form June 1 to August 6, with a variety of virtual programs, events, and prizes. To sign up, or for more information, visit www.anaheim.readsquared.com or download the app. He noted the program was generously funded by the Friends of Anaheim Public Library, Friends of the Canyon Hills Library, the Anaheim Public Library Foundation, and H&R Block in partnership with the Anaheim Public Library Foundation. CONSENT CALENDAR: At 5:49 P.M., Authority Member Valencia moved to adopt the consent calendar as presented, seconded by Authority Member Faessel. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. AHA177 1. Approve minutes of the Housing Authority meeting of May 18, 2021. PUBLIC HEARING: AGR- 2. This is a Public Hearing of the Anaheim Housing Authority (Housing Authority) regarding 12798 (1) a Preliminary Award Letter between the Housing Authority and National Community AGR- Renaissance of California for certain real property located at the southwest corner of 12800 Anaheim Boulevard and Midway Drive, (11) the proposed subsequent ground lease of that property by the Housing Authority to National Community Renaissance of California or an affiliate for the construction, development, and operation of an 86 -unit Affordable Housing project thereon, (III) a Cooperation Agreement between the City and the Housing Authority for the use of HOME and/or Low Moderate Income Housing Asset Funds in an amount up to $5,000,000 to fund the project, and (IV) the allocation of 8 project based vouchers for the project located at 1441-1455 South Anaheim Boulevard and 110 West Midway Drive, Anaheim, CA. Anaheim Housing Authority Minutes of June 22, 2021 Page 2 of 5 RESOLUTION NO. AHA -2021-003 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter for the Anaheim Midway Affordable Rental Housing Development between the Anaheim Housing Authority and National Community Renaissance of California; authorizing the Acting Executive Director, or her designee, to execute and administer the Preliminary Award Letter on behalf of the Authority; authorizing the Acting Executive Director or her designee, 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 Housing Authority under Preliminary Award Letter; and making certain other findings in connection therewith. Approve a Cooperation Agreement between the City of Anaheim and the Anaheim Housing Authority, in substantial form, for the transfer of HOME Investment Partnership Program Funds, in an amount not to exceed $3,041,302, for the Midway Affordable Rental Housing Development located at the southwest corner of Anaheim Boulevard and Midway Drive; and authorize the Acting Executive Director, or designee, to execute and administer the agreement on behalf of the Authority. Interim Executive Director Grace Stepter requested that the Governing Board of the Anaheim Housing Authority (Authority) authorize staff to enter into a Preliminary Award Letter (PAL), in substantial form, for the Anaheim Midway Affordable Housing Development project. She explained the PAL would be between the Authority and National Community Renaissance of California (National CORE). She also stated a request for the Executive Director to enter into subsequent agreements necessary to implement the terms of the PAL as well as approval of a Cooperation Agreement, in substantial form, to transfer HOME Investment Partnership Program Funds from the City to the Authority for use in the project. Ms. Stepter reported the Authority owns an approximately 2.33 acre site, consisting of several parcels acquired over the course of several years. The initial acquisition was completed in 2000 with the purchase of the former Matrix site, an automotive repair establishment. She continued that in September 2019, Encore Anaheim, LLC (Encore) acquired the adjacent parcel of the Midway RV Park, an approximately 5.48 acre site. The Encore acquisition included a non-contiguous 0.13 acre parcel at 110 West Midway Drive, which housed the RV Park's main office and operations buildings. In an effort to provide both the Authority and Encore consolidated development sites, the two parties agreed to enter into a real estate exchange whereby both sites could be developed more efficiently. Ms. Stepter noted, while the exchange did improve development options, there remained outstanding access and easement issues that impacted both developments. As a result, Encore and the Authority agreed to work together to achieve a mutually beneficial site plan. She reported Encore also requested the engagement of National CORE, a reputable national non- profit affordable housing developer with over 60 developments in California and noted that the Authority has historically negotiated with neighboring property owners to realize more comprehensive projects that provide broader community benefits. Ms. Stepter reported, in May 2020, staff brought to the Governing Board of the Authority the agreement with National CORE and the Authority to begin the discussions of the development of the site. She stated the affordable rental development proposal includes a four-story contemporary apartment development consisting of 86 rental units. The project will be 100% Anaheim Housing Authority Minutes of June 22, 2021 Page 3 of 5 affordable, for families with incomes that fall within the extremely -low, very -low, and low-income households. Project amenities for residents will be located on both the ground -floor and on the rooftop, including outdoor gathering spaces, a pool, children's play area, urban garden, and a dog run. In addition, a 1,700 square foot community flex space will be provided on the ground - floor at the corner of Anaheim and Midway, to accommodate various programming and meeting needs for the neighboring community. She shared that staff has worked closely with Paul Revere, the neighboring elementary school, to program that space and regarding the onsite