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AHA-2010-002RESOLUTION NO. AHA-2010 -002 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY APPROVING A COOPERATION AGREEMENT (AVON/DAKOTA NEIGHBORHOOD REVITALIZATION FUNDING) AMONG THE AUTHORITY, CITY OF ANAHEIM, AND ANAHEIM REDEVELOPMENT AGENCY; APPROVING THE NEIGHBORHOOD REVITALIZATION AGREEMENT FOR THE AVON/DAKOTA NEIGHBORHOOD BETWEEN THE AUTHORITY AND AVON DAKOTA HOUSING PARTNERS, L.P.; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, the Anaheim Housing Authority ( "Authority ") is a public body corporate and politic and housing authority acting under the California Housing Authorities Law, Part 2 of Division 24, Section 34200, et seq., of the Health & Safety Code ( "HAL "); and WHEREAS, the City of Anaheim ( "City ") is a California municipal corporation and charter city; 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 ( "CRL "); and WHEREAS, Avon Dakota Housing Partners, L.P. is a California limited partnership ( "Developer "); and WHEREAS, City is a participating jurisdiction with the United States Department of Housing and Urban Development ( "HUD ") and a recipient of HOME Investment Partnerships Act and HOME Investment Partnerships Program funds (42 U.S.C. Section 12701, et seq. and 24 CFR § 92.1, et seq. together, "HOME Program "), which monies are for strengthening public - private partnerships and providing affordable housing, in particular decent, safe, sanitary, and affordable housing with primary focus on housing for very low income and lower income households in accordance with the HOME Program; and WHEREAS, HOME Program funds are used by the City, as a participating jurisdiction, to carry out multi -year housing strategies through acquisition, rehabilitation, and new construction of housing in target areas for the benefit of low income and very low income persons, households, and families; and WHEREAS, City is an entitlement recipient and grantee of HUD Community Development Block Grant Program funds pursuant to Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seq. ( " CDBG Program ") for expenditure in target neighborhoods pursuant to the CDBG Program; and WHEREAS, the City is a recipient of Neighborhood Stabilization Program ( "NSP ") funds pursuant to the Housing and Economic Recovery Act of 2008 ( "HERA "), which NSP funds were provided under Title III of Division B of HERA in order to provide for redevelopment of abandoned and foreclosed residential properties for the benefit of persons and families whose household income does not exceed 120% of the Orange County median income adjusted for family size and thereby facilitating stabilization and revitalization of neighborhoods impacted by such properties, and to DOCSOC/1407012v5/022621 -0153 provide long -term affordable housing, and to increase sustainability and attractiveness of housing and neighborhoods; and WHEREAS, NSP funds may be expended on eligible uses, including financing mechanisms for foreclosed residential properties, acquisition and rehabilitation to sell, rent or redevelop abandoned or foreclosed residential properties, establishment of land banks for foreclosed homes, demolition of blighted structures, and redevelopment of demolished or vacant properties; and WHEREAS, the Amended and Restated Redevelopment Plan for the Anaheim Merged Redevelopment Project ( "Anaheim Merged Project ") was adopted by the City Council of the City by Ordinance Nos. 5913, 5914, 5915, 5916, 5917, 5918, and 6034 (and, as subsequently amended, is referred to herein as the "Redevelopment Plan "); and WHEREAS, Agency receives tax increment revenues pursuant to Section 33670(b) of the CRL and deposits not less than thirty percent (30 %) of such revenues into Agency's Low and Moderate - Income Housing Fund ( "Housing Fund ") pursuant to Sections 33333.10, 33333.11, 33334.2 and 33334.6 of the CRL and uses such funds to increase, improve, and preserve the community's supply of low and moderate - income housing available at an affordable housing cost; and WHEREAS, Agency is authorized and empowered under the CRL to provide funding for, including allocation of funds to the Authority for, the production, improvement, or preservation of affordable housing including the acquisition and rehabilitation of existing privately owned apartments and appurtenant improvements with tax increment revenues from the Agency's Housing Fund; and WHEREAS, there is a multifamily residential neighborhood in the City commonly called "Avon /Dakota" that is located in an area bounded on the east by L3 Communications at 602 E. Vennont Avenue and the development site at 700 E. South Street, on the north by South Street, on the south by Vermont Street, and on the west by Thomas Jefferson Elementary