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AHA - 2024/08/13ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF AUGUST 13, 2024 The Anaheim Housing Authority regular meeting of August 13, 2024 was called to order at 5:14 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 August 8, 2024. MEMBERS PRESENT: Chairperson Ashleigh E. Aitken and Authority Members Norma Campos Kurtz, Jose Diaz, Carlos A. Leon, Natalie Rubalcava, Stephen Faessel, and Natalie Meeks STAFF PRESENT: Assistant City Manager Greg Garcia, City Attorney Robert Fabela, and Secretary Theresa Bass ADDITIONS/DELETIONS TO THE AGENDAS: No additions/deletions related to the Anaheim Housing Authority agenda. PUBLIC COMMENTS (all agenda items: No in -person or electronic public comments were received related to the Housing Authority agenda. COUNCIL COMMUNICATIONS: Vice-Chairperson/Mayor Pro Tern Kurtz highlighted and shared photographs of events she attended including a lunch for residents of Tyrol Plaza. She stated the residents there have undergone trauma in the last few months. She thanked The Anaheim Hotel, the Best Western Plus, The Pizza Press, Courtyard, Castle Inn, and The Westin for sponsoring lunch for the residents at Tyrol Plaza. Vice-Chairperson/Mayor Pro Tern Kurtz thanked the "Madres Unidas de Guinida Lane" and the Anaheim Elementary School District for their assistance with the backpack and school supplies event for Paul Revere Elementary School students. She thanked Community Services staff for going above and beyond to assist a homeless student at the event. A School District representative was also able to enroll the student in school as well as a transportation program offered by the Anaheim School District so that the student will have transportation to Paul Revere Elementary School no matter where the family moves to in Orange County. Vice-Chairperson/Mayor Pro Tern Kurtz shared that she along with Authority Member/Council Member Faessel hosted the Boysen Community Meeting at Roosevelt Elementary School. She mentioned that constituents around the State College area in Districts 4 and 5 are having the same issues. They participated in a virtual bus tour and made 13 stops including the Tampico Hotel, Boysen Park, the former Luigi Italian Restaurant site, and the Hahm Motorsports site. There was a great turnout and she shared that she enjoyed the interaction with the residents. She thanked the Fire Department for a wonderful movie night held for residents at Boysen Park on one of the hottest nights of the year. She thanked Anaheim firefighters who have gone to fight fires in other counties throughout the state. She assured residents that every fire station in Anaheim continues to be staffed. Anaheim firefighters were deployed to the Post and Basin fires in June, and in July they went to Butte, Siskiyou, Santa Barbara, Humboldt, Trinity, Tulare, Shasta, Plumas, Kern, and Riverside counties to help with fires. Vice-Chairperson/Mayor Pro Tern Kurtz clarified that the City of Anaheim is reimbursed for Anaheim Housing Authority Minutes of August 13, 2024 Page 2 of 11 those services and there is an agreement with those counties that if Anaheim needs fire assistance specifically in the Anaheim Hills area, those counties will provide aid. She highlighted a before and after photo of a homeless encampment. Vice-Chairperson/Mayor Pro Tern Kurtz thanked the family who reached out to her office and through Anaheim Anytime to report the growing encampment. She thanked Deputy Director Lozeau and her team for cleaning up the encampment and for aiding an elderly veteran who was ill. They connected the veteran to the Department of Veterans Affairs and provided a veterans housing voucher. She also thanked residents who continue to report encampments, especially along the railroad tracks, on Caltrans property, and public areas. Authority Member/Council Member Faessel requested adjourning the meeting in memory of Larry Larsen. Larry graduated from Anaheim High School in 1960 and worked hard for the betterment of graduates. He was committed to the rebuilding of the Anaheim High School pool and was also active in the Gypsum Canyon Veterans Cemetery project. Authority Member/Council Member Faessel highlighted and shared photographs of events he attended including the North Orange Continuing Education, formerly known as North Orange County Community College District, opening day celebration. He shared that he has been an instructor there since 1975 and it was fun sharing stories with staff, and seeing friends he has made over the years. Authority Member/Council Member Faessel stated that it was nice to welcome and visit with the six exchange students from Mito, Japan. He shared that one of their most enjoyable experiences was making s'mores at a beach campfire because they do not do that in Japan. He also thanked Community Services and City Engineer Carlos