1 RESOLUTION NO.
A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM
HOUSING AUTHORITY APPROVING I. ) A COOPERATION AGREEMENT
FOR THE NORTH HARBOR ANAHEIM PERMANENT SUPPORTIVE
HOUSING APARTMENTS, BY AND BETWEEN THE CITY OF ANAHEIM AND
THE ANAHEIM HOUSING A UTHORITY, SUBSTANTIALLY IN THE FORM ATTACHED HEREWITH; II.) A PRELIMINARY FUNDING AWARD LETTER,
SUBSTANTIALLY IN THE FORM ATTACHED HEREWITH BETWEEN THE ANAHEIM HOUSING AUTHORITY AND LINC HOUSING CORPORATION ; III.) AUTHORIZING THE EXECUTIVE DIRECTOR OF THE ANAHEIM
HOUSING AUTHORITY, OR H ER DESIGNEE, TO NEGOTIATE THE TERMS OF AND FINALIZ E AN AFFORDABLE HOUSING AGREEMENT ; IV.)
AUTHORIZING THE EXECUTIVE DIRECTOR OF THE ANAHEIM HOUSING
AUTHORITY, OR H ER DESIGNEE, TO EXECUTE AND ADMINISTER THE
COOPERATION AGREEME NT AND PRELIMINARY FUNDING AWARD
LETTER ON BEHALF OF THE ANAHEIM HOUSING AUTHORITY W ITH THE CITY; V.) AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
ANAHEIM HOUSING AU THORITY, TO ENTER INTO SUBSEQUENT
AGREEMENTS NECESSARY TO IMPLEMENT THE PROJECT, PROV IDED
THAT SUCH AGREEMENTS DO NOT MATERIALLY INCREASE OR
EXTEND THE ASSISTANCE PROVIDED BY THE ANAHE IM HOUSING
AUTHORITY UN DER THE COOPERATION AGR EEMENT OR
PRELIMINARY FUNDING AWARD LETTER.
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 h ousing 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, City is a participating jurisdiction with the Un ited States Department of Housing and Urban Development (“HUD”) that has received funds (“HOME -American Rescue Act Plan Funds” or “HOME -ARP”) from HUD pursuant to section 217 of the Cranston Gonzalez National Affordable Housing Act of 1990, as amended (42 U.S.C. 12701 et seq.) (NAHA). On April 8, 2021, HUD allocation HOME-ARP funds to 651 grantees using the formula established at 24 CFR
92.50 and 92.60.
WHEREAS, HOME-ARP provides funds for homelessness and supportive services assistance under the HOME statute of Title II of NAHA (42 U.S.C. 12721 et seq.) and authorizes the Secretary of HUD to waive or specify alternative requirements for any provision of NAHA o r regulation for the administration of the HOME -ARP program, except requirements related to fair housing, civil rights, nondiscrimination, labor standards, and the environment, upon a finding that the waiver 3 or alternative requirement is necessary to exp edite or facilitate the use of HOME -ARP funds. Pursuant to ARP, the per -unit cost limits (42 U.S.C. 12742(e)), commitment requirements (42 U.S.C. 12748(g)), matching requirements (42 U.S.C. 12750), and set -aside for housing developed, sponsored, or owned by community housing development organizations (CHDOs) (42 U.S.C. 12771) in NAHA do not apply to HOME-ARP funds.
2 WHEREAS, t he HOME -ARP Program funds are used by Authority, as a participating jurisdiction, to carry out multi -year housing strategies through acquisition, rehabilitation, and new construction of housing for target income persons and families; and WHEREAS the City has been allocated grant funding provided by HUD pursuant to the Housing Opportunities for Persons With AIDS ("HOPWA") program authorized under the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) (herein referred to as the "HOPWA Act") and the HOPWA program regulations (24 CFR Part 574); and
WHEREAS Section 574.300 (Eligible Activities) of the HOPWA Regulations authorizes the use of HOPWA funds for acquisition, rehabilitation, conversion, lease, and repair of facilities to provide housing and services among other activities with HOPWA funds.
