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Anaheim, CA 92805
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Fax: (714) 765-4630
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: APRIL 18, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: ADOPT A RESOLUTION DECLARING CERTAIN PROPERTY
LOCATED AT 212 SOUTH BEACH BOULEVARD EXEMPT
SURPLUS LAND IN ACCORDANCE WITH THE SURPLUS
LAND ACT AS AMENDED BY ASSEMBLY BILL 1486
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Resolution, declare certain authority-owned real property located at 212 S. Beach Boulevard, Anaheim, California, as exempt surplus land; direct the Executive Director to follow the procedures set forth in the Surplus Land Act, California Government Code Sections 54220, et seq.; make certain findings under the California Environmental Quality Act; and authorize certain other actions, as amended by Assembly Bill 1486 (SLA); and authorize the Executive Director, or her designee, to issue a Request For Proposals (RFP) and review responses for an affordable housing development.
DISCUSSION:
In 2001, the former Redevelopment Agency acquired an approximately 1.9 acre vacant parcel, home of the former Silver Moon Motel, located at 212 S. Beach Boulevard (Site).
Upon the dissolution of the Redevelopment Agency, Site ownership was transferred to the Anaheim Housing Authority (Authority).
On May 18, 2021, the Authority approved a Preliminary Award Letter with Greenlaw 39 Commons Beach, LLC, contingent upon the project securing state grants and tax credit financing, for the development of an affordable rental housing development that was to be part of a larger mixed-use mixed-income development. The project was unable to secure financing and the Preliminary Award Letter expired on December 31, 2022.
The long-term plan for the Site continues to be an affordable housing development that will complement the separate development plans of the adjacent Authority-owned parcels to align with the revitalization goals described in the Beach Boulevard Specific Plan.
On October 9, 2019, Governor Newsom signed Assembly Bill 1486 (AB 1486), which significantly amended the Surplus Land Act and became effective on January 1, 2020 (as amended, SLA). Prior to AB 1486, the SLA did not require local agencies to first declare Surplus Land Act – 212 S. Beach Blvd.
April 18, 2023
land surplus exempt. Furthermore, the SLA did not limit leases that changed the use of land held by local agencies and did not include a housing authority as a covered local agency.
Among material changes to the SLA, AB 1486: (a) expanded the definition of “local agency” to include a housing authority (among other local agencies), (b) amended and/or added definitions, including “surplus land” and “exempt surplus land”, (c) requires property owned by a local agency to be declared either “surplus land” or “exempt surplus land” before the local agency may take any action to sell or lease the property, (d) requires an annual inventory of surplus land submitted to the State of California, Department of Housing and Community Development (State HCD), and (e) adds new limitations to the term “agency’s use” to exclude “commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development,” or “property disposed of for the sole purpose of investment or generation or revenue.”
A local agency can declare a property “exempt surplus land” if the intended use is a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income for a period of at least 55 years. Local agencies are prohibited from entering into negotiations for the disposition of land prior to compliance with certain procedural requirements, including: (i) declaration of land exempt surplus, (ii) undertaking a competitive bidding process, such as a Request for Proposals (RFP), to solicit interest of housing sponsors for the development of affordable housing and various public and private entities.
Since the Site is intended to be used for a 100 percent affordable housing development, staff is recommending that Authority declare the Site exempt surplus land. Staff will proceed with releasing an RFP in May 2023 to housing sponsors that have notified State HCD of their interest in development of low and moderate-income housing and local public and private entities. Exempt surplus land is not required to follow the prescriptive Notice of Availability requirements outlined in Government Code Section 54222 so long as the Site is made available through a competitive bidding process. Following the Authority’s standard 60-day submittal period for the RFP, city staff will review and rank the proposals in concert with a representative from the Housing and Community Development Commission (HCDC) prior to making a recommendation to HCDC and the Authority. Subsequent to a selection, staff will assist the chosen developer in facilitating community meetings to confer with residents on the project design prior to consideration of entitlements by the Planning Commission and funding commitments by the Authority. It is anticipated that the selected proposal will require a layering of financing sources and state tax credits before the project begins construction.
The RFP process has historically allowed for a robust, competitive process that produces high-quality affordable housing developments. Evaluation factors generally include demonstrated strong financial capacity inclusive of experience in securing State and Federal funding, established property management partnerships, site design, inclusion of a responsive supportive service plan, and overall feasibility. The most recent RFP process completed by the Authority resulted in the newly completed Finamore Place at Surplus Land Act – 212 S. Beach Blvd.
April 18, 2023
the corner of Orangewood Avenue and Manchester Street which is a high-quality 102- unit development for families making between 30% and 60% of the area median income.
Finamore Place includes an unprecedented amount of on-site supportive services and amenities for the residents and surrounding community including a childcare guidance center, medical clinic, early head start program, resident pool, and rooftop deck.
Authority staff is confident that the RFP process for the subject Site will produce another high-quality affordable housing development that is responsive to the needs of the surrounding community and provides an enhanced quality of life for the building residents.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director
Attachments:
1. Resolution
2. Location Map