Castellanos for hosting the students. Authority Member/Council Member Faessel congratulated Helen Carter on her 94th birthday. He shared that Ms. Carter is an active Ebell Club member as well as a member of several organizations in Anaheim. He attended the backpack, school supplies, and food giveaway at Jafaria Church. He thanked the church and all the volunteers who helped to equip all the students with school supplies for a great school year. Authority Member/Council Member Meeks requested adjourning the meeting in memory of former Anaheim Police Department Sergeant Greg Palmer. He served Anaheim from 1986 to 2010 on patrol, investigations, gang division, robbery, and homicide. He was awarded the Investigator of the Year Award, two distinguished service medals, and served as the Anaheim Police Association President. Authority Member/Council Member Leon announced that the Anaheim Tech Scholars Program is back for all high school juniors and seniors. The program empowers college -bound high school juniors and seniors in Anaheim and provides laptops or tablets as well as internet access to prepare students for the next stage of their academic careers. He thanked his Council colleagues for their support in making the program happen last year. The application process will be open from August 26 through September 30. Information will be posted on the City's website as well as social media. Authority Member/Council Member Leon shared that this year's National Night Out was hosted in District 2 at Modjeska Park. Hundreds of Anaheim families attended the event to learn more about the work that the Anaheim Police Department does. Residents received resources, experienced a live concert, and they were able to see him participate in a donut eating contest where he lost to the now four -time donut eating champion, Jason Perez from Anaheim Community Services. He congratulated Anaheim Chief of Police Armendariz as well as Carmela Mendoza from the West Anaheim Community Policing Team for all their hard work to ensure that this year's National Night Out was the best. He shared that his office hosted its second annual Back to School Bash at Madison Elementary School. He Anaheim Housing Authority Minutes of August 13, 2024 Page 3 of 11 thanked all the community members, community partners, and volunteers who came together to make the event a major success. He thanked Anaheim Elementary School District Superintendent Jesse Chavarria, Principal Heiner, Vice Principal Crow, Santos the Custodian, and the entire Madison Elementary School team for allowing his team, in collaboration with several community partners, to host the event at the school. Community Action Partnership of Orange County distributed food boxes. Backpacks and shoes were distributed thanks to AltaMed and United Across Borders. True School Barber Shop provided free haircuts. Over $11,000 worth of eyeglasses and vision exams were provided for free. He thanked OCEA and AMEA for providing hot dogs, and Senator Newman and his team for providing ice cream. He thanked Congressman Correa, Assemblywoman Quirk -Silva, and Senator Umberg for attending the event and connecting with the District 2 community. Authority Member/Council Member Leon thanked all the volunteers and Anthony, Dixie, Maggie, Richard, Patty, and Miranda who helped make the event happen. Authority Member/Council Member Leon requested adjourning the meeting in memory of John "Jack" Passerello. Jack owned Bluebell Nursery, which he opened alongside his wife, Arlene, in 1959 in District 2. He noted that Bluebell Nursery was recognized as a District 2 Business of the Month last year. Jack is survived by his wife, Arlene, his children Pam and Anthony, and 10 grandchildren. Authority Member/Council Member Leon stated that Jack's family and everyone who loved him are in his thoughts and prayers. Authority Member/Council Member Rubalcava stated that there are approximately 50,000 residents who reside in District 3 and approximately 27,000 voters in a predominantly Latino community. She highlighted and shared photographs of events she attended in District 3. Authority Member/Council Member Rubalcava shared that she walks past Jack in the Box on Lincoln Avenue every day on her way to and from City Hall and many of the people who work there are people who live in District 3. She noted that Jack in the Box employees must deal with either unhoused or mentally unstable individuals daily and so she wanted to highlight the individuals who are serving the people who live or visit Anaheim. She recognized two USC students, one of which is a resident of District 3. The students are working on a policy initiative as part of their graduate studies regarding gang intervention and prevention and they came to her because she has been working closely with the Police Department Gang Enforcement Unit, Chief of Police Armendariz, City Manager