ORDINANCE NO. _____
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ADDING SECTION
1.08.100 TO CHAPTER 1.08 OF THE ANAHEIM
MUNICIPAL CODE ESTABLISHING THE
ANAHEIM LOCAL HOUSING TRUST FUND
WHEREAS, on April 2, 2024, Housing and Community Development staff presented background information to the City Council on the continuing need for funding and policies to address affordable housing needs in Anaheim, and following a robust discussion, the City Council directed staff to advance strategies to increase funding for future programming to address local housing needs in the form of an Anaheim Local Housing Trust Fund (A-LHTF); and WHEREAS, based on City Council feedback and research, it was determined that the A- LHTF should be structured as a public model, which provides the ability for the City Council to serve as an oversight body, ensuring that no funds are expended without prior approval, and the Director of Housing and Community Development, or designee, should serve as the administrator of the LHTF, with the Director’s administrative responsibilities set forth in the A-LHTF program guidelines to be presented for future City Council approval; and WHEREAS, a primary function of many LHTFs is to provide gap financing for the development of new affordable housing units, City leadership will have the opportunity to direct staff on the priorities deemed appropriate for Anaheim, based on the source of funds received; and, WHEREAS, once further funding resources are defined, staff will return to City Council with operating guidelines for the A-LHTF, a five-year plan that sets out program priorities, as well as a budget request to access funds in the A-LHTF; and
WHEREAS, it is anticipated that the City will have access to flexible funding, which will be recommended funding sources for the A-LHTF; and
WHEREAS, on August 14, 2018, the City Council adopted, by Resolution, an Affordable Housing Policy Statement, which declares that addressing the City’s affordable housing needs is a priority, and established a voluntary, incentive-based approach to promote and facilitate affordable housing development, including the Housing Ambassador Program, which to date has resulted in developers making voluntary financial contributions totaling $561,000, to be used at the City’s discretion; and
WHEREAS, on May 7, 2024, the City Council unanimously approved DisneylandForward, a $1.9 billion, 10-year expansion plan for the Disneyland Resort, including Disney’s commitment to a $30 million contribution to affordable housing in Anaheim, and it was anticipated that these funds would be deposited in the new A-LHTF; and,
WHEREAS, in October 2023, the City responded to a Notice of Funding Opportunity from the U.S. Department of Housing and Urban Development for the newly created Pathways to Removing Obstacles to Housing (PRO Housing) program authorized and funded by the Consolidated Appropriations Act, 2023, which allows grantees to use awards to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation, and on June 26, 2024, Anaheim was selected as one of only 21 jurisdictions to receive this highly competitive grant funding in the amount of $3,497,200, including $1,000,000 in seed funding for the A-LHTF; and, WHEREAS, another potential source of funds for the A-LHTF is the State of California’s Local Housing Trust Fund program, which provides a matching grant (dollar for dollar) to local housing trust funds that are funded on an ongoing basis from both private and public contributions or public sources; and,
WHEREAS, as outlined in the City’s draft 2021-2029 Housing Element, under Section 4 of the plan entitled Housing Policy Program, the City may establish an Affordable Housing Development Fee, which is proposed to apply to specific sites described in the Housing Element, to support the A-LHTF.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS:
SECTION 1.
Chapter 1.08 (Funds) of the Anaheim Municipal Code is amended to add Section 1.08.100, which shall read in its entirety as follows:
“Section 1.08.100 – Local Housing Trust Fund
.010 Establishment and Purpose. The City Council hereby establishes the City of Anaheim Local Housing Trust Fund (“LHTF”) to provide assistance in developing and maintaining affordable housing in the City.
.020 Funding Sources. The LHTF shall receive funding from voluntary developer contributions and grant opportunities. The LHTF may also receive funds from any other legally available source.
.030 Eligible Uses; Guidelines.
.0301 Generally. Funds deposited in the LHTF, and all interest thereon, shall be used to increase, improve, and preserve the City’s supply of affordable housing.
.0302 Guidelines. The terms and conditions governing the City’s expenditure of funds from the LHTF shall be set forth in guidelines adopted by the City Council (“Guidelines”). Among other things, the Guidelines shall establish eligible project types, eligible and ineligible costs, funding criteria and priorities, typical loan terms, and the application process. Adoption of the Guidelines, and any amendments, shall be by City Council resolution. .0303 City Council Approval. Notwithstanding subsection .0302 (Guidelines) above, all expenditures from the LHTF shall require City Council approval. .040 Administration.
.0401 Housing and Community Development Department. The Director of Housing and Community Development, or designee, shall serve as the administrator of the LHTF. The Director’s administrative responsibilities shall be set forth in the Guidelines.
.0402 Finance Department. The Finance Director/City Treasurer, or designee, shall provide financial management and accounting services for the LHTF.
In addition to any responsibilities provided in the Guidelines, these responsibilities shall include: disbursing and collecting LHTF funds; maintaining and managing a separate account or accounts for LHTF funds; and, maintaining financial records for the LHTF.
.050 Annual Report. The Director of Housing and Community Development, or designee, shall prepare and present an annual report to the City Council regarding the activities undertaken with funds from the LHTF in the previous year and any other topics required by the Guidelines.
SECTION 2.
The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence, phrase, term or word of this ordinance be declared for any reason to be invalid; it is the intent of the City Council that it would have adopted all other portions of this ordinance independent of the elimination of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
SECTION 3.
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation, published and circulated in the City of Anaheim and thirty (30) days from and after its final passage, it shall take effect and be in full force.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the ____ day of ______________, 2024, and thereafter passed and adopted at a regular meeting of said City Council held on the ____ day of ______________, 2024, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ANAHEIM
By: __________________________________
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
______________________________________
CITY CLERK OF THE CITY OF ANAHEIM