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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: MARCH 25, 2025
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF RESOLUTION AUTHORIZING THE
TRANSFER AND EXPENDITURE OF ONE MILLION
DOLLARS ($1,000,000) OF PRO HOUSING FUNDS FROM
THE ANAHEIM LOCAL HOUSING TRUST FUND TO
THE ANAHEIM HOUSING AUTHORITY FOR THE
BEACH-LINCOLN AFFORDABLE RENTAL HOUSING
DEVELOPMENT AT THE SOUTHEAST CORNER OF
BEACH BOULEVARD AND LINCOLN AVENUE
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Resolution, authorize the transfer and expenditure of One Million Dollars ($1,000,000) of PRO Housing Funds from the Anaheim Local Housing Trust Fund to the Anaheim Housing Authority as part of the Authority’s Subsidy to cause construction, completion and operation of a 47-unit intergenerational affordable rental housing project for extremely low-income seniors and transitional age youth pursuant to an Affordable Housing Agreement (Intergenerational Senior/TAY Project) between the Authority and Lincoln Beach LP; and making certain other findings in connection therewith.
DISCUSSION:
On June 11, 2024, the Anaheim Housing Authority (“Authority”) and Lincoln Beach LP (“Developer”) entered into a Preliminary Award Letter committing $6,000,000 to help finance the development of a 47-unit intergenerational affordable rental housing project for extremely low-income seniors and transitional age youth (“IG Project”). The IG Project will be constructed on an Authority-owned property located at 208 S. Beach Boulevard (formerly 130 S. Beach Blvd.) near the southeast corner of Beach Boulevard and Lincoln Avenue. This funding was to be sourced from eligible funding sources available to the Authority, with the Preliminary Award Letter allowing for the use of Low and Moderate Income Housing Asset Fund (LMIHAF), HOME American Rescue Plan Program (HOME-ARP) funds, Permanent Local Housing Allocation Program (PLHA) funds, Homeless Housing, Assistance and Prevention (HHAP) Grant Program, or other funds eligible for affordable housing purposes. The City Council and Authority also approved a Cooperation Agreement, authorizing the City to transfer certain federal funds granted to the City to the Authority for the IG Project. These funds are to be Resolution – Southeast Corner Beach/Lincoln
March 25, 2025
utilized as part of the Authority’s assistance to help finance the IG Project as described in the Preliminary Award Letter and Affordable Housing Agreement.
On October 30, 2023, the City of Anaheim proactively sought federal assistance to enhance its affordable housing initiatives by applying for the federal Pathways to Removing Obstacles to Housing (“PRO Housing”) program. This program, launched under the Consolidated Appropriations Act 2023, aims to empower jurisdictions to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation. On June 26, 2024, the City of Anaheim was awarded this highly competitive grant funding of $3,497,200, including $1,000,000 in seed funding for the creation of the Anaheim Local Housing Trust Fund to help finance affordable housing development.
Following this success, the City established the Anaheim Local Housing Trust Fund (A-LHTF) through Ordinance No. 6588, pledging the PRO Housing grant funds as seed money to support the creation and preservation of affordable housing within the community. Staff is currently in the process of preparing policies and procedures for the implementation of the A-LHTF and is expecting to place them on the April 22, 2025 City Council agenda for consideration.
Staff is requesting approval to replace the LMIHAF committed to the project under the approved June 11, 2024 Preliminary Award Letter with the PRO Housing grant funds.
This will help preserve $1,000,000 of the Authority’s locally-controlled LMIHAF funds to be used for other Housing and Community Development Department affordable housing projects in the development pipe-line.
The IG Project aligns with the goals of the A-LHTF outlined in Ordinance No. 6588 by providing much needed affordable rental housing for seniors and young adult extremely low income households within the community. Therefore, staff recommends utilizing the $1,000,000 of PRO Housing grant funds from the A-LHTF to help support the development of the IG Project. The project is set to close on construction financing March 31, 2025 and begin construction in mid-April 2025.
IMPACT ON BUDGET
There is no impact to the Housing and Community Development Department’s FY 2024/2025 budget.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development
Attachments:
1. Resolution