Vanderpool, and Vice-Chairperson/Mayor Pro Tern Kurtz to address gang -related issues. She noted she grew up in a gang impacted area in District 3 and for her it is a major priority. The young ladies prepared an op-ed and requested to collaborate with her on something that is more substantive and find solutions to help tackle the growing issue in the City. She shared that she partnered with the Mondragon Family Market, a local business that has been in District 3 for 40 years, and they were able to give away 300 backpacks to local kids in the area. She noted that many who attended the event walked from their homes because there are a lot of areas in District 3 that have parking challenges. She stated that parking is a quality -of -life issue, and when she reviews or approves housing initiatives, she takes parking into consideration. Unfortunately, the State of California has tied Council's hands in many cases, and she recommended that those who have issues with parking contact their local Assembly Members and State Senators to let them know the issues they have created by some of their policies. She thanked everyone who contributed to the event including the Mondragon family and City staff who accommodated the street closure so that the community remained safe. The young boys and girls received haircuts, backpacks, helmets, school supplies, and Kona Ice donated ice cream because it was one of the hottest days of the year. She thanked Jack Knight (@jacktheartist206O), Public Utilities, Anaheim Police Department, Anaheim Fire Department, and the Oak Nature Center. She noted that many of the kids who live in District 3 have never attended the Oak Nature Center, but they were able to see some of the animals and things that are there, and it was a great experience for everyone. Anaheim Housing Authority Minutes of August 13, 2024 Page 4 of 11 Authority Member/Council Member Rubalcava noted that August is Chicano Heritage Month in the City of Anaheim. Anaheim is one of two cities in the County of Orange that recognizes Chicano Heritage Month. She stated she is Mexican American, Chicana, and the Chicano riots took place at Little People's Park. Emigdio Vasquez painted the original mural that signified and represented the Mexican American community in Anaheim and across the county. She noted that his daughter accepted the recognition for Chicano Heritage Month earlier in the meeting and that is something that is significant for the City of Anaheim. She mentioned that Congressman Lou Correa, who was raised in District 3, is trying to get federal recognition for Chicano Heritage Month and he was recently recognized by the Orange County Fair, a state agency that also recognizes Chicano Heritage Month. Authority Member/Council Member Rubalcava attended National Night Out and noted La Palma Park and Pearson Park located in District 3 are two of the oldest parks in the City and would be great locations for National Night Out next year. She noted that community leader Sofia Romero was recognized by the Community Police Team because she has been instrumental in not only helping get individuals who are unhoused housing, but she has been keeping Deputy Director Sandra Lozeau, Anaheim Police Department, and herself informed on people who are getting their rents raised or individuals who might need food assistance. Authority Member/Council Member Rubalcava attended a community meeting that took place at Emerald Point located off Lincoln Avenue and Euclid Street, a newer development in District 3. She noted that many of the property owners at Emerald Pointe are very engaged and Sergeant Pardo from the Anaheim Police Department was there to address some of the public safety concerns. She also thanked Deputy Director Sandra Lozeau, Neighborhood Services, and Public Utilities General Manager Dukku Lee for walking around the community to address public safety issues that are occurring there. Chairperson/Mayor Aitken thanked all the families and City staff that helped give the six exchange students from Mito, Japan a memorable experience. They spent time in the Friendship Garden, which is a homage to the City's relationship with Mito, Japan, they received tours of City Hall and Angel Stadium, they attended National Night Out, and they were able to enjoy a day at Disneyland. She stated she is an advocate for the City's Sister Cities Program and building international relationships with all generations. Chairperson/Mayor Aitken thanked the Police Department for all the community activities at National Night Out. She thanked Authority Member/Council Member Leon for participating in the donut eating contest this year, because the one time she participated was enough. She stated the Anaheim Police Department staff worked hard on hosting the event and Modjeska Park was a beautiful site to have the event at. She thanked everyone who attended the event