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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: FEBRUARY 28, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: COOPERATION AGREEMENT TO MAKE AVAILABLE
BEGIN PROGRAM FUNDS FOR DOWN PAYMENT
ASSISTANCE FOR THE 100 WEST HOMEOWNERSHIP
AFFORDABLE HOUSING PROJECT
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, 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 between the City of Anaheim (City) and the Anaheim Housing Authority, authorize the Director of Housing and Community Development, or her designee, to execute and administer the Cooperation Agreement on behalf of the City, and amend the Housing and Community Development Department’s FY 2022/23 budget by $2,900,000.
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 Building Equity and Growth in Neighborhoods (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 2) 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 towns, and 48 flats, each with two to four bedrooms and ranging from Cooperation Agreement (Use of BEGIN Program Funds) for 100 West Homeownership Affordable Housing Project February 28, 2023
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 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 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 City Council approve a 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
Director of Housing & Community Development
Cooperation Agreement (Use of BEGIN Program Funds) for 100 West Homeownership Affordable Housing Project February 28, 2023
Attachments:
1. Cooperation Agreement (Use of BEGIN Program Funds)
2. Location Map