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SUMMARY REPORT PURSUANT TO SECTION 33433
OF THE
CALIFORNIA HEALTH AND SAFETY CODE
ON AN
AGREEMENT FOR SALE OF REAL PROPERTY
AND JOINT ESCROW INSTRUCTIONS
BY AND BETWEEN
THE ANAHEIM HOUSING AUTHORITY
AND
RENAISSANCE PACKING HOUSE TOWNHOMES, LLC
The following Summary Report has been prepared pursuant to the requirements imposed by California Health and Safety Code Section 33433 (Section 33433). The report sets forth certain details of the proposed Agreement for Sale of Real Property and Joint Escrow Instructions (Agreement) by and between the Anaheim Housing Authority (“Authority” or “Seller”) and Renaissance Packing House Townhomes, LLC (“Developer” or “Buyer”).
In 2001, the former Anaheim Redevelopment Agency (Former Agency) used redevelopment funds to purchase two contiguous parcels located at 703 and 705 South Anaheim Boulevard (Site). The Site consists of approximately 13,600 square feet of land area.
The Former Agency intended to assemble the Site with adjacent parcels to bring forward a comprehensive redevelopment of the commercial block. Following the dissolution of redevelopment agencies in 2012, the Site was transferred to the Authority as the Housing Successor Agency, in accordance with California Health and Safety Code Section 34176.
Due to the small parcel size and lack of resources to acquire adjacent property, the Site has remained undeveloped. The Authority is now proposing to sell the Site to the Developer. The Developer is under contract to acquire three adjacent parcels located at 601 through 623 South Anaheim Boulevard. The Developer proposes to construct 34 townhome units on the combined site with four units restricted to Moderate Income households (Project). As proposed, one moderate income unit and five market rate units will be developed on the Authority’s Site.
Since the Site was purchased with redevelopment funds, the proposed conveyance of the property is subject to the reporting requirements imposed by Section 33433. Specifically, Section 33433 requires the conveying entity to prepare a report that summarizes the financial terms associated with the proposed disposition transaction.
The following Summary Report is based upon the information contained within the Agreement, and is organized into the following seven sections:
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I. Salient Points of the Agreement: This section summarizes the major responsibilities imposed on the Authority and the Developer by the Agreement.
II. Cost of the Agreement to the Authority: This section details the total cost to the Authority associated with implementing the Agreement.
III. Estimated Value of the Interests to be Conveyed Determined at the Highest Use Permitted under the Property’s Zoning: This section estimates the values of the interests to be conveyed or leased determined at the highest uses permitted under the requirements imposed by the zoning in place on the Site.
IV. Estimated Reuse Value of the Interests to be Conveyed: This section summarizes the valuation estimate for the Site based on the required scope of development, and the other conditions and covenants required by the Agreement.
V. Consideration Received and Comparison with the Established Value: This section describes the compensation to be received by the Authority, and explains any difference between the compensation to be received and the established value of the Site.
VI. Blight Elimination: This section describes the existing blighting conditions on the Site, and explains how the Agreement will assist in alleviating the blighting influence.
VII. Conformance with the AB1290 Implementation Plan: This section describes how the Agreement achieves goals identified in the Former Redevelopment Agency’s adopted AB1290 Implementation Plan.
This Summary Report and the Agreement are to be made available for public inspection prior to the approval of the Agreement.
I. SALIENT POINTS OF THE AGREEMENT
A. Project Description
The Developer intends to combine the Authority’s Site with three adjacent parcels to create a combined site that can accommodate the development of 34 townhome units. The Developer anticipates utilizing a density bonus and/or other incentives (“Housing Incentive”) for the entire Project. It is anticipated that four of the 34 townhome units will be restricted and sold to Moderate Income households.
The Agreement specifically requires the following:
1. The Agreement requires that the Developer develop at least one residential unit on the Authority’s Site that is restricted and sold to a qualified Moderate Income purchaser at an affordable housing cost.
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2. The Moderate Income unit shall not be less than three bedrooms and shall be of like kind and quality with other residential units developed as part of the Project.
3. The Developer must record a 45-year affordability covenant against the parcel of this unit.
B. Authority Responsibilities
The Agreement requires the Authority to accept the following responsibilities:
1. The Authority will sell the Site to the Developer for $1,115,000.
2. The Authority will provide the following documents prior to the Closing Date:
a. Grant Deed;
b. Executed Memorandum of Affordable Housing Agreement; c. Certificate of Non-Foreign Status;
d. Seller’s Affidavits; Certificates and Evidence of Authority; e. Seller’s Closing Statement; and
f. As-needed additional documents.
