Loading...
AHA-2019/11/05 ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF NOVEMBER 5, 2019 The Anaheim Housing Authority regular meeting was called to order at 5:17 P.M. in the City Council Chamber 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 October 31, 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 Theresa Bass ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No public comments offered related to the Housing Authority agenda. CONSENT CALENDAR: At 6:28 P.M., Authority Member Kring moved to adopt the consent calendar as presented, seconded by Authority Member Faessel. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES — 0. Motion carried. AHA-177 1. Approve minutes of the Housing Authority meeting of October 29, 2019. 5:00 P.M. PUBLIC HEARING: 2. This is a public hearing to consider the conveyance by long term ground lease of real property generally located at 1515 S. Calle Del Mar in the City of Anaheim, California, to Hermosa Village Phase II Housing Partners, L.P., or an affiliate, under an amended and restated ground lease on terms and conditions to be specified in a certain Commitment R100 Letter (Public hearing continued from Authority meeting of October 29, 2019). D155 RESOLUTION NO. AHA-2019-006 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving that certain commitment letter from the Authority to Hermosa Village Phase II Housing Partners, L.P. substantially in the form attached to this resolution for that certain 112-unit Hermosa Village Phase II New Project; authorizing the Executive Director to sign the commitment letter; authorizing the Executive Director to negotiate and enter into the new project documents described in the commitment letter that implement such commitment letter; authorizing the Executive Director to implement the commitment letter and the new project documents; finding and determining the new project is categorically exempt under CEQA; and, making certain other findings in connection therewith. Anaheim Housing Authority Minutes of November 5, 2019 Page 2 of 4 Executive Director John Woodhead presented the item stating that on June 15, 1999, the Housing Authority approved the Jeffrey-Lynne Neighborhood Revitalization Plan (Plan)for the Jeffrey-Lynne neighborhood generally located at 1515 S. Calle Del Mar. The Jeffrey-Lynne neighborhood was identified as a Level IV priority neighborhood with overcrowding, code violations, deferred maintenance, deteriorated buildings, and gang violence. The Housing Authority subsequently entered into phased affordable housing agreements with the Related Companies of California to implement the Plan for the Jeffrey-Lynne Neighborhood, now known as Hermosa Village, which provided for the acquisition, ground leasing, and substantial rehabilitation of properties within the neighborhood through four phases and a total of 521 affordable housing units. Mr. Woodhead further explained the developer has begun to refinance various phases of the Hermosa Village project; to which, on December 20, 2016, the City Council approved the issuance of bonds for the Hermosa Village Apartments Phase I acquisitions and rehabilitation financing. In October 2018, the Authority received a request from the developer to assist with the refinancing and re-syndication of the Hermosa Village Phase II Project. Mr. Woodhead advised that proceeds from the refinancing would be used to rehabilitation aging units, enhance operations and supportive services, ensure long-term maintenance and management of the project, and pay-off a portion of an existing Housing Authority loan. In support of the project, the Authority will commit to extending the affordability and terms of the ground lease for 57 years; amending and extending the term of the existing residual receipts loan for 57 years; and extending the Section 8 Project Based Voucher(PBV) contract for 15 years prior to its expiration with some adjustments, including the reduction of the PBV from 43 units to 30 units commencing on the expiration date of the existing PBV contract. The PBV reduction was based on the financial analysis of the project confirming that a reduced level of PBV is appropriate for the project. This reduction will provide the Authority with flexibility to use the PBV in other future affordable housing projects in the City. Mr. Woodhead explained the developer was also requesting the Authority issue housing bonds on its behalf to finance the acquisition and rehabilitation of the project, which is a separate item on the agenda. The proposed bond issuance will be in an amount not to exceed $30,000,000, with the bonds to be repaid from project revenues. Accordingly, there is no risk of default to the City or Housing Authority. If approved, staff will work with the developer to issue bonds within the next 18 months and final bond documents