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HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: FEBRUARY 28, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: REQUEST TO APPROVE THE ISSUANCE OF A
PRELIMINARY FUNDING COMMITMENT LETTER AND
COOPERATION AGREEMENT TO MAKE AVAILABLE
BUILDING EQUITY AND GROWTH IN
NEIGHBORHOODS (BEGIN) PROGRAM FUNDS FOR
DOWN PAYMENT ASSISTANCE FOR THE 100 WEST
HOMEOWNERSHIP AFFORDABLE HOUSING PROJECT
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion:
1) Approve a Preliminary Funding Commitment Letter, in substantial form, with Toll West Coast, LLC, to allocate up to $2,900,000 in affordable housing funds for first-time home buyer down payment assistance for the 100 West Homeownership Affordable Housing Project located at 100-394 West Cerritos Avenue; authorize the Executive Director, or her designee, to execute and administer the Preliminary Funding Commitment Letter on behalf of the Anaheim Housing Authority; and authorize the Executive Director, or her designee, to enter into subsequent agreements necessary to implement the down payment assistance, provided that such agreements do not materially increase or extend the assistance provided by the Anaheim Housing Authority under the Preliminary Funding Commitment Letter.
2) Approve a Cooperation Agreement, in substantial form, to make available Building Equity and Growth in Neighborhoods (BEGIN) Program Funds in an amount up to $2,900,000, by and between the City of Anaheim (City) and the Anaheim Housing Authority, and authorize the Executive Director, or her designee, to execute and administer the Agreement on behalf of the Authority. 3) Amend the Housing and Community Development Department’s FY 2022/23 budget by $2,900,000.
Preliminary Funding Commitment Letter and Cooperation Agreement for the 100 West Homeownership Affordable Housing Project February 28, 2023
DISCUSSION:
On January 30, 2018, the Anaheim Housing Authority (Authority) approved a Preliminary Funding Commitment, approving down payment assistance for twenty-nine (29) units of the proposed 292-unit homeownership development project described herein as “Project” pursuant to that certain Preliminary Funding Commitment letter dated January 18, 2018, by and between the Authority and Greenlaw Partners, Inc.
Greenlaw Partners, Inc. subsequently transferred the development rights of the Project to Toll West Coast, LLC (New Developer), which is currently in the final development stages of the Project. Toll West Coast, LLC has submitted a request for consideration to transfer the down payment assistance in the amount of up to $2,900,000 (Down Payment Assistance) from the City’s BEGIN program income funds to assist first-time home buyers for the 100 West Homeownership Affordable Housing Project (Project) located at 100-394 West Cerritos Avenue (Attachment 3) to their entity. The original Preliminary Funding Commitment letter did not contain a transfer provision. Therefore, the New Developer was asked to make a formal request of these funds for review and consideration.
The Project is a 292-unit, for-sale residential development project consisting of 146 carriage units, 98 townhouses, and 48 flats, each with two to four bedrooms and ranging from 1,200 to 1,953 square feet. The Project received Density Bonus Housing Incentives as part of the Project entitlements and committed a total of 10% (30) of the 292-units as affordable to moderate-income buyers earning up to 120% of the Orange County Median Income as determined by the United States Department of Housing and Urban Development and as set forth by regulation of the California Department of Housing and Community Development, pursuant to California Health and Safety Code Section 50093.
The Preliminary Funding Commitment will provide Down Payment Assistance for twenty-nine (29) of the thirty (30) affordable units in the Project to assist future moderate-income first-time homebuyers. A total of 30 affordable housing units shall be made available to moderate-income households, sold to initial buyers at an affordable housing cost. The remaining 262 non-restricted units will be sold to above-moderate income buyers. The Preliminary Funding Commitment Letter outlines the terms and conditions of the Housing Authority’s provision of Down Payment Assistance for the Project. The affordable housing units shall be bound by the affordable housing restrictions.
The City of Anaheim’s Down Payment Assistance Program has utilized a variety of funding sources through the years to provide down payment assistance for low and moderate income first time homebuyers. These funding sources include State of California Housing and Community Development CalHOME and BEGIN program funds. Loan payoffs from these funding sources also serve as a revolving fund to continue to provide down payment assistance loans to low and moderate income first- time home-buyers. The BEGIN program was targeted only to moderate-income level participants; therefore, the loan repayment proceeds must also be allocated to moderate- income level projects, such as the subject Project. An amount up to $100,000 of the requested $2,900,000 will be made available for each moderate-income buyer. The Preliminary Funding Commitment Letter and Cooperation Agreement for the 100 West Homeownership Affordable Housing Project February 28, 2023
twenty-nine (29) affordable housing units are required to be disbursed throughout the Project.
The Project site is located at a key gateway in the City and is an area that is currently undergoing significant revitalization inclusive of a newer hotel, the Viv, which opened as the Radisson Blu in 2020, a new affordable rental project currently underway at the southwest corner of Anaheim Boulevard and Midway Avenue, and other future market rate and affordable homeownership opportunities planned at the southeast corner of Anaheim Boulevard and Ball Road. The Project will provide much needed homeownership opportunities for City residents who currently live or work in the area.
Staff is supportive of the Project, and therefore requests that the Governing Board of the Housing Authority approve the Preliminary Funding Commitment Letter and the Cooperation Agreement between the City and the Housing Authority to make available up to $2,900,000 of BEGIN program funds to the Housing Authority so that the Housing Authority can loan such funds to future moderate-income homebuyers for the Project.
IMPACT ON BUDGET:
All proposed assistance to the Project is derived from the available BEGIN program fund balance, increasing the Housing & Community Development Department’s FY 2022/23 budget by $2,900,000.
Respectfully submitted,
Grace Stepter
Executive Director of
Anaheim Housing Authority
Attachments:
1. Preliminary Funding Commitment Letter
2. Cooperation Agreement
3. Location Map