including the K9 Officers, Equine Officers, the SWAT Team, and the Anaheim Police Department Helicopter, Angel. Chairperson/Mayor Aitken stated that with summer coming to an end, it is time for backpack and school supply giveaways for families in the community. Her office partnered with Orange County Supervisor Vicente Sarmiento, United Across Borders, Mi Pueblo Foundation, Shelly Padilla at State Farm, La Casa Garcia, and Regalo de Corazon Foundation to make sure that students have the supplies they need to succeed in the upcoming school year, including new shoes donated by Vans. She thanked everyone who made the event possible, including Public Utilities and Community Services for always being there. Chairperson/Mayor Aitken thanked SA Recycling for inviting her to tour their facility to see what they do with all the scrap metal that gets dropped off by Anaheim residents. They accept steel, tin, old cars, and appliances. The items are shredded, and then are sent out to become some of the supplies needed for building houses and for doing all sorts of things. Chairperson/Mayor Aitken stated that Authority Member/Council Member Faessel mentioned SA Recycling has the largest electric motor in Orange County. She thanked all businesses for inviting Council to tour their facilities to learn what they are doing to make the community a better place. Anaheim Housing Authority Minutes of August 13, 2024 Page 5 of 11 CITY MANAGER'S UPDATE: Assistant City Manager Greg Garcia echoed all the sentiments regarding National Night Out. He thanked Chief of Police Rick Armendariz and his team for an amazing event and thanked Community Services for assisting with the event. He congratulated the Finance Department, specifically Director Debbie Moreno and her team, for receiving the Certificate of Achievement for Excellence in Financial Reporting Program from the Government Finance Officers Association for the City's Annual Comprehensive Financial Report for the 481h year in a row. At 6:24 p.m., Mayor/Chairperson Aitken recessed the Anaheim City Council to address the Anaheim Housing Authority agenda. CONSENT CALENDAR: At 6:24 p.m., Vice -Chairperson Kurtz moved to approve the consent calendar as presented, in accordance with reports, certifications, and recommendations furnished each Authority Member and as listed on the consent calendar, seconded by Authority Member Meeks. ROLL CALL VOTE: AYES — 7 (Chairperson Aitken and Authority Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES — 0. Motion carried. AGR-14944 1. Approve Master Agreements, in substantial form, with three contractors, in an aggregate AGR-14945 amount not to exceed $1,000,000 per fiscal year with individual work order packages not AGR-14946 to exceed $500,000, for demolition, disposal/debris removal, and erosion and sediment control on an as -needed basis, each for a two year term with two two-year optional renewals; authorize the Executive Director of the Anaheim Housing Authority, or designee, to execute and take the necessary actions to implement and administer the agreements; and authorize de minimis changes that do not substantially change the terms and conditions of the Agreements, as long as such changes are determined to be de minimis by the City Attorney's Office [AD Improvements, Inc., J&G Industries Inc., and Silverado Contractors, Inc.]. 5:00 P.M. PUBLIC HEARING: AGR-14947 2. Public hearing to consider the approval of a Preliminary Award Letter, Ground Lease AGR-14947.0.1 Option Agreement, Cooperation Agreement (Tampico Motel Conversion) and a AGR-14947.0.2 resolution regarding the intention to issue tax-exempt obligations for the Tampico Motel Conversion Affordable Rental Housing Development located at 120 S. State College Boulevard [related to Council Item No. 13]. RESOLUTION NO. AHA-2024-006 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Funding Award Letter and Ground Lease Option Agreement, in substantial form, for the Tampico Motel Conversion Affordable Rental Housing Development located at 120 S. State College Boulevard between the Anaheim Housing Authority and Jamboree Housing Corporation; approving a Cooperation Agreement between the Anaheim Housing Authority and the City of Anaheim; authorizing the Executive Director, or her designee, to execute and administer the Preliminary Funding Award Letter on behalf of the Authority; authorizing the Executive Director or her designee, to enter into subsequent agreements necessary to implement the project, provided that such agreements do not Anaheim Housing Authority Minutes of August 13, 2024 Page 6 of 11 materially increase or extend the assistance provided by the Housing Authority under the Preliminary Funding Award Letter; and making certain other findings in connection therewith. RESOLUTION NO. AHA-2024-007 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax- exempt obligations for the Tampico