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Council approves Hermosa Village Phase 3 resendication and $23 million rehabilitation plan
Summary
The Anaheim Housing Authority and City Council approved a plan to resyndicate and rehabilitate Hermosa Village Phase 3 and 4, extending affordability and committing to about $23 million in renovations financed through tax credits and multifamily revenue bonds.
The Anaheim Housing Authority and City Council on Aug. 12 approved a preliminary award letter and option to ground lease for Hermosa Village Phase 3, clearing the way for a resendication and rehabilitation of aging affordable rental units at the Jeffrey Lynn neighborhood site.
Director presented staff with the redevelopment history and the scope of work. Staff said phase 3 and 4 together would see renovations to 112 units with accessibility upgrades: about 10% of units upgraded for mobility features and 4% upgraded for hearing and vision accommodations. Staff estimated the total rehabilitation cost at approximately $23,023,454.164 and told council the developer intends to seek a 4% low-income housing tax credit allocation and up to $37,000,000 in multifamily revenue bond allocation from the California Debt Limit Allocation Committee.
Director Steptor told the council the authority will not provide new financing; the developer will pursue tax credits and bond allocation and the authority and developer agreed to extend the ground lease and affordability commitment for an additional 55 years. Steptor said staff visited the property in February and concurred that rehabilitation was necessary to address visible wear and long-term viability.
During the public hearing, one speaker (Mark Herbert) urged increased public engagement and broader funding strategies for affordable housing citywide. Councilmember Kurtz asked specifically about tenant relocation and protections during renovations; staff replied relocation budgeting of approximately $1.3 million is included, relocation typically lasts about a week and options include temporary on-site moves to vacant units or hotel stays depending on the work required.
Council members expressed support for the preservation strategy and for ensuring tenant protections. The resolutions — approving the preliminary award letter, the option agreement/ground lease terms, and the Authority’s intent to issue tax-exempt obligations — passed in a single roll call: 7 ayes, no nays.
Staff said the developer plans to apply for state allocations in September 2025 and that work will include ADA upgrades and long-term maintenance improvements. The authority’s role is to support resendication and affordability extensions while the developer secures financing and executes the rehabilitation program.
