AHA-2021/10/26ANAHEIM HOUSING AUTHORITY
REGULAR MEETING OF OCTOBER 26, 2021
The Anaheim Housing Authority regular meeting of October 26, 2021 was called to order at
5:29 P.M. in joint session with the Anaheim City Council, pursuant to Brown Act related
provisions of Governor Newsom's Executive Order N-08-21 in response to COVID-19
(superseding the related provisions stated in Executive Orders N-29-20 and N-25-20). The
meeting notice, agenda, and related materials were duly posted on October 21, 2021.
MEMBERS PRESENT: Chairman Harry Sidhu and Authority Members Stephen Faessel,
Jose Diaz, Gloria Sahagun Ma'ae, Jose F. Moreno, Avelino
Valencia, and Trevor O'Neil
STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and
Secretary Theresa Bass
ADDITIONS/DELETIONS TO THE AGENDAS: None
PUBLIC COMMENTS (all agenda items):
Paul Hyek addressed the operators, procedures, and look of local homeless shelters.
One (1) electronically submitted public comment related to the Housing Authority agenda. — See
Appendix.
CITY MANAGER'S UPDATE:
City Manager Jim Vanderpool announced the Dia de los Muertos event would be hosted by the
Community Services Department and Project SAY October 29 — November 1, and would
include community altar showcases at seven locations throughout the city. More information
can be found in the press release at www.anaheim.net and on the City's social media.
CONSENT CALENDAR: At 7:25 P.M., the consent calendar was considered with Authority
Member Moreno pulling Item No. 01 for separate discussion and consideration.
MOTION: Authority Member Faessel moved to adopt the remainder of the consent calendar as
presented, seconded by Authority Member Diaz. ROLL CALL VOTE: AYES — 7 (Chairman
Sidhu and Authority Members Faessel, Diaz, Ma'ae, Moreno, Valencia, and O'Neil); NOES — 0.
Motion carried.
AHA177 2. Approve minutes of the Housing Authority meeting of September 14, 2021.Approve
minutes of the Housing Authority meeting of July 20, 2021.
END OF CONSENT CALENDAR:
D155 1. RESOLUTION NO. AHA -2021-004 A RESOLUTION OF THE ANAHEIM
HOUSING AUTHORITY declaring certain Authority -owned real property located at 100,
126, and 130 S. Beach Boulevard and 2970 W. Lincoln Avenue, Anaheim, California, as
surplus land; directing the Acting Executive Director to follow the procedures set forth in
Anaheim Housing Authority Minutes of October 26, 2021
Page 2 of 3
the Surplus Land Act, California Government Code Section 54220, et seq.; making
certain findings under the California Environmental Quality Act; and authorizing certain
other actions [declaration of property as surplus does not have the potential for creating
a significant effect on the environment and no further review or action under the
California Environmental Quality Act is required; authorizes the Acting Executive
Director, or designee, to issue a Notice of Availability in accordance with the Surplus
Land Act; and authorizes the Acting Executive Director to review each Notice of Interest,
if any, received during the 60 -day review period and then enter into negotiations with
responsive bidder(s) for a period of 90 days].
Grace Stepter, Anaheim Housing Authority Interim Director, reported the item is a request to
adopt a resolution declaring certain property located at the southeast corner of Beach Blvd. and
Lincoln Avenue as surplus land, in accordance with the Surplus Land Act as amended by
Assembly Bill 1486 (AB 1486). The resolution would declare four (4) parcels located at 100,
126, and 130 S. Beach Blvd. and 2970 W. Lincoln Avenue as surplus land pursuant to
Government Code §54220 and requests authorization to issue a Notice of Availability and enter
into negotiations following the receipt of any Notice of Interest from eligible parties for a 90 -day
negotiation period.
Ms. Stepter explained the Governing Board authorized the Housing Authority to acquire the
properties from Evergreen Capital on December 19, 2017. The parcels are approximately 3.61
acres, and after a two-year escrow, the Authority acquired four businesses (Mobil Service
Station, Old Mexico Restaurant, Americana Carwash, and Americana Motel) on December 10,
2019, of which the latter three have been demolished and the site is getting ready for
development, with the long-term vision of a mixed, residential/retail project with an affordable
housing component, aligned with the revitalization of Beach Blvd. She continued that on
October 9, 2019, Governor Newsom signed AB 1486 into law, which significantly amended the
Surplus Land Act and now required that when land is not specifically being used for local
government purposes, which for a Housing Authority would be a 100% affordable housing
project, that it be declared surplus. In such circumstances, staff must issue a 60 -day notice of
availability and staff must notice those developers that have contacted the State Housing and
Community Development Department (HCD) and asked to be notified about available land. She
noted over 400 housing sponsors have notified HCD of their interest in receiving notifications.
For all entities that submit a Notice of Interest, the Housing Authority will evaluate each notice
and negotiate with entities that submit all proper documentation. If multiple Notices of Interest
are received, the Housing Authority goes through a waterfall effect, with priority given to entities
proposing the greatest number of affordable housing units, and the deepest level of affordability.
If an agreement is not reached following a 90 -day good -faith negotiation period, the land may be
disposed of without further regard to the Surplus Land Act; however, if more than 10 residential
units are developed on the property, not less than 15% of the units must be sold or rented at
affordable housing costs as defined in the Health and Safety Code. Prior to the implementation
of the Surplus Land Act, the Authority had started discussions with Greenlaw Development, an
experienced developer and owner of the adjacent property, but that negotiation agreement
expired on its own terms. Regarding an impact to budget, Ms. Stepter advised staff would be
notifying over 400 entities on the HCD list via email and certified mail, as well as notifying other
local agencies of the availability of the property.
