AHA-2006-004RESOLUTION NO. AHA_2006-004
A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
APPROVING A COOPERATION AGREEMENT BETWEEN THE
ANAHEIM REDEVELOPMENT AGENCY AND THE ANAHEIM
HOUSING AUTHORITY; APPROVING THE AFFORDABLE HOUSING
AGREEMENT BETWEEN THE HOUSING AUTHORITY AND ELM
STREET COMMONS, A CALIFORNIA LIMITED PARTNERSHIP;
AUTHORIZING THE EXECUTIVE DIRECTOR TO CARRY OUT 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 & Safety Code Section 34240, et seq., and all successor statutes and implementing regulations
thereto ("Act"); and
WHEREAS, Authority is empowered to enter into agreements and to carry out affordable
housing projects and programs benefiting Very Low Income and Low Income persons, families, and
households; and
WHEREAS, the Anaheim Redevelopment Agency ("Agency") is a community
redevelopment agency duly organized and existing under the California Community Redevelopment
Law, Health and Safety Code Section 33000, et seq., ("Act") and has been authorized to transact
business and exercise the power of a redevelopment agency pursuant to action of the City Council
("City Council") of the City of Anaheim; and
WHEREAS, the Amended and Restated Redevelopment Plan for the Anaheim Merged
Redevelopment Project was adopted by the City Council of the City of Anaheim by Ordinance Nos.
5913, 5914, 5915, 5916, 5917, 5918, and 6034; and
WHEREAS, Agency receives tax increment revenues pursuant to Section 33670(b) of the
Act and is required to deposit not less than thirty percent (30%) of the tax increment revenues
allocated to Agency 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 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, 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 Agency's and Authority's objective 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 housing and a suitable living environment,
and to expand economic opportunities for persons of Low and Very Low Income, Authority will be
allocated funds from the Housing Fund pursuant to the Cooperation Agreement between Authority
DOCSOC/1200019vU022621-0126 1
and Agency (attached to this resolution) and desires to expend these funds for the Project and the
implementation of the Agreement described herein; and
WHEREAS, Authority and Elm Street Commons, a California Limited Partnership
("Developer") previously entered into certain Exclusive Negotiating Agreement relating to the
acquisition and construction of a 52-unit multi-family affordable housing development called Elm
Street Commons ("Project"); and
WHEREAS, the Project is proposed to be constructed and developed on certain real property
located at 111-125 West Elm Street, Anaheim, California ("Site"), which Site is also located within
the Commercial/Industrial constituent project area of the Anaheim Merged Project Area; and
WHEREAS, Authority has also found a continuing and substantial need in the community
for additional family apartment units to be available for the longest feasible period to persons and
families of Very Low Income and Lower Income at an Affordable Housing Cost, as those terms are
defined in the herein and in applicable sections of the California Health & Safety Code; and
WHEREAS, Authority and Developer desire to proceed with the Project; and
WHEREAS, Authority and the Developer desire to enter into an Affordable Housing
Agreement ("Agreement"); and
WHEREAS, capitalized terms used in this Resolution are as defined in the Agreement,
unless otherwise defined herein; and
WHEREAS, the salient terms and objectives of the proposed Agreement between Authority
and Developer include: (1) terms, conditions, and performance obligations of the parties,
(2) Authority's financial participation in the Project through the Authority Loan in an amount not to
exceed Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00), (3) Developer
provides Authority an Option to acquire the Site (land and improvements) between years 50 to 58 of
the 58-year term of the Authority Loan Promissory Note; (4) Authority will receive 50% of the
Residual Receipts, all as more fully described in the Agreement; and
WHEREAS, Authority desires to approve the Cooperation Agreement, substantially in the
form of the Cooperation Agreement attached and fully incorporated by this reference, to be entered
into between Authority and Agency, which agreement will transfer from Agency to Authority up to
$3,750,000 from the Housing Fund to fund the Authority Loan; and
WHEREAS, the Agreement and the Cooperation Agreement are 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 the Anaheim Merged Project Area and is contemplated by the Agency's
Implementation Plan for the Anaheim Merged Project Area adopted and in place pursuant to Section
33490 of the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF THE
ANAHEIM HOUSING AUTHORITY:
DOCSOC/1200019v1 /022621-0126
Section 1. Authority finds and determines the foregoing recitals are true and correct and are
a substantive part of this Resolution. Pursuant to Resolution No. PC2006-52, the findings relating to
the Project required by and pursuant to the California Environmental Quality Act, California Public
Resources Code Section 21000, et seq. ("CEQA") were made as set forth in said resolution.
