AHA-2008-002RESOLUTION NO. AHA-2008-002
A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY APPROVING
AN AFFORDABLF. HOUSING AGREEMENT AMONG THE AUTHORITY,
AND LINCOLN ANAHEIM I HOUSING PARTNERS, L.P., A CALIFORNIA
LIMITED PARTNERSHIP, AND LINCOLN ANAHEIM II HOUSING
PARTNERS, L.P., A CALIFORNIA LIMITED PARTNERSHIP;
AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE THE TERMS
OF AND ENTER INTO ANY IMPLEMENTATION AGREEMENT(S)
CONSISTENT WITH THE AFFORDABLE HOUSING AGREEMENT;
AUTHORIZING THE EXECUTIVE DIRECTOR, OR HER DESIGNEE TO
EXECUTE AND ADMINISTER SUCH AGREEMENTS; AND MAKING
CERTAIN OTHER FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Anaheim Housing Authority ("Authority") is a public body, corporate and
politic and is duly organized and validly existing under the Housing Authorities Act, California
Health & Sai'ety Code Section 34240, et seq., and all successor statutes and implementing regulations
thereto ("Housing Authorities Law"); and
WHEREAS, the Authority is empowered to enter into agreements and to carry out
affordable housing projects and programs benefiting Lower Income and Very Low Income persons,
families, and households; and
WHEREAS, the Anaheim Redevelopment Agency ("Agency") is a public body, corporate
and politic and a California redevelopment agency acting under the California Community
Redevelopment Law, Part 1 of Division 24, Section 33000, et seq., of the Health and Safety Code
(``Act"); and
WHEREAS, the Amended and Restated Redevelopment Plan for the Anaheim Merged
Redevelopment Project ': 'as adopted by the City Council of the City of Anaheim by Ordinance
Nos. 5913, 5914, 5915, 5916, 5917, 5918, and 6034; and
WHEREAS, the Agency receives tax increment revenues pursuant to Section 33670(bl of
the Act and is required to deposit not less than thirty percent of the tax increment revenues allocated
to the Agency into the Agency's Low and Moderate-Income Housing Fund pursuant to
Sections 33333.10, 33333.11, 33334.2 and 33334.6 of the Act and to use such funds in order to
increase, improve, and preserve the community's supply of low and moderate-income housing
available at an affordable housing cost; and
WHEREAS, the Agency is authorized and empowered under the Act to provide funding for
the production, improvement, or preservation of affordable housing including the construction of
new privately owned apartments and appurtenant improvements with tax increment revenues from
the Agency's Housing Fund; and
WHEREAS, in furtherance of the objectives of the Authority, Agency, and City to expand
and improve the supply of affordable housing for Very Low Income Households and Low Income
Households, to develop viable urban communities by providing decent, safe housing and a suitable
living environment, and to expand economic opportunities for persons of Very Low and Low
Income, Agency has conveyed to Authority certain parcels of real property generally located at
1275-1287 East Lincoln Avenue in the City (``Site") acquired by the Agency with monies from the
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Housing Fund pursuant to that certain Cooperation Agreement dated as of July 1, 2007 between the
Agency and the Authority; and
WHEREAS, the Authority and Lincoln Anaheim I Housing Partners, L.P., a California
Limited Partnership ("Phase A Developer"), and Lincoln Anaheim II Housing Partners, L.P.,
a California Limited Partnership ("Phase B Developer") (in this Resolution the Phase A Developer
and the Phase B Developer are referred to together as "Developer") desire to enter into an Affordable
Housing Agreement; and
WHEREAS, the Developer desires to design, plan, construct, complete, and operate a
146-unit multi-family affordable housing rental project in two phases, Phase A and Phase B on the
Site ("Project"); and
WHEREAS, the Authority desires to convey two ground leasehold interests in the Site,
one portion of the Site ground leased as the Phase A Site and the other portion of the Site ground