School and Olive Elementary School and which area is part of the Central Anaheim Policing District ( "Avon /Dakota Neighborhood "); and WHEREAS, the Avon/Dakota Neighborhood is zoned RM -4 (Residential, Multiple - Family) and consists mainly of medium- to high - density multifamily apartments and some single- family housing with approximately 200 housing units; and WHEREAS, the Avon/Dakota Neighborhood has been designated Level III by the City because it has experienced and continues to evidence moderate to substantial decline, with many housing structures evidencing deterioration, deferred maintenance, and code violations, and in single - family areas many houses having transitioned from owner- occupied to rental, and the area lacks key public improvements such as adequate streetlights, sidewalks, storm drains, sewers, and curbs /gutters, and there is evidence of social, physical and economic problems, with an increased number of calls for service, including police services, despite enforcement efforts; and WHEREAS, the Avon/Dakota Neighborhood revitalization needs were assessed as a part of the City of Anaheim's Neighborhood Improvement Program process in which neighborhood residents, both owners and renters, and landlords completed surveys and attended meetings where they expressed their concerns about various aspects of the community; and WHEREAS, the needs for the Avon/Dakota Neighborhood identified in and through the surveys include: (1) crime prevention and community policing; (2) increased patrols; (3) neighborhood beautification and housing maintenance; (4) correction of code violations; DOCSOC/ 1407012v5/022621 -0153 (5) adequate trash pick -up; (6) reduction of vandalism; (7) improvement of landscaping; (8) social programs; (9) recreational opportunities and additional play areas; (10) youth opportunities; (11) increasing community involvement; (12) communication with property owners; (13) resident participation; (14) parking improvements and traffic control; (15) adequate parking spaces; (16) reduction of speed and amount of traffic; (17) improving transportation linkages; (18) increased transportation options; (19) increasing economic opportunities; (20) job training for neighborhood residents; (2 1) attracting businesses to serve the neighborhood; (22) and assisting with neighborhood micro - enterprises; and WHEREAS, to address these identified needs, the stakeholders established a neighborhood strategy for the Avon/Dakota Neighborhood that includes six key objectives: (1) crime prevention and community policing; (2) neighborhood beautification and housing maintenance that will include additional code enforcement, coordination of incentive programs that will include adding or refurbishing trash enclosures in alleys, increasing trash pick up schedule, providing low- interest rehabilitation loans for property owners to refurbish interiors and to complete exterior building improvements that create a more attractive neighborhood, along with establishing more uniform maintenance standards and making available rehabilitation loans for exterior landscape improvements; (3) social programs that will explore options for recreational, educational, and social programs at Jefferson and Olive Elementary Schools, market existing City programs to neighborhood residents through flyers and neighborhood meetings to increase enrollment of neighborhood youth in recreational programs; (4) increasing community involvement by developing working relationships with property owners, reactivating or establishing new or amended CCRs and/or property owner associations, encouraging property owners to participate in the City's Rental Enforcement Anti -Crime Training (REACT) program, encouraging residents' participation in neighborhood issues, programs, and activities; (5) parking improvements and traffic control, including developing neighborhood design concept to include parking and circulation improvements, improving transit connection for the community to economic, social and recreation areas, and analyzing public transportation needs of the community; and (6) increasing economic opportunities by promoting existing job training programs to neighborhood residents, encouraging resident micro - enterprise, conducting educational programs targeted to neighborhood residents at Jefferson and Olive Elementary Schools, and encouraging local businesses to hire and train neighborhood residents through incentives; and WHEREAS, in order to revitalize the Avon/Dakota Neighborhood, Authority and Developer desire to enter into a Neighborhood Revitalization Agreement for the Avon/Dakota Neighborhood ( "Revitalization Agreement ") and to prepare jointly and cooperatively a revitalization plan for this neighborhood ( "Plan ") with input