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AHA - 2025/07/15ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF JULY 15, 2025 The Anaheim Housing Authority regular meeting of July 15, 2025 was called to order at 5:16 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 July 10, 2025. MEMBERS PRESENT: Chairperson Ashleigh E. Aitken and Authority Members Natalie Meeks, Ryan Balius, Carlos A. Leon, Natalie Rubalcava, Norma Campos Kurtz, and Kristen M. Maahs STAFF PRESENT: City Manager Jim Vanderpool, 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 a enda items): No in -person or electronic public comments were received related to the Housing Authority agenda. COUNCIL COMMUNICATIONS: Authority Member/Council Member Kurtz highlighted and shared photographs of events she attended including a Senior Safety Meeting she hosted with Authority Member/Council Member Maahs for seniors in Districts 4 and 5. She thanked City departments for their participation, including the Police Department, Fire & Rescue, Public Utilities, and Code Enforcement. The meeting provided seniors with ways to protect themselves from scams and property theft. Authority Member/Council Member Kurtz shared that her office hosted an ice cream party at Golden Skies Mobile Home Park. She shared that a few months ago there was SWAT activity there and the kids in the area were frightened. Police Officers returned and invited the children to join them and gave them badges and allowed the kids to interact with the police cars. The kids also received free books from Community Services. Authority Member/Council Member Kurtz thanked Community Services who brought joy to families through live music events at Ponderosa Park and the Ponderosa Joint -Use Branch Library. Authority Member/Council Member Maahs highlighted and shared photographs of events she attended. She thanked the Anaheim United Methodist Church's Neighborhood Food Pantry and Director Lee Strohm for their work in distributing food, toiletries, and essential items. The CalOptima Health Street Medicine Team was also there to help individuals with housing and other needs. She shared a story of a successful housing placement through the food pantry. Authority Member/Council Member Maahs participated in a Fire Ops 101 experience with Anaheim Fire & Rescue, learning about the department's history and response to emergencies. She had an opportunity to drive the back of the tiller truck and even suited up in firefighter gear which gave her a much deeper appreciation for the skill, courage, and care Anaheim Fire & Rescue brings to the community every day. She stated that firefighters face immense physical Anaheim Housing Authority Minutes of July 15, 2025 Page 2 of 10 and mental challenges, and she is proud of the service they provide and is grateful for their unwavering commitment to keeping Anaheim safe. Authority Member/Council Member Maahs highlighted Katella High School's Spirit Squad's efforts to address community needs, led by students and the Vice Principal, Mr. Acosta. The high school collected non-perishable food items and toiletries for families impacted by immigration enforcement. On Thursday, July 31d Authority Member/Council Member Maahs attended a night hike at the Oak Canyon Nature Center, celebrating the center's 49th birthday. There was an interactive exhibit by the group Natives4Nature which was founded by Josh Andujo and Carlos Munoz. The group shared the history of indigenous people and provided a deeper understanding of the land we live on and its heritage. Authority Member/Council Member Leon addressed the impact of immigration enforcement and stated it is taking a toll on the community. He stated that local police officers and first responders continue to focus on public safety and not immigration enforcement. Authority Member/Council Member Leon stated that it is important to share accurate and verified information because speculation can cause harm. He shared that the City's communications team is providing accurate and verified information and resources to the community through the Anaheim Contigo Program at Anaheim.net/contigo [he repeated his comments in Spanish]. Authority Member/Council Member Leon stated that he wanted to take a moment to recognize the strength and resilience of small businesses in these uncertain times. Authority Member/Council Member Leon highlighted and shared photographs of events in District 2. He recognized Booktown USA, the June Business of the Month. Booktown USA is a cherished independent bookstore in Anaheim, located off Orangewood Avenue and Euclid Street. They have been part of the community for years, not only offering a wide selection of books, but also fostering literacy and learning in the community, and creating a space where stories live and knowledge grows. Authority Member/Council Member Leon congratulated