Motel Conversion. Anaheim Housing Authority Executive Director Grace Ruiz-Stepter reported the item before the Authority is the approval of a Preliminary Award Letter, Ground Lease Option Agreement, Cooperation Agreement, and a resolution from the Anaheim Housing Authority for the conversion of the Tampico Motel into affordable housing. She noted that the site is located at 120 South State College Boulevard. Executive Director Ruiz-Stepter reported that in April 2023, the Anaheim Housing Authority (Authority) acquired the half -acre property where the Tampico Motel used to be, thanks to funding from Senator Tom Umberg. She explained that on July 31, 2023, the Authority issued a Request for Proposals to develop the site, and Jamboree Housing Corporation was selected. She reported that the site will provide affordable housing for transitional aged youth aging out of the foster care system. She noted that it is in a great location near public transportation, social services, and job opportunities. She advised that Jamboree Housing's plan includes converting the motel into 32 studio apartments with amenities like a community room, fitness room, and pet room. Executive Director Ruiz-Stepter reported that the project will offer social services support like case management and outpatient care to help residents. She noted the project will include twelve (12) parking spaces and provides a parking ratio consistent with similar motel conversions. Consistent with similar conversions, the project will also include art elements. She advised that the total development cost is about $25.9 million with funding coming from federal, state, and local sources, including tax credits and a private loan. She reported that there is a gap in funding, and the developer is requesting a loan of up to $6.9 million, which will be covered by federal grants, including HOME American Rescue Plan (HOME -ARP) funds. She further advised that the Housing Authority has also collected $4 million in other funds to help with this project. Lastly, she advised that staff supports the project and recommends the Authority approve the agreements to transfer the necessary funds and issue a Preliminary Award Letter to help the developer apply for tax credits. She added the proposed assistance for the project includes a loan and grant to the developer Jamboree Housing Corporation inclusive of $6.9 million from restricted grants. DISCUSSION: Authority Member Meeks inquired if there was on -site management. Executive Director Ruiz-Stepter confirmed that one of the units is dedicated to on -site management. Authority Member Meeks inquired how parking will be addressed with only 12 available spaces. Executive Director Ruiz-Stepter reported that there will be a Parking Management Plan (PMP). She noted that the site will specifically serve transitional -age youth aging out of foster care. She reported this population tends not to own cars which makes the location at State College and Lincoln a prime location. She noted that there are frequent buses that transport to Cypress, Fullerton and many of the employment corridors. She reported that the majority of the population will depend on public transportation. Anaheim Housing Authority Minutes of August 13, 2024 Page 7 of 11 Deputy Director of Housing and Community Development Andy Nogal confirmed that there is a bike plan, however, staff is looking at other opportunities to provide transportation by working with Orangewood Foundation (Orangewood). He noted that the staff feels that the parking provided will be adequate to support the population. In response to Authority Member Meeks, Deputy Director Nogal reported that staff will be developing a Parking Management Plan with the developer and the Orangewood Foundation for parking allocation. Authority Member Rubalcava remarked that she was glad to see the progression of the project because the Tampico Motel had been an issue for many years. She expressed concern about the surrounding area, which still faces a lot of illegal activity and harassment of people using the bus stop. She mentioned that she drives past the area multiple times a day while taking her kids to school and asked about the plan to ensure the safety of the youth. She raised concerns about the limited parking spaces and how residents will rely on public transportation. She inquired how the City plans to address the current safety issues, as the situation is not being handled well right now. Executive Director Ruiz-Stepter reported that the site will be contained with gates allowing access in and out. She advised that staff are also working with architects to add buffers along the backside. She further advised that staff are in talks with a neighboring business because there is currently a walkway that cuts through to the neighborhood. She noted that staff has received mixed feedback on whether the neighborhood