from the community and stakeholders in order to plan for the implementation of this Plan as more fully set forth the Revitalization Agreement; and WHEREAS, mutual objectives of the Plan include: (1) voluntary participation in a revitalization project for the Avon/Dakota Neighborhood that will include owners of all or many of the Properties, both multi- family and owner- occupied housing, by establishing and implementing for a majority of the Properties a reciprocally beneficial set of conditions, covenants and restrictions and formation (or reactivation) of owners' association(s) to provide for common areas, common area maintenance, management, reciprocal access, housing quality standards, tenant screening and selection criteria, and other beneficial terms; (2) planning for the commencement of, but not necessarily initiating or completing negotiations for, voluntary acquisition of some Properties in the Avon /Dakota Neighborhood with possession to be vested in Developer for substantial rehabilitation and first -class maintenance and property management; and (3) methods to implement and a projected schedule for implementation of the Plan; and DOCS00 1407012v5/022621 -0153 WHEREAS, City, Agency and Authority desire to enter into that certain Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) for the City and Agency to transfer monies to Authority for implementation of the Revitalization Agreement, including allocation of HOME Program, NSP, and CDBG Program federal funds from the City to Authority and allocation of Housing Fund monies from Agency to Authority; and WHEREAS, the Plan and the acquisition/rehabilitation affordable housing project(s), including each phase thereof, contemplated by the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and the Revitalization Agreement for the Avon/Dakota Neighborhood are categorically exempt pursuant to the California Environmental Quality Act, Public Resources Code 21000, et seq. and the implementing regulations thereto in Title 14, California Code of Regulations, Sections 15000, et seq. (together, "CEQA "), in particular Section 15301 of the CEQA Guidelines; and WHEREAS, by this Resolution Authority desires to approve the Cooperation Agreement (Avon /Dakota Neighborhood Revitalization Funding) and the Revitalization Agreement, to make certain findings in connection therewith, and to authorize the Executive Director to carry out both contracts. NOW, THEREFORE, BE IT RESOLVED BY THE ANAHEIM HOUSING AUTHORITY: Section 1. Recitals. Authority finds and determines the foregoing recitals are true and correct and are a substantive part of this Resolution. Section 2. CEQA Exemption. The Plan and the acquisition/rehabilitation affordable housing project(s), including each phase thereof contemplated by the Cooperation Agreement (Avon /Dakota Neighborhood Revitalization Funding) and the Revitalization Agreement for the Avon /Dakota Neighborhood are categorically exempt under CEQA, in particular Section 15301 of the CEQA Guidelines. The Executive Director, or her designee, is authorized and directed to prepare and file a Notice of Exemption therefor. Section 3. Benefit to Anaheim Merged Project. The allocation to and expenditure of monies by the Authority from the Agency's Housing Fund pursuant to the Cooperation Agreement (Avon /Dakota Neighborhood Revitalization Funding) and to implement the Revitalization Agreement will be of benefit to Anaheim Merged Project in particular the Commercial/Industrial South Anaheim Boulevard component area based on the following: a. Since 2000 a substantial number of new jobs have been generated City -wide and within the Anaheim Merged Project, including the Commercial/Industrial South Anaheim Boulevard subarea, and many jobs are held by employees qualifying as Low to Moderate Income households; and b. Notwithstanding the Agency's ongoing efforts improving, increasing, and preserving the community's supply of affordable housing available at an affordable housing cost, the job growth within the City and the Anaheim Merged Project including the CommerciaVIndustrial South Anaheim Boulevard subarea has caused continuing need for affordable housing in the community to alleviate an adverse jobs/housing ratio; and C. The Southern California Association of Governments ( "SCAG ") has provided documentation on future housing needs in the City of Anaheim; and, based on five -year SCAG figures 9,498 new housing units will be needed in Anaheim and of this total 5,463 will be needed to house persons and families of low income at or below 80% of the Orange County median income, which, along with a current waiting list of over 14,000 Very Low Income persons and households on 4 DOCSOC/ I407012v5/022621 -0153 the Authority's Section 8 rental assistance