Sumak Peruvian Restaurant, the June Restaurant of the Month. Sumak is located off Ball Road and Euclid Street and is known for its authentic cuisine, bringing traditional flavors and recipes to Anaheim's dining scene. Despite challenges, the immigrant owned restaurant stays committed to serving meals that brings people together, serving as a gathering place that celebrates culture and community. Authority Member/Council Member Leon invited everyone to the 3'd Annual Back to School Bash, a day dedicated to supporting students and families as they get ready for the new school year. This year's event will be held on Sunday, August 31 from 10:00 a.m. to 2:00 p.m. at Madison Elementary School. Backpacks, school supplies, and health services will be provided to support students and families. His office is working closely with the school district and community partners to support those who cannot attend in person. Authority Member/Council Member Leon requested to adjourn the meeting in memory of eight -year -old Jasmine Nguyen who tragically lost her life on July 4th due to an illegal fireworks incident just weeks before her ninth birthday. Jasmine was a bright, joyful child who brought light and happiness to everyone around her. Her laughter and smile touched the hearts of her family, friends, and community. This heartbreaking loss has deeply affected everyone. Over the weekend the community gathered to support Jasmine's family at her mom's tea shop, Greatea, off Euclid Street and Orangewood Avenue, showing the compassion and unity that defines Anaheim. He expressed condolences to Jasmine's mom, sister, family, and the Stoddard Elementary School community. Authority Member/Council Member Rubalcava thanked Public Information Officer Mike Lyster and his team for their efforts in updating the community on immigration enforcement and providing resources at Anaheim.net/contigo. Authority Member/Council Member Rubalcava highlighted and shared photographs of events she attended including the re -grand opening of The Untold Story Bookstore in District 3. Authority Member/Council Member Rubalcava stated that she, Authority Member/Council Member Maahs, and Anaheim Chamber of Commerce Anaheim Housing Authority Minutes of July 15, 2025 Page 3 of 10 President Dara Maleki attended the event. She encouraged the community to visit the female owned Hispanic business located off Anaheim Boulevard and Cypress Street. Authority Member/Council Member Rubalcava thanked Community Services for organizing the sold -out Fourth of July 5k/10k event and noted that she and Vice-Chairperson/Mayor Pro Tern Meeks walked the 5k. She thanked the volunteers, City employees, Fire & Rescue, Public Utilities, and Anaheim Police Department for making sure the streets were safe. Authority Member/Council Member Rubalcava thanked everyone who was able to celebrate this great country regardless of what is going on right now. Authority Member/Council Member Rubalcava thanked Community Services for hosting a community event for members of the community to be part of a mural design that will be going up at Center Greens Park. She highlighted the Beats on Center Street event and encouraged everyone to visit and attend events where small businesses are selling their products. Authority Member/Council Member Rubalcava recognized local realtors who met with her at the Anaheim Public Library for their engagement and support in creating policy and finding solutions for quality -of -life issues in Anaheim. Authority Member/Council Member Rubalcava thanked Anaheim Police Lieutenant Jonathan Yepes for his remarkable law enforcement career and upcoming retirement. He began his career with the Los Angeles County Sheriffs Department before moving to the Downey Police Department and then the Anaheim Police Department where he continued his journey with assignments in patrol, the gang unit, and the robbery/assault detail. Officer Yepes' leadership led to becoming a Sergeant where he served on patrol, internal affairs, and the burglary/auto theft detail. As one of the first Latinos to be promoted to Lieutenant, he has been a role model to the community and embraced diverse responsibilities, including roles as watch commander, district commander for West and South Community Policing Teams, and assignments with HALO, PERT, resort policing, jail operations and air support. On behalf of District 3, she congratulated Lieutenant Yepes on a well-earned retirement. Authority Member/Council Member Rubalcava invited everyone to a School Supply Giveaway and Car Show at Center Greens Park and noted that several community and City departments will be in attendance to ensure that students are prepared for the new school year. Authority Member/Council Member Rubalcava shared that the District 3 newsletter highlights various community events and achievements, and she invited