AHA-2022/09/13ANAHEIM HOUSING AUTHORITY
REGULAR MEETING OF SEPTEMBER 73, 2022
The Anaheim Housing Authority regular meeting of September 13, 2022 was called to order at
5:09 P.M. in the Council Chamber of Anaheim City Hall located at 200 S. Anaheim Blvd. in joint
session with the Anaheim City Council. The meeting notice, agenda, and related materials were
duly posted on September 8, 2022.
MEMBERS PRESENT:
STAFF PRESENT:
Vice Chairman Trevor O'Neil and Authority Members Jose Diaz,
Gloria Sahagun Ma'ae, Jose F. Moreno, Avelino Valencia, and
Stephen Faessel [Chairperson vacancy]
City Manager Jim Vanderpool, City Attorney Robert Fabela, and
Secretary Theresa Bass
ADDITIONS/DELETIONS TO THE AGENDAS: No additions/deletion pertained to the
Housing Authority agenda. Secretary Theresa Bass announced staff requested the withdrawal
of City Council Agenda Item No. 10, an agreement with Mike D Atkinson for professional
landscape consulting services.
PUBLIC COMMENTS fall aaenda items):
Jodie Mosley addressed Item No. 01, expressing happiness that the Covered Wagon Motel was
being acquired, but also expressing worries about the legalities once the property was acquired
with protecting the Beach Blvd. Specific Plan (BBSP). She emphasized that there were legal
issues and it was very important that the BBSP not be forgotten as many dollars went into
creating the plan and the Authority needs to ensure that it stays with what the community and
residents want. She thanked the Authority for acquiring the property but wanted to ensure all
was written legally and with protections for the residents.
Kathy Tran, District 1 resident, expressed happiness that the Authority was purchasing the
Covered Wagon Motel for a mixed -use development. She questioned what type of affordable
housing would be built on the site and if it would be the same as required in the BBSP. She
further questioned if the grant funds being used had any restrictions about the type of affordable
housing that could be built and if it would fit within the BBSP. She requested specific language
be included in the resolution and cooperative agreement to ensure compliance with the BBSP,
citing the almost $500,000 cost to create the BBSP as well as the time and effort of residents in
the process. She emphasized the need to stick with the BBSP as adopted.
No electronically submitted public comments related to the Housing Authority agenda.
COUNCIL COMMUNICATIONS:
Council Member Diaz highlighted Matiki Island BBQ, a Polynesian style BBQ restaurant,
founded by an immigrant and in business since 1996. He invited residents to join the
Community Services Department at Haskett Library for an event on September 14 at 3:30 P.M.
to celebrate Hispanic Heritage Month, with a Selena-themed party.
Council Member Faessel requested the meeting adjourn in memory of Anaheim Colony resident
and retired Anaheim High School teacher Brad Pettigrew.
Anaheim Housing Authority Minutes of September 13, 2022
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Council Member Ma'ae reported her attendance at the League of California Cities conference
last week, where she learned about proposed legislation and noted how items affect each city
differently.
Council Member Moreno announced the Kaboom! Build Day at Center Greens on Friday,
September 16, 2022 and thanked the Community Services Department for their work on the
park and its grant funding. He announced that volunteers were welcome. He noted that a
planned clean-up event resource fair in the Glen -Onondaga neighborhood was postponed due
to inclement weather and will be rescheduled to the first or second weekend in October. He
acknowledged the efforts of residents and businesses across the city in conserving energy
during the recent heat waves as well as the efforts of the Anaheim Public Utilities Department in
working on energy resources. He further acknowledged the cooling centers that were provided
through community centers and libraries.
Council Member Valencia reported that Assemblymember Tom Daly was successful in
obtaining $10,000,000 in State funding to renovate and improve Boysen Park, noting he then
also obtained an additional $5,000,000 for a grand total of $15,000,000. Council Member
Valencia thanked Community Services Director Sjany Larson -Cash for her efforts, expressed
appreciation for the funding, and looked forward to the park becoming even more iconic for the
City and its residents for years to come.
CITY MANAGER'S UPDATE:
City Manager Jim Vanderpool announced that Hispanic Heritage Month starts on Thursday, but
the Anaheim Public Library has events starting tomorrow, September 14, through October 15
with special story times, cooking demonstrations, crafts, movies, games, and more. He invited
residents to visit the website atwww.anaheim.net/librar for more details.
He further reported that the Community Policing Teams participated in several Back to School
Nights across the City, where parents and students were able to engage with the department.
He thanked the schools for their partnership.
At 6:11 P.M., Vice Chairman O'Neil recessed the Anaheim City Council to address the Anaheim
Housing Authority agenda.
