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Housing authority moves to buy Elm Street Commons to preserve 52 affordable units
Summary
The Anaheim Housing Authority voted to acquire Elm Street Commons Apartments and to purchase the primary loan for $2.88 million using low- and moderate-income housing funds to prevent foreclosure and maintain affordability for 52 units serving households at 30–60% AMI.
The Anaheim Housing Authority approved an option to purchase Elm Street Commons Apartments and authorized the purchase of the property's primary loan for $2,880,000 using low- and moderate-income housing funds, officials said on July 15. The authority also authorized a reserve of up to $230,000 for emergency maintenance during the interim ownership period.
The 52-unit rental property, located at 111–125 W. Elm Street, is 100% affordable and serves families earning between 30% and 60% of area median income (AMI). The authority’s original loan to the project had grown to roughly $10.4 million, including accrued interest, and the primary lender, the California Community Reinvestment Corporation (CCRC), had set a foreclosure auction after the owner stopped payments in November 2024.
Authority staff said they negotiated an auction-to-purchase agreement with the owner that would allow the housing authority to acquire owner interest for $100 and to step in as interim owner to stabilize operations, preserve affordability and then solicit a qualified developer to assume long-term ownership.
Staff described financial strain at the property caused by constrained rent limits under redevelopment-era rules, rising operating costs and owner decisions that left the property short on cash flow. To improve viability, staff asked the board to allow use of tax-credit (TCAC) rent limits where appropriate as a policy amendment, with phased increases for tenants and protections to ensure no family would pay more than 30% of income for housing.
The housing authority voted 7–0 to approve the purchase and related agreements. Staff said the authority intends to solicit proposals from qualified developers to take over ownership and move the property back to stable operations while preserving long-term affordability.
"Acquiring the property will preserve long-term affordability for the existing and future low-income households," staff said during the presentation.