leased as the Phase B Site, to the two limited partnership entities comprising Developer for the
construction and long term operation of the applicable Phase of the Project thereon; and
WHEREAS, Authority and Developer desire to enter into an Affordable Housing Agreement
to carry out the Project; and
WHEREAS, Authority has determined there is a continuing and substantial need in the
community for additional multi-family apartment units to be available for the longest feasible period
to persons and families of Extremely Low Income, Very Low lncome and Lower Income (and
Moderate-lncome, as applicable) at an Affordable Housing Cost, as those terms are defined in the
herein and ir_ applicable sections of the California Health & Safety Code; and
WHEREAS, capitalized terms used in this Resolution are as defined in the Affordable
Housing Agreement, unless otherwise defined herein; and
WHEREAS, the salient provisions and objectives of the proposed Affordable Housing
Agreement among the Authority, the Phase A Developer, and the Phase B Developer include:
(1) set forth the terms, conditions, and performance obligations of all parties to carry out the
planning, design, construction, and operation of the 146-unit affordable housing Project; (2) provide
for Authority's financial participation in both Phase A and Phase B of the Project by providing the
Ground Leases and the two Authority Subordinate Loans, each in an initial principal amount not to
exceed Five Million Six Hundred Thousand Dollars ($5,600,000.00) (a total Authority Subordinate
Loan of $11,200,000) {3) establish acceptable terms, provisions, and rights to cure related to each
Authority Ground. Lease to be entered into between the Authority and the Phase A Developer and the
Phase B Developer as to each applicable Phase along with related subordination agreement(s) for
construction and permanent financing for each Phase of the Project; (4) proceed with the Project in
two Phases; and (5) authorize the Authority Executive Director to negotiate and enter into the
necessary Implementing Agreement(s) by, between, and/or among the Authority, the Phase A
Developer and the Phase B Developer to carry out the Project in two Phases, so long as (a) such
Implementing Agreements are consistent with the terms and provisions of the Affordable Housing
Agreement, (b) Authority's financial participation in the Project, Phase A and Phase B, shall in no
event exceed of $5,600,000 for each Phase, and (c) the Project and all 146 Housing Units constructed
on the Site shall be subject to recorded affordable housing covenants and restrictions that obligate
use, operation, property management, occupancy, and occupancy standards only for persons and
families of 30%AMI Very Low Income Households, 40% AMI Very Low Income Households, 50%
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AMI Very Low Income Households, 55% AMI Low Income Households, and 60% AMI Low
Income Households, Extremely Low Income, Very Low Income, and Lower Income (and/or
Moderate Income, as applicable) at an Affordable Housing Cost for not less than 65 years and that
such restrictions fully comply with all applicable federal, state, and local laws required and arising
from the funding source(s) committed to the Site; and
WHEREAS, the Affordable Housing Agreement is in the vital and best interest of the
Authority and the City of Anaheim, and the health, safety and welfare of its residents, and is of
benefit to the Agency and its Merged Project Area and is contemplated by the Agency's
Implementation Plan for the Merged Project Area adopted and in place pursuant to Section 33490 of
the CRL; and
WHEREAS, pursuant to Section 21159.23 of the Public Resources Code, the Project is
exempt from the California Environmental Quality Act (CEQA) and in this regard, the City's
General Plan designation for the Site was undertaken and completed as a part of the City's
Environmental Impact Report No. 330 and the City-wide General Plan update that occurred in 2004.
