1 RESOLUTION NO.
A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHE IM
HOUSING AUTHORITY APPROVING A N AMENDED AND RESTATED
PRELIMINARY AWARD LETTER , SUBSTANTIALLY IN THE FORM
ATTACHED HEREWITH BETWEEN THE ANAHEIM HOUSING AUTHORITY AND LINC HOUSING CORPORATION ; AUTHORIZING THE EXECUTIVE
DIRECTOR OF THE ANAHEIM HOUSING AUT HORITY, OR H ER
DESIGNEE, TO EXECUTE AND ADMINISTER THE AMENDED AND
RESTATED PRELIMINARY AWARD LETTER ON BEHALF OF THE
ANAHEIM HOUSING AUTHORITY; AUTHORIZING THE EXECUTIVE
DIRECTOR OF THE ANAHEIM HOUSING AUT HORITY, OR HER
DESIGNEE, 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 AUTHORI TY UND ER THE AMENDED AND RESTATED 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 Ca lifornia municipal corporation and charter city; and
WHEREAS, on April 18, 2023, the Authority approved issuance of a Preliminary Award Letter (“Original Letter”) to LINC Housing Corporation, a California limited liability company (“Developer”) authorizing the commitment of local funds approved by the City Council in the form of a City loan of up to $4,900,649, intended to be sourced from HOME American Rescue Plan (“HOME ARP”) program and/or Housing Opportunities for Persons with AIDS (“HOPWA”) funds, in support of the rehabilitation of the Studio 6 Motel (“Project”) located at 1251 N. Harbor Boulevard (“Site”); and
WHEREAS, the Project, currently being operated as interim housing, is now in the process of transitioning into permanent supportive housing (“Phase II”); and WHEREAS, on June 22, 2023, CalOptima Health released a Notice of Funding Opportunity (“NOFA”) derived from the State Housing and Homelessness Incentive Program (“HHIP”) for capital projects that demonstrate how the applicant would increase the number of people connected to permanent housing or increase the number of permanent housing units; and WHEREAS, the City submitted a request for HHIP funding consideration for the Project, and on October 5, 2023, the City was notified that it was successful in obtaining the grant award in the amount of $3,878,420; and
WHEREAS, Authority will execute and administer that certain A mended and Restated Preliminary Award Letter dated as of N ovember 28, 2023 (the “ Amended and Restated Letter”), pursuant to which Authority will substitute the HOME ARP funds with the awarded CalOptima Health grant funds, and make a preliminary award of HHIP and/or HOPWA Funds to Developer, in 2 the form of a Ci ty 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; and WHEREAS, per the Original Letter, the Amended and Restated Letter will continue to set forth certain basic business terms, which will be augmented by a comprehensive affordable housing agreement containing terms customary to such a greements of Authority and including such additional terms as the Executive Director shall deem to be appropriate (the “Affordable Housi ng Agreement”); and
WHEREAS, per the Original Letter, the Amended and Restated Letter will continue to provide for: (a) the Authority Executive Director to enter into an Affordable Housing A greement with the Developer for the rehabilitation and conversion of the Studio 6 Extended Stay Motel and operation and management by Developer of a n 89-unit permanent supportive housing project at the Site for not fewer than 55-years ; (b) Authority to provide a loan not to exceed $4,900,649 to the Developer sourced from HHIP Funds and/or HOPWA Funds ; and (c) Authority to issue 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 Amended and Restated Letter; and WHEREAS, by Authority’s commitment of monies sourced in whole or in part from the HHIP Funds and/or HOPWA Funds for the Affordable Housing Agreement and/or the City loan, neither Authority (or Successor Agency or City) nor Developer intends 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 the Oversight Board and/or California Department of Finance, without prejudice to City or Successor Agency or Authority or Developer; and
WHEREAS, subject to satisfaction of the conditions set forth in the A mended and Restated Letter and further subject to the Affordable Housin g 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 Amended and Restated 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 Amended and Restated 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 wit h 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 has duly considered all terms and conditions of the proposed Amended and Restated Letter, and believes tha t the Project is in the best interests of City and the 3 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 the Site constrained with infrastructure deficiencies to be converted to an 89-unit permanent supportive housing project with the covenants and conditions and reha bilitation costs authorized by the Amended and Restated Letter.
Section 3. The Authority Board hereby approves the A mended and Restated Letter between Authority and Developer, substantially in the form submitted herewith.
The Authority Executive Director and the Authority Secretary/City Clerk are hereby authorized to execute and attest the Amended and Restated Letter, and subsequently and subject to compliance with the conditions set forth in the Amended and Restated Letter, prepare an Affordable Housing Agreement and various implementing documents on behalf of Authority. In such regard, the Authority Executive Direct or (or her duly authorized representative) is authorized: (a) to sign the final version of the Amended and Restated Letter after completion of any such non-substantive, minor revisions ; and (b) to negotiate and execute the final versions of an Affordable Housing Agreement, and other instruments implementing the Project as set forth in the Amended and Restated Letter. Copies of the final form of the Amended and Restated Letter, when duly 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 Amended and Restated 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 A mended and Restated Letter. The Authority Executive Director (or her duly authorized representative) is hereby authorized to the extent necessary d uring the implementation of the Amended and Restated Letter to make technical or minor changes and interpretations of the A mended and Restated Letter after execution, as necessary, to properly implement and carry out the Amended and Restated Letter, including al l exhibits thereto, provided any and all such changes shall not in any manner materially affect the rights and obligations of Authority under the Amended and Restated Letter. The authorization given to the Authority Executive Director shall not include amendments t hat would materially increase or extend the assistance to be provided by the Authority under the Amended and Restated 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 A mended and Restated 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 Amended and Restated Letter and agreements subsequently executed to implement the Amended and Restated Letter.
Section 5. When approving the O riginal Letter on April 18, 2023, the City Council approved the Project under the Assembly Bill (AB) 140 (2021) California Environmental Quality Act 4 (CEQA) exemption. However, after further analysis, the Developer identified timeline, fiscal, and labor challenges related to AB 140 CEQA requirements that would severely hinder the Project from meeting the State of California TCAC deadlines. Accordingly, as part of the State’s Project Homekey Program, the Developer has submitted a request to the City for a CEQA Cla ss 1 (Existing Facilities) categorical exemption pursuant to CEQA Guidelines Section 15301. A Class 1 categorical exemption applies to projects consisting of the renovation of an existing facility with negligible or no expansion of its existing or former use. The P roject primarily consists of repurposing the existing space with no increase in square footage of the building and site and interior/exterior building renovations; therefore, meeting the requirements for a Class 1 Categorical Exemption.
Section 6. AB 140 provides significant land-use streamlining for projects utilizing Homekey Round 2 funds. This land use “exemption” is independent of the A B 140 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, discretionary 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 appli cable 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 being 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 A B 140 CEQA exemption, which is time limited.
5 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORIT Y THIS TWENTY- EIGHTH (28th) DAY OF N OVEMBER, 2023 , BY THE FOLLOWING ROLL CALL VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
ANAHEIM HOUSING AUTHORITY
By:
Chair Person
ATTEST:
Authority Secretary
ATTACHMENT TO RESOLUTION