CONSENT CALENDAR: At 6:11 P.M., the consent calendar was considered, with Authority
Member Faessel pulling Item No. 01 for separate discussion and consideration.
MOTION: Authority Member Faessel moved to approve the balance of the consent calendar, in
accordance with reports, certifications, and recommendations furnished each Authority Member
and as listed on the consent calendar, seconded by Council Member Diaz. ROLL CALL VOTE:
AYES — 6 (Vice Chairman O'Neil and Authority Members Diaz, Ma'ae, Moreno, Valencia, and
Faessel); NOES — 0. Motion carried.
AHA177 2. Approve minutes of the Housing Authority meeting of May 24, 2022.
At 6:13 P.M., Authority Member Diaz recused himself from Authority Agenda Item No. 01 due to
a conflict of real property interest as his residence is within 500 feet of the subject property and
left the dais.
Anaheim Housing Authority Minutes of September 13, 2022
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END OF CONSENT CALENDAR:
1. RESOLUTION NO. AHA 2022 — 005 A RESOLUTION OF THE CITY COUNCIL
AGR-13734 OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving
the acquisition of the Covered Wagon Motel located at 823 S. Beach Boulevard in the
amount of $6,600,000, sourced in whole or in part, from Permanent Local Housing
Allocation and/or Low Moderate Income Housing Asset Funds; approving an Agreement
for Sale of Property and Joint Escrow Instructions by and between the Anaheim Housing
Authority and Crystal Pak, substantially in the form submitted herewith for the purchase
of the Covered Wagon Motel in the amount of $6,600,000; authorize the Executive
Director of the Housing Authority, or her designee, to execute and administer the
Agreement on behalf of the Housing Authority (includes determination that the proposed
project consists of the purchase of a motel site for the creation of an affordable housing
project that will not cause a significant effect on the environment and that the Agreement
and purchase of the motel site for the creation of affordable housing is categorically
exempt from the California Environmental Quality Act pursuant to Section 15301 of Title
14 of the California Code of Regulations).
Anaheim Housing Authority Executive Director Grace Ruiz-Stepter reported that the item is
requesting to move forward with a Purchase and Sale Agreement for the Covered Wagon Motel
located at 823 S. Beach Blvd. She noted the request includes a concurrent item on the City
Council agenda with a plan to use both Permanent Local Housing Allocation and Low Moderate
Income Housing Asset Funds to blend funding and allow for greater options on what is built on
the site. She addressed a concern that the site may convert similar to a HomeKey project to
rehabilitate and reuse the property for the unhoused population and noted that type of reuse of
motels is not currently allowed in the Beach Blvd. Specific Plan (BBSP). Ms. Stepter stated this
was an important opportunity to acquire the property to help bring forward much needed
affordable housing as well as provide revitalization efforts. She noted that once the Request for
Proposals (RFP) is issued, the development community is often very creative with the type of
proposed development and what it could include. She noted that the purchase prices is lower
than normal due to the property currently being red -tagged and the plan is to demolish the
existing building to start fresh with blending types of affordable housing as envisioned in the
BBSP.
DISCUSSION: Authority Member Faessel wanted to confirm that the housing would follow the
BBSP, to which Ms. Stepter verified that the BBSP would be followed regarding the allowed
product type, density, and look and referred to prior projects as precedent and becoming an
asset to the community. She acknowledged that Beach Blvd. is currently a blighted portion of
the city but believed that other, past developments have improved neighborhoods once
constructed, and they would hold true to that on Beach Blvd. as well.
Authority Member Faessel commended great examples of such projects in District 5 on Lincoln
Avenue and felt satisfied that the project would be consistent with the BBSP that the residents
worked hard on for many years.
Vice Chairman O'Neil questioned what the vision was and whether the project would be entirely
affordable housing, blended, or mixed -use. Ms. Stepter reported the current plan is mixed -use
to complement the area consisting of rental properties of varying types and potential
homeownership options with the final plan contingent on being able to voluntarily acquire other
Anaheim Housing Authority Minutes of September 13, 2022
Page 4 of S
parcels to allow for a more significant project such as at the corner of Beach Blvd. and Lincoln
Avenue.
Authority Member Moreno thanked Ms. Stepter for the work done on this item and trusted that
the aesthetics and amenities would be high quality and integrated based on previous projects.
He questioned whether the land would be sold or leased following acquisition, to which Ms.
Stepter replied the typical model is to lease the land to ensure affordability in perpetuity but
sometimes development financing requirements may make it more feasible to sell the land.
In response to Authority Member Moreno's question about number of units, Housing and
Community Development Deputy Director Andy Nogal reported the General Plan for the site is
mixed -use, medium, which permits 36 units per acres. He noted that with permitted density, 47
units could be built on the site with up to 64 units if using Density Bonus. He reiterated that they
are looking to consolidate additional parcels that could lead to a bigger project with an increased
number of units.
