201 S. Anaheim Blvd.
Tenth Floor
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: APRIL 12, 2022
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE AMENDED AND RESTATED PRELIMINARY
FUNDING AWARD LETTER AND RELOCATION PLAN FOR
THE STUDIO 6 MOTEL CONVERSION PROJECT
ATTACHMENT (Y/N): YES ITEM # 01
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion:
1. Approve an Amended and Restated Preliminary Funding Award Letter for the acquisition and rehabilitation of the Studio 6 Motel, between the Anaheim Housing Authority and Linc Housing Corporation, replacing a commitment of $2,877,959 from HOME American Rescue Plan funds with the Low Moderate Income Housing Asset Fund, substantially in the form attached hereto;
2. Approve the Relocation Plan for the Studio 6 Motel; and
3. Authorize the Executive Director, or her designee, to execute and administer the Amended and Restated Preliminary Funding Award Letter and Relocation Plan on behalf of the Anaheim Housing Authority; and authorize the Executive Director, or her 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 Anaheim Housing Authority under the Amended and Restated Preliminary Funding Award Letter or Relocation Plan.
DISCUSSION:
On January 25, 2022, the Anaheim Housing Authority (Authority) issued a Preliminary Award Letter (Award Letter) to Linc Housing Corporation (Developer) authorizing the submission of a Homekey application to the State of California Housing and Community Development Department and confirming a commitment of local funds in support of the acquisition and rehabilitation of the Studio 6 Motel located at 1251 N. Harbor Boulevard (site) for the creation of interim housing (Phase I). The award letter also outlines plans for the Developer to apply for other State funds, principally Low Income Housing Tax Credits, to facilitate the transition of the project from interim to permanent supportive housing within three to five years (Phase 2).
The Authority and Developer submitted a Homekey application on January 28, 2022 to the California Department of Housing and Community Development (HCD) and Amended and Restated Preliminary Funding Award Letter for Linc Housing Corporation April 12, 2022
requested approximately $26 million in state funding to acquire, rehabilitate, and operate 89 units at the site as interim housing. All of the interim housing units will support homeless and at-risk homeless individuals as they stabilize and transition to permanent housing opportunities.
As part of our local contribution to the project, the Authority committed $2,877,959 in HOME American Rescue Plan (ARP) funds as capital match. However, after additional research, it was determined the HOME ARP funds require the site to operate as interim housing for a minimum of ten (10) years, which does not align with our development plans for the site. As a result, staff is requesting to modify the preliminary funding award letter to substitute the HOME ARP funds for Authority Low Moderate Income Housing Asset Funds (LMIHAF), which do not carry such a requirement. All other commitments made under the original preliminary award letter will remain.
In preparation for a potential Homekey award, the Developer completed a relocation plan per State and Federal Law to determine if the current occupants of the Motel will be eligible to receive relocation benefits as part of this project. Based on the Relocation Plan, it was determined that 10 households out of the 119 units in the project are eligible to receive relocation assistance. Under California Relocation Law, a Relocation Plan (“plan”) must be prepared and available for review and comment for a 30-day period before permanent displacements can occur. The plan was available for review and comments from February 5, 2022 to March 7, 2022, at the counter of the Housing and Community Development Department. The plan was also hand delivered to each of the impacted residents at the motel. In order to issue the proper notices and provide necessary relocation assistance, staff is requesting approval of the plan.
IMPACT ON BUDGET:
Funds are available in the Housing and Community Development Department’s Fiscal Year 2021/22 budget. The Authority is replacing a commitment of $2,877,959 from HOME ARP funds with funds available in the LMIHAF.
Respectfully submitted,
Grace Stepter
Executive Director
Anaheim Housing Authority
Attachments:
1. Amended and Restated Preliminary Funding Award Letter
2. Relocation Plan