55806.00003\40679740.1
1 RESOLUTION NO.
A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM
HOUSING AUTHORITY APPROVING THE ACQUISITION OF THE
COVERED WAGON MOTEL LOCATED AT 823 S. BEACH BOULEVARD
IN THE AMOUNT OF $6,600,000, SOURCED IN WHOLE OR IN PART,
FROM PERMANENT LOCAL HOUSING ALLOCATION AND/OR LOW
MODERATE INCOME HOUSING ASSET FUNDS; APPROVING AN
AGREEMENT FOR SALE OF PROPERTY AND JOINT ESCROW
INSTRUCTIONS BY AND BETWEEN THE ANAHEIM HOUSING
AUTHORITY AND CRYSTAL PAK, SUBSTANTIALLY IN THE FORM
SUBMITTED HEREWITH FOR THE PURCHASE OF THE COVERED
WAGON MOTEL IN THE AMOUNT OF $6,600,000; AUTHORIZE THE
EXECUTIVE DIRECTOR OF THE HOUSING AUTHORITY, OR HER
DESIGNEE, TO EXECUTE AND ADMINISTER THE AGREEMENT ON
BEHALF OF THE HOUSING AUTHORITY
WHEREAS, the Anaheim Housing Authority (“Authority”) is a California housing authority duly organized and existing under the California Housing Authorities Law, Part 2 of Division 24, Section 34200, et seq., of the Health and Safety Code (“HAL”), and has been authorized to transact business and exercise the power of a California housing authority pursuant to action of the City Council (“City Council”) of the City of Anaheim; and
WHEREAS, the City of Anaheim (“City”) is a California municipal corporation and charter city; and
WHEREAS, the California State Department of Housing and Community Development (HCD) was authorized to provide up to $195 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)); and
WHEREAS, the City of Anaheim applied for and received an allocation of the SB2 Permanent Local Housing Allocation (PLHA) funds in February of 2021 to be received over a five- year period; and
WHEREAS, the City’s Five-Year PLHA Plan includes funding for the creation of affordable housing projects and is included on the Housing and Community Development Department FY 22-23 operating budget; and
WHEREAS, among the eligible activities in the City of Anaheim’s approved Five-Year Permanent Local Housing Allocation Plan is property acquisitions, pre-development, development, rehabilitation, preservation of affordable rental and homeownership activities for the creation of affordable housing opportunities; and
WHEREAS, the PLHA funding supports the City in providing varying affordable housing opportunities; and
WHEREAS, Authority additionally maintains a Low and Moderate Income Housing Asset Fund (the “Housing Asset Fund”) pursuant to Health and Safety Code Section 34176 and 34176.1, 55806.00003\40679740.1
2 which Housing Asset Funds are available to Authority to assist in the development and operation of rental housing in City that is affordable to persons and families of low, very low and extremely low income; and
WHEREAS, Authority intends to acquire the Covered Wagon Motel, sourced in whole or in part, with Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset funds in the amount of $6,600,000 for the purposes of creating a mixed-use development inclusive of varying affordable housing opportunities; and
WHEREAS, Crystal Pak (Seller) has agreed to sell the 70-unit motel located at 823 S. Beach Boulevard, also known as the Covered Wagon Motel to the Anaheim Housing Authority (Authority) for $6,600,000. The attached Agreement for Sale of Property and Joint Escrow Instructions (Agreement) between the Authority and the Seller reflects the total purchase price. The Motel will provide affordable housing opportunities in West Anaheim and will assist with the City’s efforts in the revitalization of Beach Boulevard; and
WHEREAS, it is the intention of the Authority and City to acquire the Covered Wagon Motel property for the purposes of creating a mixed-use development inclusive of varying affordable housing opportunities (the “Project”); and
WHEREAS, upon acquiring the Site the Authority will relocate eligible occupants of the Covered Wagon Motel; the acquisition of the Site and the implementation of the Project shall comply with all applicable requirements of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended, the implementing regulations of Handbook 1378 of the Department of Housing and Urban Development (HUD), the California Relocation Assistance Law, Government Code Section 7260, et seq., and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development and set forth at Title 25, California Code of Regulations Section 6000, et seq. (Guidelines) (collectively, the "Relocation Laws"); and WHEREAS, by Authority’s commitment of monies sourced in whole or in part from Permanent Local Housing Allocation and/or Housing Asset Funds, neither Authority (or Successor Agency or City) intends in any manner to waive any constitutional and/or legal rights under the Dissolution Act or any other applicable laws; therefore, Authority (and Successor Agency and City) expressly and intentionally reserve all rights under any and all applicable laws to challenge the validity of any or all provisions of the Dissolution Act in any legal manner or proceeding, including challenging determinations made by the Oversight Board and/or California Department of Finance, without prejudice to City or Successor Agency or Authority or Developer; and WHEREAS, the Project is vital to and in the best interest of City and the health, safety and welfare of its residents, and is in accordance with the public purposes of applicable state and local laws and requirements; and