amenities. Ms. Stepter noted the Project would provide 129 parking spaces throughout the site, which exceeds parking requirements. She continued that the development provides for an integrated, walkable neighborhood and they considered the design of the building next door to be well integrated. In addition, the plan provides enhanced points of legal entry to the Golden Skies Mobile Home Park to the south. Ms. Stepter reported that National CORE proposes to finance the Project with a combination of funding sources including approximately $21,000,000 from the California Tax Credit Allocation Committee, $8,600,000 from a private lender, and $1,300,000 from the Orange County Housing Trust Fund. She noted that National CORE would be submitting an application for Tax Credits in July 2021 with an expected award in September 2021, if successful. If the Project is successful in obtaining all of its funding, construction could start as early as February 2022. While the majority of the funding for this Project is being sought from varying State sources, a financial gap still exists, per Ms. Stepter. To address the gap, the Authority proposes to enter into a ground lease to allow the Authority to recoup some of the cost of acquiring and assembling the site. In addition, the Authority proposes to loan the project $1,900,000 in Low Moderate Income Housing Asset Funds and $3,000,000 from the federal HOME allocation. Ms. Stepter noted the pledge of $5,000,000 to this project is for the purposes of achieving greater and deeper affordability. She stated staff is also recommending that the City provide a fee deferral of its Park and Recreation and Transportation Impact Fees in the respective amounts of approximately $465,000 and $111,000 in support of the project. She noted that the inclusion of local funding sources as part of the financing increases the likelihood that State funds would be awarded to the Project. Ms. Stepter stated the developer is also requesting an allocation of eight Section 8 Project - Based Vouchers (PBV) for the Project, which is included in the PAL. She continued that pursuant to Section 21094 of the California Environmental Quality Act, the project was determined to have no new environmental impacts associated with the agreements beyond those already identified in the previously approved agreement and reviews. Ms. Stepter noted that staff is supportive of the project, as proposed, and therefore requests that the Governing Board of the Housing Authority approve both the Cooperation Agreement that transfers the HOME funds and the PAL that allows staff to provide the financial support and the PBVs. She stated that the Authority would not enter into an Affordable Housing Agreement or release any funds until the staff has evidence that all additional required third party funding is in place. She noted that all proposed assistance derives from restricted funds from the U.S. Department of Housing and Urban Development or the Low Moderate Income Housing Asset funds in the FY 21/22 Community Development budget. Chairman Sidhu opened the public hearing. No in-person public comments were received. Secretary Theresa Bass reported one public comment related to Public Hearing Item No. 02 Anaheim Housing Authority Minutes of June 22, 2021 Page 4 of 5 was received electronically, which was distributed to the Housing Authority, posted to the City's website, and made part of the official record. — See Appendix Chairman Sidhu closed the public hearing DISCUSSION: Vice -Chairman Faessel appreciated that this project is 100% affordable and asked how long the fee deferrals would last and its effects on parks. Ms. Stepter explained that initial money is typically more expensive to borrow so the fee deferrals are in effect until a Certificate of Occupancy is issued and the project converts into permanent loan status, which is typically 18-24 months from the start of construction. In response to an inquiry by Vice - Chairman Faessel, Ms. Stepter reported National CORE did not have any other projects currently in Anaheim but they have high quality projects in neighboring communities and across southern California. Authority Member Valencia appreciated Vice -Chairman Faessel's point about the park fee deferral but recognized that a compromise needed to be made to achieve the hefty affordable housing mandate. He was glad to see this project come to District 4 in an area of great need, to help build appropriate, well-built housing for the growing population of Paul Revere Elementary School. He thanked staff for their work and looked forward to the groundbreaking. Authority Member Moreno thanked staff for their work on this project, particularly in light of the limited City -funded staffing in the department. He referenced the letter submitted by The Kennedy Commission and their appreciation of the project, but noted that the City still needs over 3,100 extremely low and low-income housing units to meet its goals. Authority Member Moreno appreciated the use of these funds to allow the developer to achieve more affordability, looked forward to learning more about the programming of the community room, and expressed appreciation that staff reached out to the school district about the project. MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA -2021-003 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter for the Anaheim Midway Affordable Rental Housing Development between the Anaheim Housing Authority and National Community Renaissance of California; authorizing the Acting Executive Director, or her designee, to execute and administer the Preliminary Award Letter on behalf of the Authority; authorizing the Acting Executive Director or her designee, 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 Housing Authority under Preliminary Award Letter; and making certain other findings in connection therewith; and a Cooperation Agreement between the City of Anaheim and the Anaheim Housing Authority, in substantial form, for the transfer of HOME Investment Partnership Program Funds, in an amount not to exceed $3,041,302, for the Midway Affordable Rental Housing Development located at the southwest corner of Anaheim Boulevard and Midway Drive; and authorize the Acting Executive Director, or designee, to execute and administer the agreement on behalf of the Authority, seconded by Authority Member Valencia. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil; NOES — 0. Motion carried. Anaheim Housing Authority Minutes of June 22, 2021 Page 5 of 5 ADJOURNMENT: With no further business to conduct, Chairman Sidhu adjourned the meeting of the Anaheim Housing Authority at 6:06 P.M. ully submitted, That*a Bass, CMC Secr tary, Anaheim Housing Authority Public Comment From: Cynthia Guerra <cynthiag@ken nedycommission.org> Sent: Tuesday, June 22, 2021 4:05 PM To: City Clerk Cc: Public Comment; Cesar C; paul.mcdougall@hcd.ca.gov; Megan.Kirkeby@hcd.ca.gov Subject: Letter of Support for National CORE Project - related City Council Agenda Items are 2, 9, 22 (6.22.2021) Attachments: Ltr_Anaheim_ National CORE Project -Items 2,9,22 _6.22.2021.pdf Hi, Please find the attached letter of support from the Kennedy Commission for the National CORE affordable housing project. Items on today's Anaheim City Council meeting agenda (6.22.2021) related to this project are: • Item 2: COOPERATION AGREEMENT TO TRANSFER HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS AND REQUEST TO APPROVE THE ISSUANCE OF A PRELIMINARY AWARD LETTER FOR THE MIDWAY AFFORDABLE APARTMENTS • Item 9: COOPERATION AGREEMENT TO TRANSFER HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR THE MIDWAY AFFORDABLE APARTMENTS AT THE SOUTHWEST CORNER OF ANAHEIM BOULEVARD AND MIDWAY DRIVE • Item 22:VACATION/ABANDONMENT OF PORTIONS OF THREE EXCESS SEGMENTS OF PUBLIC ACCESS AND STREET RIGHT-OF-WAY LYING WEST OF ANAHEIM BOULEVARD AND DIRECTLY SOUTH OF MIDWAY DRIVE (ABA2019-00396) Please confirm receipt of this email and let me know if you have any questions. Thank you, Cynthia Guerra Cynthia Guerra The Kennedy Commission Research and Policy Analyst Pronouns: She/Her/Ella June 22, 2021 www.kennedycoininission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Mayor Harry Sidhu and City Council Members 949 250 0909 City of Anaheim 200 S. Anaheim Boulevard Anaheim, CA 92805 RE: Letter of Support for the Anaheim Midway Affordable Housing Development proposed by National Community Renaissance of California (related to items 2, 9, and 22) Dear Mayor Harry Sidhu and Council Members: The Kennedy Commission (the Commission), a broad-based coalition of residents and community organizations, advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001, the Commission has successfully partnered and worked with Orange County jurisdictions to create effective housing and land -use policies that have led to the new construction of homes affordable to lower-income working families. The Commission is in support of the Anaheim Midway Affordable Housing Development proposed by National Community Renaissance of California (National CORE) and encourages the City Council to take the steps necessary to ensure this 100% affordable project becomes reality. The proposed 86 rental units will provide much needed affordable housing to extremely -low, very -low, and low-income families. Affordable homes are urgently needed for lower income residents given the increasing cost of housing in Orange County. According to the California Housing and Community Development Department, the County's annual median income for a family of four at the extremely low income level is $40,350 and $67,250 at the very low income level_' The median income for Anaheim residents in 2018 was $65,313.2 Based on these figures, it is clear that many Anaheim residents are extremely low and very low income. Given the urgent need for affordable housing, the City must prioritize the production of lower income housing. Moreover, the City is currently experiencing a deficit of affordable housing at the very -low and low income levels. For the City has a RHNA of 1,256 very low- and 907 low-income households. Io- date, the City has built 308 or 25% of the 1,256 very low-income units and 160 or 18% of the 907 low-income units.3 However, for the above moderate -income units, the City outperformed and exceeded the RHNA by constructing 7,644 or 306% of the 2,501 above moderate -income RHNA.4 The City has a remaining RHNA need of 1,695 lower income homes for the current planning period. The City's history over -producing above moderate housing and poor performance producing lower income housing is an indication that the City needs to focus on prioritizing affordable housing. One strategy the City can use to meet its lower income housing need is to implement stronger affordable housing requirements on City -owned land, such as the Anaheim Housing Authority's site included in the National CORE project. ' California Department of Housing and Community Development "State Income Limits for 2020," p. 9, April 26, 2021. 2 SCAG, "Profile of the City of Anaheim," page 11, May 2019. s City of Anaheim's 2020 Annual Housing Element Progress Report, March 22, 2021. 4 City of Anaheim's 2020 Annual Housing Element Progress Report, March 22, 2021. June 22, 2021 Page 2 of 2 We look forward to working with the City of Anaheim to encourage effective housing policies that will help create balanced housing development and create much-needed affordable housing in our local communities. If you have any questions, please feel free to contact me at (949) 250-0909 or cesarcLkennedycommission.org. Sincerely, Cesar Covarrubias Executive Director cc: Ms. Megan Kirkeby, Deputy Director, Housing Policy Development, CA HCD Mr. Paul McDougall, Housing Manager, CA HCD