Anaheim to use $15M Disney donation for affordable housing
Anaheim to use $15M Disney donation for housing fund
A newly created and funded Anaheim affordable housing trust will help finance affordable communities, provide down payments for first-time homebuyers and help those at risk of eviction.
ANAHEIM, Calif. - Anaheim has launched a new affordable housing trust fund to address critical housing needs in the city.
Approved by the City Council on Thursday, the Anaheim Local Housing Trust Fund will provide financial assistance for affordable housing developments, offer down payment support for first-time homebuyers, and deliver emergency rent assistance to prevent evictions.
The fund begins with $16 million, primarily supported by a significant contribution from Walt Disney Co.
What we know:
The Anaheim City Council on Thursday approved guidelines and a spending plan for the Anaheim Local Housing Trust Fund.
The fund, established in August, is now active with $16 million in initial capital. This includes $15 million recently received from Walt Disney Co. and an additional $1 million from existing federal funding.
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The approved spending plan allocates $5 million to help finance future affordable communities, $5 million for first-time homebuyer assistance, and $1 million for rent assistance to those at risk of eviction.
An additional $4.5 million will be held for future use at the council's discretion, and $500,000 will cover administrative costs for the Anaheim Housing Authority, the city division managing the fund.
Affordable Housing:
Nearly $10 million from the trust is earmarked for the construction of new affordable housing communities. Anaheim currently has nearly 40 such communities, providing over 4,000 apartments.
These communities offer homes to individuals and families at various income levels, typically at or below Orange County’s median income of $136,600 for a family of four.
Residents pay rent based on their affordability, usually around one-third of their income. The trust's funding will be distributed among multiple projects.
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Developing affordable communities often costs $40 million or more, and nonprofit developers frequently face challenges in securing full financing. Anaheim typically contributes between $7 million and $15 million to these projects, which can include land, cash, and financing.
For example, the Miraflores Apartments, an 86-apartment affordable community near Anaheim City Hall, opened in December at a cost of $45 million, with Anaheim contributing $13 million in land and funding.
The new trust is expected to help bring about 250 to 300 affordable apartments across several upcoming communities, particularly those in planning or early construction along Beach Boulevard.
First-Time Homebuyers:
The housing trust will also support a citywide homebuyer assistance program. This initiative will provide a $50,000 loan for down payments to first-time homebuyers whose income is $200,000 or less.
The loan does not require repayment until the house is sold, refinanced, or the mortgage is paid off, making monthly mortgage payments more manageable.
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This program aims to encourage renters to transition to home ownership, allowing them to benefit from the financial advantages of property appreciation.
Rent Assistance:
$1 million from the trust is designated for rent assistance, projected to help approximately 200 households facing eviction.
Emergency grants of up to $5,000 will be provided in situations where eviction is pending.
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To qualify, households must have an income at or below half of the area’s current median income of $136,600 for a family of four.
Additional requirements include living or working in Anaheim for at least one year and demonstrating the ability to continue making rent payments beyond the emergency assistance grant.
Trust Funding:
A significant portion of the initial funding for the Anaheim housing trust, $15 million, comes from Disney as part of a development agreement for DisneylandForward.
his initiative, approved in 2024, involves zoning and planning changes to allow for new theme park attractions, entertainment, shopping, and dining on land owned or managed by Disneyland over the coming decades.
This expansion, largely on surface parking lots, is anticipated to generate new visitor revenue for Anaheim, supporting public safety, libraries, community centers, and other community services.
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The DisneylandForward development agreement mandates dedicated Disney payments for both affordable housing and parks. In total, Disney is committed to paying $30 million for affordable housing in two installments.
The city received the first $15 million in two payments on May 21 and May 28. The remaining payment is scheduled for 2030. Separately, the development agreement also included an $8 million payment for parks, which Disney paid on May 21.
The specific allocation of these park funds is currently in the planning stages and is expected to go towards improvements at various parks throughout the city.
The Source: Information for this story is from the City of Anaheim.