201 S. Anaheim Blvd.
Suite 201
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: SEPTEMBER 27, 2022
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF A PURCHASE AND SALE AGREEMENT TO
ACQUIRE THE ANAHEIM LODGE MOTEL LOCATED AT 837 S.
BEACH BOULEVARD AND A COOPERATION AGREEMENT TO
TRANSFER PERMANENT LOCAL HOUSING ALLOCATION FUNDS
TO ASSIST WITH THE ACQUISITION OF THE MOTEL
ATTACHMENT (Y/N): YES ITEM # 03
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion:
1. Adopt a Resolution of the Governing Board of the Anaheim Housing Authority approving the acquisition of the Anaheim Lodge Motel located at 837 S. Beach Boulevard, in the amount of $7,600,000, 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 Shivam Hotel, LLC, substantially in the form submitted herewith, for the purchase of the Anaheim Lodge Motel in the amount of $7,600,000; Authorize the Executive Director of the Housing Authority, or her designee, to execute and administer the Agreement on behalf of the Housing Authority.
2. Approve a Cooperation Agreement for the transfer of Permanent Local Housing Allocation funds to assist with the acquisition of the Anaheim Lodge Motel by and between the City of Anaheim and the Anaheim Housing Authority, substantially in the form attached hereto; and authorize the Executive Director, or her designee, to execute and to administer the Agreement on behalf of the Authority.
DISCUSSION:
In 2018, the City of Anaheim (the City) adopted the Beach Boulevard Specific Plan to incentivize and facilitate the revitalization of Beach Boulevard. Development and revitalization efforts are currently underway including the 39 Commons mixed-use development project located at the northeast corner of Beach Boulevard and Lincoln Resolution and Purchase and Sale Agreement & Joint Escrow Instructions and Cooperation Agreement for the Anaheim Lodge Motel September 27, 2022
Avenue and the future mixed-use development planned on the Housing Authority-owned site located at the southeast corner of Beach Boulevard and Lincoln Avenue.
The Anaheim Lodge (Motel) is an existing 45-unit motel located at 837 S. Beach Boulevard in Council District 1. Shivam Hotel, LLC (Seller) has agreed to sell the Motel to the Anaheim Housing Authority (Authority) for $7,600,000. The attached Agreement for Sale of Property and Joint Escrow Instructions (Agreement) between the Authority and the Seller reflects the total purchase price.
Funding to acquire the Motel will be sourced, in whole or in part, from Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset funds in the amount of $7,600,000. The Cooperation Agreement by and between the City and the Authority will authorize the transfer of available Permanent Local Housing Allocation funds to the Authority to assist with the purchase of the Motel.
After completion of the Motel purchase, staff will issue a Request for Proposals (RFP) to solicit Developer proposals for the purposes of creating a mixed-use development inclusive of varying affordable housing opportunities in alignment with the Beach Boulevard Specific Plan. 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 2022/23 budget to acquire the property out of the Low and Moderate Income Housing Asset Fund with funding provided by the Permanent Local Housing Allocation grant. The grant award received from the State’s Permanent Local Allocation Fund is restricted for affordable housing and provides funding for the acquisition of property.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of Anaheim Housing Authority
Attachments:
1. Resolution
2. Agreement for Sale of Property and Joint Escrow Instructions
3. Cooperation Agreement
4. Vicinity Map