DISCUSSION: Authority Member Moreno thanked staff for the presentation, explained that the
previous agreement with a developer expired on its own terms, and it was now required to put
this land out to other entities according to the law, which he supported. He asked how many
housing units were contemplated for the site. Ms. Stepter explained the adjacent affordable
Anaheim Housing Authority Minutes of October 26, 2021
Page 3 of 3
project, which was not part of the Surplus Land Act requirements, would have 100 rental
apartment units and this property was looking at approximate 134 ownership townhouses, which
would be about 32 units per acre. In terms of affordability, the Authority would like a diversified
product with affordable housing and ownership opportunities and Ms. Stepter noted the law has
a preference for at least 25% affordability. She further explained that if multiple bids were
received, a waterfall approach would be used to review the number of affordably units and the
depth of the affordability, with a preference still for a blended project. In response to Authority
Member Moreno, Ms. Stepter explained if no bids were received or they were non-responsive in
the waterfall review, if the property was developed with residential, the law requires at least 15%
affordable housing.
Authority Member Moreno questioned the discretion between 255, 30%, and 35%, to which Ms.
Stepter replied that a panel would evaluate what is brought forward, determine the best
proposal, and bring that to the Governing Board for final selection. Authority Member Moreno
questioned if the Surplus Land Act was the same law under which the State was reviewing for
the Anaheim Stadium property, to which City Attorney Rob Fabela answered it was the same
law. Authority Member Moreno questioned the negotiation process. Ms. Stepter explained there
was no current Exclusive Negotiation Agreement, the review of proposal would be via panel
likely comprised of staff, outside raters, and other department colleagues under direction of the
City Manager, and the staff recommendation would return to the Board for consideration.
Authority Member Moreno urged staff to push as deep and wide as possible for affordability.
MOTION: Authority Member Moreno moved to approve RESOLUTION NO. AHA -2021-
004 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY declaring certain
Authority -owned real property located at 100, 126, and 130 S. Beach Boulevard and 2970 W.
Lincoln Avenue, Anaheim, California, as surplus land; directing the Acting Executive Director to
follow the procedures set forth in the Surplus Land Act, California Government Code Section
54220, et seq.; making certain findings under the California Environmental Quality Act; and
authorizing certain other actions, seconded by Authority Member Faessel. ROLL CALL VOTE:
AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Ma'ae, Moreno, Valencia,
and O'Neil); NOES — 0. Motion carried.
ADJOURNMENT:
With no further business to conduct, Chairman Sidhu adjourned the meeting of the Anaheim
Housing Authority at 7:43 P.M.
Respectfully submitted,
esa Sass, CN;C
Secreta , Anaheim Housing Authority
Jennifer L. Hall
From: Cesar C <cesarc@kennedycommission.org>
Sent: Tuesday, October 26, 2021 7:02 PM
To: City Clerk
Subject: [EXTERNAL] Item 1: Declaration of Surplus Land at Beach/Lincoln Site
Attachments: Anaheim SLA Agency Land Beach 10.26.21.pdf
Warning: This email originated from outside the City of Anaheim. Do not click links or open
attachments unless you recognize the sender and are expecting the message.
Please see The Kennedy Commission's comment letter on declaration of Surplus of the Housing Authority's
Beach/Lincoln Site.
Cesar Covarrubias
Executive Director
October 26, 2021
Mayor Harry Sidhu
Councilmembers
Housing Authority
City of Anaheim
200 S. Anaheim Blvd.
Anaheim, CA 92805
wwwlennedycommission.org
17701 Cowan Ave., Suite 200
Irvine, CA 92614
(949)250-0909
Re: Item 1. ADOPT A RESOLUTION DECLARING CERTAIN PROPERTY LOCATED AT
THE SOUTHEAST CORNER OF BEACH AND LINCOLN SURPLUS LAND
Dear Mayor Harry Sidhu and Councilmembers:
The Kennedy Commission (the Commission) is a broad coalition of residents and community
organizations that advocates for the production of homes affordable for families earning less than
$27,000 annually in Orange County. Formed in 2001, the Commission has been successful in
partnering and working with jurisdictions in Orange County to create effective policies that have
led to the production of new homes affordable to low income working families.
We submit public comments to support the Anaheim Housing Authority and the City of
Anaheim in declaring the Southeast corner of Beach and Lincoln (Agency owned property) as
surplus land and dispose of the land in a manner that complies with the California Surplus Land
Act by prioritizing it to increase affordable housing in Anaheim.
In adopting the Surplus Land Act, the California Legislature declared, "housing is of vital
statewide importance to the health, safety, and welfare of the residents of this state and ...
provision of a decent home and a suitable living environment for every Californian is a priority
of the highest order," and thus "surplus government land, prior to disposition, should be made
available for that purpose." Cal. Gov. Code, § 54220(a).
The agency and city need to prioritize publicly owned land to create much needed affordable
housing. As highlighted in the City of Anaheim's latest Housing Element Annual Progress
Report that was submitted to the California Housing and Community Development', the city has
a deficit of affordable housing production. The report points out that the city has approved and
permitted over 8,162 housing units during the current Housing Element period and only 468
(remaining RHNA for lower income is 1,695) have been in the affordability level of low and
very low households. The vast majority of the housing units, 7,694 have been approve at
moderate and above moderate -income levels (RHNA in above moderate has been exceeded by
over 300%). With only a few months left in the planning period and with the City lacking site
capacity for affordable housing sites it is imperative that the City of Anaheim prioritize
affordable housing on this public land.
Thank you for your consideration. We look forward to further conversations
regarding the use of agency owned to increase affordable housing opportunities for the lower
income families in Anaheim.
Very truly yours,
--
Cesar Covarrubias
Executive Director
CC: California Department of Housing and Community Development, Division of Housing Policy Development
' City of Anaheim, Housing Element Annual Progress Report, April 2021