will be brought back for consideration prior to issuance. Mr. Woodhead reported the developer would also apply for 4% Tax Credits through the California Tax Credit Allocation Committee in the approximate amount of$9.5 million. Mr. Woodhead reported the City Council would also consider a separate agenda item to consider the bond issuance which would authorize the Housing Authority to provide bond financing for the project, as required by State and Federal Law. If the developer received a Tax Credit award and Bond Allocation, the Housing Authority will enter into various implementing documents per the terms of the Commitment Letter. Mr. Woodhead concluded that the Housing and Community Development Commission considered the project at their meeting on October 16, 2019 and recommended approval. Chairman Sidhu opened the public hearing. William Fitzgerald, Home Owners Maintaining our Environment, alleged this item would benefit the Disney Corporation and the owner of the Miami Dolphins, Stephen M. Ross, due to their political contributions. He expressed concern with the per-unit cost for rehabilitation within the Anaheim Housing Authority Minutes of November 5, 2019 Page 3 of 4 total bond amount and a reported difficulty or inability for local contractors to be hired to work on the project. With no other comments offered, Chairman Sidhu closed the public hearing. MOTION: Authority Member Kring moved to approved Public Hearing Item No. 02, seconded by Authority Member Faessel. DISCUSSION: Authority Member Moreno expressed his support for the project and asked staff to explain how there was no risk to the City or Housing Authority. Mr. Woodhead explained this was conduit financing where the project itself was responsible for repayment and bond-holders could only look to the project in case of any default. Authority Member Moreno questioned the use of Resort bonds in 1996 as part of the project, to which Mr. Woodhead reported the initial project used similar financing of bonds and tax credits, but some money from the Resort bonds was used for neighborhood improvements. Authority Member Moreno questioned the reductions of PBV from 43 to 30 to which Mr. Woodhead explained the project no longer needed as much financial support from PBV so reducing the number in this project would allow the 13 vouchers to be reallocated across the City for other projects. In response to Authority Member Moreno's question regarding affordability, Mr. Woodhead confirmed the rent structure at Hermosa Village housing would not change and the units would still be affordable at the same level. Authority Member Moreno questioned how investors received revenue with a rent-controlled structure at the project, to which Mr. Woodhead explained the investment expectation was lower and the tax credits provided an equity fund of sorts to fill the gap between rents and investment returns. Mr. Woodhead further reported the community was quite stable with some original tenants still occupying units in the project. MOTION: Authority Member Kring moved to approve RESOLUTION NO. AHA-2019-006 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving that certain commitment letter from the Authority to Hermosa Village Phase II Housing Partners, L.P. substantially in the form attached to this resolution for that certain 112-unit Hermosa Village Phase II New Project; authorizing the Executive Director to sign the commitment letter; authorizing the Executive Director to negotiate and enter into the new project documents described in the commitment letter that implement such commitment letter; authorizing the Executive Director to implement the commitment letter and the new project documents; finding and determining the new project is categorically exempt under CEQA; and, making certain other findings in connection therewith, seconded by Authority Member Faessel. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES — 0. Motion carried. Following Anaheim Housing Authority Public Hearing Item No. 2 regarding real property generally located at 1515 S. Calle Del Mar in the City of Anaheim, California. consider: 3. RESOLUTION NO. AHA-2019-007 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for B130 Hermosa Village Apartments Phase II (1515 S. Calle Del Mar; proposed bond issuance in an amount not to exceed $30,000,000). Anaheim Housing Authority Minutes of November 5, 2019 Page 4 of 4 MOTION: Authority Member Kring moved to approve RESOLUTION NO. AHA-2019-007 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax- exempt obligations for Hermosa Village Apartments Phase II, seconded by Authority Member Faessel. 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 to conduct, Chairman Sidhu adjourned the meeting of the Anaheim Housing Authority at 6:51 P.M. Respectfully submitted, Th ss, C Secretary, Anaheim Housing Authority