the community to sign up at Anaheim.net/D3. Authority Member/Council Member Rubalcava requested to adjourn the meeting in memory of Randa Amin-Hamida, a beloved community member who was tragically killed. She was 64 years old and was a beloved wife, mother, grandmother, great grandmother, 37-year Anaheim resident, educator, advocate, and the heart of her family and community. Sadly, on June 13th she was killed after being struck while walking to the Anaheim Packing House with her sister-in-law, who remains hospitalized. This heartbreaking loss happened just weeks before Randa was to celebrate her 651h birthday and 50th wedding anniversary in August. Authority Member/Council Member Rubalcava expressed condolences to the Hamida family. Vice-Chairperson/Mayor Pro Tern Meeks thanked the various City departments for their support in organizing the Fourth of July event in District 6. The event included a 5k, dog show, parade, music festival, and fireworks, emphasizing the importance of celebrating safely and avoiding illegal fireworks. Chairperson/Mayor Aitken highlighted the upcoming community food drive on July 19th for residents in need. She thanked everyone who has donated food, diapers, paper goods, and beverages. She requested to adjourn the meeting in memory of Father Seamus Glynn, a District 6 icon and founding pastor of San Antonio Catholic Church. She shared that Father Seamus Glynn administered her Sacrament of First Communion, Confirmation, and was a part of her wedding. Anaheim Housing Authority Minutes of July 15, 2025 Page 4 of 10 CITY MANAGER'S UPDATE: City Manager Jim Vanderpool noted that Republic Services has returned to full strength after five days of trash service disruptions. Throughout the disruption, the City pressed Republic Services to restore regular service and make up missed pickups as soon as possible. Republic Services has been working under contingency plans, as required by their contract with the City. Multiple waste drop-off sites were provided over several days for residents who wanted to utilize them. City Manager Vanderpool thanked the community for their patience and understanding. He clarified that the labor and contract issues were not in Anaheim, but local workers were supporting union members on the East Coast. Full details and timely updates are available on Anaheim.net/updates. City Manager Vanderpool announced that Chief of Police Rick Armendariz will be retiring after a 30-year law enforcement career, including six years in Anaheim. Chief Armendariz became Anaheim's 371h Chief in August 2023 after coming to Anaheim in 2019 and serving as Deputy Chief. City Manager Vanderpool thanked Chief Armendariz for everything he has done for Anaheim as he has truly shown everyone his commitment and passion for service to the community. The City will be retaining the services of an executive recruiting firm that specializes in law enforcement for a nationwide search for Chief Armendariz's successor. Presentation regarding Orange County Transportation Authority Wave Fare Payment System City Manager Jim Vanderpool introduced OCTA Department Manager of Revenue Administration Sam Kaur and OCTA Department Manager of Marketing, Customer Engagement, and Internal Communications Ryan Armstrong to provide a presentation on the new payment system that will launch in October. Ms. Kaur stated that the new Wave Fare Payment System is scheduled to be launched in October 2025. The system represents a significant modernization of OCTA's fare collection process, providing a more streamlined and convenient experience for bus riders. She noted that the existing fair collection system is 24 years old, relying heavily on cash and magnetic stripe paper passes. In 2015, mobile ticketing was introduced and in 2018 validators to scan the mobile tickets were available on board. In October 2023, the Board of Directors approved the implementation of a new fair payment system, now branded as the Wave Card System. In November 2024, the Board of Directors adopted fair policy amendments, and introduced fair capping and a free two-hour transfer window, both set to launch with the Wave system later this year. The new fare payment system includes smart cards known as the Wave card, an enhanced mobile application, expanded retail network, credit card/debit card payments, and OCTA will continue to accept cash as well. Ms. Kaur explained the benefits provided by the smart card system, including the replacement of magnetic stripe passes which will be replaced by reusable Wave smart cards, riders can simply tap the Wave card on the validator, enabling faster and more efficient boarding. Riders can purchase the Wave cards for $2 at an OCTA website or store and for $4 at retail centers. The Wave Card System supports all existing OCTA reduced fare programs, including those for seniors, youth and college