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AHA-2019/01/29ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF JANUARY 29, 2019 The Anaheim Housing Authority regular meeting was called to order at 5:08 P.M. in City Council Chambers located at 200 S. Anaheim Blvd. for a joint public comment session with the Anaheim City Council and Anaheim Public Financing Authority. The meeting notice, agenda, and related materials were duly posted on January 25, 2019. PRESENT: Chairman Harry Sidhu and Authority Members Lucille Kring, Denise Barnes, Jordan Brandman, Jose F. Moreno, Stephen Faessel, and Trevor O'Neil. STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and Secretary Linda Andal ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No public comments offered related to the Housing Authority agenda. The Housing Authority meeting was recessed at 7:03 P.M. and reconvened at 7:42 P.M. CONSENT CALENDAR: At 7:42 P.M., the consent calendar was considered. MOTION: Authority Member O'Neil moved to approve the consent calendar as presented, seconded by Authority Member Kring. APPROVED VOTE: 7-0. (AYES: Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). Motion carried. AHA 177 3. Approve minutes of the Housing Authority meeting of December 18, 2018. PUBLIC HEARING: This public hearing was considered at 7.43 P.M. 4. This is a public hearing of the Anaheim Housing Authority to consider the approval of a Cooperation Agreement to transfer HOME Investment Partnership Program Funds and AGR- the issuance of a Preliminary Funding Award Letter for the Manchester and Orangewood 11389 affordable rental housing development (2121 S. Manchester Avenue and 915 E. Orangewood Avenue). RESOLUTION NO. AHA -2019-001 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Cooperation Agreement for the Manchester/Orangewood Affordable Rental Housing Development by and between the City of Anaheim and the Anaheim Housing Authority, substantially in the form attached hereto; approve a Preliminary Funding Award Letter, substantially in the form attached hereto; authorize the Executive Director, or his designee, to execute and administer the cooperation agreement and Preliminary Funding Award Letter on behalf of the Authority; authorize the Executive Director or his 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 Cooperation Agreement or Preliminary Funding Award Letter; and making certain other findings in connection therewith (related to Council Item No. 20). Anaheim Housing Authority Minutes of January 29, 2019 Page 2 of 3 Grace Stepter, Deputy Director of Community and Economic Development, reported that the Anaheim Housing Authority currently owns a 2.86 acre site located at 2121 N. Manchester Avenue and 915 E. Orangewood Avenue which presented an opportunity to provide a new affordable rental housing option for Anaheim's low-income working families. She advised that a Request for Proposal was issued on January 31, 2018 and a panel consisting of staff from various city departments, the Housing Authority's financial consultant, and a member of the Housing and Community Development Commission assisted with the evaluation of the proposals in terms of developer experience and qualifications, project concept and design, innovation, strength of onsite social services, and financial terms. Ms. Stepter reported the panel interviewed four developers, from eight proposals, and selected Jamboree Housing Corporation as the finalist. She further reported Jamboree's development proposal consisted of a four-story, 102 -rental -unit, contemporary, 100% affordable housing development, with rents set at varying levels of 30%, 50%, and 60% of average medium income. She described project amenities that include a resident pool, children's play area, community gardens, and a robust level of social services. She also stated three community outreach meetings were held, with some site changes made as a result of public input. Ms. Stepter highlighted this was the City's first venture in securing State funding through the Affordable Housing and Sustainable Communities Program, funded through the Green Gas Reduction Fund of cap -and -trade dollars, for which this project qualified due to its between two major employment centers. In addition to that funding source, an estimated $7 million dollar grant has been requested to improve bikeways, sidewalks, urban greening, and public transit around the site. She reported that a majority of the funding to make this project feasible will be coming from the State, and staff was requesting $3,172,632 of HOME funding be transferred from the City to the Housing Authority to be combined with other funding, including a ground lease on the land, 20 project -based development vouchers, and park fee credits for a total investment from the City valued at $18 million. She noted the total development costs were approximately $51 million, with Jamboree Housing Corporation looking at 4% tax credit equity of $15 million and $13 million from the Affordable Housing and Sustainable Communities Program. Chairman Sidhu opened the public hearing. No public comments were received. Chairman Sidhu closed the public hearing. Authority Member Faessel stated his support of seeking cap -and -trade funds and looked forward to the completion of the public-private partnership and project. In response to Authority Member Moreno's inquiry, Ms. Stepter reported that part of the City's investment of $18 million was the value of City -owned land (valued at approximately $10 million), about $3.1 million HOME funding on loan to the project, park fee credits, and Energy Star rebates. John Woodhead, Director of Community and Economic Development, further advised the funding was structured as a loan to the developer and repaid out of residual receipts, of which 85% goes to paying down the loan amount and then owed 85% of the residual receipts paid as rent after loan was paid off. Andy Nogal, Community Investment Manager, advised that the developer will pay $1.8 million in impact fees and about $0.5 million dollars in permit fees for the project, with a reduction by a Council -adopted waiver for transportation impact fees. Ms. Stepter advised the project would have an Anaheim live -work preference for residents, as well as 20 Section 8 housing units, which would be provided off the Housing Authority's wait list. Anaheim Housing Authority Minutes of January 29, 2019 Page 3 of 3 She also advised that Ponderosa Elementary would be impacted and the City has been communicating with the school district and developer about long term plans. Lastly, in response to Authority Member Moreno's inquiry, she reported that developers were interested in this particular project because of the land the city was able to provide as previous RFPs for cash only had received little to no development interest. Ms. Stepter further reported that 26 units would be available to extremely low income families ($32,800 for a family of four), 40 units to very low income families ($54,600 for a family of four), and 35 units to low-income ($87,450 for a family of four). Authority Member Kring thanked everyone for their efforts and expressed her support for the project. Chairman Sidhu expressed his support for the project and the City's efforts with affordable housing. Authority Member Kring moved to approve RESOLUTION NO. AHA -2019-001 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Cooperation Agreement for the Manchester/Orangewood Affordable Rental Housing Development by and between the City of Anaheim and the Anaheim Housing Authority, substantially in the form attached hereto; approve a Preliminary Funding Award Letter, substantially in the form attached hereto; authorize the Executive Director, or his designee, to execute and administer the cooperation agreement and Preliminary Funding Award Letter on behalf of the Authority; authorize the Executive Director or his 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 Cooperation Agreement or Preliminary Funding Award Letter; and making certain other findings in connection therewith, seconded by Authority Member Moreno. Roll Call Vote: AYES — 7 (Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES — 0. Motion carried. ADJOURNMENT: With no further business, without objection, Chairman Sidhu adjourned the meeting of the Anaheim Housing. Authority at 8:04 P.M. Respectfully submitted, The ass, C Secretary, Anaheim Housing Authority