ARA 2008/03/18ANAHEIM REDEVELOPMENT AGENCY
REGULAR MEETING OF
MARCH 78, 2008
The Anaheim Redevelopment Agency met in regular session in the Chambers of Anaheim City
Hatl located at 200 South Anaheim Boulevard.
Present: Chairman Curt Pringle, Agency Members: Lorri Galloway, Bob Hernandez, Lucille
Kring and Harry Sidhu
Staff Present: City Manager Dave Morgan, City Attorney Jack White, and Secretary Linda
Nguyen.
A copy of the agenda for the meeting of the Redevelopment Agency was posted on March 14,
2008 on the kiosk outside City Hall.
At 5:15 P.M., Chairman Pringle called the meeting of the Anaheim Redevelopment Agency to
order for a joint public comment session with the Anaheim City Council and the Anaheim
Housing Authority.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS:
Eric Altman, OCCORD, expressed appreciation to the three legislative bodies for their vision in
adopting the Anaheim Affordable Housing Strategic Plan which had exceeded efforts of any
other southern California municipality in addressing the need of homes for low income
households. Specifically he congratulated the City on moving forward with those affordable
housing projects described in Items 5 and 9 on the agenda.
CONSENT CALENDAR: Mayor Pringle removed Item No. 3 from the consent calendar for
further discussion. The balance of the consent calendar was moved for approval by Agency
Member Kring, and seconded by Agency Member Hernandez. Roll call vote: Ayes - 5;
Chairman Pringle, Agency Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion
Carried.
1. Approve and authorize the Executive Director of the Redevelopment Agency to
3430.11.2 execute the Second Amendment to the Disposition and Development Agreement
with Brookfield Olive Street, LLC. for the Olive Street Single-Family Residential
Development (Related to Council Item # 13).
2. Approve the proposed public art element concept for the Harbor Lofts condominium
ARA161 Project located at Lincoln. Avenue and Harbor Blvd.
4. Approve minutes of the Redevelopment Agency meeting held February 26, 2008.
END OF CONSENT:
3. Approve revisions to the Agency's Homebuyer Downpayment Assistance Programs
ARA161 modifying the resale restriction and equity share participation provisions (Related to
Housing Item #07 and Council Agenda Item #17).
ITEM # 02
ANAHEIM REDEVELOPMENT AGENCY MINUTES OF MARCH 18, 2008
Page 2 of 2
Elisa Stipkovich, Community Development Director, reported Item No. 3 would modify resale
restriction and equity share participation provisions for home buyer loan programs for affordable
housing units. These revisions were being recommended due to the recent decrease in home
sale prices and to maintain consistency between those homebuyer opportunities.
Currently, she explained, if the owner of an affordable housing unit resold their unit to a qualified
low income or moderate income buyer at an affordable housing price during the program period,
which generally ran 45 years, the down payment loans could be assumed by the new buyer. If
that owner sold at market rate prices to a non low-to-moderate buyer, the loans must be paid off
and in addition to that resale restriction, an equity participation requirement was triggered and
the Agency would receive about 50 percent of the equity appreciation in that home. This equity
provision, she emphasized, was put in place to eliminate windfall profits during a housing boom
by preventing an affordable housing homeowner to immediately resale that unit at high market
prices and gain 100 percent of the appreciation profits.
Ms. Stipkovich remarked that staff felt equity participation was appropriate only under certain
market conditions and where there was a significant difference in affordable prices due to the
Agency restricting prices or when housing funds subsidized those projects. An example of this,
she added, was Brookfield Colony Park project, which had current market rate housing units
priced at or below current affordable sale prices. A Colony affordable housing homebuyer could
acquire an affordable unit at the same price as anon-affordable homebuyer would pay but
would be required to share in the home's appreciation with the Agency. Ms. Stipkovich ended
her presentation requesting the equity share programs be modified to be effective when either
(I) the market value of a housing unit surpassed the initial affordable sales price to a participant
by five percent, or (2) when no Redevelopment Agency Housing Set-Aside funds were used to
subsidize the project. If set-aside funds were used, she pointed out; the State mandated an
equity participation provision. She requested similar equity provisions be added to all Agency
loans to maintain consistency and then requested revisions be made retroactively to participants
who had already purchased a unit at Colony Park. The final revision requested by staff was to
have the affordability period under all down payment programs run for a period of 45 years in
order to be consistent with State law.
Mayor Pringle and staff discussed and clarified the proposed revisions and Agency Member
Sidhu moved to approve Agenda Item No. 3, seconded by Agency Member Galloway. Roll call
vote: Ayes - 5; Chairman Pringle, Agency Members: Galloway, Hernandez, Kring and Sidhu.
Noes - 0. Motion Carried.
ADJOURNMENT:
There being no further business, Chairman Pringle adjourned the Anaheim Redevelopment
Agency meeting at 5:47 P.M to consider the Anaheim Housing Authority agenda.
Respe y submitted,
Linda N. Andal
Secretary, Anaheim Redevelopment Agency