passes, and individuals with disabilities. Youth riders will receive their first physical Wave card free of charge from OCTA. Wave cards will enable the benefit of fair capping which means that riders only pay up to the daily $5 or the monthly cap of $69 with unlimited rides once the cap is reached. For example, after paying $2 for the first ride, $2 for the second ride, and $1 for the third ride, riders can enjoy free rides for the rest of the day. The monthly cap will work the same way as the daily cap. Riders can continue to tap Anaheim Housing Authority Minutes of July 15, 2025 Page 5 of 10 daily and as soon as they reach $69, they can enjoy the rides for the rest of the month for free. This is a huge benefit that currently does not exist. Riders currently must pay $69 in advance to obtain the 30-day card, but they will no longer have to do that. This will give them the ability to pay as you go, and OCTA is pleased to have that feature on board with the launch of the new Wave fare payment system. Registering an account will provide riders with the benefits of balance protection if a card is lost or stolen, they can go online and they can protect the remaining balance. They can lock their card, freeze their card, or they can just suspend their account in its entirety and open a brand-new card. The Wave fare payment system will have an enhanced mobile application, and riders will be able to download the mobile application on their smartphones, create an account, and obtain a virtual smart card for free. Riders will not have to pay for the mobile application or obtain the virtual card. It will be provided for free, and it will have the same benefit as the physical card. The new mobile application will offer options to add funds to customer accounts using credit cards, debit cards, or customers can take cash to a participating retail location. There will be 400 plus retail locations in Orange County providing great flexibility and convenience for riders to purchase Wave cards or to reload. Another great feature is the ability to use credit/debit cards, as well as digital wallets like Apple, Google, and Samsung Pay. Ms. Kaur emphasized that OCTA would continue to accept cash and continue to provide options for those riders who are likely not to purchase the Wave card. Ryan Armstrong explained that OCTA took a phased approach to rider communications, starting with public outreach, which was intended to gather feedback. Most notably, 83% of riders that were surveyed said they were interested or very interested in the Wave card. They are currently in the second phase of the process, and it is about awareness and education to prepare riders for the change and to build excitement. The final phase will be the launch campaign and promotion. OCTA has developed a wide range of communication materials, including printed brochures, bus advertisements, and print advertisements. Digital communications have also been developed, including a dedicated web page, email blasts, social media, and digital ads. A digital toolkit was shared with every Orange County city, schools and colleges, and many other organizations. Riders were directly engaged through activities like bus ride-alongs, in person and virtual community meetings, and OCTA is participating in many community and cultural events, including in Anaheim and collaborating with several organizations. Ms. Kaur stated that in terms of the next steps, OCTA is currently going through the functional integrated testing to make sure all the features described are working accurately and will be conducting pilot testing in a controlled live environment prior to the launch of the system. Vice-Chairperson/Mayor Pro Tern Meeks asked if the Wave card will be compatible with Metrolink. Ms. Kaur responded that OCTA is working with Metrolink to be able to validate their paper and mobile tickets. Once a Metrolink ticket is validated, OCTA will accept Metrolink riders for free. Vice-Chairperson/Mayor Pro Tern Meeks stated that the process is not as seamless as she would like it to be, but it is a good start since OCTA will be able to scan a Metrolink ticket and provide the free transfer. Authority Member/Council Member Balius asked how the payment cap per day will be tracked if a rider pays cash. Ms. Kaur responded that the advantage of Anaheim Housing Authority Minutes of July 15, 2025 Page 6 of 10 using the Wave card is that riders will have the pay -per -ride option and the system will validate a Wave card after reaching the cap. The disadvantage of paying cash is that there is no tracking. Authority Member/Council Member Balius clarified that a rider must have the Wave card to register a ride. Ms. Kaur responded affirmatively and noted that a rider must have a physical or virtual Wave card. She clarified that cash can be used to load a Wave card and riders will continue to