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AHA 2008/02/26ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF FEBRUARY 26, 2008 The Anaheim Housing Authority met in regular session in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. PRESENT: Chairman Curt Pringle, Housing Authority Members: Lorri Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu STAFF PRESENT: City Manager David Morgan, City Attorney Jack White, Secretary, Linda Andal. A copy of the agenda for the meeting of the Housing Authority was posted on February 22, 2008 on the kiosk outside City Hall. Chairman Pringle called the regular meeting to order at 5:20 P.M. for a joint public comment session with the City Council and the Redevelopment Agency. ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No statements offered during the joint public comment session related to the Housing Authority agenda. CONSENT CALENDAR: The Housing Authority considered Item No. 3 concurrently with Item No. 1 of the Redevelopment Agency and Item No. 8 of the Council agenda. Authority Member Hernandez moved to approve the balance of the consent calendar, seconded by Authority Member Sidhu. Roll Call vote: Ayes - 5; Chairman Pringle, Authority Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 4. Approve minutes of the Housing Authority meeting of January 29, 2008. OFF CONSENT: 3. Approve revisions to the Homebuyer Downpayment Assistance Programs: Housing AHA 177 Enable by Local Partnerships and CalHome (Related to Agency Item #1 and Council Agenda Item 8). Bertha Chavoya, Housing Manager, remarked the City currently provided for several individual homebuyer loan programs approved under the Housing Authority, the Redevelopment Agency and the City specifically designated for low and moderate income households. Although the current market conditions showed a decline in housing values, she stated the appreciation of homes in Orange County exceeded the increase of the area median wage for low and moderate income households and staff was recommending revisions to the current maximum program loan amounts. Specifically, the $75,000 for low income households and $65,000 for moderate income households would be increased to $125,000 and $100,000 respectively, She added staff was also recommending homebuyers be allowed to participate in the secondary mortgage financing market which provided below market interest rates and more favorable terms. The ITEM # 08 Anaheim Housing Authority Minutes of February 26, 2008 Page 2 third revision, she stated, would create some consistency in the affordability resale restrictions for specific projects. She explained that with these proposed changes, staff felt better able to assist more families to purchase affordable housing in the City and within specific projects where there was a development and disposition agreement (DDA) with the developer. Chairman Pringle was supportive of the increased down payment assistance and with participation in the secondary mortgage market. He expressed concern over the revision addressing affordable resale restrictions. He remarked that with many of the City's affordable housing projects, a 55-year deed restriction was in place which meant if the City assisted a homebuyer with moving into a home, when that property was sold and there was a net equity value resulting from that sale, the proceeds must be split with the City. This revision, he pointed out, would require a deed restriction for any property with a DDA agreement even if a homebuyer purchased the home at market rate and was provided down payment assistance through the City. He expressed concern that this revision would impede rather than help families get into housing and recommended approving the first two revisions while allowing for more research on the deed restriction issue; staff concurred. Chairman Pringle also suggested having an annual review of the maximum loan limits should the housing market turn around, Authority Member Kring concurred in the annual review, and remarked she felt the equity split between the homeowner and the City was fair. Chairman Pringle moved to approve the maximum aggregate loan amount increases, subject to annual review, to approve the secondary trust deed revision and to continue to a later date the DDA resale restriction revision; seconded by Authority Member Kring. Roll Call vote: Ayes - 5; Chairman Pringle, Authority Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried ADJOURNMENT: There being no further business, Chairman Pringle adjourned the Anaheim Housing Authority Meeting at 6:12 P.M. to reconvene the Anaheim City Council meeting. Respectfully submitted, Linda N. Andal, Secretary Anaheim Housing Authority