wants to keep or remove the walkway but advised that a final decision will be made using community input. She remarked that the staff believes it is best to close off the walkway, and will plan to move forward if the City can get the support of both the business and the community. Authority Member Rubalcava remarked that the Walgreens shopping center parking lot is not a safe area. She expressed concern for the population, stating that they are at risk, especially due to the transition they are making into adulthood and leaving the system they are in. She expressed belief that they are being placed in a dangerous situation. She also mentioned that the shopping center across the street consistently has people sleeping on the public sidewalks. She inquired about the City's plan to clean up the area. Executive Director Ruiz-Stepter reported that Homeless Services also falls under the Housing and Community Development Department, adding there is close collaboration with both the Housing Team and Deputy Director Sandra Lozeau's office. She explained that this includes ongoing communication with the Community Outreach Teams and the Homeless Team, which collaborates with housing opportunities like the proposed project. She reported that there are weekly meetings with cross -functional, cross -disciplinary teams, and like many other hotspots in the City, it is an ongoing situation. She explained that the building is not being developed in isolation, and the strength of collaboration across different departments allows the City to address issues as they arise. Executive Director Ruiz-Stepter explained that Jamboree Housing is a trusted provider with properties across the City and will continuously monitor for safety. She noted that this is not the City's first motel conversion and referenced Buena Esperanza in District 1. She acknowledged that State College and Lincoln Avenue is a more crowded area, which has its pros and cons but the benefit is the transportation access that the population needs. She reported that after interviewing youth individuals at Covenant House, their number one request was access to bus Anaheim Housing Authority Minutes of August 13, 2024 Page 8 of 11 services so they could travel to different places. She advised that there will be an on -site property manager and noted that the City will continue working with Orangewood to provide services and maintain ongoing conversations with the youth to meet their needs. Vice -Chairperson Kurtz inquired if this is meant to be transitional or permanent housing. Executive Director Ruiz-Stepter explained that property -based vouchers will be attached to the building, making it permanent housing. She explained that since there will be case management and support for youth with their employment and education, residents' stays may be short. She advised that the benefit of the project -based voucher program is that when a youth is ready to move out, the City can give them a voucher to help them move on. She further explained that if planned correctly, their stay could be four or five years or even shorter, while they are supporting education and employment goals. She noted that the property itself is meant to be available for 55 years as a permanent supportive housing development for transitional -age youth. Vice -Chairperson Kurtz inquired how the City plans to handle foster youth who procure employment that increases their income to the point where they are no longer considered very low income. Executive Director Ruiz-Stepter explained that the advantage of the project -based voucher program is that the income limit is only required when the person first enters the program. She noted that they do not need to stay low-income to remain in the program. She further explained that when their income increases, the rent share increases. She further explained that the only time someone is taken off the program is when their income reaches a level where they are paying 30% of income toward rent, which is called graduation. In response to Vice -Chairperson, Executive Director Ruiz-Stepter explained that residents do not age out. She clarified that the goal is for the project to be a stepping stone for the individuals to eventually move on, and possibly start families, which may not be ideal in a 250-square-foot hotel room. In response to Authority Member Leon, Executive Director Ruiz-Stepter explained that the site is unique because the City does not need to borrow large amounts. She referenced the $5.5 million Senator Tom Umberg provided to purchase the property. She advised that the City is using HOME -ARP dollars and other funds, including $6.9 million in gap financing, plus some CalOptima dollars. She explained that the project is expecting $9.8 million in tax credits and the Preliminary Award Letter will help the developer apply for those credits. She noted that the developer