program, shows a need for continued and additional affordable housing in the community; and d. In the Anaheim Merged Project including the Commercial/Industrial South Anaheim Boulevard subarea there are minimal available sites for development of new affordable housing projects and the high land values in the City generally necessitate public subsidy of projects in order cause development of affordable housing projects thereon; and e. The Avon/Dakota Neighborhood is located adjacent to the Commercial /Industrial South Anaheim Boulevard subarea and presents an opportunity area for redevelopment and revitalization that benefits the community and the Anaheim Merged Project; and f. Upon revitalization pursuant to the Revitalization Agreement, the Avon /Dakota Neighborhood will be a valuable source of housing affordable to the community, including low to moderate income persons, households, and families who now live and work in the subarea. Section 4. Approval of Cooperation Agreement. Authority hereby approves the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding). Section 5. Approval of Revitalization Agreement. The Revitalization Agreement substantially in the form of the copy on file with the Authority Secretary is hereby approved. Section 6. Authorization to Execute and Administer the Agreements. Authority's approval of the Revitalization Agreement and the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) pursuant to Sections 4 and 5 above includes authority to the Executive Director (and her designee(s)), the City Attorney, the City Manager (as to the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding)), and Developer (as to the Revitalization Agreement) to make such changes to the form thereof as are minor and in substantial conformance with the form of the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable, submitted with this matter. The Authority Executive Director and the Authority Secretary/City Clerk are hereby authorized to execute and attest the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, including any related attachments, on behalf of Authority. In such regard, the Executive Director (and her designee(s)) is authorized to sign the final version of the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement after completion of any such non - substantive, minor revisions. Copies of the final form of the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, when duly executed and attested, shall be placed on file in the office of the Authority Secretary/City Clerk. Further, the Executive Director (and her designee(s)) is authorized to implement the Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable, and take all further actions and execute all documents referenced therein and/or necessary and appropriate to carry out the Project, including all Phase(s), contemplated thereby as provided in the Revitalization Agreement, including any and all implementing contract(s) contemplated thereunder. The Executive Director (and her designee(s)) is hereby authorized to the extent necessary during the implementation of the Cooperation Agreement (Avon /Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable, and each and all implementing contract(s) to make technical or minor changes and interpretations thereto after execution, as necessary to properly implement and carry out such Cooperation Agreement (Avon/Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable, provided changes shall not in any manner materially affect the rights and obligations of Authority or the maximum funding provided thereunder and approved hereby. DOCSOC/I407012v5/022621 -0153 Section 7. Authorization to Implement Agreements. In addition to the authorization of Section 6 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 Cooperation Agreement (Avon /Dakota Neighborhood Revitalization Funding) and Revitalization Agreement, as applicable, including causing the issuance of warrants in implementation thereto, and to administer the Authority's obligations, responsibilities and duties to be performed thereunder. Section 8. Attestation and Certification. The Authority Secretary shall attest to and certify the passage and adoption of this Resolution, which shall take full force and effect upon its adoption. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BODY OF THE ANAHEIM HOUSING AUTHORITY THIS TWENTY- SECOND (22 DAY OF JUNE 2010, BY THE FOLLOWING ROLL CALL VOTE: AYES: Chairman Pringle, Authority Members Sidhu, Hernandez, Galloway NOES: NONE ABSTAIN: NONE ABSENT: Authority Member Kring ANAH :OU;G AUT TY Chairman ATTEST: LIND A DAL, AThTHORIT CRETARY Linda N. Andal APPROVED-AS TO FORM: CRISTINA TAL�_EY, CITY ATTORNEY John E.i Woodhead IV Assistatt City Attorney DOCSOC/1407012v5/022621 -0153