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: MAY 24, 2022
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
APPROVING THAT CERTAIN AMENDED AND RESTATED
AFFORDABLE HOUSING AGREEMENT FOR THE BEL’AGE
SENIOR APARTMENTS PROJECT BETWEEN THE ANAHEIM
HOUSING AUTHORITY AND BELAGE PRESERVATION
LIMITED PARTNERSHIP
ATTACHMENT (Y/N): YES ITEM # 01
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority adopt a Resolution of the Anaheim Housing Authority approving that certain Amended and Restated Affordable Housing Agreement for the Bel’Age senior apartments project between the Anaheim Housing Authority and Belage Preservation Limited Partnership, substantially in the form attached herewith; authorizing the Authority Executive Director, or her designee, to execute and implement this agreement and implementing instruments; and making certain other findings in connection therewith.
DISCUSSION:
The Bel'Age Manor Apartments (Project) is a 180-unit senior complex located at 1660 W. Broadway. The Project was developed in 1989 utilizing the City of Anaheim's Density Bonus and Senior Ordinance programs, resulting in the provision of 23 very- low-income units and 13 low-income units. To increase affordability at the site, the Anaheim Housing Authority (Authority) also issued Tax Exempt Bonds for the rehabilitation and acquisition of the Project and entered into a Regulatory Agreement with the developer, designating an additional 36 units to very-low income households, for a total of 72 affordable units. In subsequent deal modifications that took place in 2008, the development was re-financed using the Low Income Housing Tax Credits and the Tax Exempt Bonds to increase affordability such that all 180 units in the Project became affordable to low-income seniors at 60% or below of Area Median Income (AMI) for 99 years (2107). As part of this transaction, the Anaheim Housing Authority (Authority) allocated 90 Project Based Vouchers (PBV) to the project for 10 years.
Extensions to the PBV contract have been granted and assistance is in place through June 30, 2023.
Amended and Restated Affordable Housing Agreement for Bel’Age Manor May 24, 2022
Preservation Partners and Jamboree Housing Corporation (JHC) are the current owners of the Bel’Age Manor apartments. Preservation Partners is proposing to exit the partnership as the General and Limited partner and is proposing to sell its interests to another affordable housing developer, the Jonathan Rose Companies (JRC). JRC will assume the position of General and Limited Partner and take over the asset management responsibilities. JHC is staying on as the social services provider. As stipulated in the regulatory agreement, transactions involving changes in ownership require review and approval of the Anaheim Housing Authority prior to completion.
As the potential buyer, JRC contacted the Authority in April 2021 to request financial assistance for the acquisition and rehabilitation of the property. Following negotiation with Authority staff, the Developers have committed to invest $9,000,000 into the rehabilitation of the Project to address quality of life issues and much needed improvement of an aging building.
The planned rehabilitation of the site will address Americans with Disabilities Act (ADA) upgrades and will provide Energy Efficiency Title 24 improvements. Thirteen (13) units at the site are slated to receive ADA upgrades which will include: realignment and installation of new cabinets to accommodate turning radii in the kitchens and bathrooms, new counter tops to allow for accessible heights, along with new accessible, energy efficient appliances. These upgrades will require tenants in these units to be temporally relocated for 30 days or less.
The remaining 167 units at the site will receive upgrades which include new energy efficient appliances and new carpet and luxury vinyl. To accommodate these improvements, tenants will be out of their units for 6-8 hours during one day. The interior common area improvements include: increased and improved amenities, new carpet and luxury vinyl, and complete common area kitchen improvements. External improvements include: street scape appearance through fencing and gate upgrades, landscaping improvements, parking lot repavement, and improved site lighting. The project will also provide increased social services and programs available to all residents.
Given that some of the planned work may limit access to dwelling units, a Relocation Plan has been prepared to address short-term and long-term relocation needs. For the 13 units that will undergo ADA improvements, the plan indicates that tenants will be relocated on site, utilizing vacant units. It is anticipated that all other work will only require residents to be out of their units for 6-8 hours during one day; therefore the plan calls for accommodations to be provided in community rooms at the site or, in cases requiring special accommodation, the developer will establish hospitality units to address individual tenant needs for the day.
The Relocation Plan is on City Council Agenda under a separate item, and if approved, the Relocation Plan will be implemented and the rehabilitation project will begin on July 1, 2022.
Amended and Restated Affordable Housing Agreement for Bel’Age Manor May 24, 2022
All work is expected to be completed in February 2024. This construction time-line takes into account the effect that COVID-19 has had on the construction materials supply chain.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Grace Stepter
Executive Director
Anaheim Housing Authority
Attachments:
1. Resolution
2. Amended and Restated Affordable Housing Agreement