gain the benefits Authority Member/Council Member Balius asked where a rider can use cash to load a Wave card. Ms. Kaur responded that there are 400 plus retail locations as well as the OCTA store located at their headquarters. Authority Member/Council Member Leon thanked the OCTA team for the presentation. He requested that as OCTA continues rolling out information to keep the City of Anaheim informed by working with the City's communications team. He stated that the City will then be able to inform residents in Anaheim and across the area. At 6:54 P.M., Mayor/Chairperson Aitken recessed the Anaheim City Council to address the Anaheim Housing Authority agenda. CONSENT CALENDAR: The Consent Calendar was considered with Council Member Leon pulling Item No. 1 for separate consideration. MOTION: Authority Member Leon moved to approve the balance of 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 Vice -Chairperson Meeks. ROLL CALL VOTE: AYES — 7 (Chairperson Aitken and Authority Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES — 0. Motion carried. AHA177 2. Approve minutes of the Housing Authority meeting of May 13, 2025. END OF CONSENT CALENDAR: AGR-4507.11 1. Approve the Option to Purchase Agreement (Elm Street Commons Affordable Housing AGR-4507.111 Project), with Elm Street Commons LP, in substantial form; approve a Mortgage Loan AGR-4507.0.10.1 Sale Agreement with California Community Reinvestment Corporation to purchase the Elm Street Commons property, located at 111-125 West Elm Street, for $2,881,430.20 AGR-4507.0.10 utilizing Low Moderate Income Housing Asset funds, in substantial form; approve the AGR-4507.0.15.1 First Amendment to Authority Regulatory Agreement authorizing the Executive AGR-4507.0.15 Director to implement Tax Credit Allocation Committee (TCAC) rent limits for the Elm Street Commons property which may result in rent increases; approve the First Amendment to City Affordable Housing Restrictions [Non -Subordinate] with the City of Anaheim to authorize the Executive Director to implement a rent limit structure associated with the Low -Income Housing Tax Credit program which is primarily based on a percentage of the Area Median Income; authorize the creation of a reserve fund, in an amount not to exceed $230,000, to address emergency deferred maintenance Anaheim Housing Authority Minutes of July 15, 2025 Page 7 of 10 during the interim ownership period; authorize the Executive Director, or designee, to execute and administer the Option to Purchase Agreement, Mortgage Loan Sale Agreement, First Amendment to Authority Regulatory Agreement, and First Amendment to City Affordable Housing Restrictions; authorize de minimis changes that do not substantially change the terms and conditions of the agreements, as determined by the City Attorney's Office; and find and determine that the proposed amendments are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), 15378, and 15061(b)(3) of Title 14 of the California Code of Regulations and making certain other findings in connection therewith [related to Council Item No. 11]. Deputy Director of Housing and Community Development Andy Nogal reported that in December 2006, the Anaheim Housing Authority (Authority) entered into an Affordable Housing Agreement with Advanced Development & Investment, Inc. (ADI), acting as the original developer, and approved a $3,750,000 loan (Authority Loan) to help with the development of the Project. He shared that in 2010, ownership of Elm Street Commons LP was transferred to Wentwood, a Texas -based company, which assumed the role of developer and took over control of the Project. He noted that the Authority loan carries a 58-year repayment term and bears 3% simple interest. He reported that as of July 15, 2025, the outstanding Authority loan balance, including accrued interest, totaled approximately $10,485,913 and would remain in place and is expected to be paid over time through project cash flow once the project is stabilized. He shared that the Authority Loan is subordinate to the first mortgage lender, California Community Reinvestment Corporation (CCRC) and the current outstanding balance is $2,881,430.20. Deputy Director Nogal reported that on December 11, 2024, CCRC informed staff and interested parties that the Borrower and Property Owner, Elm Street Commons LP, had initiated a strategic default and ceased making payments on the first mortgage effective November 2024. He shared that Wentwood expressed its intention to sell its California property holdings and exit the state. He added that staff were notified that Westlake Housing, L.P., the property manager, would resign and cease property operations. He reported that CCRC further indicated its intent to initiate non judicial foreclosure proceedings. He shared that on February 25, 2025, CCRC recorded a Notice of Default against the