On May 25, 2004, the City Council considered and approved Resolution No. 2004-94 that certified
Final EIR No. 330 and City Council Resolution No. 2004-95 that approved a comprehensive update
of the Anaheim General Plan; and
WHEREAS, pursuant to the Housing Authorities Law, in particular Section 34312.3, the
Authority duly noticed a public hearing on the Affordable Housing Agreement and the Ground
Leases contemplated therein; and
WHEREAS, notice of the public hearing was published once a week for successive weeks
prior to the public hearing in the Orange County Register, a newspaper of general circulation in the
community; and
WHEREAS, on March 18, 2008 at a noticed public meeting and hearing, the Authority
Board reviewed and evaluated all of the information, testimony, and evidence presented during the
hearing and considered the Affordable Housing Agreement, including all attachments thereto, and a
summary report regarding the Project; and
WHEREAS, the Authority has duly considered all terms and conditions of the proposed
Affordable Housing Agreement and believes that the Project is in the best interests of the City of
Anaheim and the health, safety, and welfare of its residents, and in accord with the public purposes
and provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE ANAHEIM HOUSING
AUTHORITY:
Section 1. Authority finds and determines the foregoing recitals are true and correct and are
a substantive part of this Resolution.
Section 2. Authority hereby approves the Affordable Housing Agreement among the
Authority, the Phase A Developer, and the Phase B Developer with such changes mutually agreed
upon by the Authority Executive Director (or her duly authorized representative), the City Attorney,
and the Phase A Developer and the Phase B Developer as are minor and in substantial conformance
with the form of the Affordable Housing Agreement which has been submitted herewith. The
Authorit}' Executive Director and the Authority Secretary/City Clerk are hereby authorized to
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execute and attest the Affordable Housing Agreement, including any related attachments, on behalf
of Authority. In such regard, the Authority Executive Director (or her duly authorized
representative) is authorized to sign the final version of the Affordable Housing Agreement after
completion of any such non-substantive, minor revisions. Copies of the final form of the Affordable
Housing Agreement, when duly executed and attested, shall be placed on file in the office of the City
Clerk. Further, the Authority Executive Director (or her duly authorized representative) is authorized
to implement the Affordable Housing Agreement and take all further actions and execute all
documents referenced therein and/or necessary and appropriate to carry out the Project, both Phase A
and Phase B, as provided for and within the Affordable Housing Agreement, including any and all
Implementation Agreement(s). The Authority Executive Director (or her duly authorized
representative) is hereby authorized to the extent necessary during the implementation of the
Affordable Housing Agreement and any Implementation Agreement(s) to make technical or minor
changes and interpretations thereto after execution, as necessary to properly implement and carry out
the Affordable Housing Agreement and any Implementation Agreement(s), provided any and all such
changes shall not in any manner materially affect the rights and obligations of the Authority or the
maximum funding provided under the Affordable Housing Agreement approved hereby.
Section 3. In addition to the authorization of Sections 2 above, the Executive Director is
hereby authorized, on behalf of the Authority, to sign all other documents necessary or appropriate to
carry out and implement the Affordable Housing Agreement, including causing the issuance of
warrants in implementation thereto, and to administer the Authority's obligations, responsibilities
and duties to be performed under the Affordable Housing Agreement.
Section 4. Authority confirms that pursuant to Section 21159.23 of the Public Resources
Code, the Project is exempt from CEQA and in this regard, the City's General Plan designation for
the Site was undertaken and completed as a part of the City's Environmental Impact Report No. 330
and the CitS~•-wide General Plan update that occurred in 2004. On May 25, 2004, the City Council
considered and approved Resolution No. 2004-94 that certified Final EIR No. 330 and City Council
Resolution No. 2004-95 that approved a comprehensive update of the Anaheim General Plan and
based thereon other or further consideration or findings are required under CEQA.
Section 5. The Authority Secretary shall certify to the adoption of this Resolution.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY THIS
EIGHTEENTH (18TH) DAY OF MARCH, 2008, BY THE FOLLOWING ROLL CALL
VOTE:
AYES: Chairman Pringle, Authority Members Hernandez, Galloway, Kring
NOES: Authority Member Sidhu
ABSTAIN: NONE
ABSENT: NONE
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ANAHEIM HO G AUTHO Y
By:
Chairman
ATT T:
Authority Secretary
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Please contact the City Clerk's Office for a complete copy of Attachment "A".