will also take out a permanent loan from a bank for $1.9 million with the total development cost being $25 million. Authority Member Leon referenced the agenda report that mentions $20 million in bonds and requested clarification. Deputy Director Nogal explained that staff is asking the Authority to allow the issuance of tax- exempt bonds which will then be sold to an equity investor. He further explained that the $20 million is based on what the investor is willing to pay for those bonds similar to the tax credits. He noted that if the developer gets awarded tax credits, they are able to sell those tax credits to an investor, just like the bonds. Lastly, he noted that the tax credit equity shown in the agenda report comes directly from the tax credits and bonds. Anaheim Housing Authority Minutes of August 13, 2024 Page 9 of 11 At 6:44 p.m., Chairperson Aitken opened the public hearing. Paul Hyek expressed support for the project. He noted that there is access to the Orange County Transportation Authority (OCTA), along with access to adult education, junior colleges, and additional social services. He encouraged the Authority to get rid of the "no walk-in" rule and bring back the "walk-in" rule which will allow families living in parks to walk in and obtain services. He reported that many people like himself are disabled and want to move back to Anaheim. He encouraged the Authority to consider local trade schools to help build these facilities. Marc Herbert thanked Paul Hyek and expressed appreciation for his regular attendance and focus on homelessness. He pointed out the irony that the Council Communications lasted half an hour, but Mr. Hyek's comments on homelessness were more hopeful and focused than the Council's. He referenced the last City Council meeting where he was criticized for being too harsh on the staff regarding a proposed street closure. He clarified that he is simply trying to gather more information earlier in the process, particularly when it comes to older projects, like the one discussed at the last meeting. He referenced Vice-Chairperson/Mayor Pro Tern Kurtz's comment about wanting more information and noted that he is trying to promote public engagement on these issues. He emphasized that addressing homelessness and affordable housing requires more than anecdotes and brief council communications. He expressed support for the idea of using AB 1482 as an interim step while the City works on longer -term projects. Chairperson Aitken encouraged Mr. Hebert to bring his comments back to the subject of the public hearing. Mr. Herbert referred to the Sixth Cycle Housing Element, noting that the City has permitted 498 units in the first 2.5 years of the 8-year cycle. He questioned if this project was the best use of funds. With the project costing $25 million, that amounts to $800,000 per unit. He mentioned a missed opportunity with 48 units on Walnut Street, where people were evicted. He noted that the City could have spent $12 million to renovate those apartments at $250,000 per unit, but instead, they are investing $800,000 per unit for 32 units. He expressed concern that the City lacks urgency, especially considering the budget gap of $40 million expected in the third year of the proposed budget. He also pointed out that the city will be adding $20 million in bonds. He emphasized that public engagement on these issues is challenging, especially when discussions are interrupted. Secretary/City Clerk Theresa Bass noted that there were no electronic public comments received related to the public hearing. At 6:53 p.m., Chairperson Aitken closed the public hearing. Authority Member Faessel mentioned that he knows this area well and noted that the Tampico Motel used to have the highest number of calls for service in the City. He thanked the Housing Authority and the team for thinking creatively about acquiring the property and Senator Umberg for securing funding for it. He praised Jamboree Housing for their long partnership with Anaheim and their work, especially with transitional -age youth. He referenced Covenant House in District 5, which has been successful and is now accepted by the community, and noted that he expects the same for the Tampico project. He expressed support for the Tampico Motel being completely rebuilt because it needs a lot of work. He remarked that the funding plan is a good example of why the City is taking action to establish a Housing Trust. He remarked that he is impressed with the staff's work on these complex projects. Anaheim Housing Authority Minutes of August 13, 2024 Page 10 of 11 Executive Director Ruiz-Stepter displayed a preliminary rendering of the site for the Authority. MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA-2024-006 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Funding Award Letter and Ground Lease Option Agreement, in substantial form, for