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Anaheim, CA 92805
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HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: APRIL 26, 2022
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS WITH GOLDEN THREE INVESTMENT CORP.
(TAMPICO MOTEL) AND COOPERATION AGREEMENT
BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM
HOUSING AUTHORITY
ATTACHMENT (Y/N): YES ITEM # 02
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve an Agreement for Sale of Property and Joint Escrow Instructions by and between the Anaheim Housing Authority and Golden Three Investment Corp., substantially in the form attached hereto, for the purchase of approximately .51 acres located at 120 S. State College Boulevard for $5,280,000, including other associated costs not to exceed $220,000; and approve a Cooperation Agreement by and between the City of Anaheim and Anaheim Housing Authority, substantially in the form attached hereto, authorizing the transfer of State General Fund Allocation funding; and authorize the Executive Director of the Housing Authority, or her designee, to execute and administer the Agreements on behalf of the Housing Authority.
DISCUSSION:
In 2019, the City of Anaheim (City) implemented the Anaheim Motel Conversion Ordinance to allow the conversion of Motels to Permanent Supportive Housing for extremely low-income households providing another tool to increase the amount of extremely low-income units.
The Tampico Motel (Motel) is an existing 32-unit motel in District 5 located at 120 S.
State College Boulevard. The Motel is ideally located near community amenities, restaurants, employment hubs, and quality public transportation. Golden Three Investment Corp. (Seller) has agreed to sell the Motel to the Anaheim Housing Authority (Authority) for (i) $5,280,000, the value established by an MAI appraisal, plus (ii) the appraised value Purchase and Sale Agreement & Joint Escrow Instructions (Tampico Motel) April 26, 2022
of the personal property in the amount of $71,225, and (iii) the liquidated value of interruptions to Seller’s business operations in the amount of $148,775. The attached Agreement for Sale of Property and Joint Escrow Instructions (Agreement) between the Authority and the Seller reflects the total purchase price.
The Cooperation Agreement between the City and the Authority will authorize the transfer of up to $5,500,000 of State funds from the City to the Authority to facilitate the purchase of the Motel by the Authority.
In addition to payment of the purchase price, the Agreement requires payment of certain closing costs by the Authority and relocation benefits under the State Relocation Law (Government Code 7260), as may be applicable.
After completion of the Motel purchase, staff will issue a Request for Proposals (RFP) to solicit Developer proposals to convert and rehabilitate the Motel for the purposes of creating affordable housing opportunities. After the RFP process is complete, staff will present the selected proposal to the Authority’s Governing Board for review and approval.
IMPACT ON BUDGET:
There are sufficient funds in the Housing & Community Development Department’s FY 2021/22 Low and Moderate Income Housing Asset Fund budget to acquire the property.
The grant award received from the State’s General Fund Allocation, restricted for affordable housing, provides funding for the acquisition.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of Anaheim Housing Authority
Attachments:
1. Map
2. Agreement for Sale of Property and Joint Escrow Instructions
3. Cooperation Agreement (State General Fund Allocation)