property's title, and on June 10, 2025, CCRC recorded the Notice of Trustee's Sale, and set a public auction date for July 17, 2025. He explained that CCRC is moving forward with the foreclosure and plans to sell the property unless the outstanding loan of $2,881,430.20 is paid or a resolution is reached before the sale date. Deputy Director Nogal reported that to prevent foreclosure and protect the long-term affordability of the Elm Street Commons property, the Authority is taking proactive steps to assume temporary control of the project and stabilize its operations. He noted that the Authority has negotiated an Option to Purchase Agreement with Elm Street Commons LP to acquire their interest in the Elm Street Commons property for $100. He explained that the Authority will temporarily assume the role of borrower and property owner until the selection and approval of a new owner is finalized. He added that the Authority will purchase the existing first deed of trust loan held by CCRC utilizing Low Moderate Income Housing Asset funds (LMIHAF) in the amount of $2,881,430.20. He noted that the purchase will allow the Authority to address any deferred maintenance issues and facilitate the transition to a qualified borrower and property owner under the City's oversight while protecting the affordability of the covenants on the property. Anaheim Housing Authority Minutes of July 15, 2025 Page 8 of 10 Deputy Director Nogal reported that staff reviewed both the physical and financial condition of the property. He noted that the property has struggled to maintain financial stability, with recurring shortfalls in net cash flow and an ongoing inability to cover its debt payments. He explained that the shortfall was attributed to the owner's decision not to increase rents, the property's obligation to use the more restrictive California Department of Housing and Community Development (HCD) rent limits, and rising operational costs. He shared that due to the financial challenges, Wentwood could not identify an immediate replacement buyer and chose to initiate a strategic default, leaving the property at risk of foreclosure by CCRC. Deputy Director Nogal reported that the current rent restrictions require the use of HCD- published rents tied to the Redevelopment Agency structure. He explained that while the structure was once standard for Redevelopment -funded properties, affordable housing rent structures have since been modernized and now align with the rent limits established under the Low -Income Housing Tax Credit (LIHTC) program. He added that both rent frameworks are based on HUD published area median incomes, but differ in methodology, with LIHTC (TCAC) rents typically allowing slightly higher limits that reflect current financing realities. He shared that the increases can significantly improve financial viability without compromising affordability. Deputy Director Nogal reported that to stabilize operations in the interim, the property manager implemented rent increases effective March 1, 2025, raising rents to the maximum amounts allowed under current HCD guidelines. He added that despite the increases, the HCD rent limits remain significantly lower than TCAC rents and are insufficient to support the property's long- term financial viability. He shared that because the Elm Street Regulatory Agreement does not contemplate a shift away from Redevelopment -era rent limits, staff requests authority to amend the agreement to allow the use of TCAC rents, aligning the project with current industry standards and improving long-term financial viability. Deputy Director Nogal reported that the modernized rent structure will result in rent increases; however, to minimize impacts on existing households, staff will evaluate each tenancy and use a phased approach to rent increases, providing residents with ample notice and support if an increase is applied. He noted that in all cases, rents will remain at affordable levels based on State standards, ensuring that no tenant is paying more than 30% of their income on housing costs. He noted that to ensure a smooth transition in operations, Authority staff will hire a qualified property management company to operate the property following the borrower's exit and acquisition of the CCRC loan. He added that the interim management will remain in place until a new developer is selected and onboarded. He shared that in addition to the loan purchase, staff requests authorization to allocate up to $230,000 in LMIHAF to address emergency deferred maintenance issues that may arise and ensure the property remains habitable and operational during the interim period. Deputy Director Nogal reported that without intervention, the property is at risk of foreclosure and resale at market rates, potentially eliminating affordability restrictions and displacing extremely low- and