WHEREAS, Authority has prepared such notices, plans and reports as may be required prior to consideration of this matter and has made available for public inspection all such matters prior to the public consideration of this matter; and
WHEREAS, Authority and City held a public meeting to consider the project and the transaction contemplated therein in accordance with the Housing Authorities Law, the California 55806.00003\40679740.1
3 Community Redevelopment Law to the extent applicable, Health and Safety Code Section 33000, et seq., and the Dissolution Act; and
WHEREAS, Authority has duly considered all terms and conditions of the proposed Agreement, including all attachments thereto, and believes that the Project is in the best interests of City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE ANAHEIM HOUSING
AUTHORITY:
Section 1. The Authority Board finds and determines that the foregoing recitals are true and correct and are a substantive part of this Resolution.
Section 2. The Authority Board hereby finds and determines, based on all documentation, testimony and other evidence in the record before it, that (a) the proposed acquisition of the Site will assist in the elimination of blight by allowing a parcel (the Site) constrained with infrastructure deficiencies to be converted to a mixed-use development inclusive of varying affordable housing opportunities.
Section 3. The Authority Board hereby approves the acquisition of the Covered Wagon Motel, sourced in whole or in part, with Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset funds and approves an Agreement for Sale of Property and Joint Escrow Instructions by and between the Anaheim Housing Authority and Crystal Pak, substantially in the form submitted herewith for the purchase of the Covered Wagon Motel located at 823 S. Beach Boulevard in the amount of $6,600,000.
The Authority Executive Director, or her designee, is authorized to execute and administer the Agreement for Sale of Property and Joint Escrow Instructions and Cooperation Agreement on behalf of the Housing Authority.
Section 4. In addition to the authorization of Section 3 above, the Authority Executive Director is hereby authorized, on behalf of Authority, to sign all other documents necessary or appropriate to carry out and implement the Agreement for Sale of Property and Joint Escrow Instructions. In addition, the Executive Director is authorized to execute and administer on behalf of the Housing Authority the Cooperation Agreement substantially in the form submitted herewith.
Section 5. As the “lead agency” under the California Environmental Quality Act (Public Resources Code Section 21000, et seq.; herein referred to as “CEQA”), the Governing Board of the Housing Authority hereby finds and determines that the proposed project consists of the purchase of a motel Site for the development of affordable housing project (a Class 1 Project) that will not cause a significant effect on the environment and that the Agreement and the purchase of the motel Sitefor the creation of affordable housing is therefore categorically exempt from CEQA pursuant to Section 15301 of Title 14 of the California Code of Regulations. This finding is based on Authority’s determination that the Project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The Governing Board of the Housing Authority further determines that the Project consists of an existing facility project (a Class 1 Project) 55806.00003\40679740.1
4 and is therefore categorically exempt from CEQA pursuant to Section 15301 of Title 14 of the California Code of Regulations.
Section 6. If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any remaining sections, paragraphs or provisions of this Resolution.
Section 7. This Resolution shall be effective immediately upon adoption.
Section 8. The Authority Secretary shall certify to the adoption of this Resolution. 55806.00003\40679740.1
5 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY THIS THIRTEENTH (13th) DAY OF SEPTEMBER, 2022, BY THE FOLLOWING ROLL CALL VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
ANAHEIM HOUSING AUTHORITY
By:
Vice Chair
ATTEST:
Authority Secretary
55806.00003\40679740.1
ATTACHMENT TO RESOLUTION
ATTACHMENT TO RESOLUTION
ATTACH COPY OF AGREEMENT