C. Developer’s Responsibilities
The Agreement requires the Developer to accept the following responsibilities:
1. The Developer will purchase the Site for $1,115,000 consisting of the following payments:
a. A deposit of $16,725 to be made within 10 days of opening of Escrow; and b. The remaining balance of $1,098,275 to be paid at Close of Escrow.
2. The Developer agrees to restrict and sell at least one unit constructed on the Authority’s Site to Moderate Income households. The Developer will record a 45-year covenant on the parcel of this unit.
3. Title Review Period: The Developer will have 10 days upon receipt of the Title Report to review and either approve or disapprove the condition of title of the Site. Prior to the expiration of the Title Review Period, the Developer shall provide written notice of the Developer’s approval or disapproval of the matters reflected in the Title Report. 2507008.ANA Page 4
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4. Prior to Close of Escrow, the Developer must have received a CLTA Standard Coverage Owner’s Policy of Title Insurance issued by the Title Company as of the date and time of recording of the Grant Deed for the Site, and in the amount of the Purchase Price.
5. Due Diligence Period:
a. The Developer has nine months from the Effective Date to perform due diligence of the Site, which includes performing on-site inspections; b. Any entity/individual entering the Site must maintain the required insurance coverages;
c. The Developer may extend the Due Diligence Period by an additional six months upon the following:
i. Delivery of a written notice of extension to the Escrow Agent and Authority; and
ii. Payment of a deposit of $25,000 with the Escrow Agent.
6. The Developer must obtain all required land use approvals.
7. The Developer must provide the following documents prior to the Closing Date:
a. Purchase Price;
b. Executed Memorandum of Affordable Housing Agreement; c. Buyer’s Charges;
d. Evidence of Authority;
e. Buyer’s Closing Statement; and
f. As-needed additional documents.
II. COST OF THE AGREEMENT TO THE AUTHORITY
The Former Agency purchased the Site on March 29, 2001 for $421,940. Upon dissolution of redevelopment in California, the Site was transferred to the Authority acting as the Housing Successor Agency to the Former Agency. Over time the Former Agency and the Authority incurred the following costs:
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Architecture and Engineering Services Related to Lot Lines $3,495 Appraisal Report 1,300
Property Management Costs 7,147
Security Land for Right of Way Property Mangement 29,200 $41,142
III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT
THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN
Section 33433 requires the Authority to identify the value of the interests being conveyed at the highest and best uses permitted under zoning in place on the Site. The valuation must be based on the assumption that near-term development is required, but the valuation does not take into consideration any extraordinary use, quality and/or income restrictions being imposed on the development by the Authority.
An appraisal prepared by Stephen G. White, MAI on March 13, 2025 estimates the fair market value of the Site at $1.1 million to $1.23 million.
IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED The Developer proposes to purchase the Site from the Authority for $1.15 million. As such, the reuse value has not been determined as the sale of the Site is proposed to be at the appraised fair market value.
V. CONSIDERATION RECEIVED AND COMPARISON WITH THE ESTABLISHED VALUE
The Developer will purchase the Site for $1.15 million. As such, the Authority will receive consideration equal to the appraised fair market value of the Site.
VI. BLIGHT ELIMINATION
The Project will include four units restricted and sold to Moderate Income households. In accordance with California Redevelopment Law, as portrayed in Section 33433, the conveyance of property that results in the provision of housing for low- or moderate-income persons satisfies the blight elimination criteria imposed by Section 33433. Furthermore, the conveyance of the Site will assist in the elimination of blight by allowing for the redevelopment of a vacant property.
Thus, the Site fulfills the blight elimination requirement. 2507008.ANA Page 6
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VII. CONFORMANCE WITH THE AB1290 IMPLEMENTATION PLAN
Former redevelopment agencies were required to complete AB1290 Implementation Plans.
Upon dissolution of redevelopment, these plans were no longer required or updated.
However, the Former Agency’s AB1290 Implementation Plan for 2010 to 2014 includes the goal of expanding the community’s supply of housing, including opportunities for very low, low, and moderate income households. As such, the disposition of the Site conforms to the original goals envisioned in the last AB1290 Implementation Plan.