very low-income families the Project currently serves. DISCUSSION: Authority Member Leon requested clarification on the rent increases and exceptions for families, compared to the property being sold with no affordable housing components. Deputy Director Nogal confirmed that staff would conduct a full assessment on the existing tenants to minimize impacts on rent increases. Anaheim Housing Authority Minutes of July 15, 2025 Page 9 of 10 Authority Member Kurtz thanked staff for trying to preserve low-income housing. She expressed her support for the item. She requested clarification on the deferred maintenance of the property. Deputy Director Nogal explained that maintenance has not been drastically deferred. He highlighted the existing condition of the property. He noted funding for maintenance would be used for issues that arise. He explained that in the interim, while a new developer onboards, the funds would ensure that maintenance is addressed. In response to Authority Member Kurtz, Deputy Director Nogal reported that if the City does not find a buyer, the City can hold onto the property for a year. He noted that staff would conduct an Request For Proposal (RFP) and solicit developers to acquire the asset and any existing loans. He shared that the primary goal is to stabilize the property which he noted could take several months. He reported that staff would work on an RFP and within six months, release it and solicit proposals. Authority Member Kurtz expressed her support for the item. She asked that the Authority remain informed when the RFP is released and when responses are submitted. She thanked staff for their work in protecting residents at the location. Authority Member Rubalcava thanked staff for their work and expressed her gratitude that families would avoid being displaced. She requested clarification on whether developers are interested in acquiring the property, any potential updates to the property following an acquisition, and whether the current families would be displaced. Deputy Director Nogal shared that there are incentives for the development, including fees and an opportunity for a 4% tax credit with bonds. He reported that staff would amend the regulatory agreement to ensure that the City is in first position in perpetuity to protect against any default in the future. He noted that moving forward, it would ensure that the City is in the first position to protect the affordability of the project. Authority Member Rubalcava clarified that the budget impact would apply to the Housing and Community Development Department budget and not the General Fund. MOTION: Authority Member Kurtz moved to approve the Option to Purchase Agreement (Elm Street Commons Affordable Housing Project), with Elm Street Commons LP, in substantial form; approve a Mortgage Loan Sale Agreement with California Community Reinvestment Corporation to purchase the Elm Street Commons property, located at 111-125 West Elm Street, for $2,881,430.20 utilizing Low Moderate Income Housing Asset funds, in substantial form; approve the First Amendment to Authority Regulatory Agreement authorizing the Executive Director to implement Tax Credit Allocation Committee (TCAC) rent limits for the Elm Street Commons property which may result in rent increases; approve the First Amendment to City Affordable Housing Restrictions [Non -Subordinate] with the City of Anaheim to authorize the Executive Director to implement a rent limit structure associated with the Low -Income Housing Tax Credit program which is primarily based on a percentage of the Area Median Income; authorize the creation of a reserve fund, in an amount not to exceed $230,000, to address emergency deferred maintenance during the interim ownership period; authorize the Executive Director, or designee, to execute and administer the Option to Purchase Agreement, Mortgage Loan Sale Agreement, First Amendment to Authority Regulatory Agreement, and First Amendment to City Affordable Housing Restrictions; authorize de minimis changes that do not substantially change the terms and conditions of the agreements, as determined by the City Anaheim Housing Authority Minutes of July 15, 2025 Page 10 of 10 Attorney's Office; and find and determine that the proposed amendments are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), 15378, and 15061(b)(3) of Title 14 of the California Code of Regulations and making certain other findings in connection therewith, seconded by Authority Member Rubalcava. ROLL CALL VOTE: AYES - 7 (Chairperson Aitken and Authority Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES — 0. Motion carried. ADJOURNMENT: With no further business to conduct, without objection, Chairperson Aitken adjourned the meeting of the Anaheim Housing Authority at 7:08 P.M. R sp�,ctfully submitted, r Therejia Bass, CMC Secretary, Anaheim Housing Authority