Authority Member Moreno referred to a news quote on the issues on Beach Blvd. building for
decades and that it may take decades to resolve and expressed concern with that timeline. Ms.
Stepter explained that the longer timeframe might be for the entire vision for turning Beach Blvd.
around, including private investment, but the acquisition of this property and work by the Police
and Public Works Departments were ongoing and current to address issues. She noted that this
development is a top priority with seeking tax credits, financing, and planning efforts over the
next 24-36 months. She noted that hard work of procuring land entitlements, securing funds,
and other background work is done prior to construction beginning.
Authority Member Moreno expressed excitement for the amenities that could be built as part of
the project for the community at large. Ms. Stepter explained amenities would be worked on
with the design team through the RFP and provided examples from other projects such as
pools, medical offices, and open spaces for school partnerships. She noted that each
community is unique and they study the sites to see what specific social services may be
needed. Authority Member Moreno expressed his wishes for the affordability to be sustainable
to allow the local community to participate and not be excluded from the area due to
gentrification.
Authority Member Ma'ae asked if there was a specific timeline for construction to honor the
grant requirements, to which Ms. Stepter responded that the initial funds have a 5-year timeline
that was being honored through their use on the acquisition of the property. She restate the goal
of 24-36 months to shore up additional financing and identify a quality developer to move
forward. Ms. Stepter further explained that there would be a heavy component of affordability
from extremely low up to 120% of Area Median Income based on the blended funding and
parcel consolidation to allow for latitude. She noted it was envisioned to include both rental and
ownership opportunities.
MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA 2022 —
005 A RESOLUTION OF THE CITY COUNCIL OF THE GOVERNING BOARD OF THE
ANAHEIM HOUSING AUTHORITY approving the acquisition of the Covered Wagon Motel
located at 823 S. Beach Boulevard in the amount of $6,600,000, sourced in whole or in part,
from Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset Funds;
approving an Agreement for Sale of Property and Joint Escrow Instructions by and between the
Anaheim Housing Authority and Crystal Pak, substantially in the form submitted herewith for the
purchase of the Covered Wagon Motel in the amount of $6,600,000; authorize the Executive
Anaheim Housing Authority Minutes of September 13, 2022
Page 5 of 5
Director of the Housing Authority, or her designee, to execute and administer the Agreement on
behalf of the Housing Authority (includes determination that the proposed project consists of the
purchase of a motel site for the creation of an affordable housing project that will not cause a
significant effect on the environment and that the Agreement and purchase of the motel site for
the creation of affordable housing is categorically exempt from the California Environmental
Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations),
seconded by Authority Member Ma'ae.
DISCUSSION: Vice Chairman O'Neil expressed his excitement for this project and noted that
the Authority and Council had taken significant actions recently to address crime and blight on
Beach Blvd. He noted the area had been challenged for a long time, this acquisition was the
next big step for revitalization efforts and to address housing needs, and he thanked staff for
their efforts and looked forward to more improvements to come.
MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA 2022 —
005 A RESOLUTION OF THE CITY COUNCIL OF THE GOVERNING BOARD OF THE
ANAHEIM HOUSING AUTHORITY approving the acquisition of the Covered Wagon Motel
located at 823 S. Beach Boulevard in the amount of $6,600,000, sourced in whole or in part,
from Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset Funds;
approving an Agreement for Sale of Property and Joint Escrow Instructions by and between the
Anaheim Housing Authority and Crystal Pak, substantially in the form submitted herewith for the
purchase of the Covered Wagon Motel in the amount of $6,600,000; authorize the Executive
Director of the Housing Authority, or her designee, to execute and administer the Agreement on
behalf of the Housing Authority (includes determination that the proposed project consists of the
purchase of a motel site for the creation of an affordable housing project that will not cause a
significant effect on the environment and that the Agreement and purchase of the motel site for
the creation of affordable housing is categorically exempt from the California Environmental
Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations),
seconded by Authority Member Ma'ae. ROLL CALL VOTE: AYES — 5 (Vice Chairman O'Neil
and Authority Members Ma'ae, Moreno, Valencia, and Faessel); NOES — 0; ABSTAIN (recusal):
- 1 (Authority Member Diaz). Motion carried.
Authority Member Diaz returned to the dais at 6:31 P.M.
ADJOURNMENT:
With no further business to conduct, Vice Chairman O'Neil adjourned the meeting of the
Anaheim Housing Authority at 6:31 P.M.
qsa
tfully submitted,
Bass, CMC
Secretary, Anaheim Housing Authority