The Agreement and Cooperation Agreement are financing agreements under CEQA and such
agreements will facilitate implementation of the Project approved by Resolution No. PC2006-52 and
were contemplated as a part of the Project considered and approved by Resolution No. PC2006-52,
including all necessary CEQA findings.
Section 2. Authority hereby approves the Affordable Housing Agreement between
Authority and Developer, with such changes mutually agreed upon by the Authority Executive
Director (or her duly authorized representative), the City Attorney, and Developer as are minor and
in substantial conformance with the form of the Agreement which has been submitted herewith. The
Authority Chairman and the Authority Secretary/City Clerk are hereby authorized to execute and
attest the Agreement, including any related attachments, on behalf of Authority. In such regard, the
Authority Executive Director (or her duly authorized representative) is authorized to cause the
Chairman and Agency Secretary to sign the final version of the Agreement after completion of any
such non-substantive, minor revisions. Copies of the final form of the 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 Agreement
and take all further actions and execute all documents referenced therein and/or necessary and
appropriate to carry out the Project as provided for and within the scope of the Agreement. The
Authority Executive Director (or her duly authorized representative) is hereby authorized to the
extent necessary during the implementation of the Agreement to make technical or minor changes
and interpretations thereto after execution, as necessary to properly implement and carry out the
Agreement, 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 Agreement.
Section 3. Authority hereby approves the Cooperation Agreement between Authority and
the Anaheim Redevelopment Agency, with such changes mutually agreed upon by the Authority
Executive Director, Agency Executive Director, (or City Manager or their duly authorized
representatives), and the City Attorney, and as are minor and in substantial conformance with the
form of the Cooperation Agreement submitted herewith. The Authority Chairman and the Authority
Secretary/City Clerk are hereby authorized to execute and attest the Cooperation Agreement on
behalf of Authority. In such regard, the Authority Executive Director (or her duly authorized
representative) is authorized to cause the Chairman and Agency Secretary to sign the final version of
the Cooperation Agreement after completion of any such non-substantive, minor revisions. Copies
of the final form of the Cooperation 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 Cooperation Agreement and take all further actions
and execute all documents referenced therein and/or necessary and appropriate to carry out the
Project as provided for and within the scope of the Agreement. The Authority Executive Director (or
her duly authorized representative) is hereby authorized to the extent necessary during the
implementation of the Cooperation Agreement to make technical or minor changes and
interpretations thereto after execution, as necessary to properly implement and carry out the
Cooperation Agreement, 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 thereunder.
DOCSOC/1200019v1 /022 62 1-0 1 2 6
Section 4. In addition to the authorization of Sections 2 and 3 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 Agreement and the Cooperation 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 Agreement and
Cooperation Agreement.
Section 5. The Authority Secretary shall certify to the adoption of this Resolution.
DOC SOC(1200019v 1!022621-0126
PASSED, APPROVED AND ADOPTED this 12`h day of December, 2006 by the following
role call vote:
AYES: 5 AUTHORITY MEMBERS: Chairman Pringle, Authority Members
Sidhu, Hernandez, Galloway, Kring
NOES: 0 AUTHORITY MEMBERS:
ABSENT: 0 AUTHORITY MEMBERS:
ABSTAIN: 0 AUTHORITY MEMBERS:
ANAHEIM USING AUTH TY
By:
Chairman
A
APPROVED AS~TO_ FORM: `-°
JACKr~I;;:~~~lti, ~(~ITY ATTORNEY
Jo~:`~odhead, I~
Assistant City Attorney
AS TO FORM:
STRADLING YOCCA CARLSON & RAUTH
Special Counsel
DOCSOG1200019v1/022621-0126
ATTACHMENTS TO RESOLUTION
ATTACH COPIES OF
FINAL AFFORDABLE HOUSING AGREEMENT
AND FINAL COOPERATION AGREEMENT
DOCSOC/1200019v1/022621-0126