WHEREAS, Authority additionally maintains a Low and Moderate Income Housing Asset Fund (the “Housing Asset Fund”) pursuant to Health and Safety Cod e Section 34176 and 34176.1 , which Housing Asset Fun ds 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, on September 9, 2021 , the Department of Housing and Commun ity Development (“Department”) released the Homekey Round 2 Notice of Funding Availability (NOFA) as an opportunity for state, regional, and local public entities to develop a broad range of housing types, including but not limited to hotels, motels, hoste ls, single -family homes and multifamily apartments, adult residential facilities, and manufactured hous ing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population, as defined; and
WHEREAS, the City (“Co -Applicant”) jointly appl ied for Homekey grant funds with Linc Housing Corporation, a C alifornia limited liability company (“ Developer”) and American Family Housing USA, a California non -profit benefit corporation , and was awarded Homekey gran t funds for (i) acquisition of the Studio 6 Extended Stay Motel, located at 1251 N Harbor Boulevard and (ii) conversion and rehabilitation of (119) rooms in the Motel into an 89 -unit professionally managed, interim housing project;
WHEREAS, Developer h as informed Authority an d City that it is the intention of the Developer to convert and rehabilitate the existing improvements at the Site for use as an affordable rental housing project as allowed by the Homekey Program; and WHEREAS, Authority and Developer will enter into that certain Preliminary Award Letter dated as of April 18, 2023 (the “Letter”), pursuant to which Authority will make a preliminary award of HOME-ARP and/or Housing Asset Funds and/or HOPWA Funds to Developer, in the form of a loan, for the purpose of assisting the Developer with the rehabilitation and conversion of the Studio 6 Extended Stay Motel and long -term management and operation of a permanent supportive housing project thereon by Developer. The Letter sets forth certain basic business terms which will be augmented by a comprehensive affordable housing agreement containing terms customary to such agreements of Authority and including such additional terms as the Executive Director shall deem to be appropriate (the “Affordable Housing Agreement”); and WHEREAS, at the request of the Developer, Authority staff and legal counsel have prepared the form of Preliminary Award Letter (the “Letter”), which provides for (a) the Authority Executive 3 Director to enter into an Affordable Housing Agreement with the Developer for the rehabilitation and conversion of the Studio 6 Extended Stay Motel and operation and management by Developer of a 89-unit permanent supportive housing project at the Site for not fewer than 55 -years (the “Project”); and (b) Authority to provide a loan not to exceed $4,900,649 to the Developer sourced from HOME- ARP Funds and/or Housing Asse t Funds and/or HOPWA Funds , (c) 87 Project Based Vouchers (PBV), and other terms and conditions relating to the Project and Authority’s assistance to Developer for the Project; and
WHEREAS, all initially capitalized terms used in this Resolution without definition have the meanings set forth in the Letter; and
WHEREAS, by this Resolution , Authority will request that City enter into the agreement with Authority as submitted herewith entitled “Cooperation A greement ( North Harbor Supportive Housing Anaheim Apartments)” (the “Cooperatio n Agreement”). By the Cooperation Agreement, City would transfer certain moneys as set forth therein to be applied by Authority as provided under the Cooperation Agreement substantially in the form submitted herewith; and WHEREAS, City and Authority will execute a Cooperation Agreement pursuant to which City agreed to contribute HOME-ARP Funds and/or HOPWA Funds to the Project; such Cooperation Agreement remains in full force a nd effect and shall apply to the Project as described herein and in the Letter; and
WHEREAS, Developer is experienced in the construction, development, operation and management of high quality housing which is intended to be affordable to households exitin g homelessness of extremely low income in Southern California , including , without limitation , dwelling units developed utilizing HOME-ARP Funds, HOPWA Funds and/or Housing Asset Funds; and
WHEREAS, Developer (as “Applicant” to TCAC) has informed Authority and City that Developer intends to submit an application to TCAC (“Application”) to obtain an allocation of nine percent (9%) Low Income Housing Tax Credits (“Tax Credits”) for the Project; if Developer does not receive such allocation of 9% Tax Credits, Developer shall submit a second Application of 9% Tax Credits to TCAC following notification that Developer’s first Application was not successful; If that second round is not successful, Developer may make an Application for 4% tax credits for one additional (third) successive round; provided, however, that the Authority shall have no obligation to increase the amount of the Anaheim Loan and, if one is proposed, such increase in the amount of the Anaheim Loan to be provided by Authority to Developer from the amount set forth in the Letter shall first be approved by the Authority Governing Board; and WHEREAS, by Authority’s commitment of monies sourced in whole or in part from the Housing Asset Fund and/or HOME-ARP Funds and/or HOPWA Funds for the Agreement and/or the Anaheim Loan, neither Authority ( or Successor Agency or City) nor Developer intend s 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 a nd City) and Developer 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 c hallenging determinations made b y t he Oversight Board and/or California Department of Finance, without prejudice to City or Successor Agency or Authority or Developer; and 4 WHEREAS, subject to satisfaction of the conditions set forth in the Letter and furth er subject to the Affordable Housing Agreement, Developer shall own and shall rehabilitate and operate the Site and shall cause the Site to be maintained and managed in accordance with the Letter and an Affordable Housing Agreement and other instruments to be executed by Authority and De veloper with respect to the Project, during the entire 55-year Affordability Period contemplated by the Letter; 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 availabl e for public inspection all such matters prior to the public consideration of this matter; and
WHEREAS, Authority and City held a public hearing to consider the Letter and the transaction contemplated therein in accordance with the Housing Author ities Law, the California 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 pr oposed 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 rehabilitation and conversion 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 89-unit permanent supportive housing project with the covenants and conditions and rehabilitation costs authorized by the Letter.
Section 3. The Authority Board hereby approves the Letter between Authority and Linc Housing Corp. , substantially in the form submitted herewith , and the Cooperation Agreement substantially in the form submitted herewith.