the Tampico Motel Conversion Affordable Rental Housing Development located at 120 S. State College Boulevard between the Anaheim Housing Authority and Jamboree Housing Corporation; approving a Cooperation Agreement between the Anaheim Housing Authority and the City of Anaheim; authorizing the Executive Director, or her designee, to execute and administer the Preliminary Funding Award Letter on behalf of the Authority; authorizing the 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 the Preliminary Funding Award Letter; and making certain other findings in connection therewith and RESOLUTION NO. AHA-2024-007 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for the Tampico Motel Conversion. DISCUSSION: Authority Member Diaz referred to another project, Buena Esperanza on La Palma in District 1, which was also developed by Jamboree, and turned out to be an excellent project and transformed the area. He explained that the Tampico Motel was a rundown place, but with help from the State and Jamboree, it can be transformed. He noted that Jamboree has proven to be a great partner in managing and developing these kinds of projects well. Authority Member Diaz emphasized how necessary the loan is for this project, as construction has become very expensive, and it is difficult to secure construction loans. He noted that while it is easy to talk about affordable housing, people may not realize just how costly it is to build, from land and labor to the actual construction. He noted that the City needs more projects like the proposed project. MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA-2024-006 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Funding Award Letter and Ground Lease Option Agreement, in substantial form, for the Tampico Motel Conversion Affordable Rental Housing Development located at 120 S. State College Boulevard between the Anaheim Housing Authority and Jamboree Housing Corporation; approving a Cooperation Agreement between the Anaheim Housing Authority and the City of Anaheim; authorizing the Executive Director, or her designee, to execute and administer the Preliminary Funding Award Letter on behalf of the Authority; authorizing the 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 the Preliminary Funding Award Letter; and making certain other findings in connection therewith and RESOLUTION NO. AHA-2024-007 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for the Tampico Motel Conversion, seconded by Authority Member Diaz. Chairperson Aitken thanked Executive Director Ruiz-Stepter and her team for their hard work. She reflected on how it was not long ago that the City Council was at the property, taking the first steps to move the project forward. She expressed pride in targeting such a vulnerable population that often does not receive the resources they need and deserve and noted how Anaheim Housing Authority Minutes of August 13, 2024 Page 11 of 11 Anaheim is once again leading in the area. She highlighted the importance of strong partnerships, not only with affordable housing developers like Jamboree Housing but also with state and federal partners, and regional partners like CalOptima. She emphasized that it takes a collective effort to push these projects forward and thanked the team for their dedication. MOTION: Authority Member Faessel moved to approve RESOLUTION NO. AHA-2024-006 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Funding Award Letter and Ground Lease Option Agreement, in substantial form, for the Tampico Motel Conversion Affordable Rental Housing Development located at 120 S. State College Boulevard between the Anaheim Housing Authority and Jamboree Housing Corporation; approving a Cooperation Agreement between the Anaheim Housing Authority and the City of Anaheim; authorizing the Executive Director, or her designee, to execute and administer the Preliminary Funding Award Letter on behalf of the Authority; authorizing the 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 the Preliminary Funding Award Letter; and making certain other findings in connection therewith and RESOLUTION NO. _ AHA-2024-007 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for the Tampico Motel Conversion, seconded by Authority Member Diaz. ROLL CALL VOTE: AYES — 7 (Chairperson Aitken and Authority Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks). NOES — 0. Motion carried. Authority Member Faessel thanked his colleagues for approving the item. Executive Director Ruiz-Stepter thanked the Authority for approving the item. She noted that the proposed project will be the first transitional -age permanent supportive housing in Orange County. ADJOURNMENT: With no further business to conduct, without objection, Chairperson Aitken adjourned the meeting of the Anaheim Housing Authority at 7:00 p.m. f; s if fly submitted, u Theresa Bass, CMC Secretary, Anaheim Housing Authority