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Aliso Viejo council authorizes affordability covenants on two city-owned units
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Summary
The City Council voted unanimously to record affordability restriction covenants for 38 Colonial Way and 89 Playa Circle to comply with CDBG funding rules and housing element policy; Family Assistance Ministries outlined program services and agreed to strengthen tenant screening after neighbor concerns.
The Aliso Viejo City Council voted 5–0 to authorize staff to record affordability restriction covenants on two city-owned housing units at 38 Colonial Way and 89 Playa Circle, the city announced during its regular meeting. Staff said the covenants are required to preserve compliance with CDBG acquisition grant terms and to maintain the city’s housing element obligations, avoiding potential penalties or loss of grant eligibility.
Community Development Director So Kim told the council that the city acquired three units using Community Development Block Grant funds and currently only one is restricted; recording covenants for the remaining two would allow the properties to be sold while keeping them designated as affordable and would prevent the city from having to return federal acquisition funds. Staff reported four service calls to the Orange County Sheriff’s Department at 38 Colonial Way since acquisition in 2022 (one water leak in March 2025, one occupant overdose in December 2024, two suspicious-person reports in late 2024), which staff characterized as an average of about 1.6 calls per year for that unit and no police activity at the other two properties.
Anna Conte, CEO of Family Assistance Ministries (FAM), said FAM operates leased units at both addresses and described the program as a short-term, structured step toward self-sufficiency. Conte said FAM supported 126 households in Aliso Viejo during the past fiscal year and provided case management and transitional services; she acknowledged structural constraints when tenancy extends beyond planned program timelines and welcomed continued coordination with city staff.
Council members asked whether the city participates in tenant selection; So Kim stated the city does not select tenants and that FAM handles placement but has committed to strengthening screening and communication. Council member Hurt and others emphasized the need to remain in compliance with state and federal requirements, and to keep lines of communication open with the Vantage HOA and FAM to address neighbor concerns. The council voted to approve the staff recommendation to record the affordability restrictions for the two units.
The action preserves affordability for the two units, maintains the city’s funding compliance, and keeps the properties eligible for sale to income-qualified households under the recorded restrictions. Staff noted continued monitoring and coordination with FAM and the Sheriff’s Department.