The Authority Executive Director and the Authority Secretary/City Clerk are hereby authorized to execute and attest the Letter, and subsequently and subject to compliance with the con ditions set forth in the Letter, prepare an Affordable Housing Agreement and various implementing documents on behalf of Authority , and execute and administer the Cooperat ion Agreement. In such regard, the Authority Executive Director (or her duly authorized representative) is authorized (a) to sign the final version of the Letter after completion of any such non -substantive, minor revisions, (b) to negotiate and execu te the final versions of an Affordable Housing Agreement, and o ther instruments implementing the Project as set forth in the Letter; Copies of the final form of the Letter, when duly 5 executed and attested, shall be placed on file in the office of the City Clerk. Further, the Authority Executive Director (or her duly authorized representative) is authorized to implement the Letter and take all further actions and execute all documents referenced therein and/or necessary and appropriate to carry out the transaction contemplated by the Letter as well as the Cooperation Agreement. The Authority Executive Director (or h er duly authorized representative) is hereby authorized to the extent necessary during the implementation of the Letter to make technical or minor changes and interpretations of the Letter after execution, a s necessary, to properly implement and carry out the Letter, including all exhibits thereto, provided any and all such changes shall not in any manner materially affect the right s and obligations of Authority under the Letter. The authorization given to t he Authority Executive Director shall not include amendments which would materially increase or extend the assistance to be provided by the Authority under the Cooperation Agreem ent or the Letter.
Section 4. In addition to the authorization of Section 3 ab ove, 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 Letter, including causing the issuance of warrants in implementation thereto, and to adm inister Authority’s obligations, responsibilities and duties to be performed under the Letter and agreements subsequently executed to implement the Letter, including all exhibits thereto. 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. Pursuant to AB 140, which establishes a statutory e xemption from the California Environmental Quality Act (CEQA) for activities f unded by Homekey Round 2, the following CEQA statutory exemption has been added to Health and Safety Code section 50675.1.4:
(a) Notwithstanding any other law, the California Env ironmental Quality Act (Division 13 (commencing with section 21000) of the Pub lic Resources Code) shall not apply to any project, including a phased project, funded pursuant to section 50675.1.3 if all of the following requirements, if applicable, are sati sfied: (1) No units were acquired by eminent domain. (2) The units will be in decent, safe, and sanitary condi tion at the time of their occupancy. (3) The project proponent shall require all contractors and subcontractors performing work on the project to pay prevailing wages for any proposed rehabilitation, construction, or major a lterations in accordance with Ch apter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (4) The project proponent obtains an enforceable commitment that all contractors and subcontractors performing work on the project will use a skilled and trained workforce fo r any proposed rehabilitation, construction, or major alterations in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. (5) The project proponent submits to the le ad agency a letter of support fr om a county, city, or other local public entity for any proposed rehabilitation, construction, or major alteration work. (6) Any acquisition is paid for, in whole or part, with public funds. (7) The project provides housing units for individuals and famili es who are experiencing homelessness or who are at risk of homelessness. (8) Long -term covenants and restrictions require the units to be restricted to persons experiencing homelessness or who are at risk of homelessness, wh ich may include lower income and very low income households, as defined by Section 50079.5, for no fewer than 55 years. (9) The project does not result in an increase in the existing onsite development footprint of structure, structures, or improvements by more than 10 percent. Any increase to the existing, onsite development footprint shall be exclusively to support the provision of or conversion to housing for the designated population, including, but not limited to, both of the following: (A) Achieving c ompliance with local, state, and federal requirements. (B) Providing sufficient space for the provision of services and amenities. (b) If the lead agency determines that a project is not subject to the California Environmental Quality Act pursuant to this 6 section, and the lead agency det ermines to approve or to carry out that project, the lead agency shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the project is located in the manner spec ified in subdivisions (b) and (c ) of section 21152 of the Public Resources Code. (c) This section shall remain in effect only until July 1, 2024.
Section 6 . In addition to the CEQA exemption, AB 140 provides significant land -use streamlining for projects utilizing Homekey Round 2 funds. This land use “exemption” is independent of the CEQA exemption and applies to all Homekey Round 2 funded projects. All Homekey Round 2 projects are eligible for such streamlining and are “deemed consistent and in conformity with any applicable local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discret ionary permit, or any other disc retionary reviews or approvals.” (Health & Saf. Code, § 50675.1.3, subd. (h).) Any project using money from Homekey Round 2 funds for any of the purposes listed in the Homekey Round 2 NOFA is deemed consistent with all applicable local regulatory plans and regulations such as the local general plan and local codes and ordinances. Such projects do not need to undergo any discretionary local permit review or approval process (e.g., a discretionary use permit process) before bei ng able to proceed with the project. Notably, AB 140 did not place time limits on the use of this land use exemption, in contrast to the CEQA exemption, which is time limited.
7 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORIT Y THIS EIGHTEENTH (18th) DAY OF APRIL, 20 23, BY THE FOLLOWING ROLL CALL VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
ANAHEIM HOUSING AUTHORITY
By:
Chair Person
ATTEST:
Authority Secretary
ATTACHMENT TO RESOLUTION